[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1345 Introduced in House (IH)]
104th CONGRESS
1st Session
H. R. 1345
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 29, 1995
Mr. Davis (for himself, Ms. Norton, Mr. Walsh, Mr. Dixon, Mr. Clinger,
Mrs. Collins of Illinois, Mr. McHugh, Mr. Gutknecht, Mr. LaTourette,
Mr. Flanagan, Mr. Fattah, Miss Collins of Michigan, Mr. Wolf, Mr.
Moran, Mrs. Morella, and Mr. Wynn) introduced the following bill; which
was referred to the Committee on Government Reform and Oversight
_______________________________________________________________________
A BILL
To eliminate budget deficits and management inefficiencies in the
government of the District of Columbia through the establishment of the
District of Columbia Financial Responsibility and Management Assistance
Authority, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``District of
Columbia Financial Responsibility and Management Assistance Act of
1995''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings; purpose.
TITLE I--ESTABLISHMENT AND ORGANIZATION OF AUTHORITY
Sec. 101. District of Columbia Financial Responsibility and Management
Assistance Authority.
Sec. 102. Executive director and staff of Authority.
Sec. 103. Powers of Authority.
Sec. 104. Exemption from liability for claims.
Sec. 105. Treatment of actions arising from act.
Sec. 106. Funding for operation of Authority.
Sec. 107. Suspension of activities.
Sec. 108. Application of laws of District of Columbia to Authority.
TITLE II--RESPONSIBILITIES OF AUTHORITY
Subtitle A--Establishment and Enforcement of Financial Plan and Budget
for District Government
Sec. 201. Development of financial plan and budget for District of
Columbia.
Sec. 202. Process for submission and approval of financial plan and
annual District budget.
Sec. 203. Review of activities of District government to ensure
compliance with approved financial plan and
budget.
Sec. 204. Restrictions on borrowing by District during control year.
``Sec. 601. Transitional provision for short-term advances.
``Sec. 602. Short-term advances for seasonal cash-flow
management.
``Sec. 603. Security for advances.
``Sec. 604. Reimbursement to the Treasury.
``Sec. 605. Definitions.
Sec. 205. Deposit of annual Federal payment with Authority.
Sec. 206. Effect of finding of non-compliance with financial plan and
budget.
Sec. 207. Recommendations on financial stability and management
responsibility.
Sec. 208. Special rules for fiscal year 1996.
Sec. 209. Control periods described.
Subtitle B--Issuance of Bonds
Sec. 211. Authority to issue bonds.
Sec. 212. Pledge of security interest in revenues of district
government.
Sec. 213. Establishment of debt service reserve fund.
Sec. 214. Other requirements for issuance of bonds.
Sec. 215. No full faith and credit of the United States.
Subtitle C--Other Duties of Authority
Sec. 221. Duties of Authority during year other than control year.
Sec. 222. General assistance in achieving financial stability and
management efficiency.
Sec. 223. Obtaining reports.
Sec. 224. Reports and comments.
TITLE III--MISCELLANEOUS PROVISIONS
Sec. 301. Other District budget reforms.
Sec. 302. Establishment of Chief Financial Officer of District of
Columbia.
Sec. 303. Revisions to powers and duties of Inspector General of
District of Columbia.
Sec. 304. Council approval of certain contracts.
Sec. 305. Definitions.
SEC. 2. FINDINGS; PURPOSE.
(a) Findings.--Congress finds the following:
(1) A combination of accumulated operating deficits, cash
shortages, management inefficiencies, and deficit spending in
the current fiscal year have created a fiscal emergency in the
District of Columbia.
(2) As a result of its current financial problems and
management inefficiencies, the District of Columbia government
fails to provide its citizens with effective and efficient
services in areas such as education, health care, crime
prevention, trash collection, drug abuse treatment and
prevention, human services delivery, and the supervision and
training of government personnel.
(3) The current financial and management problems of the
District government have already adversely affected the long-
term economic health of the District of Columbia by causing the
migration of residents and business out of the District of
Columbia and the failure of new residents and businesses to
move to the District of Columbia.
(4) The fiscal and management problems in the District of
Columbia government are pervasive across all segments of the
government.
(5) A comprehensive approach to fiscal, management, and
structural problems must be undertaken which exempts no part of
the District government and which preserves home rule for the
citizens of the District of Columbia.
(6) The current deficit of the District of Columbia must be
resolved over a multi-year period, since it cannot be
effectively addressed in a single year.
(7) The ability of the District government to obtain funds
from capital markets in the future will be severely diminished
without Congressional action to restore its financial
stability.
(8) The failure to improve the financial situation of the
District government will adversely affect the long-term
economic health of the entire National Capital region.
(9) The efficient operation of the Federal Government may
be adversely affected by the current problems of the District
of Columbia not only through the services the District
government provides directly to the Federal Government but
through services provided indirectly such as street and traffic
flow maintenance, public safety, and services affecting
tourism.
(b) Purpose.--The purposes of this Act are as follows:
(1) To eliminate budget deficits and cash shortages of the
District of Columbia through visionary financial planning,
sound budgeting, accurate revenue forecasts, and careful
spending.
(2) To ensure the most efficient and effective delivery of
services, including public safety services, by the District
government during a period of fiscal emergency.
(3) To conduct necessary investigations and studies to
determine the fiscal status and operational efficiency of the
District government.
(4) To assist the District government in--
(A) restructuring its organization and workforce to
ensure that the residents of the District of Columbia
are served by a local government that is efficient and
effective;
(B) achieving an appropriate relationship with the
Federal Government;
(C) ensuring the appropriate and efficient delivery
of services; and
(D) modernizing its budget, accounting, personnel,
procurement, information technology, and management
systems to ensure the maximum financial and performance
accountability of the District government and its
officers and employees.
(5) To enhance the District government's access to the
capital markets and to ensure the continued orderly payment of
its debt service obligations.
(6) To ensure the long-term financial, fiscal, and economic
vitality and operational efficiency of the District of
Columbia.
(7) To examine the programmatic and structural relationship
between the District government and the Federal Government.
(8) To provide for the review of the financial impact of
activities of the District government before such activities
are implemented or submitted for Congressional review.
(c) Rules of Construction.--Nothing in this Act may be construed--
(1) to relieve any obligations existing as of the date of
the enactment of this Act of the District government to repay
any individual or entity from whom the District has borrowed
funds, whether through the issuance of bonds or otherwise; or
(2) to limit the authority of Congress to exercise ultimate
legislative authority over the District of Columbia pursuant to
Article I, section 8, clause 17 of the Constitution of the
United States.
TITLE I--ESTABLISHMENT AND ORGANIZATION OF AUTHORITY
Title I
SEC. 101. DISTRICT OF COLUMBIA FINANCIAL RESPONSIBILITY AND MANAGEMENT
ASSISTANCE AUTHORITY.
(a) Establishment.--Pursuant to Article I, section 8, clause 17 of
the Constitution of the United States, there is hereby established the
District of Columbia Financial Responsibility and Management Assistance
Authority, consisting of members appointed by the President in
accordance with subsection (b). Subject to the conditions described in
section 108 and except as otherwise provided in this Act, the Authority
is established as an entity within the government of the District of
Columbia, and is not established as a department,
agency, establishment, or instrumentality of the United States
Government.
(b) Membership.--
(1) In general.--The Authority shall consist of 5 members
appointed by the President who meet the qualifications
described in subsection (c), except that the Authority may take
any action under this Act (or any amendments made by this Act)
at any time after the President has appointed 3 of its members.
(2) Consultation with congress.--The President shall
appoint the members of the Authority after consulting with the
Chair of the Committee on Appropriations and the Chair of the
Committee on Government Reform and Oversight of the House of
Representatives, the Chair of the Committee on Appropriations
and the Chair of the Committee on Governmental Affairs of the
Senate, and the Delegate to the House of Representatives from
the District of Columbia.
(3) Chair.--The President shall designate one of the
members of the Authority as the Chair of the Authority.
(4) Sense of congress regarding deadline for appointment.--
It is the sense of Congress that the President should appoint
the members of the Authority as soon as practicable after the
date of the enactment of this Act, but in no event later than
25 days after the date of the enactment of this Act.
(5) Term of service.--
(A) In general.--Except as provided in subparagraph
(B), each member of the Authority shall be appointed
for a term of 3 years.
(B) Appointment for term following initial term.--
As designated by the President at the time of
appointment for the term immediately following the
initial term, of the members appointed for the term
immediately following the initial term--
(i) 1 member shall be appointed for a term
of 1 year;
(ii) 2 members shall be appointed for a
term of 2 years; and
(iii) 2 members shall be appointed for a
term of 3 years.
(C) Removal.--The President may remove any member
of the Authority only for cause.
(c) Qualifications for Membership.--An individual meets the
qualifications for membership on the Authority if the individual--
(1) has knowledge and expertise in finance, management, and
the organization or operation of business or government;
(2) does not provide goods or services to the District
government (and is not the spouse, parent, child, or sibling of
an individual who provides goods and services to the District
government);
(3) is not an officer or employee of the District
government; and
(4) during the most recent taxable year prior to
appointment, paid personal income or business taxes to the
District government.
(d) No Compensation for Service.--Members of the Authority shall
serve without pay, but may receive reimbursement for any reasonable and
necessary expenses incurred by reason of service on the Authority.
(e) Adoption of By-Laws for Conducting Business of Authority.--
(1) In general.--As soon as practicable after the
appointment of its members, the Authority shall adopt by-laws,
rules, and procedures governing its activities under this Act,
including procedures for hiring experts and consultants. Such
by-laws, rules, and procedures shall be public documents, and shall be
submitted by the Authority upon adoption to the Mayor, the Council, the
President, and Congress.
(2) Certain activities requiring approval of majority of
members.--Under the by-laws adopted pursuant to paragraph (1),
the Authority may conduct its operations under such procedures
as it considers appropriate, except that an affirmative vote of
a majority of the members the Authority shall be required in
order for the Authority to--
(A) approve or disapprove a financial plan and
budget under subtitle A of title II;
(B) implement recommendations on financial
stability and management responsibility under section
207;
(C) give consent to the appointment of the Chief
Financial Officer of the District of Columbia under
section 424 of the District of Columbia Self-Government
and Governmental Reorganization Act (as added by
section 302); and
(D) give consent to the appointment of the
Inspector General of the District of Columbia under
section 208(a) of the District of Columbia Procurement
Practices Act of 1985 (as amended by section 303(a)).
(3) Adoption of rules and regulations of district of
columbia.--The Authority may incorporate in its by-laws, rules,
and procedures under this subsection such rules and regulations
of the District government as it considers appropriate to
enable it to carry out its activities under this Act with the
greatest degree of independence practicable.
SEC. 102. EXECUTIVE DIRECTOR AND STAFF OF AUTHORITY.
(a) Executive Director.--The Authority shall have an Executive
Director who shall be appointed by the Chair with the consent of the
Authority. The Executive Director shall be paid at a rate determined by
the Authority, except that such rate may not exceed the rate of basic
pay payable for level IV of the Executive Schedule.
(b) Staff.--With the approval of the Chair, the Executive Director
may appoint and fix the pay of additional personnel as the Executive
Director considers appropriate, except that no individual appointed by
the Executive Director may be paid at a rate greater than the rate of
pay for the Executive Director.
(c) Inapplicability of Certain Civil Service Laws.--The Executive
Director and staff of the Authority may be appointed without regard to
the provisions of title 5, United States Code, governing appointments
in the competitive service, and may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of that title
relating to classification and General Schedule pay rates.
(d) Staff of Federal Agencies.--Upon request of the Chair, the head
of any Federal department or agency may detail, on a reimbursable or
non-reimbursable basis, any of the personnel of that department or
agency to the Authority to assist it in carrying out its duties under
this Act.
