[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1963 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1963

 To realign functional responsibilities between the Federal Government 
  and the government of the District of Columbia, to address funding 
     mechanisms and sources between the Federal Government and the 
   government of the District of Columbia, to address the financial 
condition of the District of Columbia government in both the short and 
   long-term, to provide mechanisms for improving the economy of the 
    District of Columbia, to improve the ability of the District of 
 Columbia government to match its resources with its responsibilities, 
     to further improve the efficiency of the District of Columbia 
                  government, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 9, 1997

Mr. Davis of Virginia (for himself, Ms. Norton, Mrs. Morella, Mr. Horn, 
   Ms. Ros-Lehtinen, Mr. Allen, Mr. Wolf, Mr. Moran of Virginia, Mr. 
Hoyer, and Mr. Wynn) introduced the following bill; which was referred 
to the Committee on Government Reform and Oversight, and in addition to 
 the Committees on Ways and Means, Commerce, and the Judiciary, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
 To realign functional responsibilities between the Federal Government 
  and the government of the District of Columbia, to address funding 
     mechanisms and sources between the Federal Government and the 
   government of the District of Columbia, to address the financial 
condition of the District of Columbia government in both the short and 
   long-term, to provide mechanisms for improving the economy of the 
    District of Columbia, to improve the ability of the District of 
 Columbia government to match its resources with its responsibilities, 
     to further improve the efficiency of the District of Columbia 
                  government, 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 ``National Capital 
Revitalization and Self-Government Improvement Act of 1997''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
             TITLE I--DISTRICT OF COLUMBIA RETIREMENT FUNDS

Sec. 101. Short title.
                     Subtitle A--General Provisions

Sec. 111. Obligation of Federal government to make payments for pension 
                            liabilities.
Sec. 112. Findings and declaration of policy.
Sec. 113. Definitions.
                Subtitle B--Freezing of Existing Program

Sec. 121. Freeze of service under the retirement program.
Sec. 122. Disability benefits after the service freeze.
Sec. 123. Death benefits after the service freeze.
                      Subtitle C--Retirement Trust

Sec. 131. Creation of Retirement Trust.
Sec. 132. Transfer of assets and obligations.
Sec. 133. Allocation of assets.
Sec. 134. Treatment of Retirement Trust.
Sec. 135. Selection of Trustee.
Sec. 136. Powers and duties of the Secretary.
Sec. 137. Payments after depletion of Retirement Trust assets.
Sec. 138. Federal information sharing.
Sec. 139. Responsibilities and powers of the Trustee.
                    Subtitle D--District Government

Sec. 141. Interim administration.
Sec. 142. Records transfer.
Sec. 143. Final reconciliation.
Sec. 144. Replacement plan.
                    Subtitle E--The Actuarial Board

Sec. 151. Establishment of the actuarial board.
Sec. 152. General duties of the actuarial board.
                 Subtitle F--Federal Supplemental Fund

Sec. 161. Establishment of the Federal Supplemental Fund.
Sec. 162. Assets of the Federal Supplemental Fund.
Sec. 163. Payments from the Federal Supplemental Fund.
Sec. 164. Determination of costs under the Federal Supplemental Fund.
Sec. 165. Payments into the Federal Supplemental Fund.
Sec. 166. Investment of assets of Federal Supplemental Fund.
                 Subtitle G--Judges Retirement Program

Sec. 171. Reference to new Federal program.
                        Subtitle H--Enforcement

Sec. 181. Judicial review.
Sec. 182. Jurisdiction and venue.
Sec. 183. Limitations of actions.
Sec. 184. Misappropriation.
                       Subtitle I--Miscellaneous

Sec. 191. Severability of provisions.
Sec. 192. Full faith and credit.
Sec. 193. Other laws.
Sec. 194. Comptroller general.
              TITLE II--ASSISTANCE UNDER MEDICAID PROGRAM

Sec. 201. Findings.
Sec. 202. Increase in Federal Medical Assistance Percentage under 
                            medicaid.
                      TITLE III--CRIMINAL JUSTICE

                        Subtitle A--Corrections

Sec. 301. Bureau of prisons.
Sec. 302. Corrections trustee.
Sec. 303. Authority of trustee and bureau of prisons.
Sec. 304. Priority placement for employees of the District of Columbia.
Sec. 305. Amendments related to persons with a mental disease or 
                            defect.
Sec. 306. Litigation authority of corrections trustee.
Sec. 307. Permitting expenditure of funds to carry out certain sewer 
                            agreement.
            Subtitle B--Compliance With Truth-in-Sentencing

Sec. 311. Requiring compliance with truth-in-sentencing guidelines.
Sec. 312. Requiring enactment of legislation maximizing effectiveness 
                            of Drug Court.
Sec. 313. Truth in Sentencing Compliance Commission.
Sec. 314. Truth in Sentencing Monitoring Agency.
Sec. 315. Certain claims not litigable.
Sec. 316. Evaluation.
Sec. 317. Continuing responsibility to ensure compliance with this act.
              Subtitle C--Offender Supervision and Parole

Sec. 331. Parole.
Sec. 332. Pretrial Services, Defense Services, Parole, Adult Probation 
                            and Offender Supervision Trustee.
Sec. 333. Offender Supervision, Defender and Courts Services Agency.
Sec. 334. Authorization of appropriations.
                Subtitle D--District of Columbia Courts

 Part 1--Transfer of Administration and Financing of Courts to Federal 
                               Government

Sec. 341. Authorization of appropriations.
Sec. 342. Administration of courts under District of Columbia Code.
Sec. 343. Budgeting and financing requirements for courts under Home 
                            Rule Act.
Sec. 344. Auditing of accounts of court system.
Sec. 345. Miscellaneous budgeting and financing requirements for courts 
                            under District law.
Sec. 346. Other provisions relating to administration of District of 
                            Columbia courts.
                  Part 2--Judicial Retirement Program

Sec. 351. Judicial Retirement and Survivors Annuity Fund.
Sec. 352. Termination of current fund and program.
Sec. 353. Conforming amendments.
     Part 3--Miscellaneous Conforming and Administrative Provisions

Sec. 361. Treatment of courts under miscellaneous District laws.
Sec. 362. Representation of indigents in criminal cases.
    Subtitle E--Pretrial Services Agency and Public Defender Service

Sec. 371. Amendments affecting Pretrial Services Agency.
Sec. 372. Amendments affecting Public Defender Service.
                  Subtitle F--Miscellaneous Provisions

Sec. 381. Technical assistance and research.
Sec. 382. Exemption from personnel and budget ceilings for trustees and 
                            related agencies.
      TITLE IV--PRIVATIZATION OF TAX COLLECTION AND ADMINISTRATION

Sec. 401. Findings.
Sec. 402. Authorizing Chief Financial Officer to privatize tax 
                            administration and collection.
            TITLE V--FINANCING OF DISTRICT OF COLUMBIA DEBT

Sec. 501. Findings.
Sec. 502. Authorization for intermediate-term advances of funds by the 
                            Secretary of the Treasury to liquidate the 
                            accumulated general fund deficit of the 
                            District of Columbia.
Sec. 503. Conforming amendments.
Sec. 504. Technical corrections.
Sec. 505. Authorization for issuance of general obligation bonds by the 
                            District of Columbia to finance or refund 
                            its accumulated general fund deficit.
                        TITLE VI--REVENUE BONDS

Sec. 601. Short title; findings.
Sec. 602. Amendments to Home Rule Charter provision governing revenue 
                            bonds.
Sec. 603. Clarification of treatment of revenue bonds under Financial 
                            Responsibility and Management Assistance 
                            Act.
    TITLE VII--DISTRICT OF COLUMBIA ECONOMIC DEVELOPMENT CORPORATION

                     Subtitle A--General Provisions

Sec. 701. Short title.
Sec. 702. Findings.
Sec. 703. Purposes.
Sec. 704. Definitions.
   Subtitle B--District of Columbia Economic Development Corporation 
                                Charter

Sec. 711. Establishment.
Sec. 712. Status of Corporation.
Sec. 713. Board of directors.
Sec. 714. Officers and employees.
Sec. 715. Political activity.
Sec. 716. Reports, plans, and evaluations.
Sec. 717. Gifts; procurement of goods and services; and disposition of 
                            property.
               Subtitle C--Operations of the Corporation

Sec. 721. General powers.
Sec. 722. Economic development plans.
Sec. 723. Financial assistance.
Sec. 724. Eminent domain.
Sec. 725. Regulatory relief powers.
                 Subtitle D--Capitalization and Finance

Sec. 731. Authorization of appropriations.
Sec. 732. Project revenue obligations issued by Corporation.
Sec. 733. Deposit and investment of funds.
Sec. 734. No taxing power.
                  Subtitle E--Miscellaneous Provisions

Sec. 741. Legal actions involving Corporation.
Sec. 742. Judicial review of financial assistance determinations and 
                            rules.
Sec. 743. Relationship to other laws.
Sec. 744. Relationship to rest of District government.
                     Subtitle F--Sunset Provisions

Sec. 751. Suspension of new financial assistance.
Sec. 752. Termination of affairs.
Sec. 753. Dissolution of Corporation.
   TITLE VIII--DISTRICT OF COLUMBIA GOVERNMENT BUDGET; EFFECTIVE DATE

Sec. 801. Elimination of the annual Federal payment to the District of 
                            Columbia.
Sec. 802. Requirement that the District of Columbia balance its budget 
                            in FY 1998.
Sec. 803. Permitting expedited submission and approval of consensus 
                            budget and financial plan.
Sec. 804. Increase in maximum amount of permitted District borrowing.
                   TITLE IX--MISCELLANEOUS PROVISIONS

       Subtitle A--Regulatory Reform in the District of Columbia

Sec. 901. Review and revision of regulations and permit and application 
                            processes.
Sec. 902. Repeal of Clean Air Compliance Fee Act of 1994.
Sec. 903. Repeal of Federal charter of Group Hospitalization and 
                            Medical Services, Inc.
Sec. 904. Exemption of certain contracts from Council review.
               Subtitle B--Other Miscellaneous Provisions

Sec. 911. Revisions to Financial Responsibility and Management 
                            Assistance Act.
Sec. 912. Cooperative agreements between Federal agencies and 
                            Metropolitan Police Department.
Sec. 913. Permitting garnishment of wages of officers and employees of 
                            District of Columbia government.
Sec. 914. Permitting excess appropriations by Water and Sewer Authority 
                            for capital projects.
Sec. 915. Requiring certain Federal officials to provide notice before 
                            carrying out activities affecting real 
                            property located in District of Columbia.
Sec. 916. Short title of Home Rule Act.
             Subtitle C--Effective Date; General Provisions

Sec. 921. Effective date.
Sec. 922. Technical assistance.
Sec. 923. Liability.

             TITLE I--DISTRICT OF COLUMBIA RETIREMENT FUNDS

SEC. 101. SHORT TITLE.

    This title may be cited as the ``District of Columbia Retirement 
Protection Act of 1997''.

                     Subtitle A--General Provisions

SEC. 111. OBLIGATION OF FEDERAL GOVERNMENT TO MAKE PAYMENTS FOR PENSION 
              LIABILITIES.

    (a) In General.--The Federal Government shall make payments in 
accordance with the provisions of this title to finance all liabilities 
associated with the pension plans for police officers, firefighters, 
and teachers of the District of Columbia, including the unfunded 
liability which was transferred by Congress to the District of Columbia 
government under the District of Columbia Retirement Reform Act of 
1979.
    (b) No Reversion of Liability to District.--At no point after the 
effective date of this title may the responsibility or any part thereof 
assigned to the Federal Government under subsection (a) revert to the 
District of Columbia.

SEC. 112. FINDINGS AND DECLARATION OF POLICY.

    (a) The Congress finds that--
            (1) the retirement programs for the police officers and 
        firefighters, teachers and judges of the District of Columbia 
        had significant unfunded liabilities totaling approximately 
        $1,900,000,000 when the Federal government transferred those 
        programs to the District of Columbia, and those liabilities 
        have since increased to nearly $4,800,000,000, an increase 
        which is almost entirely attributable to the accumulation of 
        interest on the value which existed at the time of transfer;
            (2) the District of Columbia has fully met its financial 
        obligations under the District of Columbia Retirement Reform 
        Act of 1979 (Public Law 96-122);
            (3) the District of Columbia Retirement Board has fulfilled 
        all of its obligations and fiduciary responsibilities and its 
        members and staff are thanked and congratulated for their 
        service;
            (4) the growth of the unfunded liabilities of the four 
        pension funds listed above did not occur because of any action 
        taken or any failure to act that lay within the power of the 
        District of Columbia government or the Retirement Board;
            (5) an unfunded pension liability of nearly $5,000,000,000 
        would be beyond the resources of any municipal government to 
        fully fund;
            (6) the presence of the unfunded pension liability is 
        having and will continue to have a negative impact on the 
        District of Columbia's credit rating as it is a legal 
        obligation and the total unfunded liability exceeds the total 
        General Obligation debt of the District, and the costs 
        associated with this liability are a contributing cause of the 
        District's ongoing financial crisis;
            (7) the obligations of the District associated with these 
        pension programs in fiscal year 1997 represents nearly 10 
        percent of the District's revenue;
            (8) the annual Federal contribution toward these costs 
        under the District of Columbia Retirement Reform Act has 
        remained $52,000,000;
            (9) if the unfunded pension liability situation is not 
        resolved, in 2004 the District of Columbia would be responsible 
        for annual costs exceeding $800,000,000, a figure which would 
        be impossible to meet without catastrophic impact on the 
        District government's resources and programs;
            (10) the financial resources of the District of Columbia 
        are not adequate to discharge the unfunded liabilities of the 
        retirement programs; and
            (11) the level of benefits and funding of the current 
        retirement programs were authorized by various Acts of 
        Congress.
    (b) It is the policy of this title--
            (1) to relieve the District of Columbia government of the 
        responsibility for the unfunded liabilities transferred to it 
        by the Federal government;
            (2) to assume the moral and legal responsibility for paying 
        the benefits (including all unfunded liabilities which existed 
        as of the day prior to introduction of this legislation) for 
        the retirement plans of teachers, police, and firefighters;
            (3) to provide for a responsible Federal system for payment 
        of benefits accrued prior to the date of introduction of this 
        legislation; and
            (4) to require the establishment of replacement plans by 
        the District of Columbia government for the current retirement 
        plans for teachers, and police and firefighters.

SEC. 113. DEFINITIONS.