(e) Preservation of Retirement and Certain Other Rights of Federal
Employees Who Become Employed by the Authority.--
(1) In general.--A Federal employee who, within 2 months
after separating from the Federal Government, becomes employed
by the Authority--
(A) may elect, for purposes of the retirement
system in which that individual last participated
before so separating, to have such individual's period
of service with the Authority treated in the same way
as if performed in the position within the Federal
Government from which separated, subject to the
requisite employee deductions and agency contributions
being currently deposited in the appropriate fund; and
(B) if, after serving with the Authority, such
employee becomes reemployed by the Federal Government,
shall be entitled to credit, for the full period of
such individual's service with the Authority, for
purposes of determining the applicable leave accrual
rate.
(2) Retirement.--
(A) Contributions.--For purposes of subparagraph
(A) of paragraph (1)--
(i) the employee deductions referred to in
such paragraph shall be made from basic pay for
service with the Authority, and shall be
computed using the same percentage as would
then apply if the individual were instead
serving in the position within the Federal
Government from which separated; and
(ii) the agency contributions referred to
in such paragraph shall be made by the
Authority.
(B) Double Coverage Not Permitted.--An individual
who makes an election under paragraph (1)(A) shall be
ineligible, while such election remains in effect, to participate in
any retirement system for employees of the government of the District
of Columbia.
(3) Regulations.--The Office of Personnel Management shall
prescribe such regulations as may be necessary to carry out
this subsection. Regulations to carry out paragraph (1)(A)
shall be prescribed in consultation with the office or agency
of the government of the District of Columbia having
jurisdiction over any retirement system referred to in
paragraph (2)(B).
SEC. 103. POWERS OF AUTHORITY.
(a) Hearings and Sessions.--The Authority may, for the purpose of
carrying out this Act, hold hearings, sit and act at times and places,
take testimony, and receive evidence as the Authority considers
appropriate. The Authority may administer oaths or affirmations to
witnesses appearing before it.
(b) Powers of Members and Agents.--Any member or agent of the
Authority may, if authorized by the Authority, take any action which
the Authority is authorized to take by this section.
(c) Obtaining Official Data.--
(1) From federal government.--Notwithstanding sections 552
(commonly known as the Freedom of Information Act) and 552b
(the Government in the Sunshine Act) of title 5, United States
Code, the Authority may secure directly from any department or
agency of the United States information necessary to enable it
to carry out this Act, with the approval of the head of that
department or agency.
(2) From district government.--Notwithstanding any other
provision of law, the Authority shall have the right to secure
copies of such records, documents, information, or data from
any entity of the District government necessary to enable the
Authority to carry out its responsibilities under this Act. At
the request of the Authority, the Authority shall be granted
direct access to such information systems, records, documents
or information or data as will enable the Authority to carry
out its responsibilities under this Act. The head of the entity
of the District government responsible shall provide the
Authority with such information and assistance (including
granting the Authority direct access to automated or other
information systems) as the Authority requires under this
paragraph.
(d) Gifts, Bequests, and Devises.--The Authority may accept, use,
and dispose of gifts, bequests, or devises of services or property,
both real and personal, for the purpose of aiding or facilitating the
work of the Authority. Gifts, bequests, or devises of money and
proceeds from sales of other property received as gifts, bequests, or
devises shall be deposited in such account as the Authority may
establish and shall be available for disbursement upon order of the
Chair.
(e) Subpoena Power.--
(1) In general.--The Authority may issue subpoenas
requiring the attendance and testimony of witnesses and the
production of any evidence relating to any matter under
investigation by the Authority. The attendance of witnesses and
the production of evidence may be required from any place
within the United States at any designated place of hearing
within the United States.
(2) Failure to obey a subpoena.--If a person refuses to
obey a subpoena issued under paragraph (1), the Authority may
apply to a United States district court for an order requiring
that person to appear before the Authority to give testimony,
produce evidence, or both, relating to the matter under
investigation. The application may be made within the judicial
district where the hearing is conducted or where that person is
found, resides, or transacts business. Any failure to obey the
order of the court may be punished by the court as civil
contempt.
(3) Service of subpoenas.--The subpoenas of the Authority
shall be served in the manner provided for subpoenas issued by
United States district court under the Federal Rules of Civil
Procedure for the United States district courts.
(4) Service of process.--All process of any court to which
application is be made under paragraph (2) may be served in the
judicial district in which the person required to be served
resides or may be found.
(f) Administrative Support Services.--Upon the request of the
Authority, the Administrator of General Services may provide to the
Authority, on a reimbursable basis, the administrative support services
necessary for the Authority to carry out its responsibilities under
this Act.
(g) Authority To Enter Into Contracts.--The Executive Director may
enter into such contracts as the Executive Director considers
appropriate (subject to the approval of the Chair) to carry out the
Authority's responsibilities under this Act.
(h) Civil Actions to Enforce Powers.--The Authority may seek
judicial enforcement of its authority to carry out its responsibilities
under this Act.
(i) Penalties.--
(1) Acts prohibited.--Any officer or employee of the
District government who--
(A) takes any action in violation of any valid
order of the Authority or fails or refuses to take any
action required by any such order; or
(B) prepares, presents, or certifies any
information (including any projections or estimates) or
report for the Board or any of its agents that is false
or misleading, or, upon learning that any such
information is false or misleading, fails to
immediately advise the Board or its agents thereof in
writing,
shall be guilty of a misdemeanor.
(2) Administrative discipline.--In addition to any other
applicable penalty, any officer or employee of the District
government who knowingly and willfully violates paragraph (1)
shall be subject to appropriate administrative discipline,
including (when appropriate) suspension from duty without pay
or removal from office by order of either the Mayor or
Authority.
(3) Report by mayor on disciplinary actions taken.--In the
case of a violation of paragraph (1) by an officer or employee
of the District government, the Mayor shall immediately report
to the Board all pertinent facts together with a statement of
the action taken thereon.
SEC. 104. EXEMPTION FROM LIABILITY FOR CLAIMS.
The Authority and its members may not be liable for any obligation
of or claim against the District of Columbia resulting from actions
taken to carry out this Act.
SEC. 105. TREATMENT OF ACTIONS ARISING FROM ACT.
(a) Jurisdiction Established in District Court for District of
Columbia.--Except as provided in section 103(e)(2) (relating to the
issuance of an order enforcing a subpoena), any action against the
Authority or any action otherwise arising out of this Act, in whole or
in part, shall be brought in the United States District Court for the
District of Columbia.
(b) Prompt Appeal.--
(1) Court of appeals.--Notwithstanding any other provision
of law, any order of the United States District Court for the
District of Columbia which is issued pursuant to an action
brought under subsection (a) shall be reviewable only pursuant
to a notice of appeal to the United States Court of Appeals for
the District of Columbia Circuit.
(2) Supreme court.--Notwithstanding any other provision of
law, review by the Supreme Court of the United States of a
decision of the Court of Appeals which is issued pursuant to
paragraph (1) may be had only if the petition for such review
is filed within 10 days after the entry of such decision.
(c) Timing of Relief.--No order of any court granting declaratory
or injunctive relief against the Authority, including relief permitting
or requiring the obligation, borrowing, or expenditure of funds, shall
take effect during the pendency of the action before such court, during
the time appeal may be taken, or (if appeal is taken) during the period
before the court has entered its final order disposing of such action.
(d) Expedited Consideration.--It shall be the duty of the United
States District Court for the District of Columbia, the United States
Court of Appeals for the District of Columbia Circuit, and the Supreme
Court of the United States to advance on the docket and to expedite to
the greatest possible extent the disposition of any matter brought
under subsection (a).
SEC. 106. FUNDING FOR OPERATION OF AUTHORITY.
(a) Annual Budgeting Process.--
(1) Submission of budget.--The Authority shall submit a
proposed budget for each fiscal year to the President for
inclusion in the annual budget for the District of Columbia
under part D of title IV of the District of Columbia Self-
Government and Governmental Reorganization Act not later than
the May 1 prior to the first day of the fiscal year. In the
case of the budget for fiscal year 1996, the Authority shall
submit its proposed budget not later than July 15, 1995.
(2) Contents of budget.--The budget shall describe--
(A) expenditures of the Authority by each object
class, including expenditures for staff of the
Authority;
(B) services of personnel and other services
provided by or on behalf of the Authority for which the
Authority made no reimbursement; and
(C) any gifts or bequests made to the authority
during the previous fiscal year.
(3) Appropriations required.--No amount may be obligated or
expended by the Authority for a fiscal year (beginning with
fiscal year 1996) unless such amount has been approved by Act
of Congress, and then only according to such Act.
(4) Conforming amendment.--Section 453(c) of the District
of Columbia Self-Government and Governmental Reorganization Act
(sec. 47-304.1(c), D.C. Code) is amended by striking the period
at the end and inserting the following: ``, or to the District
of Columbia Financial Responsibility and Management Assistance
Authority established under section 101(a) of the District of
Columbia Financial Responsibility and Management Assistance Act
of 1995.''.
(b) Special Rule for Funding of Operations During Fiscal Year
1995.--As soon as practicable after the appointment of its members, the
Authority shall submit to the Mayor and the President--
(1) a request for reprogramming of funds under subsection
(c)(1); and
(2) a description of anticipated expenditures of the
Authority for fiscal year 1995 (which shall be transmitted to
Congress).
(c) Sources of Funds.--
(1) Use of previously appropriated funds in district
budget.--The Mayor shall transfer funds previously appropriated
to the District government for a fiscal year for auditing and
consulting services to the Authority (in such amounts as are
provided in the budget request of the Authority under
subsection (a) or, with respect to fiscal year 1995, the
request submitted under subsection (b)(1)) for the purpose of
carrying out the Authority's activities during the fiscal year.
(2) Other sources of funds.--For provisions describing the
sources of funds available for the operations of the Authority
during a fiscal year (in addition to any interest earned on
accounts of the Authority during the year), see section
204(b)(1)(A) (relating to the set-aside of amounts
requisitioned from the Treasury by the Mayor) and section
213(b)(3) (relating to the use of interest accrued from amounts
in a debt service reserve fund of the Authority).
SEC. 107. SUSPENSION OF ACTIVITIES.
(a) Suspension Upon Payment of Authority Obligations.--
(1) In general.--Upon the expiration of the 12-month period
which begins on the date that the Authority certifies that all
obligations arising from the issuance by the Authority of
bonds, notes, or other obligations pursuant to subtitle B of
title II have been discharged, and that all borrowings by the
Authority pursuant to title VI of the District of Columbia Revenue Act
of 1939 (sec. 47-3401, D.C. Code) have been repaid, the Authority shall
suspend any activities carried out under this Act and the terms of the
members of the Authority shall expire.
(2) No suspension during control year.--The Authority may
not suspend its activities pursuant to paragraph (1) at any
time during a control year.
(b) Reactivation Upon Initiation of Control Period.--Upon receiving
notice from the Chairs of the Appropriations Committees of the House of
Representatives and the Senate that a control period has been initiated
(as described in section 209) at any time after the Authority suspends
its activities under subsection (a), the President shall appoint
members of the Authority, and the Authority shall carry out activities
under this Act, in the same manner as the President appointed members
and the Authority carried out activities prior to such suspension.
SEC. 108. APPLICATION OF LAWS OF DISTRICT OF COLUMBIA TO AUTHORITY.
(a) In General.--The following laws of the District of Columbia (as
in effect on the date of the enactment of this Act) shall apply to the
members and activities of the Authority:
(1) Section 742 of the District of Columbia Self-Government
and Governmental Reorganization Act (sec. 1-1504, D.C. Code).
(2) Sections 201 through 206 of the District of Columbia
Freedom of Information Act (secs. 1-1521 through 1-1526, D.C.
Code).
(3) Section 601 of the District of Columbia Campaign
Finance Reform and Conflict of Interest Act (sec. 1-1461, D.C.
Code).
(b) No Control, Supervision, Oversight, or Review by Mayor or
Council.--
(1) In general.--Neither the Mayor nor the Council may
exercise any control, supervision, oversight, or review over
the Authority or its activities.