    For purposes of this title, the following definitions shall apply:
            (1) The term ``Actuarial Board'' means the Department of 
        the Treasury Retirement Board of Actuaries established under 
        subtitle E.
            (2) The term ``Code'' means the Internal Revenue Code of 
        1986.
            (3) The term ``contract'' means the contract under section 
        135 between the Secretary and the Trustee.
            (4) The term ``District Government'' means, as appropriate, 
        the District government as defined by section 305(5) of the 
        District of Columbia Financial Responsibility and Management 
        Assistance Act of 1995 or the District of Columbia Retirement 
        Board as defined in section 102(5) of the Reform Act.
            (5) The term ``employee'' means a teacher, or a member of 
        the Metropolitan Police Force or the Fire Department of the 
        District of Columbia as defined in the retirement program.
            (6) The term ``employee contributions'' means amounts 
        deducted and withheld from the salaries of teachers and members 
        of the Metropolitan Police Force and Fire Department of the 
        District of Columbia and paid to the Retirement Fund (and, in 
        the case of teachers, amounts of additional deposits paid to 
        the Retirement Fund), pursuant to the retirement program.
            (7) The term ``ERISA'' means the Employee Retirement Income 
        Security Act of 1974.
            (8) The term ``Federal Supplemental Fund'' means the 
        Federal Supplemental District of Columbia Pension Fund created 
        under section 161.
            (9) The term ``freeze date'' means the date on which 
        legislation to enact this title is introduced in the House of 
        Representatives.
            (10) The term ``person'' means an individual, partnership, 
        joint venture, corporation, mutual company, joint-stock 
        company, trust, estate, unincorporated organization, 
        association, or employee organization.
            (11) The term ``Reform Act'' means the District of Columbia 
        Retirement Reform Act (Public Law 96-122).
            (12) The term ``replacement plan'' means the plan described 
        in section 144.
            (13) The term ``replacement plan adoption date'' means the 
        date upon which upon which the legislation establishing the 
        replacement plan becomes effective, or the first day after the 
        expiration of the 1-year period which begins on the date of the 
        enactment of this Act, whichever occurs first.
            (14) The term ``Retirement Fund'' means the District of 
        Columbia Police Officers and Fire Fighters Retirement Fund and 
        the District of Columbia Teachers Retirement Fund, as defined 
        in the Reform Act.
            (15) The term ``Retirement Program'' means any of the 
        retirement programs for teachers and members of the 
        Metropolitan Police Force and Fire Department, as described in 
        section 102(7) of the Reform Act as in effect on the day before 
        the freeze date.
            (16) The term ``Retirement Trust'' means the District of 
        Columbia Retirement Trust Fund created under section 131.
            (17) The term ``Secretary'' means the Secretary of the 
        Treasury or the Secretary's designee.
            (19) The term ``Trustee'' means the person or persons 
        designated by the Secretary under section 135.

                Subtitle B--Freezing of Existing Program

SEC. 121. FREEZE OF SERVICE UNDER THE RETIREMENT PROGRAM.

    Service after the freeze date shall not be credited under the 
retirement program for purposes of determining the amount of benefits 
an employee has accrued. Such service shall continue to be credited for 
all other purposes.

SEC. 122. DISABILITY BENEFITS AFTER THE SERVICE FREEZE.

    In the case of a disability retirement in which disability 
retirement benefits commence after the freeze date, the only benefit 
payable from the Retirement Trust or the Federal Supplemental Fund with 
respect to disability is the deferred retirement benefit or normal 
retirement benefit the employee would receive if the employee left 
service on the day before disability retirement benefits commence.

SEC. 123. DEATH BENEFITS AFTER THE SERVICE FREEZE.

    In the case of a benefit under the retirement program that is 
payable on the death of an employee or former employee, and that is not 
determined by the length of service of the employee or former employee, 
the benefit payable from the Retirement Trust or the Federal 
Supplemental Fund shall be limited to the percentage of the entire 
benefit represented by a fraction, the numerator of which is the number 
of months of the employee's service prior to the freeze date, and the 
denominator of which is the total number of months of the employee's 
service.

                      Subtitle C--Retirement Trust

SEC. 131. CREATION OF RETIREMENT TRUST.

    There is established on the books of the Treasury the District of 
Columbia Retirement Trust Fund, which shall be administered by the 
Trustee. The assets of the Retirement Trust shall be used for the 
purpose of paying benefits under this title, the reasonable and 
necessary expenses of administering the Retirement Trust as determined 
pursuant to the contract in section 135(b), and for such other purposes 
as are specified in this title.

SEC. 132. TRANSFER OF ASSETS AND OBLIGATIONS.

    (a) Except as provided in subsection (b) and in section 133, all 
obligations of the retirement program as of the freeze date and all 
assets of the Retirement Fund as of the replacement plan adoption date 
shall be transferred to the Retirement Trust as of the replacement plan 
adoption date.
    (b) Subsection (a) shall not apply to any employee contributions 
made after the freeze date, nor to any interest thereon (computed at a 
rate and in a manner determined by the Secretary).
    (c) The assets of the Retirement Trust are hereby made available 
for investment in private securities and all other investments deemed 
appropriate by the Secretary, and for the payments of benefits and 
necessary administrative expenses.

SEC. 133. ALLOCATION OF ASSETS.

    (a) Except for the assets designated under subsection (b) and the 
contributions under section 132(b), all assets of the Retirement Fund 
shall be transferred to the Retirement Trust in accordance with the 
direction of the Secretary. The District Government shall promptly take 
all steps, and execute all documents, that the Secretary deems 
necessary to effect the transfer.
    (b) The Secretary shall designate assets with a value of $1.275 
billion that shall not be transferred under subsection (a). The 
Secretary's designation and valuation of the assets shall be final and 
binding.

SEC. 134. TREATMENT OF RETIREMENT TRUST.

    (a) For purposes of the Code and ERISA--
            (1) the Retirement Trust shall be treated as a trust 
        described in section 401(a) of the Code which is exempt from 
        taxation under section 501(a) of the Code;
            (2) any transfer to, or distribution from, the Retirement 
        Trust shall be treated in the same manner as a transfer to or 
        distribution from a trust described in section 401(a) of the 
        Code; and
            (3) the system of benefits under the Retirement Trust shall 
        be treated as a governmental plan under section 414(d) of the 
        Code and sections 3(32) and 4021(b)(2) of ERISA.
    (b) The Code shall apply to the Retirement Trust only to the extent 
the Secretary determines that application of the Code is consistent 
with the administration of this title.

SEC. 135. SELECTION OF TRUSTEE.

    (a) As soon as practicable after enactment of this title, the 
Secretary shall select a Trustee to carry out the responsibilities and 
duties specified in this title and defined by the contract.
    (b) The Secretary shall enter into a contract with the Trustee to 
carry out the purposes of this title. The contract shall provide for 
the management, investment, control and auditing of Retirement Trust 
assets, the payment of benefits under this title from the Retirement 
Trust and such other matters as the Secretary deems appropriate.

SEC. 136. POWERS AND DUTIES OF THE SECRETARY.

    (a) The Secretary is authorized to issue regulations to implement, 
interpret, administer and carry out the purposes of this title, and, in 
the Secretary s discretion, those regulations may have retroactive 
effect.
    (b) The Secretary shall enforce the provisions of this title and 
the contract, and shall monitor the administration of the Retirement 
Trust.
    (c) The Secretary is authorized to requisition from the Retirement 
Fund such sums as are necessary to administer the Retirement Trust and 
Actuarial Board until assets are transferred to the Retirement Trust. 
After assets are transferred to the Retirement Trust, such 
administrative payments shall be made from the Retirement Trust 
pursuant to subsection (d).
    (d) All payments for necessary administrative expenses of the 
Retirement Trust shall be set forth in an annual budget, which is 
subject to the certification and approval of the Secretary.

SEC. 137. PAYMENTS AFTER DEPLETION OF RETIREMENT TRUST ASSETS.

    (a) Not later than 18 months before the time that assets remaining 
in the Retirement Trust are projected to be insufficient to pay 
benefits and necessary administrative expenses when due, the Secretary 
shall so advise the President and the Congress.
    (b) Before all available assets of the Retirement Trust have been 
depleted, the Secretary shall determine whether payment of benefits and 
necessary administrative expenses under this title shall be made by--
            (1) continuation of the Retirement Trust using payments 
        from the Federal Supplemental Fund; or
            (2) discontinuance of the Retirement Trust, and
                    (A) direct payment by the Secretary from the 
                Federal Supplemental Fund; or
                    (B) payment from the Federal Supplemental Fund 
                through another department or agency of the United 
                States.
    (c) If the Secretary determines that the Retirement Trust shall be 
discontinued after it has been depleted of assets, the Secretary shall 
appoint a successor to the Trustee to administer the payment of 
benefits under this title, and said appointee shall have the powers 
given to the Trustee in this subtitle and subtitle D.
    (d) The Secretary shall make appropriate arrangements to implement 
the determinations made in this subsection.
    (e) The arrangements for payments of benefits after the Retirement 
Trust has been depleted of assets shall be subject to the same 
treatment as similar arrangements under section 134.

SEC. 138. FEDERAL INFORMATION SHARING.

    (a) Except with respect to taxpayer returns and return information 
subject to section 6103 of the Internal Revenue Code of 1986, the 
Secretary may--
            (1) secure directly from any department or agency of the 
        United States information necessary to enable the Secretary to 
        verify or confirm benefit determinations under this title; and
            (2) by regulation authorize the Trustee to review such 
        information for purposes of administering this title and the 
        contract.
    (b) The Internal Revenue Code of 1986 is amended as follows:
            (1) In section 6103(l), as amended by section 1206(a) of 
        the Taxpayer Bill of Rights 2, by adding at the end the 
        following new paragraph:
            ``(16) Disclosure of return information for purposes of 
        administering the district of columbia retirement protection 
        act of 1997.--
                    ``(A) In general.--Upon written request available 
                return information (including such information 
                disclosed to the Social Security Administration under 
                paragraph (1) or (5) of this subsection), relating to 
                the amount of wage income (as defined in section 
                3121(a) or 3401(a)), the name, address, and identifying 
                number assigned under section 6109, of payors of wage 
                income, taxpayer identity (as defined in subsection 
                6103(b)(6)), and the occupational status reflected on 
                any return filed by, or with respect to, any individual 
                with respect to whom eligibility for, or the correct 
                amount of, benefits under the District of Columbia 
                Retirement Protection Act of 1997, is sought to be 
                determined, shall be disclosed by the Commissioner of 
                Social Security, or to the extent not available from 
                the Social Security Administration, by the Secretary, 
                to any duly authorized officer or employee of the 
                Department of the Treasury, or a Trustee or any 
                designated officer or employee of a Trustee (as defined 
                in the District of Columbia Retirement Protection Act 
                of 1997), or any actuary engaged by a Trustee under the 
                terms of the District of Columbia Retirement Protection 
                Act of 1997, whose official duties require such 
                disclosure, solely for the purpose of, and to the 
                extent necessary in, determining an individual s 
                eligibility for, or the correct amount of, benefits 
                under the District of Columbia Retirement Protection 
                Act of 1997.
                    ``(B) Disclosure for use in judicial or 
                administrative proceedings return.--Information 
                disclosed to any person under this paragraph may be 
                disclosed in a judicial or administrative proceeding 
                relating to the determination of an individual s 
                eligibility for, or the correct amount of, benefits 
                under the District of Columbia Retirement Protection 
                Act of 1997.''.
            (2) In section 6103(a)(3), by striking ``(6) or (12)'' and 
        inserting ``(6), (12), or (16)'';
            (3) In section 6103(i)(7)(B)(i), by inserting after 
        ``(other than an agency referred to in subparagraph (A))'' and 
        before the word ``for'' the words ``or by a Trustee as defined 
        in the District of Columbia Retirement Protection Act of 
        1997,''.
            (4) In section 6103(p)(3)(A), by striking ``or (15)'' and 
        inserting ``(15), or (16)''.
            (5) In section 6103(p)(4) in the matter preceding 
        subparagraph (A), by striking ``or (12)'' and inserting ``(12), 
        or (16), or any other person described in subsection (l)(16)''.
            (6) In section 6103(p)(4)(F)(i), by striking ``or (9),'' 
        and inserting ``(9), or (16), or any other person described in 
        subsection (1)(16)''.
            (7) In section 6103(p)(4)(F) in the matter following clause 
        (iii)--
                    (A) by inserting after ``any such agency, body or 
                commission'' and before the words ``for the General 
                Accounting Office'' the words ``, including an agency 
                or any other person described in subsection (l)(16),'';
                    (B) by striking ``such agency, body, or 
                commission'' and inserting ``such agency, body, or 
                commission, including an agency or any other person 
                described in subsection (l)(16),'';
                    (C) by striking ``or (12)(B)'' and inserting ``, 
                (12)(B), or (16)'';
                    (D) by inserting after the words ``any agent,'' and 
                before the words ``this paragraph shall'' the words 
                ``or any person including an agent described in 
                subsection (l)(16),'';
                    (E) by inserting after the words ``such agent'' and 
                before ``(except that'' the words ``or other person''; 
                and
                    (F) by inserting after the words ``an agent,'' and 
                before the words ``any report'' the words ``or any 
                person including an agent described in subsection 
                (l)(16),''.
            (8) In section 7213(a)(2), by striking ``or (15),'' and 
        inserting ``(15), or (16)''.
    (c) The Secretary may issue regulations governing the 
confidentiality of the information obtained pursuant to subsections (a) 
and (b).

SEC. 139. RESPONSIBILITIES AND POWERS OF THE TRUSTEE.

    (a) The Trustee shall perform its obligations under this title and 
the contract.
    (b)(1) In accordance with procedures approved by the Secretary, the 
Trustee shall provide to any participant or beneficiary whose claim for 
benefits under this title has been denied in whole or in part--
                    (A) written notice of such denial, setting forth 
                the specific reasons for the denial in a manner 
                calculated to be understood by the average plan 
                participant; and
                    (B) reasonable opportunity for review of the 
                benefit determination.
            (2) Any factual determination made by the Trustee shall be 
        presumed correct unless rebutted by clear and convincing 
        evidence. The Trustee's interpretation and construction of the 
        benefit provisions of the retirement program and this title 
        shall be entitled to great deference.
    (c) The Trustee may monitor and review the benefit eligibility of 
persons receiving benefits under this title. Notwithstanding any other 
provision of law, the Trustee is authorized to correct any errors in 
benefit determinations, and is further authorized to recoup or recover 
any benefit overpayments.
    (d) The Trustee shall engage an enrolled actuary (as defined in 
section 7701(a)(35) of the Code) who is a member of the American 
Academy of Actuaries who shall perform an annual actuarial valuation 
(in a manner and form determined by the Secretary) of the Retirement 
Trust and the Federal Supplemental Fund for obligations assumed by the 
Federal Government under this title for benefits and necessary 
administrative expenses under the retirement program. The valuation 
shall use methods and assumptions approved by the Actuarial Board under 
section 164. An annual report by the enrolled actuary shall be provided 
to the Secretary, the Trustee and the Actuarial Board. Each report 
shall project when assets in the Retirement Trust will be insufficient 
to pay benefits and necessary administrative expenses when due.
    (e) The Trustee shall report to the Secretary, in a form and manner 
and at such intervals as the Secretary may prescribe, on any matters or 
transactions relating to the Retirement Trust, including financial 
matters, as the Secretary may require.

                    Subtitle D--District Government

SEC. 141. INTERIM ADMINISTRATION.