(2) Prohibition against legislation affecting authority.--
Section 602(a) of the District of Columbia Self-Government and
Governmental Reorganization Act (sec. 1-233(a), D.C. Code) is
amended--
(A) by striking ``or'' at the end of paragraph (8);
(B) by striking the period at the end of paragraph
(9) and inserting ``; or''; and
(C) by adding at the end the following new
paragraph:
``(10) enact any act, resolution, or rule with respect to
the District of Columbia Financial Responsibility and
Management Assistance Authority established under section
101(a) of the District of Columbia Financial Responsibility and
Management Assistance Act of 1995.''.
(c) Authority Not Subject to Representation by Corporation
Counsel.--In any action brought by or on behalf of the Authority, and
in any action brought against the Authority, the Authority shall be
represented by such counsel as it may select, but in no instance may
the Authority be represented by the Corporation Counsel of the District
of Columbia.
TITLE II--RESPONSIBILITIES OF AUTHORITY
Subtitle A--Establishment and Enforcement of Financial Plan and Budget
for District Government
Title II, Subtitle A
SEC. 201. DEVELOPMENT OF FINANCIAL PLAN AND BUDGET FOR DISTRICT OF
COLUMBIA.
(a) Development of Financial Plan and Budget.--For each fiscal year
for which the District government is in a control period, the Mayor
shall develop and submit to the Authority a financial plan and budget
for the District of Columbia in accordance with this section.
(b) Contents of Financial Plan and Budget.--A financial plan and
budget for the District of Columbia for a fiscal year shall specify the
budgets for the District government under part D of title IV of the
District of Columbia Self-Government and Governmental Reorganization
Act for the applicable fiscal year and the next 3 fiscal years
(including the projected revenues and expenditures of each fund of the
District government for such years), in accordance with the following
requirements:
(1) The financial plan and budget shall meet the standards
described in subsection (c) to promote the financial stability
of the District government.
(2) The financial plan and budget shall provide for
estimates of revenues and expenditures on a modified accrual
basis.
(3) The financial plan and budget shall--
(A) describe lump sum expenditures by department by
object class;
(B) describe capital expenditures (together with a
schedule of projected capital commitments of the
District government and proposed sources of funding);
(C) contain estimates of short-term and long-term
debt (both outstanding and anticipated to be issued);
and
(D) contain cash flow forecasts for each fund of
the District government at such intervals as the
Authority may require.
(4) The financial plan and budget shall include a statement
describing methods of estimations and significant assumptions.
(5) The financial plan and budget shall include any other
provisions and shall meet such other criteria as the Authority
considers appropriate to meet the purposes of this Act,
including provisions for changes in personnel policies and
levels for each department or agency of the District
government, changes in the structure and organization of the
District government, and management initiatives to promote
productivity, improvement in the delivery of services, or cost
savings.
(c) Standards To Promote Financial Stability Described.--
(1) In general.--The standards to promote the financial
stability of the District government applicable to the
financial plan and budget for a fiscal year are as follows:
(A) In the case of the financial plan and budget
for fiscal year 1996, the expenditures of the District
government for each fiscal year (beginning with fiscal
year 1999) may not exceed the revenues of the District
government for each such fiscal year.
(B) During fiscal years 1996, 1997, and 1998, the
District government shall make continuous, substantial
progress towards equalizing the expenditures and
revenues of the District government for such fiscal
years (in equal annual installments to the greatest
extent possible).
(C) The District government shall provide for the
orderly liquidation of the cumulative fund balance
deficit of the District government, as evidenced by
financial statements prepared in accordance with
generally accepted accounting principles.
(D) If funds in accounts of the District government
which are dedicated for specific purposes have been
withdrawn from such accounts for other purposes, the
District government shall fully restore the funds to
such accounts.
(E) The financial plan and budget shall assure the
continuing long-term financial stability of the
District government, as indicated by factors including
access to short-term and long-term capital markets, the
efficient management of the District government's
workforce, and the effective provision of services by
the District government.
(2) Application of sound budgetary practices.--In meeting
the standards described in paragraph (1) with respect to a
financial plan and budget for a fiscal year, the District
government shall apply sound budgetary practices, including
reducing costs and other expenditures, improving productivity,
increasing revenues, or combinations of such practices.
(3) Assumptions based on current law.--In meeting the
standards described in paragraph (1) with respect to a
financial plan and budget for a fiscal year, the District
government shall base estimates of revenues and expenditures on
Federal law as in effect at the time of the preparation of the
financial plan and budget.
(d) Repeal of Offsets Against Federal Payment and Other District
Revenues.--Section 138 of the District of Columbia Appropriations Act,
1995, is amended--
(1) by striking subsection (c); and
(2) by redesignating subsections (d) and (e) as subsections
(c) and (d).
SEC. 202. PROCESS FOR SUBMISSION AND APPROVAL OF FINANCIAL PLAN AND
ANNUAL DISTRICT BUDGET.
(a) Submission of Preliminary Financial Plan and Budget by Mayor.--
Not later than the February 1 preceding a fiscal year for which the
District government is in a control period, the Mayor shall submit to
the Authority and the Council a financial plan and budget for the
fiscal year which meets the requirements of section 201.
(b) Review by Authority.--Upon receipt of the financial plan and
budget for a fiscal year from the Mayor under subsection (a), the
Authority shall promptly review the financial plan and budget. In
conducting the review, the Authority may request any additional
information it considers necessary and appropriate to carry out its
duties under this subtitle.
(c) Action Upon Approval of Mayor's Preliminary Financial Plan and
Budget.--
(1) Certification to mayor.--
(A) In general.--If the Authority determines that
the financial plan and budget for the fiscal year
submitted by the Mayor under subsection (a) meets the
requirements applicable under section 201--
(i) the Authority shall approve the
financial plan and budget and shall provide the
Mayor, the Council, the President, and Congress
with a notice certifying its approval; and
(ii) the Mayor shall promptly submit the
financial plan and budget to the Council
pursuant to section 442 of the District of
Columbia Self-Government and Governmental
Reorganization Act.
(B) Deemed approval after 30 days.--
(i) In general.--If the Authority has not
provided the Mayor, the Council, and Congress
with a notice certifying approval under
subparagraph (A)(i) or a statement of
disapproval under subsection (d)(1) upon the
expiration of the 30-day period which begins on
the date the Authority receives the financial
plan and budget from the Mayor under subsection
(a), the Authority shall be deemed to have
approved the financial plan and budget and to
have provided the Mayor, the Council, the
President, and Congress with the notice
certifying approval described in subparagraph
(A)(i).
(ii) Explanation of failure to respond.--If
clause (i) applies with respect to a financial
plan and budget, the Authority shall provide
the Mayor, the Council, the President and
Congress with an explanation for its failure to
provide the notice certifying approval or the
statement of disapproval during the 30-day
period described in such clause.
(2) Adoption of financial plan and budget by council after
receipt of approved financial plan and budget.--Notwithstanding
the first sentence of section 446 of the District of Columbia
Self-Government and Governmental Reorganization Act, not later
than 30 days after receiving the financial plan and budget for
the fiscal year from the Mayor under paragraph (1)(A)(ii), the
Council shall by Act adopt a financial plan and budget for the
fiscal year which shall serve as the adoption of the budgets of
the District government for the fiscal year under such section,
and shall submit such financial plan and budget to the Mayor
and the Authority.
(3) Review of council financial plan and budget by
authority.--Upon receipt of the financial plan and budget for a
fiscal year from the Council under paragraph (2) (taking into
account any items or provisions disapproved by the Mayor or
disapproved by the Mayor and reenacted by the Council under
section 404(f) of the District of Columbia Self-Government and
Governmental Reorganization Act, as amended by subsection
(f)(3)), the Authority shall promptly review the financial plan
and budget. In conducting the review, the Authority may request
any additional information it considers necessary and
appropriate to carry out its duties under this subtitle.
(4) Results of authority review of council's initial
financial plan and budget.--
(A) Approval of council's initial financial plan
and budget.--If the Authority determines that the
financial plan and budget for the fiscal year submitted
by the Council under paragraph (2) meets the
requirements applicable under section 201--
(i) the Authority shall approve the
financial plan and budget and shall provide the
Mayor, the Council, the President, and Congress
with a notice certifying its approval; and
(ii) the Council shall promptly submit the
financial plan and budget to the Mayor for
transmission to the President and Congress
under section 446 of the District of Columbia
Self-Government and Governmental Reorganization
Act.
(B) Disapproval of council's initial budget.--If
the Authority determines that the financial plan and
budget for the fiscal year submitted by the Council
under paragraph (2) does not meet the requirements
applicable under section 201, the Authority shall
disapprove the financial plan and budget, and shall
provide the Mayor, the Council, the President, and
Congress with a statement containing--
(i) the reasons for such disapproval;
(ii) the amount of any shortfall in the
budget or financial plan; and
(iii) any recommendations for revisions to
the budget the Authority considers appropriate
to ensure that the budget is consistent with
the financial plan and budget.
(C) Deemed approval after 15 days.--
(i) In general.--If the Authority has not
provided the Mayor, the Council, the President,
and Congress with a notice certifying approval
under subparagraph (A)(i) or a statement of
disapproval under subparagraph (B) upon the
expiration of the 15-day period which begins on
the date the Authority receives the financial
plan and budget from the Council under
paragraph (2), the Authority shall be deemed to
have approved the financial plan and budget and
to have provided the Mayor, the Council, the
President, and Congress with the notice
certifying approval described in subparagraph
(A)(i).
(ii) Explanation of failure to respond.--If
clause (i) applies with respect to a financial
plan and budget, the Authority shall provide
the Mayor, the Council, the President and
Congress with an explanation for its failure to
provide the notice certifying approval or the
statement of disapproval during the 15-day
period described in such clause.
(5) Authority review of council's revised financial plan
and budget.--
(A) Submission of council's revised financial plan
and budget.--Not later than 15 days after receiving the
statement from the Authority under paragraph (4)(B),
the Council shall promptly by Act adopt a revised
financial plan and budget for the fiscal year which
addresses the reasons for the Authority's disapproval
cited in the statement, and shall submit such financial
plan and budget to the Mayor and the Authority.
(B) Approval of council's revised financial plan
and budget.--If, after reviewing the revised financial
plan and budget for a fiscal year submitted by the
Council under subparagraph (A) in accordance with the
procedures described in this subsection, the Authority
determines that the revised financial plan and budget
meets the requirements applicable under section 201--
(i) the Authority shall approve the
financial plan and budget and shall provide the
Mayor, the Council, the President, and Congress
with a notice certifying its approval; and
(ii) the Council shall promptly submit the
financial plan and budget to the Mayor for
transmission to the President and Congress
under section 446 of the District of Columbia
Self-Government and Governmental Reorganization
Act.
(C) Disapproval of council's revised financial plan
and budget.--
(i) In general.--If, after reviewing the
revised financial plan and budget for a fiscal
year submitted by the Council under
subparagraph (A) in accordance with the
procedures described in this subsection, the
Authority determines that the revised financial
plan and budget does not meet the applicable
requirements under section 201, the Authority shall--
(I) disapprove the financial plan
and budget;
(II) provide the Mayor, the
Council, the President, and Congress
with a statement containing the reasons
for such disapproval and describing the
amount of any shortfall in the
financial plan and budget; and
(III) approve and recommend a
financial plan and budget for the
District government which meets the
applicable requirements under section
201, and submit such financial plan and
budget to the Mayor, the Council, the
President, and Congress.
(ii) Transmission of rejected financial
plan and budget.--The Council shall promptly
submit the revised financial plan and budget
disapproved by the Authority under this
subparagraph to the Mayor for transmission to
the President and Congress under section 446 of
the District of Columbia Self-Government and
Governmental Reorganization Act.
(D) Deemed approval after 15 days.--
(i) In general.--If the Authority has not
provided the Mayor, the Council, the President,
and Congress with a notice certifying approval
under subparagraph (B)(i) or a statement of
disapproval under subparagraph (C) upon the
expiration of the 15-day period which begins on
the date the Authority receives the revised
financial plan and budget submitted by the
Council under subparagraph (A), the Authority
shall be deemed to have approved the revised
financial plan and budget and to have provided
the Mayor, the Council, the President, and
Congress with the notice certifying approval
described in subparagraph (B)(i).