    (a) After the enactment of this title the District Government shall 
continue to discharge its duties and responsibilities under the 
retirement program and Retirement Fund, as modified by subtitle B, 
until such time as the District Government is notified by the Secretary 
that the Secretary has directed the Trustee to commence such duties and 
responsibilities.
    (b) The District Government's reasonable and necessary expenses 
incurred pursuant to its responsibilities under subsection (a) shall be 
reimbursed from the Retirement Trust.
    (c) The District Government shall reimburse the Retirement Fund for 
any benefits paid inconsistent with subtitle B from the Retirement Fund 
between the freeze date and the replacement plan adoption date.

SEC. 142. RECORDS TRANSFER.

    Within 30 days after the Secretary or the Trustee requests, the 
District Government shall furnish copies of all records, documents, 
information, or data the Secretary or the Trustee deems necessary to 
carry out their responsibilities under this title and the contract. 
Upon request, the Secretary or the Trustee shall be granted direct 
access to such information systems, records, documents, information or 
data as will enable them to carry out their responsibilities under this 
title or the contract. The District Government shall reimburse the 
Retirement Trust for all costs, including benefit costs, that are 
attributable to errors or omissions in the transferred records that are 
identified within 3 years after such records are transferred.

SEC. 143. FINAL RECONCILIATION.

    As soon as practicable after the replacement plan adoption date, 
the District Government shall furnish the Trustee a final 
reconciliation of accounts in connection with the transfer of assets 
and obligations to the Retirement Trust. The allocation of assets under 
section 133 shall be adjusted in accordance with this reconciliation.

SEC. 144. REPLACEMENT PLAN.

    (a) No later than one year from the date of enactment of this 
title, or such later time as the Secretary may prescribe, the District 
Government shall adopt a replacement plan to be effective as of the 
freeze date.
    (b) If the District Government fails to adopt a replacement plan 
within the period prescribed in subsection (a), the retirement program 
applicable to police, firefighters, and teachers hired on or after 
October 1, 1996 (as provided under the laws of the District of Columbia 
in effect as of June 1, 1997), including all requirements of the 
program regarding benefits, contributions, and cost-of-living 
adjustments, shall apply with respect to all police, firefighters, and 
teachers employed by the District as of the expiration of the period 
prescribed in subsection (a).

                    Subtitle E--The Actuarial Board

SEC. 151. ESTABLISHMENT OF THE ACTUARIAL BOARD.

    (a) There is established in the Department of the Treasury a 
Department of the Treasury Retirement Board of Actuaries. The Actuarial 
Board shall consist of three members, who shall be appointed by the 
Secretary from among enrolled actuaries who are members of the American 
Academy of Actuaries.
    (b)(1) Except as provided in paragraph (2), the members of the 
Actuarial Board shall serve for a term of six (6) years, except that a 
member of the Actuarial Board appointed to fill a vacancy occurring 
before the end of the term for which a predecessor was appointed shall 
only serve until the end of such term. A member may serve after the end 
of the term until a successor has taken office. A member of the 
Actuarial Board may be removed by the Secretary for misconduct or 
failure to perform the functions of the Actuarial Board, and for no 
other reason.
    (2) Of the members of the Actuarial Board who are first appointed 
under this subsection, one each shall be appointed for terms ending 2, 
4, and 6 years, respectively, after the date of appointment, as 
designated by the Secretary at the time of appointment.
    (c) A member of the Actuarial Board who is not otherwise an 
employee of the United States is entitled to receive pay at the daily 
equivalent of the annual rate of basic pay of the highest rate of basic 
pay then currently being paid under the General Schedule of subchapter 
III of chapter 53 of title 5, United States Code, for each day the 
member is engaged in the performance of the duties of the Actuarial 
Board and is entitled to travel expenses, including a per diem 
allowance, in accordance with section 5703 of title 5, United States 
Code.

SEC. 152. GENERAL DUTIES OF THE ACTUARIAL BOARD.

    The Actuarial Board shall review the actuarial valuation reports 
produced by the enrolled actuary engaged by the Trustee, and report to 
the Secretary and Congress annually on the actuarial status of the 
Retirement Trust and the Federal Supplemental Fund and shall furnish 
its advice and opinion on matters referred to it by the Secretary.

                 Subtitle F--Federal Supplemental Fund

SEC. 161. ESTABLISHMENT OF THE FEDERAL SUPPLEMENTAL FUND.

    There is established on the books of the Treasury the Federal 
Supplemental District of Columbia Pension Fund, which shall be 
administered by the Secretary. The Federal Supplemental Fund shall be 
used for the accumulation of funds in order to finance obligations of 
the Federal Government for benefits and necessary administrative 
expenses under the provisions of this title.

SEC. 162. ASSETS OF THE FEDERAL SUPPLEMENTAL FUND.

    There shall be deposited into the Federal Supplemental Fund the 
following, which shall constitute the assets of the Federal 
Supplemental Fund:
            (1) Amounts paid into the Federal Supplemental Fund under 
        the provisions of this title.
            (2) Any amount appropriated to the Federal Supplemental 
        Fund.
            (3) Any return on investment of the assets of the Federal 
        Supplemental Fund.

SEC. 163. PAYMENTS FROM THE FEDERAL SUPPLEMENTAL FUND.

    The assets of the Federal Supplemental Fund are hereby made 
available for the payments of benefits and, to the extent and in such 
amounts as are provided in advance in appropriations acts, necessary 
administrative expenses upon the depletion of the assets of the 
Retirement Trust, except that in making payment for such benefits from 
the Fund, the Secretary may not provide for more than one cost-of-
living adjustment during a year to any annuity paid from such Fund.

SEC. 164. DETERMINATION OF COSTS UNDER THE FEDERAL SUPPLEMENTAL FUND.

    (a) Not later than six months after the Actuarial Board is first 
appointed, the Actuarial Board shall determine the amount that is the 
present value as of the freeze date of future benefits payable from the 
Federal Supplemental Fund, which shall be the original unfunded 
liability of the Federal Supplemental Fund. The Actuarial Board shall 
determine an amortization schedule for the liquidation of the original 
unfunded liability over a 30-year period.
    (b)(1) The Actuarial Board shall determine on an annual basis an 
amortization methodology and schedule for the amortization of the 
change in unfunded liability of the Federal Supplemental Fund due to 
the following:
            (A) A change in benefits.
            (B) A net experience gain or loss.
            (C) A change in actuarial assumptions.
            (D) A change in actuarial methods.
    (2) The Actuarial Board shall determine on an annual basis the 
amount of the necessary administrative expenses of the Federal 
Supplemental Fund. This determination is subject to the review and 
approval of the Secretary.
    (c) All determinations under this section shall be made using 
methods and assumptions approved by the Actuarial Board (including 
assumptions of interest rates and inflation) and in accordance with 
generally accepted actuarial principles and practices.
    (d) The Secretary shall provide for the keeping of such records as 
are necessary for determining the actuarial status of the Federal 
Supplemental Fund.

SEC. 165. PAYMENTS INTO THE FEDERAL SUPPLEMENTAL FUND.

    (a) The Actuarial Board annually shall determine and certify to the 
Secretary the sum of the amount in section 164(a), the normal cost 
under section 164(b)(1), and the amount of amortization payments under 
section 164(b)(2). The sum of such amounts may not be less than zero. 
To this sum shall be added the amount of necessary administrative 
expenses in section 164(b)(3).
    (b) At the end of each applicable fiscal year the Secretary shall 
promptly pay into the Federal Supplemental Fund from the General Fund 
of the Treasury the amount certified under subsection (a).
    (c) The first applicable fiscal year under subsection (b) is the 
first fiscal year that ends more than six months after the replacement 
plan adoption date.

SEC. 166. INVESTMENT OF ASSETS OF FEDERAL SUPPLEMENTAL FUND.

    The Secretary shall invest such portion of the Federal Supplemental 
Fund as is not in the judgment of the Secretary required to meet 
current withdrawals. Such investments shall be in public debt 
securities with maturities suitable to the needs of the Federal 
Supplemental Fund, as determined by the Secretary, and bearing interest 
at rates determined by the Secretary, taking into consideration current 
market yields on outstanding marketable obligations of the United 
States of comparable maturities. The income on such investments shall 
be credited to and form a part of the Federal Supplemental Fund.

                 Subtitle G--Judges Retirement Program

SEC. 171. REFERENCE TO NEW FEDERAL PROGRAM.

    For provisions describing the retirement program for judges and 
judicial personnel of the District of Columbia, see part 2 of subtitle 
D of title III.

                        Subtitle H--Enforcement

SEC. 181. JUDICIAL REVIEW.

    (a) A civil action may be brought--
            (1) by a participant or beneficiary to enforce or clarify 
        rights to benefits from the Retirement Trust or Federal 
        Supplemental Fund under this title;
            (2) by the Trustee--
                    (A) to enforce any claim arising (in whole or in 
                part) under this title or the contract; or
                    (B) to recover benefits improperly paid from the 
                Retirement Trust or Federal Supplemental Fund or to 
                clarify a participant's or beneficiary's rights to 
                benefits from the Retirement Trust or Federal 
                Supplemental Fund; and
            (3) by the Secretary to enforce any provision of this title 
        or the contract.
    (b) The Retirement Trust may sue and be sued as an entity.
    (c) This subtitle shall be the exclusive means for bringing actions 
against the Retirement Trust, the Trustee or the Secretary under this 
title.

SEC. 182. JURISDICTION AND VENUE.

    (a) The United States District Court for the District of Columbia 
shall have exclusive jurisdiction and venue, regardless of the amount 
in controversy, of--
            (1) civil actions brought by participants or beneficiaries 
        pursuant to this title, and
            (2) any other action otherwise arising (in whole or part) 
        under this title or the contract.
    (b) Notwithstanding any other provision of law, any order of the 
United States District Court for the District of Columbia issued 
pursuant to an action described in subsection (a) that concerns the 
validity or enforceability of any provision of this title or seeks 
injunctive relief against the Secretary or Trustee under this title 
shall be reviewable only pursuant to a notice of appeal to the United 
States Court of Appeals for the District of Columbia Circuit.
    (c) Notwithstanding any other provision of law, review by the 
Supreme Court of the United States of a decision of the Court of 
Appeals that is issued pursuant to subsection (b) may be had only if 
the petition for relief is filed within 20 calendar days after the 
entry of such decision.
    (d) No order of any court granting declaratory or injunctive relief 
against the Secretary or the Trustee shall take effect during the 
pendency of the action before such court, during the time an appeal may 
be taken, or (if an appeal is taken or petition for certiorari filed) 
during the period before the court has entered its final order 
disposing of the action.

SEC. 183. LIMITATIONS OF ACTIONS.

    (a) Any civil action by a participant or beneficiary for benefits 
under this title shall be commenced within 180 days of a final benefit 
determination.
    (b) Any civil action for breach of the contract or violation of 
this title shall be commenced within the later of--
            (1) six years after the last action that constituted a 
        breach of the contract or violation of this title or, in the 
        case of an omission, six years after the last date on which the 
        breach or violation could have been cured; or
            (2) three years after the earliest date on which the 
        plaintiff knew or could have reasonably been expected to have 
        known of the cause of action.
    (c) Notwithstanding subsection (b), any action against the 
Secretary arising (in whole or part) under this title or the contract 
shall be commenced within one year of the events giving rise to the 
cause of action.

SEC. 184. MISAPPROPRIATION.

    The provisions of section 664 of title 18, United States Code, 
shall apply to the Retirement Trust and the Federal Supplemental Fund.

                       Subtitle I--Miscellaneous

SEC. 191. SEVERABILITY OF PROVISIONS.

    If any provision of this title, or the application of such 
provision to any person or circumstances, shall be held invalid, the 
remainder of this title, or the application of such provision to 
persons or circumstances other than those as to which it is held 
invalid, shall not be affected thereby.

SEC. 192. FULL FAITH AND CREDIT.

    Federal obligations for benefits under this title are backed by the 
full faith and credit of the United States.

SEC. 193. OTHER LAWS.

    (a) Nothing in this title shall be deemed to alter or amend in any 
way the provisions of existing law (including the Reform Act) relating 
to the program of annuities, other retirement benefits, or medical 
benefits for members and officers, retired members and officers, and 
survivors thereof, of the United States Park Police force, the United 
States Secret Service, or the United States Secret Service Uniformed 
Division.
    (b) This title supersedes any provision of the Reform Act 
inconsistent with this title and the regulations thereunder.
    (c) Notwithstanding section 144 of the Reform Act, no Federal 
payment is authorized to be appropriated to the Retirement Fund after 
fiscal year 1997.

SEC. 194. COMPTROLLER GENERAL.

    (a) The Comptroller General of the United States is authorized to 
conduct evaluations of the administration of this title to ensure that 
the Retirement Trust and Federal Supplemental Fund are being properly 
administered and shall report the findings of such evaluations to the 
Secretary and the Congress.
    (b) For the purpose of evaluations and reviews under subsection (a) 
the Comptroller General, subject to section 6103 of the Code, shall 
have access to and the right to copy any books, accounts, records, 
correspondence or other pertinent documents that are in the possession 
of the Secretary or the Trustee, or any contractor or subcontractor of 
the Secretary or the Trustee.

              TITLE II--ASSISTANCE UNDER MEDICAID PROGRAM

SEC. 201. FINDINGS.

    Congress finds the following:
            (1) The District of Columbia has a high Medicaid 
        eligibility rate.
            (2) As an urban jurisdiction with a high poverty rate and a 
        segment of very high income population, the District of 
        Columbia per capita income provides a misleading basis on which 
        to set medical assistance rates, as the District lacks the 
        rural and suburban populations that all states have and which 
        tend to offset high urban Medicaid eligible populations.
            (3) The current medical assistance rate of 50 percent 
        unfairly treats the District of Columbia as if it were a state 
        when it does not possess the requisite attributes of the states 
        under the formula used to determine assistance rates.
            (4) The size and growth of the Medicaid program severely 
        impacts the District government's fiscal and financial 
        situation, threatening both the fiscal stability of the 
        District government and the welfare of District residents.
            (5) The District of Columbia has historically 
        underperformed its duties and responsibilities to administer 
        its Medicaid program efficiently and effectively.
            (6) The District of Columbia must significantly improve its 
        management and administration of the Medicaid program.
            (7) If the District of Columbia government has designed a 
        management improvement program and is successfully implementing 
        it to the best of its ability as certified by the Secretary of 
        Health and Human Services, the District should be eligible for 
        an increased medical assistance rate.

SEC. 202. INCREASE IN FEDERAL MEDICAL ASSISTANCE PERCENTAGE UNDER 
              MEDICAID.