(ii) Explanation of failure to respond.--If
clause (i) applies with respect to a financial
plan and budget, the Authority shall provide
the Mayor, the Council, the President and
Congress with an explanation for its failure to
provide the notice certifying approval or the
statement of disapproval during the 15-day
period described in such clause.
(6) Deadline for transmission of financial plan and budget
by authority.--Notwithstanding any other provision of this
section, not later than the June 15 preceding each fiscal year
which is a control year, the Authority shall--
(A) provide Congress with a notice certifying its
approval of the Council's initial financial plan and
budget for the fiscal year under paragraph (4)(A);
(B) provide Congress with a notice certifying its
approval of the Council's revised financial plan and
budget for the fiscal year under paragraph (5)(B); or
(C) submit to Congress an approved and recommended
financial plan and budget of the Authority for the
District government for the fiscal year under paragraph
(5)(C).
(d) Action Upon Disapproval of Mayor's Preliminary Financial Plan
and Budget.--
(1) Statement of disapproval.--If the Authority determines
that the financial plan and budget for the fiscal year
submitted by the Mayor under subsection (a) does not meet the
requirements applicable under section 201, the Authority shall
disapprove the financial plan and budget, and shall provide the
Mayor and the Council with a statement containing--
(A) the reasons for such disapproval;
(B) the amount of any shortfall in the financial
plan and budget; and
(C) any recommendations for revisions to the
financial plan and budget the Authority considers
appropriate to ensure that the financial plan and
budget meets the requirements applicable under section
201.
(2) Authority review of mayor's revised financial plan and
budget.--
(A) Submission of mayor's revised financial plan
and budget.--Not later than 15 days after receiving the
statement from the Authority under paragraph (1), the
Mayor shall promptly submit to the Authority and the
Council a revised financial plan and budget for the
fiscal year which addresses the reasons for the
Authority's disapproval cited in the statement.
(B) Approval of mayor's revised financial plan and
budget.--If the Authority determines that the revised
financial plan and budget for the fiscal year submitted
by the Mayor under subparagraph (A) meets the
requirements applicable under section 201--
(i) the Authority shall approve the
financial plan and budget and shall provide the
Mayor, the Council, the President, and Congress
with a notice certifying its approval; and
(ii) the Mayor shall promptly submit the
financial plan and budget to the Council
pursuant to section 442 of the District of
Columbia Self-Government and Governmental
Reorganization Act.
(C) Disapproval of mayor's revised financial plan
and budget.--
(i) In general.--If the Authority
determines that the revised financial plan and
budget for the fiscal year submitted by the
Mayor under subparagraph (A) does not meet the
requirements applicable under section 201, the
Authority shall--
(I) disapprove the financial plan
and budget;
(II) shall provide the Mayor, the
Council, the President, and Congress
with a statement containing the reasons
for such disapproval; and
(III) recommend a financial plan
and budget for the District government
which meets the requirements applicable
under section 201 and submit such
financial plan and budget to the Mayor
and the Council.
(ii) Submission of rejected financial plan
and budget.--The Mayor shall promptly submit
the revised financial plan and budget
disapproved by the Authority under this
subparagraph to the Council pursuant to section
442 of the District of Columbia Self-Government
and Governmental Reorganization Act.
(D) Deemed approval after 15 days.--
(i) In general.--If the Authority has not
provided the Mayor, the Council, the President,
and Congress with a notice certifying approval
under subparagraph (B)(i) or a statement of
disapproval under subparagraph (C) upon the
expiration of the 15-day period which begins on
the date the Authority receives the revised
financial plan and budget submitted by the
Mayor under subparagraph (A), the Authority
shall be deemed to have approved the revised
financial plan and budget and to have provided
the Mayor, the Council, the President, and
Congress with the notice certifying approval
described in subparagraph (B)(i).
(ii) Explanation of failure to respond.--If
clause (i) applies with respect to a financial
plan and budget, the Authority shall provide
the Mayor, the Council, the President and
Congress with an explanation for its failure to
provide the notice certifying approval or the
statement of disapproval during the 15-day
period described in such clause.
(3) Action by council.--
(A) Adoption of financial plan and budget.--
Notwithstanding the first sentence of section 446 of
the District of Columbia Self-Government and
Governmental Reorganization Act, not later than 30 days
after receiving the Mayor's approved revised financial
plan and budget for the fiscal year under paragraph
(2)(B) or (in the case of a financial plan and budget
disapproved by the Authority) the financial plan and
budget recommended by the Authority under paragraph
(2)(C)(i)(III), the Council shall by Act adopt a
financial plan and budget for the fiscal year which
shall serve as the adoption of the budgets of the
District government for the fiscal year under such
section, and shall submit the financial plan and budget
to the Mayor and the Authority.
(B) Review by authority.--The financial plan and
budget submitted by the Council under subparagraph (A)
shall be subject to review by the Authority and
revision by the Council in the same manner as the
financial plan and budget submitted by the Council
after an approved preliminary financial plan and budget
of the Mayor under paragraphs (3), (4), (5), and (6) of
subsection (c).
(e) Revisions to Financial Plan and Budget.--
(1) Permitting mayor to submit revisions.--The Mayor may
submit proposed revisions to the financial plan and budget for
a control year to the Authority at any time during the year.
(2) Process for review, approval, disapproval, and council
action.--Except as provided in paragraph (3), the procedures
described in subsections (b), (c), and (d) shall apply with
respect to a proposed revision to a financial plan and budget
in the same manner as such procedures apply with respect to the
original financial plan and budget, except that subparagraph
(B) of subsection (c)(1) (relating to deemed approval by the
Authority of an 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 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 each Act passed by the Council and signed by the Mayor
during a control year or vetoed by the Mayor and repassed by
two-thirds of the Council present and voting during a control
year, and each Act passed by the Council and allowed to become
effective without the Mayor's signature during a control year,
together with the estimate of costs accompanying such Act
required under section 602(c)(3) of the District of Columbia
Self-Government and Governmental Reorganization Act (as added
by section 301(d)).
(2) Prompt review by authority.--Upon receipt of an Act
from the Council under paragraph (1), the Authority shall
promptly review the Act to determine whether it is consistent
with the applicable financial plan and budget approved under
this subtitle and with the estimate of costs accompanying the
Act (described in paragraph (1)).
(3) Actions by authority.--
(A) Approval.--Except as provided in subparagraph
(C), if the Authority determines that an Act is
consistent with the applicable financial plan and
budget, the Authority shall notify the Council that it
approves the Act, and the Council shall submit the Act
to Congress for review in accordance with section
602(c)(1) of the District of Columbia Self-Government
and Governmental Reorganization Act.
(B) Finding of inconsistency.--Except as provided
in subparagraph (C), if the Authority determines that
an Act is significantly inconsistent with the
applicable financial plan and budget, the Authority
shall--
(i) notify the Council that of its finding;
(ii) provide the Council with an
explanation of the reasons for its finding; and
(iii) to the extent the Authority considers
appropriate, provide the Council with
recommendations for modifications to the Act.
(C) Exception for emergency acts.--Subparagraphs
(A) and (B) shall not apply with respect to any act
which the Council determines according to section
412(a) of the District of Columbia Self-Government and
Governmental Reorganization Act should take effect
immediately because of emergency circumstances.
(4) Effect of finding.--If the Authority makes a finding
with respect to an Act under paragraph (3)(B), the Council may
not submit the Act to Congress for review in accordance with
section 602(c)(1) 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 for review
under paragraph (1) (and the Authority shall review the
contract or lease pursuant to paragraph (2)), and 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(b)(2),
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 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 to
the Authority only after the Council has approved the contract.
(c) Restrictions on Reprogramming of Amounts in Budget During
Control Years.--
(1) Submissions of requests to authority.--If the Mayor
submits a request to the Council for the reprogramming of any
amounts provided in a budget for a fiscal year which is a
control year after the budget is adopted by the Council, the
Mayor shall submit such request to the Authority, which shall
analyze the affect of the proposed reprogramming on the
financial plan and budget for the fiscal year and submit its
analysis to the Council not later than 15 days after receiving
the request.
(2) No action permitted until analysis received.--The
Council may not adopt a reprogramming during a fiscal year
which is a control year, and no officer or employee of the
District government may carry out any reprogramming during such
a year, until the Authority has provided the Council with an
analysis of a request for the reprogramming in accordance with
paragraph (1).
SEC. 204. RESTRICTIONS ON BORROWING BY DISTRICT DURING CONTROL YEAR.
(a) Prior Approval Required.--
(1) In general.--The District government may not borrow
money during a control year unless the Authority provides prior
certification that both the receipt of funds through such
borrowing and the repayment of obligations incurred through
such borrowing are consistent with the financial plan and
budget for the year.
(2) Revisions to financial plan and budget permitted.--If
the Authority determines that the borrowing proposed to be
undertaken by the District government is not consistent with
the financial plan and budget, the Mayor may submit to the
Authority a proposed revision to the financial plan and budget
in accordance with section 202(e) so that the borrowing will be
consistent with the financial plan and budget as so revised.
(3) Borrowing described.--This subsection shall apply with
respect to any borrowing undertaken by the District government,
including borrowing through the issuance of bonds under part E
of title IV of the District of Columbia Self-Government and
Governmental Reorganization Act, the exercise of authority to
obtain funds from the United States Treasury under title VI of
the District of Columbia Revenue Act of 1939 (sec. 47-3401,
D.C. Code), or any other means.
(4) Special rules for treasury borrowing during fiscal year
1995.--
(A) No prior approval required during initial
period following appointment.--The District government
may requisition advances from the United States
Treasury under title VI of the District of Columbia
Revenue Act of 1939 (sec. 47-3401, D.C. Code) without
the prior approval of the Authority during the 45-day
period which begins on the date of the appointment of
the members of the Authority (subject to the
restrictions described in such title, as amended by
subsection (c)).
(B) Criteria for approval during remainder of
fiscal year.--The District government may requisition
advances described in subparagraph (A) during the
portion of fiscal year 1995 occurring after the
expiration of the 45-day period described in such
subparagraph if the Authority finds that--
(i) both the receipt of funds through such
borrowing and the repayment of obligations
incurred through such borrowing are appropriate
steps to meet the needs of the District
government to reduce deficits and discharge
payment obligations; and
(ii) the District government is making
appropriate progress toward meeting its
responsibilities under this Act (and the
amendments made by this Act).
(b) Deposit of Funds Obtained Through Treasury With Authority.--
(1) Automatic deposit during control year.--If the Mayor
requisitions funds from the Secretary of the Treasury pursuant
to title VI of the District of Columbia Revenue Act of 1939
(sec. 47-3401, D.C. Code) during a control year (beginning with
fiscal year 1996), such funds shall be deposited by the
Secretary into an escrow account held by the Authority, to be
used as follows:
(A) The Authority shall expend a portion of the
funds for its operations during the fiscal year in
which the funds are requisitioned, in such amount and
under such conditions as are established under the
budget of the Authority for the fiscal year under
section 106(a).
(B) The Authority shall allocate the remainder of
such funds to the Mayor at such intervals and in
accordance with such terms and conditions as it
considers appropriate, consistent with the financial
plan and budget for the year and with any other
withholding of funds by the Authority pursuant to this
Act.
(2) Optional deposit during fiscal year 1995.--
(A) During initial period following appointment.--
If the Mayor requisitions funds described in paragraph
(1) during the 45-day period which begins on the date
of the appointment of the members of the Authority, the
Secretary of the Treasury shall notify the Authority,
and at the request of the Authority shall deposit such
funds into an escrow account held by the Authority in
accordance with paragraph (1).
(B) During remainder of fiscal year.--If the Mayor
requisitions funds described in paragraph (1) during
the portion of fiscal year 1995 occurring after the
expiration of the 45-day period described in
subparagraph (A), the Secretary of the Treasury shall
deposit such funds into an escrow account held by the
Authority in accordance with paragraph (1) at the
request of the Authority.