    (a) In General.--Section 1905 of the Social Security Act (42 U.S.C. 
1396d) is amended by adding at the end the following new subsection:
    ``(t)(1) Notwithstanding subsection (b), the Federal medical 
assistance percentage applied under this title for medical assistance 
provided by the District of Columbia shall be increased to 70 percent 
for calendar quarters in any fiscal year for which there is in effect a 
certification by the Secretary that the District of Columbia has 
developed and is implementing satisfactorily a plan to accomplish each 
of the following goals:
            ``(A) To have in effect an effective system for the 
        identification and collection of amounts owed by third parties 
        for medical care and services furnished under the State plan 
        under this title (in this subsection referred to as the `DC 
        medicaid plan').
            ``(B) To ensure the timely audit and settlement of cost 
        reports of institutional providers (including hospitals, 
        nursing facilities, and intermediate care facilities for the 
        mentally retarded) under the DC medicaid plan, including prompt 
        elimination of the backlog of such audits and settlements.
            ``(C) To develop and implement, directly or under contract, 
        a comprehensive health care management information system for 
        the DC medicaid plan that--
                    ``(i) standardizes data base development and 
                management,
                    ``(ii) integrates health care delivery with a 
                public health data system,
                    ``(iii) has the capacity to do all of the 
                following:
                            ``(I) To assist with eligibility 
                        verification.
                            ``(II) To create utilization and financial 
                        profiles of providers.
                            ``(III) To identify services (including 
                        preventive services) received by beneficiaries.
                            ``(IV) To monitor the claims processing and 
                        other operations of fiscal agents.
                            ``(V) To monitor the quality of care 
                        provided under managed care contracts.
                            ``(VI) To coordinate information management 
                        with other public health programs and functions 
                        of the District of Columbia.
            ``(D) To develop a comprehensive behavioral managed health 
        care system with respect to medical assistance under the DC 
        medicaid plan for mental health services, substance abuse 
        treatment services, and other behavioral services which is 
        integrated with other substance abuse and mental health grant 
        programs of the District of Columbia, and which includes the 
        development of a pilot project for better evaluation of 
        inpatient acute psychiatric patient admissions and the use 
        (through managed care contracts or otherwise) of a 
        comprehensive risk-based system for managed care of behavioral 
        health which covers all eligible populations and services.
    ``(2) Upon first issuing a certification under paragraph (1) that 
the District of Columbia has developed and is implementing 
satisfactorily a plan described in such paragraph, the Secretary shall 
submit a report to Congress describing the process by which the 
Secretary made the certification (including the specific assurances 
made by the District of Columbia), and shall thereafter submit a report 
to Congress on a semiannual basis describing the actions taken by the 
District of Columbia to comply with each of the requirements of the 
plan.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to medical assistance in calendar quarters beginning on or after 
the later of--
            (1) October 1, 1997; or
            (2) the first day of the first calendar quarter beginning 
        after the date on which the Secretary of Health and Human 
        Services first issues a certification under section 1905(t)(1) 
        of the Social Security Act (as added by subsection (a)).

                      TITLE III--CRIMINAL JUSTICE

                        Subtitle A--Corrections

SEC. 301. BUREAU OF PRISONS.

    (a) Felons Sentenced Pursuant to the Truth-In-Sentencing 
Requirements.--Not later than October 1, 2001, any person who has been 
convicted of a felony offense pursuant to the District of Columbia Code 
or the truth-in-sentencing system as described in section 311 shall be 
designated by the Bureau of Prisons to a penal or correctional facility 
operated or contracted for by the Bureau of Prisons, for such term of 
imprisonment as the court may direct. Such persons shall be subject to 
any law or regulation applicable to persons committed for violations of 
laws of the United States consistent with the sentence imposed.
    (b) Felons Sentenced Pursuant to the D.C. Code.--Notwithstanding 
any other provision of law, not later than December 31, 2003, the 
Lorton Correctional Complex shall be closed and the felony population 
sentenced pursuant to the District of Columbia Code residing at the 
Lorton Correctional Complex shall be transferred to a penal or 
correctional facility operated or contracted for by the Bureau of 
Prisons. The Bureau of Prisons shall be responsible for the custody, 
care, subsistence, education, treatment and training of such persons.
    (c) Facilities.--To ensure that proper and adequate facilities and 
personnel are available, the Bureau of Prisons:
            (1) Shall administer existing contracts with private or 
        public entities to house the sentenced felony population.
            (2) Shall privatize all minimum security facilities and not 
        less than least 1 medium security facility with a minimum of 
        1000 beds.
            (3) May contract with private or public entities to design, 
        build, or operate new facilities that meet standards set by the 
        American Correctional Association, except that no facility may 
        be built on the grounds of the Lorton Reservation.
            (4) May build new facilities at a site selected by the 
        Bureau of Prisons, except that no facility may be built on the 
        grounds of the Lorton Reservation.
    (d) National Capital Planning.--Notwithstanding any other provision 
of law, the requirements of sections 71 through 74 of title 40, United 
States Code (relating to national capital planning) shall not apply to 
any actions taken by the Bureau of Prisons or its agents or employees.
    (e) Department of Corrections Authority.--The District of Columbia 
Department of Corrections shall remain responsible for the custody, 
care, subsistence, education, treatment, and training of any person 
convicted of a felony offense pursuant to the District of Columbia Code 
and housed at the Lorton Correctional Complex until December 31, 2003, 
or the date on which the last inmate housed at the Lorton Correctional 
Complex comes under authority of the Bureau of Prisons, whichever is 
earlier.
    (f) Lorton Correctional Complex.--Notwithstanding any other 
provision of law, to the extent the Bureau of Prisons assumes functions 
of the Department of Corrections under this title, the Department is no 
longer responsible for such functions and the provisions of ``An Act to 
create a Department of Corrections in the District of Columbia'', 
approved June 27, 1946 (D.C. Code 24-441,442) that apply with respect 
to such functions are no longer applicable. Any property on which the 
Lorton Correctional Complex is located shall be transferred to the 
Department of the Interior.

SEC. 302. CORRECTIONS TRUSTEE.