(c) Conditions on Requisitions From Treasury.--Title VI of the
District of Columbia Revenue Act of 1939 (sec. 47-3401, D.C. Code) is
amended by striking all after the heading and inserting the following:
``SEC. 601. TRANSITIONAL PROVISION FOR SHORT-TERM ADVANCES.
``(a) Transitional Short-Term Advances Made Before October 1,
1995.--
``(1) In general.--If the conditions in paragraph (2) are
satisfied, the Secretary shall make an advance of funds from
time to time, out of any money in the Treasury not otherwise
appropriated, for the purpose of assisting the District
government in meeting its general expenditures, as authorized
by Congress.
``(2) Conditions to making any transitional short-term
advance before october 1, 1995.--The Secretary shall make an
advance under this subsection if the following conditions are
satisfied:
``(A) the Mayor delivers to the Secretary a
requisition for an advance under this section;
``(B) as of the date on which the requisitioned
advance is to be made, the Authority has not approved a
financial plan and budget for the District government
as meeting the requirements of the District of Columbia
Financial Responsibility and Management Assistance Act
of 1995;
``(C) the date on which the requisitioned advance
is to be made is not later than September 30, 1995;
``(D) the District government has delivered to the
Secretary--
``(i) a schedule setting forth the
anticipated timing and amounts of requisitions
for advances under this subsection; and
``(ii) evidence demonstrating to the
satisfaction of the Secretary that the District
government is effectively unable to obtain
credit in the public credit markets or
elsewhere in sufficient amounts and on
sufficiently reasonable terms to meet the
District government's financing needs;
``(E) the Secretary determines that there is
reasonable assurance of reimbursement for the advance
from the amount authorized to be appropriated as the annual Federal
payment to the District of Columbia under title V of the District of
Columbia Self-Government and Governmental Reorganization Act for the
fiscal year ending September 30, 1996; and
``(F) except during the 45-day period beginning on
the date of the appointment of the members of the
Authority, the Authority makes the findings described
in section 204(a)(4)(B) of the District of Columbia
Financial Responsibility and Management Assistance Act
of 1995.
``(3) Amount of any transitional short-term advance made
before october 1, 1995.--
``(A) In general.--Except as provided in
subparagraph (C), if the conditions described in
subparagraph (B) are satisfied, each advance made under
this subsection shall be in the amount designated by
the Mayor in the Mayor's requisition for such advance
(subject to the approval of the Authority), 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
90-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).
``(C) Aggregate maximum amount outstanding.--The
sum of the anticipated principal and interest
requirements of all advances made under this subsection
may not be greater than the fiscal year 1995 limit.
``(D) Fiscal year 1995 limit described.--In this
paragraph, the `fiscal year 1995 limit' means the
amount authorized to be appropriated to the District of
Columbia as the annual Federal payment to the District
of Columbia under title V of the District of Columbia
Self-Government and Governmental Reorganization Act for
the fiscal year ending September 30, 1995.
``(4) Maturity of any transitional short-term advance made
before october 1, 1995.--
``(A) In general.--Except as provided in
subparagraph (B), each advance made under this
subsection shall mature on the date designated by the
Mayor in the Mayor's requisition for such advance.
``(B) Latest permissible maturity date.--
Notwithstanding subparagraph (A), the maturity date for
any advance made under this subsection shall not be
later than October 1, 1995.
``(5) Interest rate.--Each advance made under this
subsection shall bear interest at an annual rate equal to the
rate determined by the Secretary at the time that the Secretary
makes such advance taking into consideration the prevailing
yield on outstanding marketable obligations of the United
States with remaining periods to maturity comparable to the
maturity of such advance, plus \1/8\ of 1 percent.
``(6) Deposit of advances.--
``(A) In general.--Except as provided in
subparagraph (B), each advance made under this
subsection for the account of the District government
shall be deposited by the Secretary into such account
as is designated by the Mayor in the Mayor's
requisition for such advance.
``(B) Exception.--Notwithstanding subparagraph (A),
if (in accordance with section 204(b)(2) of the
District of Columbia Financial Responsibility and
Management Assistance Act of 1995) the Authority
delivers a letter requesting the Secretary to deposit
all advances made under this subsection for the account
of the District government in an escrow account held by
the Authority, each advance made under this subsection
for the account of the District government after the
date of such letter shall be deposited by the Secretary
into the escrow account specified by the Authority in such letter.
``(b) Transitional Short-Term Advances Made on or After October 1,
1995 and before February 1, 1996.--
``(1) In general.--If the conditions in paragraph (2) are
satisfied, the Secretary shall make an advance of funds from
time to time, out of any money in the Treasury not otherwise
appropriated, for the same purpose as advances are made under
subsection (a).
``(2) Terms and conditions.--
``(A) In general.--Except as provided in
subparagraph (B), paragraphs (2), (4), and (5) of
subsection (a) (other than subparagraph (F) of
paragraph (2)) shall apply to any advance made under
this subsection.
``(B) Exceptions.--
``(i) New conditions precedent to making
advances.--The conditions described in
subsection (a)(2) shall apply with respect to
making advances on or after October 1, 1995, in
the same manner as such conditions apply with
respect to making advances before October 1,
1995, except that--
``(I) subparagraph (C) (relating to
the last day on which advances may be
made) shall be applied as if the
reference to `October 1, 1995' were a
reference to `February 1, 1996';
``(II) subparagraph (E) (relating
to the Secretary's determination of
reasonable assurance of reimbursement
from the annual Federal payment
appropriated to the District
government) 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 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'.
``(iii) 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 1996 limit.
``(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 (subject to the
approval of the Authority).
``(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).
``(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) 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).
``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 the fiscal year for
which the requisition is to be made;
``(C) at the time of the Mayor's requisition for an
advance, the District government is in compliance with
the financial plan and budget;
``(D) both the receipt of funds from such advance
and the reimbursement of Treasury for such advance are
consistent with the financial plan and budget for the
year; and
``(E) such advance will not adversely affect the
financial stability of the District government;
``(4) the Authority certifies to the Secretary, at the time
of the Mayor's requisition for an advance, 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.--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 150 percent of
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 government
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, 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 to reimburse the Secretary for
advances made under title VI of such Act.
(b) Expenditure of Funds from Account in Accordance With Authority
Instructions.--Any funds allocated by the Authority to the Mayor from
the escrow account described in paragraph (1) may be expended by the
Mayor only in accordance with the terms and conditions established by
the Authority at the time the funds are allocated.
SEC. 206. EFFECT OF FINDING OF NON-COMPLIANCE WITH FINANCIAL PLAN AND
BUDGET.
(a) Submission of Reports.--Not later than 30 days after the
expiration of each quarter of each fiscal year (beginning with fiscal
year 1996), the Mayor shall submit reports to the Authority describing
the actual revenues obtained and expenditures made by the District
government during the quarter with its cash flows during the quarter,
and comparing such actual revenues, expenditures, and cash flows with
the most recent projections for these items.
(b) Demand for Additional Information.--If the Authority
determines, based on reports submitted by the Mayor under subsection
(a), independent audits, or such other information as the Authority may
obtain, that the revenues or expenditures of the District government
during a control year are not consistent with the financial plan and
budget for the year, the Authority shall require the Mayor to provide
such additional information as the Authority determines to be necessary
to explain the inconsistency.
(c) Certification of Variance.--
(1) In general.--After requiring the Mayor to provide
additional information under subsection (b), the Authority
shall certify to the Council, the President, the Secretary of
the Treasury, and Congress that the District government is at
variance with the financial plan and budget unless--
(A)(i) the additional information provides an
explanation for the inconsistency which the Authority
finds reasonable and appropriate, or
(ii) the District government adopts or implements
remedial action (including revising the financial plan
and budget pursuant to section 202(e)) to correct the
inconsistency which the Authority finds reasonable and
appropriate, taking into account the terms of the
financial plan and budget; and
(B) the Mayor agrees to submit the reports
described in subsection (a) on a monthly basis for such
period as the Authority may require.
(2) Special rule for inconsistencies attributable to acts
of congress.--
(A) Determination by authority.--If the Authority
determines that the revenues or expenditures of the
District government during a control year are not
consistent with the financial plan and budget for the
year as approved by the Authority under section 202 as
a result of the terms and conditions of the budget of
the District government for the year as enacted by
Congress or as a result of any other law enacted by
Congress which affects the District of Columbia, the
Authority shall so notify the Mayor.
(B) Certification.--In the case of an inconsistency
described in subparagraph (A), the Authority shall
certify to the Council, the President, the Secretary of
the Treasury, and Congress that the District government
is at variance with the financial plan and budget
unless the District government adopts or implements
remedial action (including revising the financial plan
and budget pursuant to section 202(e)) to correct the
inconsistency which the Authority finds reasonable and
appropriate, taking into account the terms of the
financial plan and budget.
(d) Effect of Certification.--If the Authority certifies to the
Secretary of the Treasury that a variance exists--
(1) the Authority may withhold any funds deposited with the
Authority under section 204(b) or section 205(a) which would
otherwise be expended on behalf of the District government; and
(2) the Secretary shall withhold funds otherwise payable to
the District of Columbia under such Federal programs as the
Authority may specify (other than funds dedicated to making
entitlement or benefit payments to individuals), in such
amounts and under such other conditions as the Authority may
specify.
SEC. 207. RECOMMENDATIONS ON FINANCIAL STABILITY AND MANAGEMENT
RESPONSIBILITY.
(a) In General.--The Authority may at any time submit
recommendations to the Mayor, the Council, the President, and Congress
on actions the District government or the Federal Government may take
to ensure compliance with a financial plan and budget or to otherwise
promote the financial stability, management responsibility, and service
delivery efficiency of the District government, including
recommendations relating to--
(1) the management of the District government's financial
affairs, including cash forecasting, information technology,
placing controls on expenditures for personnel, reducing
benefit costs, reforming procurement practices, and placing
other controls on expenditures;
(2) the relationship between the District government and
the Federal Government;
(3) the structural relationship of departments, agencies,
and independent agencies within the District government;
(4) the modification of existing revenue structures, or the
establishment of additional revenue structures;
(5) the establishment of alternatives for meeting
obligations to pay for the pensions of former District
government employees;
(6) modifications or transfers of the types of services
which are the responsibility of and are delivered by the
District government;
(7) modifications of the types of services which are
delivered by entities other than the District government under
alternative service delivery mechanisms (including
privatization and commercialization);
(8) the effects of District of Columbia laws and court
orders on the operations of the District government;
(9) the establishment of a personnel system for employees
of the District government which is based upon employee
performance standards; and
(10) the improvement of personnel training and proficiency,
the adjustment of staffing levels, and the improvement of
training and performance of management and supervisory
personnel.
(b) Response to Recommendations for Actions Within Authority of
District Government.--
(1) In general.--In the case of any recommendations
submitted under subsection (a) during a control year which are
within the authority of the District government to adopt, not
later than 90 days after receiving the recommendations, the
Mayor or the Council (whichever has the authority to adopt the
recommendation) shall submit a statement to the Authority, the
President, and Congress which provides notice as to whether the
District government will adopt the recommendations.
(2) Implementation plan required for adopted
recommendations.--If the Mayor or the Council (whichever is
applicable) notifies the Authority and Congress under paragraph
(1) that the District government will adopt any of the
recommendations submitted under subsection (a), the Mayor or
the Council (whichever is applicable) shall include in the
statement a written plan to implement the recommendation which
includes--
(A) specific performance measures to determine the
extent to which the District government has adopted the
recommendation; and
(B) a schedule for auditing the District
government's compliance with the plan.
(3) Explanations required for recommendations not
adopted.--If the Mayor or the Council (whichever is applicable)
notifies the Authority, the President, and Congress under
paragraph (1) that the District government will not adopt any
recommendation submitted under subsection (a) which the
District government has authority to adopt, the Mayor or the
Council shall include in the statement explanations for the
rejection of the recommendations.
(c) Implementation of Rejected Recommendations by Authority.--
(1) In general.--If the Mayor or the Council (whichever is
applicable) notifies the Authority, the President, and Congress
under subsection (b)(1) that the District government will not adopt any
recommendation submitted under subsection (a) which the District
government has authority to adopt, the Authority may by a majority vote
of its members take such action concerning the recommendation as it
deems appropriate, after consulting with the Committee on Government
Reform and Oversight of the House of Representatives and the Committee
on Governmental Affairs of the Senate.
(2) Effective date.--This subsection shall apply with
respect to recommendations of the Authority made after the
expiration of the 6-month period which begins on the date of
the enactment of this Act.
SEC. 208. SPECIAL RULES FOR FISCAL YEAR 1996.
(a) Adoption of Transition Budget.--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)(3)) 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)(3)), 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 should be canceled if the Authority finds that
the District government is making such progress after the
certification is provided.
(3) Prohibition against allocation of advances if
certification in effect.--At any time during which a
certification under paragraph (2) is in effect, Authority may
not allocate any funds obtained through advances to the Mayor
under title VI of the District of Columbia Revenue Act of 1939
from the escrow account in which the funds are held.
SEC. 209. CONTROL PERIODS DESCRIBED.
(a) Initiation.--For purposes of this Act, a ``control period'' is
initiated upon the occurrence of any of the following events (as
determined by the Authority based upon information obtained through the
Mayor, the Inspector General of the District of Columbia, or such other
sources as the Authority considers appropriate):
(1) The requisitioning by the Mayor of advances from the
Treasury of the United States for the support of the District
government 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 of title II.
(3) The default by the District government with respect to
any loans, bonds, notes, or other form of borrowing.
(4) The failure of the District government to meet its
payroll for any pay period.
(5) The existence of a cash deficit of the District
government at the end of any quarter of the fiscal year in
excess of the difference between the estimated revenues of the
District government and the estimated expenditures of the
District government (including repayments of temporary
borrowings) during the remainder of the fiscal year or the
remainder of the fiscal year together with the first 6 months
of the succeeding fiscal year (as determined by the Authority
in consultation with the Chief Financial Officer of the
District of Columbia).
(6) The failure of the District government to make required
payments relating to pensions and benefits for current and
former employees of the District government.
(7) The failure of the District government to make required
payments to any entity established under an interstate compact
to which the District of Columbia is a signatory.
(b) Termination.--
(1) In general.--A control period terminates upon the
certification by the Authority that--
(A) the District government has adequate access to
both short-term and long-term credit markets at
reasonable interest rates to meet its borrowing needs;
and
(B) for 4 consecutive fiscal years (occurring after
the date of the enactment of this Act) the expenditures
made by the District government during each of the
years did not exceed the revenues of the District
government during such years (as determined in
accordance with generally accepted accounting
principles, as contained in the comprehensive annual
financial report for the District of Columbia under
section 448(a)(4) of the District of Columbia Self-
Government and Governmental Reorganization Act).
(2) Consultation with inspector general.--In making the
determination under this subsection, the Authority shall
consult with the Inspector General of the District of Columbia.
(c) Control Period Deemed to Exist Upon Enactment.--For purposes of
this subtitle, a control period is deemed to exist upon the enactment
of this Act.
Subtitle B--Issuance of Bonds
Title II, Subtitle B
SEC. 211. AUTHORITY TO ISSUE BONDS.
(a) In General.--
(1) Request of mayor.--Subject to the requirements of this
subtitle, the Authority may at the request of the Mayor
pursuant to an act of the Council issue bonds, notes, or other
obligations to borrow funds to obtain funds for the use of the
District government, in such amounts and in such manner as the
Authority considers appropriate.
(2) Special rule for instrumentalities with independent
borrowing authority.--In the case of an agency or
instrumentality of the District government which under law has
the authority to issue bonds, notes, or obligations to borrow
funds without the enactment of an act of the Council, the
Authority may issue bonds, notes, or other obligations to
borrow funds for the use or functions of such agency or
instrumentality at the request of the head of the agency or
instrumentality.
(b) Deposit of Funds Obtained Through Borrowing With Authority.--
Any funds obtained by the District government through borrowing by the
Authority pursuant to this subtitle shall be deposited into an escrow
account held by the Authority, which shall allocate such funds to the
District government in such amounts and at such times as the Authority
considers appropriate, consistent with the specified purposes of such
funds and the applicable financial plan and budget under subtitle A.
(c) Uses of Funds Obtained Through Bonds.--Any funds obtained
through the issuance of bonds, notes, or other obligations pursuant to
this subtitle may be used for any purpose (consistent with the
applicable financial plan and budget) under subtitle A for which the
District government may use borrowed funds under the District of
Columbia Self-Government and Governmental Reorganization Act and for
any other purpose which the Authority considers appropriate.
SEC. 212. PLEDGE OF SECURITY INTEREST IN REVENUES OF DISTRICT
GOVERNMENT.
(a) In General.--The Authority may pledge or grant a security
interest in revenues to individuals or entities purchasing bonds,
notes, or other obligations issued pursuant to this subtitle.
(b) Dedication of Revenue Stream From District Government.--The
Authority shall require the Mayor--
(1) to pledge or direct taxes or other revenues otherwise
payable to the District government (which are not otherwise
pledged or committed), including payments from the Federal
Government, to the Authority for purposes of securing repayment
of bonds, notes, or other obligations issued pursuant to this
subtitle; and
(2) to transfer the proceeds of any tax levied for purposes
of securing such bonds, notes, or other obligations to the
Authority immediately upon collection.
SEC. 213. ESTABLISHMENT OF DEBT SERVICE RESERVE FUND.
(a) In General.--As a condition for the issuance of bonds, notes,
or other obligations pursuant to this subtitle, the Authority shall
establish a debt service reserve fund in accordance with this section.
(b) Requirements for Fund.--
(1) Fund described.--A debt service reserve fund
established by the Authority pursuant to this subsection shall
consist of such funds as the Authority may make available, and
shall be a trust fund held for the benefit and security of the
obligees of the Authority whose bonds, notes, or other
obligations are secured by such fund.
(2) Uses of funds.--Amounts in a debt service reserve fund
may be used solely for the payment of the principal of bonds
secured in whole or in part by such fund, the purchase or
redemption of such bonds, the payment of interest on such
bonds, or the payment of any redemption premium required to be
paid when such bonds and notes are redeemed prior to maturity.
(3) Restrictions on withdrawals.--
(A) In general.--Amounts in a debt service reserve
fund may not be withdrawn from the fund at any time in
an amount that would reduce the amount of the fund to
less than the minimum reserve fund requirement
established for such fund in the resolution of the
Authority creating such fund, except for withdrawals
for the purpose of making payments when due of
principal, interest, redemption premiums and sinking
fund payments, if any, with respect to such bonds for
the payment of which other moneys of the Authority are
not available, and for the purpose of funding the
operations of the Authority for a fiscal year (in such
amounts and under such conditions as are established
under the budget of the Authority for the fiscal year
under section 106(a)).
(B) Use of excess funds.--Nothing in subparagraph
(A) may be construed to prohibit the Authority from
transferring any income or interest earned by, or
increments to, any debt service reserve fund due to the
investment thereof to other funds or accounts of the
Authority (to the extent such transfer does not reduce
the amount of the debt service reserve fund below the
minimum reserve fund requirement established for such
fund) for such purposes as the Authority considers
appropriate to promote the financial stability and
management efficiency of the District government.
SEC. 214. OTHER REQUIREMENTS FOR ISSUANCE OF BONDS.
(a) Minimum Debt Service Reserve Fund Requirement.--The Authority
may not at any time issue bonds, notes, or other obligations pursuant
to this subtitle which are secured in whole or in part by a debt
service reserve fund under section 213 if issuance of such bonds would
cause the amount in the debt reserve fund to fall below the minimum
reserve requirement for such fund, unless the Authority at the time of
issuance of such bonds shall deposit in the fund an amount (from the
proceeds of the bonds to be issued or from other sources) which when
added to the amount already in such fund will cause the total amount on
deposit in such fund to equal or exceed the minimum reserve fund
requirement established by the Authority at the time of the
establishment of the fund.
(b) Amounts Included in Aggregate Limit on District Borrowing.--Any
amounts provided to the District government through the issuance of
bonds, notes, or other obligations to borrow funds pursuant to this
subtitle shall be taken into account in determining whether the amount
of funds borrowed by the District of Columbia during a fiscal year
exceeds the limitation on such amount provided under section 603(b) of
the District of Columbia Self-Government and Governmental
Reorganization Act.
SEC. 215. NO FULL FAITH AND CREDIT OF THE UNITED STATES.
The full faith and credit of the United States is not pledged for
the payment of any principal of or interest on any bond, note, or other
obligation issued by the Authority pursuant to this subtitle. The
United States is not responsible or liable for the payment of any
principal of or interest on any bond, note, or other obligation issued
by the Authority pursuant to this subtitle.
Subtitle C--Other Duties of Authority
Title II, Subtitle C
SEC. 221. DUTIES OF AUTHORITY DURING YEAR OTHER THAN CONTROL YEAR.
(a) In General.--During the period beginning upon the termination
of a control period pursuant to section 209(b) and ending with the
suspension of its activities pursuant to section 107(a), the Authority
shall conduct the following activities:
(1) The Authority shall review the budgets of the District
government adopted by the Council under section 446 of the
District of Columbia Self-Government and Governmental
Reorganization Act for each fiscal year occurring during such
period.
(2) At such time prior to the enactment of such budget by
Congress as the Authority considers appropriate, the Authority
shall prepare a report analyzing the budget and submit the
report to the Mayor, the Council, the President, and Congress.
(3) The Authority shall monitor the financial status of the
District government and shall submit reports to the Mayor, the
Council, the President, and Congress if the Authority
determines that a risk exists that a control period may be
initiated pursuant to section 209(a).
(4) The Authority shall carry out activities under subtitle
B with respect to bonds, notes, or other obligations of the
Authority outstanding during such period.
(b) Requiring Mayor to Submit Budgets to Authority.--With respect
to the budget for each fiscal year beginning after the date of the
enactment of this Act which is not a control year, 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 stability and management
efficiency on the financial plan and budget for the year and on the
District government in general.
(e) Making Reports Publicly Available.--The Authority shall make
any report submitted under this section available to the public, except
to the extent that the Authority determines that the report contains
confidential material.
TITLE III--MISCELLANEOUS PROVISIONS
Title III
SEC. 301. OTHER DISTRICT BUDGET REFORMS.
(a) Inclusion of All Funds of District in Budget of District
Government.--
(1) In general.--Section 103 of such 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), as amended by
section 202(f), is amended by adding at the end the following new
subsection:
``(e) The Mayor shall prepare and submit to the Council a proposed
supplemental or deficiency budget recommendation under subsection (c)
if the Council by resolution requests the Mayor to submit such a
recommendation.''.
(d) Requiring Budgetary Impact Statements to Accompany Acts of
Council.--
(1) In general.--Section 602(c) of the District of Columbia
Self-Government and Governmental Reorganization Act (sec. 1-
233(c), D.C. Code) is amended by adding at the end the
following new paragraph:
``(3) The Council shall submit with each Act transmitted under this
subsection an estimate of the costs which will be incurred by the
District of Columbia as a result of the enactment of the Act in each of
the first 4 fiscal years for which the Act is in effect, together with
a statement of the basis for such estimate.''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to Acts of the Council transmitted on or after
October 1, 1995.
(e) Extension of Authorization of Annual Federal Payment.--Section
503(c) of the District of Columbia Self-Government and Governmental
Reorganization Act (sec. 47-3406.1(c), D.C. Code), as added by section
2 of the Federal Payment Reauthorization Act of 1994, is amended by
striking ``fiscal year 1996'' and inserting ``each of the fiscal years
1996, 1997, 1998, and 1999''.
SEC. 302. ESTABLISHMENT OF CHIEF FINANCIAL OFFICER OF DISTRICT OF
COLUMBIA.
(a) In General.--Part B of title IV of the District of Columbia
Self-Government and Governmental Reorganization Act is amended by
adding at the end the following new section:
``chief financial officer of the district of columbia
``Sec. 424. (a) Establishment of Office.--
``(1) In general.--There is hereby established within the
executive branch of the government of the District of Columbia
an Office of the Chief Financial Officer of the District of
Columbia (hereafter referred to as the `Office'), which shall
be headed by the Chief Financial Officer of the District of
Columbia (hereafter referred to as the `Chief Financial
Officer').
``(2) Office of the treasurer.--The Office shall include
the Office of the Treasurer, which shall be headed by the
Treasurer of the District of Columbia, who shall be appointed
by the Chief Financial Officer and subject to the Chief
Financial Officer's direction and control.
``(3) Transfer of other offices.--Effective with the
appointment of the first Chief Financial Officer under
subsection (b), the functions and personnel of the following
offices are transferred to the Office:
``(A) The Controller of the District of Columbia.
``(B) The Office of the Budget.
``(C) The Office of Financial Information Services.
``(D) The Department of Finance and Revenue.
``(4) Service of heads of other offices.--
``(A) Office heads appointed by mayor.--With
respect to the head of the Office of the Budget and the
head of the Department of Finance and Revenue--
``(i) the Mayor shall appoint such
individuals with the advice and consent of the
Council, subject to the approval of the
Authority during a control year; and
``(ii) during a control year, the Authority
may remove such individuals from office for
cause, after consultation with the Mayor.
``(B) Office heads appointed by chief financial
officer.--With respect to the Controller of the
District of Columbia and the head of the Office of
Financial Information Services--
``(i) the Chief Financial Officer shall
appoint such individuals subject to the
approval of the Mayor; and
``(ii) the Chief Financial Officer may
remove such individuals from office for cause,
after consultation with the Mayor.
``(b) Appointment.--
``(1) In general.--
``(A) Control year.--During a control year, the
Chief Financial Officer shall be appointed by the Mayor
as follows:
``(i) Prior to the appointment of the Chief
Financial Officer, the Authority may submit
recommendations for the appointment to the
Mayor.
``(ii) In consultation with the Authority
and the Council, the Mayor shall nominate an
individual for appointment and notify the
Council of the nomination.
``(iii) After the expiration of the 7-day
period which begins on the date the Mayor
notifies the Council of the nomination under
clause (ii), the Mayor shall notify the
Authority of the nomination.
``(iv) The nomination shall be effective
subject to approval by a majority vote of the
Authority.
``(B) Other years.--During a year other than a
control year, the Chief Financial Officer shall be
appointed by the Mayor with the advice and consent of
the Council. Prior to appointment, the Authority may
submit recommendations for the appointment.
``(2) Removal.--
``(A) Control year.--During a control year, the
Chief Financial Officer may be removed for cause by the
Authority or by the Mayor with the approval of the
Authority.
``(B) Other years.--During a year other than a
control year, the Chief Financial Officer shall serve
at the pleasure of the Mayor, except that the Chief
Financial Officer may only be removed for cause.
``(3) Salary.--The Chief Financial Officer shall be paid at
an annual rate determined by the Mayor, except that such rate
may not exceed the rate of basic pay payable for level IV of
the Executive Schedule.
``(c) Functions During Control Year.--During a control year, the
Chief Financial Officer shall have the following duties:
``(1) Preparing the financial plan and budget for the use
of the Mayor for purposes of subtitle A of title II of the
District of Columbia Financial Responsibility and Management
Assistance Act of 1995.
``(2) Preparing the budgets of the District of Columbia for
the year for the use of the Mayor for purposes of part D.
``(3) Assuring that all financial information presented by
the Mayor is presented in a manner, and is otherwise consistent
with, the requirements of the District of Columbia Financial
Responsibility and Management Assistance Act of 1995.
``(4) Implementing appropriate procedures and instituting
such programs, systems, and personnel policies within the
Officer's authority, to ensure that budget, accounting and
personnel control systems and structures are synchronized for
budgeting and control purposes on a continuing basis.
``(5) With the approval of the Authority, preparing and
submitting to the Mayor and the Council--
``(A) annual estimates of all revenues of the
District of Columbia (without regard to the source of
such revenues), including proposed revenues, which
shall be binding on the Mayor and the Council for
purposes of preparing and submitting the budget of the
District government for the year under part D, except
that the Mayor and the Council may prepare the budget
based on estimates of revenues which are lower than
those prepared by the Chief Financial Officer; and
``(B) quarterly re-estimates of the revenues of the
District of Columbia during the year.
``(6) Supervising and assuming responsibility for financial
transactions to ensure adequate control of revenues and
resources, and to ensure that appropriations are not exceeded.
``(7) Maintaining systems of accounting and internal
control designed to provide--
``(A) full disclosure of the financial impact of
the activities of the District government;
``(B) adequate financial information needed by the
District government for management purposes;
``(C) effective control over, and accountability
for, all funds, property, and other assets of the
District of Columbia; and
``(D) reliable accounting results to serve as the
basis for preparing and supporting agency budget
requests and controlling the execution of the budget.
``(8) Submitting to the Council a financial statement of
the District government, containing such details and at such
times as the Council may specify.
``(9) Supervising and assuming responsibility for the
assessment of all property subject to assessment and special
assessments within the corporate limits of the District of
Columbia for taxation, preparing tax maps, and providing such
notice of taxes and special assessments (as may be required by
law).
``(10) Supervising and assuming responsibility for the
levying and collection of all taxes, special assessments,
licensing fees, and other revenues of the District of Columbia
(as may be required by law), and receiving all amounts paid to
the District of Columbia from any source (including the
Authority).
``(11) Maintaining custody of all public funds belonging to
or under the control of the District government (or any
department or agency of the District government), and
depositing all amounts paid in such depositories and under such
terms and conditions as may be designated by the Council or the
Authority.
``(12) Maintaining custody of all investment and invested
funds of the District government or in possession of the
District government in a fiduciary capacity, and maintaining
the safekeeping of all bonds and notes of the District
government and the receipt and delivery of District government
bonds and notes for transfer, registration, or exchange.
``(13) Apportioning the total of all appropriations and
funds made available during the year for obligation so as to
prevent obligation or expenditure in a manner which would
result in a deficiency or a need for supplemental
appropriations during the year, and (with respect to
appropriations and funds available for an indefinite period and
all authorizations to create obligations by contract in advance
of appropriations) apportioning the total of such
appropriations, funds, or authorizations in the most effective
and economical manner.
``(14) Certifying all contracts (whether directly or
through delegation) prior to execution as to the availability
of funds to meet the obligations expected to be incurred by the
District government under such contracts during the year.
``(15) Prescribing the forms of receipts, vouchers, bills,
and claims to be used by all agencies, offices, and
instrumentalities of the District government.
``(16) Certifying and approving prior to payment all bills,
invoices, payrolls, and other evidences of claims, demands, or
charges against the District government, and determining the
regularity, legality, and correctness of such bills, invoices,
payrolls, claims, demands, or charges.
``(17) In coordination with the Inspector General of the
District of Columbia, performing internal audits of accounts
and operations and records of the District government,
including the examination of any accounts or records of
financial transactions, giving due consideration to the
effectiveness of accounting systems, internal control, and
related administrative practices of the departments and
agencies of the District government.
``(d) Functions During All Years.--At all times, the Chief
Financial Officer shall have the following duties:
``(1) Exercising responsibility for the administration and
supervision of the District of Columbia Treasurer (except that
the Chief Financial Officer may delegate any portion of such
responsibility as the Chief Financial Officer considers
appropriate and consistent with efficiency).
``(2) Administering all borrowing programs of the District
government for the issuance of long-term and short-term
indebtedness.
``(3) Administering the cash management program of the
District government, including the investment of surplus funds
in governmental and non-governmental interest-bearing
securities and accounts.
``(4) Administering the centralized District government
payroll and retirement systems.
``(5) Governing the accounting policies and systems
applicable to the District government.
``(6) Preparing appropriate annual, quarterly, and monthly
financial reports of the accounting and financial operations of
the District government.
``(7) Not later than 120 days after the end of each fiscal
year (beginning with fiscal year 1995), preparing the complete
financial statement and report on the activities of the
District government for such fiscal year, for the use of the
Mayor under section 448(a)(4) of the District of Columbia Self-
Government and Governmental Reorganization Act.
``(e) Functions of Treasurer.--At all times, the Treasurer shall
have the following duties:
``(1) Assisting the Chief Financial Officer in reporting
revenues received by the District government, including
submitting annual and quarterly reports concerning the cash
position of the District government not later than 60 days
after the last day of the quarter (or year) involved. Such
reports shall include:
``(A) Comparative reports of revenue and other
receipts by source, including tax, nontax, and Federal
revenues, grants and reimbursements, capital program
loans, and advances. Each source shall be broken down
into specific components.
``(B) Statements of the cash flow of the District
government for the preceding quarter or year, including
receipts, disbursements, net changes in cash inclusive
of the beginning balance, cash and investment, and the
ending balance, inclusive of cash and investment. Such
statements shall reflect the actual, planned, better or
worse dollar amounts and the percentage change with
respect to the current quarter, year-to-date, and
fiscal year.
``(C) Quarterly cash flow forecast for the quarter
or year involved, reflecting receipts, disbursements,
net change in cash inclusive of the beginning balance,
cash and investment, and the ending balance, inclusive
of cash and investment with respect to the actual
dollar amounts for the quarter or year, and projected
dollar amounts for each of the 3 succeeding quarters.
``(D) Monthly reports reflecting a detailed summary
analysis of all District of Columbia government
investments, including, but not limited to--
``(i) the total of long-term and short-term
investments;
``(ii) a detailed summary analysis of
investments by type and amount, including
purchases, sales (maturities), and interest;
``(iii) an analysis of investment portfolio
mix by type and amount, including liquidity,
quality/risk of each security, and similar
information;
``(iv) an analysis of investment strategy,
including near-term strategic plans and
projects of investment activity, as well as
forecasts of future investment strategies based
on anticipated market conditions, and similar
information;
``(v) an analysis of cash utilization,
including--
``(I) comparisons of budgeted
percentages of total cash to be
invested with actual percentages of
cash invested and the dollar amounts;
``(II) comparisons of the next
return on invested cash expressed in
percentages (yield) with comparable
market indicators and established
District of Columbia government yield
objectives; and
``(III) comparisons of estimated
dollar return against actual dollar
yield.
``(E) Monthly reports reflecting a detailed summary
analysis of long-term and short-term borrowings
inclusive of debt as authorized by section 603, in the
current fiscal year and the amount of debt for each
succeeding fiscal year not to exceed 5 years. All such
reports shall reflect--
``(i) the amount of debt outstanding by
type of instrument;
``(ii) the amount of authorized and
unissued debt, including availability of short-
term lines of credit, United States Treasury
borrowings, and similar information;
``(iii) a maturity schedule of the debt;
``(iv) the rate of interest payable upon
the debt; and
``(v) the amount of debt service
requirements and related debt service reserves.
``(2) Such other functions assigned to the Chief Financial
Officer under subsection (c) or subsection (d) as the Chief
Financial Officer may delegate.
``(f) Definitions.--In this section--
``(1) the term `Authority' means the District of Columbia
Financial Responsibility and Management Assistance Authority
established under section 101(a) of the District of Columbia
Financial Responsibility and Management Assistance Act of 1995;
``(2) the term `control year' has the meaning given such
term under section 305(4) of such Act; and
``(3) the term `District government' has the meaning given
such term under section 305(5) of such Act.''.
(b) Prohibiting Delegation of Chief Financial Officer's
Authority.--Section 422(6) of the District of Columbia Self-Government
and Governmental Reorganization Act (sec. 1-242(6), D.C. Code) is
amended by adding at the end the following: ``Nothing in the previous
sentence may be construed to permit the Mayor to delegate any functions
assigned to the Chief Financial Officer of the District of Columbia
under section 424, without regard to whether such functions are
assigned to the Chief Financial Officer under such section during a
control year (as defined in section 305(4) of the District of Columbia
Financial Responsibility and Management Assistance Act of 1995) or
during any other year.''.
(c) Conforming Amendment.--Effective upon the appointment of the
Chief Financial Officer of the District of Columbia under section
424(b) of the District of Columbia Self-Government and Governmental
Reorganization Act (as added by subsection (a)), D.C. Law 3-138 (sec.
47-314 et seq., D.C. Code) is repealed.
(d) Clerical Amendment.--The table of contents of part B of title
IV of the District of Columbia Self-Government and Governmental
Reorganization Act is amended by adding at the end the following new
item:
``Sec. 424. Chief Financial Officer of the District of
Columbia.''.
SEC. 303. REVISIONS TO POWERS AND DUTIES OF INSPECTOR GENERAL OF
DISTRICT OF COLUMBIA.
(a) Appointment and Term of Service; Independence of Budget.--
Section 208(a) of the District of Columbia Procurement Practices Act of
1985 (sec. 1-1182.8(a), D.C. Code) is amended by striking paragraphs
(1) and (2) and inserting the following:
``(1)(A) There is created within the executive branch of the
government of the District of Columbia the Office of the Inspector
General. The Office shall be headed by an Inspector General appointed
pursuant to subparagraph (B), who shall serve for a term of 6 years and
shall be subject to removal only for cause by the Mayor (with the
approval of the District of Columbia Financial Responsibility and
Management Assistance Authority in a control year) or (in the case of a
control year) by the Authority. The Inspector General may be
reappointed for additional terms.
``(B) During a control year, the Inspector General shall be
appointed by the Mayor as follows:
``(i) Prior to the appointment of the Inspector General,
the Authority may submit recommendations for the appointment to
the Mayor.
``(ii) In consultation with the Authority and the Council,
the Mayor shall nominate an individual for appointment and
notify the Council of the nomination.
``(iii) After the expiration of the 7-day period which
begins on the date the Mayor notifies the Council of the
nomination under clause (ii), the Mayor shall notify the
Authority of the nomination.
``(iv) The nomination shall be effective subject to
approval by a majority vote of the Authority.
``(C) During a year which is not a control year, the Inspector
General shall be appointed by the Mayor with the advice and consent of
the Council. Prior to appointment, the Authority may submit
recommendations for the appointment.
``(D) The Inspector General shall be appointed without regard to
party affiliation and solely on the basis of integrity and demonstrated
ability in accounting, auditing, financial management analysis, public
administration, or investigations.
``(E) The Inspector General shall be paid at an annual rate
determined by the Mayor, except that such rate may not exceed the rate
of basic pay payable for level IV of the Executive Schedule.
``(2) The annual budget for the Office shall be adopted as follows:
``(A) The Inspector General shall prepare and submit to the
Mayor, for inclusion in the annual budget of the District of
Columbia under part D of title IV of the District of Columbia
Self-Government and Governmental Reorganization Act for the
year, annual estimates of the expenditures and appropriations
necessary for the operation of the Office for the year. All
such estimates shall be forwarded by the Mayor to the Council
of the District of Columbia for its action pursuant to sections
446 and 603(c) of such Act, without revision but subject to
recommendations. Notwithstanding any other provision of such
Act, the Council may comment or make recommendations concerning
such estimates, but shall have no authority to revise such
estimates.
``(B) Upon receipt of the annual Federal payment for the
District of Columbia authorized under title V of the District
of Columbia Self-Government and Governmental Reorganization
Act, the Mayor shall deposit a portion of the payment (equal to
the estimate of necessary appropriations described in
subparagraph (A)) into a dedicated fund within the government
of the District of Columbia.
``(C) Amounts deposited in the dedicated fund described in
subparagraph (B) shall be available solely for the operation of
the Office, and shall be paid to the Inspector General by the
Mayor (acting through the Chief Financial Officer of the
District of Columbia) in such installments and at such times as
the Inspector General requires.''.
(b) Additional Powers and Duties.--
(1) In general.--Section 208(a)(3) of the District of
Columbia Procurement Practices Act of 1985 (sec. 1-
1182.8(a)(3), D.C. Code) is amended--
(A) by striking ``and'' at the end of subparagraph
(E);
(B) by striking the period at the end of
subparagraph (F) and inserting a semicolon; and
(C) by adding at the end the following new
subparagraphs:
``(G) Pursuant to a contract described in paragraph (4),
provide certifications under section 602(b)(5) of title VI of
the District of Columbia Revenue Act of 1939;
``(H) Pursuant to a contract described in paragraph (4),
audit the complete financial statement and report on the
activities of the District government for such fiscal year, for
the use of the Mayor under section 448(a)(4) of the District of
Columbia Self-Government and Governmental Reorganization Act;
and
``(I) Not later than 30 days before the beginning of each
fiscal year (beginning with fiscal year 1996) and in
consultation with the Mayor, the Council, and the Authority,
establish an annual plan for audits to be conducted under this
paragraph during the fiscal year under which the Inspector
General shall report only those variances which are in an
amount equal to or greater than $1,000,000 or 1 percent of the
applicable annual budget for the program in which the variance
is found (whichever is lesser).''.
(2) Limitation on contract with outside auditor.--Section
208(a) of such Act (sec. 1-1182.8(a), D.C. Code) is amended by
adding at the end the following new paragraph:
``(4) The Inspector General shall enter into a contract with an
auditor who is not an officer or employee of the Office to--
``(A) audit the financial statement and report described in
paragraph (3)(H) for a fiscal year, except that the financial
statement and report may not be audited by the same auditor (or
an auditor employed by or affiliated with the same auditor) for
more than 3 consecutive fiscal years; and
``(B) audit the certification described in paragraph
(3)(G).''.
(3) Subpoena power.--Section 208(c) of such Act (sec. 1-
1182.8(c), D.C. Code) is amended--
(A) by striking ``(c)'' and inserting ``(c)(1)'';
and
(B) by adding at the end the following new
paragraph:
``(2)(A) The Inspector General may issue subpoenas requiring the
attendance and testimony of witnesses and the production of any
evidence relating to any matter under investigation by the Inspector
General.
``(B) If a person refuses to obey a subpoena issued under
subparagraph (A), the Inspector General may apply to the Superior Court
of the District of Columbia for an order requiring that person to
appear before the Inspector General to give testimony, produce
evidence, or both, relating to the matter under investigation. Any
failure to obey the order of the court may be punished by the Superior
Court as civil contempt.''.
(4) Referral of findings of criminal activity to attorney
general.--Section 208 of such Act (sec. 1-1182.8, D.C. Code) is
amended by adding at the end the following new subsection:
``(f) In carrying out the duties and responsibilities established
under this section, the Inspector General shall report expeditiously to
the Attorney General whenever the Inspector General has reasonable
grounds to believe there has been a violation of Federal or District
criminal law.''.
(c) Revision of Current Powers and Duties.--
(1) Liaison representative for all external audits of
district government.--Section 208(a)(3)(B) of such Act (sec. 1-
1182.8(a)(3)(B), D.C. Code) is amended by striking ``executive
branch''.
(2) Application of generally accepted accounting
principles.--Section 208(b) of such Act (sec. 1-1182.8(b), D.C.
Code) is amended by inserting ``accounting and'' after
``accepted''.
(3) Access to all necessary records.--Section 208(c)(1) of
such Act (sec. 1-1182.8(c), D.C. Code), as amended by
subsection (b)(3), is amended by striking ``relating to
contracts and procurement''.
(4) Submission of reports to authority during control
year.--Section 208(d) of such Act (sec. 1-1182.8(d), D.C. Code)
is amended--
(A) in paragraph (1), by striking ``the Mayor and
the Council'' and inserting ``the Authority (or, with
respect to a fiscal year which is not a control year,
the Mayor and the Council)''; and
(B) in paragraph (2), by striking ``the Mayor'' and
inserting ``the Authority, the Mayor,''.
(5) Making reports publicly available.--Section 208(d) of
such Act (sec. 1-1182.8(d), D.C. Code) is amended by adding at
the end the following new paragraph:
``(4) The Inspector General shall make each report submitted under
this subsection available to the public, except to the extent that the
report contains information determined by the Inspector General to be
privileged.''.
(6) Responding to requests of authority.--Section 208(e) of
such Act (sec. 1-1182.8(e), D.C. Code) is amended by striking
``the Director'' and inserting ``the Authority''.
(d) Definitions.--Section 208 of such Act (sec. 1-1182.8, D.C.
Code), as amended by subsection (b)(4), is amended by adding at the end
the following new subsection:
``(g) In this section--
``(1) the term `Authority' means the District of Columbia
Financial Responsibility and Management Assistance Authority
established under section 101(a) of the District of Columbia
Financial Responsibility and Management Assistance Act of 1995;
``(2) the term `control year' has the meaning given such
term under section 305(4) of such Act; and
``(3) the term `District government' has the meaning given
such term under section 305(5) of such Act.''.
(e) Deadline for Appointment.--
(1) In general.--Not later than 30 days after its members
are appointed, the Authority shall appoint the Inspector
General of the District of Columbia pursuant to section
208(a)(1) of the District of Columbia Procurement Practices Act
of 1985 (as amended by subsection (a)).
(2) Transition rule.--The term of service of the individual
serving as the Inspector General under section 208(a) of the
District of Columbia Procurement Practices Act of 1985 prior to
the appointment of the Inspector General by the Authority under
section 208(a)(1) of such Act (as amended by subsection (a))
shall expire upon the appointment of the Inspector General by
the Authority.
SEC. 304. COUNCIL APPROVAL OF CERTAIN CONTRACTS.
(a) In General.--Section 451 of the District of Columbia Self-
Government and Governmental Reorganization Act (sec. 1-1130, D.C. Code)
is amended--
(1) by amending the heading to read as follows: ``special
rules regarding certain contracts'';
(2) by striking ``No contract'' and inserting ``(a)
Contracts Extending Beyond One Year.--No contract''; and
(3) by adding at the end the following new subsection:
``(b) Contracts Exceeding Certain Amount.--
``(1) In general.--No contract involving expenditures in
excess of $1,000,000 during a 12-month period may be made
unless the Mayor submits the contract to the Council for its
approval and the Council approves the contract (in accordance
with criteria established by act of the Council).
``(2) Deemed approval.--For purposes of paragraph (1), the
Council shall be deemed to approve a contract if--
``(A) during the 10-day period beginning on the
date the Mayor submits the contract to the Council, no
member of the Council introduces a resolution approving
or disapproving the contract; or
``(B) during the 45-calendar day period beginning
on the date the Mayor submits the contract to the
Council, the Council does not disapprove the
contract.''.
(b) Clerical Amendment.--The table of contents of the District of
Columbia Self-Government and Governmental Reorganization Act is amended
by amending the item relating to section 451 to read as follows:
``Sec. 451. Special rules regarding certain contracts.''.
(c) Effective Date.--The amendments made by this section shall
apply to contracts made on or after the date of the enactment of this
Act.
SEC. 305. DEFINITIONS.
In this Act, the following definitions apply:
(1) The term ``Authority'' means the District of Columbia
Financial Responsibility and Management Assistance Authority
established under section 101(a).
(2) The term ``Council'' means the Council of the District
of Columbia.
(3) The term ``control period'' has the meaning given such
term in section 209.
(4) The term ``control year'' means any fiscal year for
which a financial plan and budget approved by the Authority
under section 202(b) is in effect, and includes fiscal year
1996.
(5) The term ``District government'' means the government
of the District of Columbia, including any department, agency
or instrumentality of the government of the District of
Columbia; any independent agency of the District of Columbia
established under part F of title IV of the District of
Columbia Self-Government and Governmental Reorganization Act or
any other agency, board, or commission established by the Mayor
or the Council; the courts of the District of Columbia; the
Council of the District of Columbia; and any other agency,
public authority, or public benefit corporation which has the
authority to receive monies directly or indirectly from the
District of Columbia (other than monies received from the sale
of goods, the provision of services, or the loaning of funds to
the District of Columbia), except that such term does not
include the Authority.
(6) The term ``financial plan and budget'' means a
financial plan and budget described in subtitle A of title II,
and includes the budgets of the District government for the
fiscal years which are subject to the financial plan and budget
(as described in section 201(b)).
(7) The term ``Mayor'' means the Mayor of the District of
Columbia.
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