    (a) Appointment and Removal of Trustee.--
            (1) Appointment.--The Attorney General, in consultation 
        with the Chairman of the District of Columbia Financial 
        Responsibility and Management Assistance Authority (hereafter 
        in this title referred to as the ``D.C. Control Board'') and 
        the Mayor of the District of Columbia, shall appoint a 
        Corrections Trustee, who shall be an independent officer of the 
        government of the District of Columbia, to oversee operations 
        of the District of Columbia Department of Corrections until the 
        Bureau of Prisons has designated all felony offenders sentenced 
        under the District of Columbia Code to a penal or correctional 
        facility operated or contracted for by the Bureau of Prisons 
        under section 301.
            (2) Removal.--The Corrections Trustee may be removed by the 
        Mayor with the concurrence of the Attorney General. The 
        Attorney General shall have the authority to remove the 
        Corrections Trustee for misfeasance or malfeasance in office. 
        At the request of the Corrections Trustee, the District of 
        Columbia Financial Responsibility and Management Assistance 
        Authority may exercise any of its powers and authorities on 
        behalf of the Corrections Trustee.
    (b) Duties of Trustee.--Beginning on the date of appointment and 
continuing until the felony population sentenced pursuant to the 
District of Columbia Code residing at the Lorton Correctional Complex 
is transferred to a penal or correctional facility operated or 
contracted for by the Bureau of Prisons, the Corrections Trustee shall 
carry out the following responsibilities (notwithstanding any law of 
the District of Columbia to the contrary):
            (1) Exercise financial oversight over the District of 
        Columbia Department of Corrections and allocate funds as 
        enacted in law or as otherwise allocated, including funds for 
        short term improvements which are necessary for the safety and 
        security of staff, inmates and the community.
            (2) Purchase any necessary goods or services on behalf of 
        the District of Columbia Department of Corrections consistent 
        with Federal procurement regulations as they apply to the 
        Bureau of Prisons.
            (3) In consultation with the Bureau of Prisons, implement a 
        personnel system.
    (c) Funding.--
            (1) In general.--Funds available for the Corrections 
        Trustee, staff and all necessary and appropriate operations 
        shall be made available to the extent provided in 
        appropriations acts to the Corrections Trustee. Funding 
        requests shall be proposed by the Corrections Trustee to the 
        President and Congress for each Fiscal Year. To the extent 
        authorized by law, the Federal Government shall provide funds 
        for the incarceration of the felony population sentenced 
        pursuant to the District of Columbia Code through the 
        Corrections Trustee to the District of Columbia Department of 
        Corrections.
            (2) Reimbursement to bureau of prisons.--Upon receipt of 
        Federal funds, the Corrections Trustee shall immediately 
        provide an advance reimbursement to the Bureau of Prisons of 
        all funds identified by the Congress for construction of new 
        prisons and major renovations, which shall remain available 
        until expended. The Bureau of Prisons shall be responsible and 
        accountable for determining how these funds shall be used for 
        renovation and construction, including type, security level, 
        and location of new facilities.
            (3) Accountability and reports.--The District of Columbia 
        Department of Corrections and the Bureau of Prisons shall 
        maintain accountability for funds reimbursed from the 
        Corrections Trustee, and shall provide expense reports by 
        project at the request of the Corrections Trustee.
    (d) Compensation and Detailees.--The Corrections Trustee shall be 
compensated at a rate not to exceed the basic pay payable for Level IV 
of the Executive Schedule. The Corrections Trustee may appoint and fix 
the pay of additional staff without regard to the provisions of the 
District of Columbia Code governing appointments and salaries, without 
regard to the provisions of title 5, United States Code, governing 
appointments in the competitive service, and without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of title 5, 
United States Code, relating to classification and General Schedule pay 
rates. Upon request of the Corrections Trustee, the head of any Federal 
department or agency may, on a reimbursable or nonreimbursable basis, 
provide services and detail any personnel of that department or agency 
to the Corrections Trustee to assist in carrying out his duties.
    (e) Procurement and Judicial Review.--The provisions of the 
District of Columbia Code governing procurement shall not apply to the 
Corrections Trustee. The Corrections Trustee may seek judicial 
enforcement of his authority to carry out his duties.
    (f) Preservation of Retirement and Certain Other Rights of Federal 
Employees Who Become Employed by the Corrections Trustee.--
            (1) In general.--A Federal employee who, within 3 days 
        after separating from the Federal Government, is appointed 
        Corrections Trustee or becomes employed by the Corrections 
        Trustee--
                    (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 Corrections Trustee 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 Corrections Trustee, 
                such employee becomes reemployed by the Federal 
                Government, he shall be entitled to credit for the full 
                period of such individual's service with the 
                Corrections Trustee, 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 Corrections Trustee, 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 
                        Corrections Trustee.
                    (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. 303. AUTHORITY OF TRUSTEE AND BUREAU OF PRISONS.

    (a) Memorandum of Understanding.--The Corrections Trustee may enter 
into a Memorandum of Understanding with the Bureau of Prisons to allow 
the Corrections Trustee to enter into contracts with public or private 
entities to lease beds or facilities for a period of time that may 
extend longer than the trusteeship. To the extent that such contracts 
affect incarcerated felony offenders, the Bureau of Prisons shall 
assume administration of the contracts when the Bureau of Prisons gains 
authority over incarcerated felony offenders sentenced pursuant to the 
District of Columbia Code.
    (b) Separation of Prisoners.--The Corrections Trustee and the 
Bureau of Prisons may house the felony population sentenced pursuant to 
the District of Columbia Code in any facility that meets the 
requirements of the American Correctional Association. The Corrections 
Trustee and the Bureau of Prisons may construct or cause to be 
constructed any such facility at sites determined by the Bureau of 
Prisons or the Corrections Trustee, but in no case at the Lorton 
Reservation.
    (c) Reduction and Elimination of Lorton Correctional Complex.--The 
Corrections Trustee and the Bureau of Prisons shall have a mission to 
reduce and empty the Lorton Correctional Complex through all means 
authorized, as soon as possible.

SEC. 304. PRIORITY PLACEMENT FOR EMPLOYEES OF THE DISTRICT OF COLUMBIA.

    (a) Establishment.--As soon as practicable after appointment, the 
Corrections Trustee shall establish a priority placement program to 
facilitate employment placement for employees of the District of 
Columbia who are scheduled to be separated from service due to the 
assumption of authority by the Corrections Trustee.
    (b) Provisions.--The priority placement program shall include 
provisions under which a vacant position shall not be filled by the 
appointment or transfer of any individual from outside of the District 
of Columbia corrections system if there is available any individual 
within the system who meets all qualification and suitability 
requirements of the Bureau of Prisons.

SEC. 305. AMENDMENTS RELATED TO PERSONS WITH A MENTAL DISEASE OR 
              DEFECT.

    Title 18, United States Code, is amended as follows:
            (1) Section 4246 is amended--
                    (A) in subsection (a) by inserting ``in the custody 
                of the Bureau of Prisons'' after ``certifies that a 
                person''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(h) Definition.--As used in this chapter the term ``State'' 
includes the District of Columbia.''.
            (2) Section 4247(a) is amended--
                    (A) in paragraph (1)(D) by striking ``and'' after 
                the semi-colon;
                    (B) in paragraph (2) by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) `State' includes the District of Columbia.''.
            (3) Section 4247(j) of title 18, United States Code, is 
        amended by striking ``This chapter does'' and inserting 
        ``Sections 4241, 4242, 4243, and 4244 do'.

SEC. 306. LITIGATION AUTHORITY OF CORRECTIONS TRUSTEE.

    (a) Corporation Counsel.--Subject to subsection (b), the 
Corporation Counsel of the District of Columbia shall provide 
litigation services to the Corrections Trustee, except that the Trustee 
may instead elect, either generally or in relation to particular cases 
or classes of cases, to hire necessary staff and personnel or enter 
into contracts for the provision of litigation services at the 
Trustee's expense.
    (b) Attorney General.--
            (1) In general.--Notwithstanding subsection (a), with 
        respect to any litigation involving the Corrections Trustee, 
        the Attorney General may--
                    (A) direct the litigation on behalf of the Trustee; 
                and
                    (B) provide on a reimbursable or non-reimbursable 
                basis litigation services for the Trustee at the 
                Trustee's request or on the Attorney General's own 
                initiative.
            (2) Approval of settlement.--With respect to any litigation 
        involving the Corrections Trustee, the Trustee may not agree to 
        any settlement involving any form of equitable relief without 
        the approval of the Attorney General. The Trustee shall provide 
        to the Attorney General such notice and reports concerning 
        litigation as the Attorney General may direct.
            (3) Discretion.--Any decision to exercise any authority 
        under this subsection shall be in the sole discretion of the 
        Attorney General and shall not be reviewable in any court.

SEC. 307. PERMITTING EXPENDITURE OF FUNDS TO CARRY OUT CERTAIN SEWER 
              AGREEMENT.

    Notwithstanding the fourth sentence of section 446 of the District 
of Columbia Self-Government and Governmental Reorganization Act, the 
District of Columbia is authorized to obligate or expend such funds as 
may be necessary during a fiscal year (beginning with fiscal year 1997) 
to carry out the Sewage Delivery System and Capacity Purchase Agreement 
between Fairfax County and the District of Columbia with respect to 
Project Number K00301, without regard to the amount appropriated for 
such purpose in the budget of the District of Columbia for the fiscal 
year.

            Subtitle B--Compliance With Truth-in-Sentencing

SEC. 311. REQUIRING COMPLIANCE WITH TRUTH-IN-SENTENCING GUIDELINES.

    (a) In General.--In accordance with the procedures described in 
subsection (b), any person convicted of a felony offense under a law 
applicable exclusively to the District of Columbia shall be sentenced 
in accordance with a sentencing system which meets the truth-in-
sentencing requirements applicable to a State receiving a truth-in-
sentencing incentive grant under section 20104 of the Violent Crime 
Control and Law Enforcement Act of 1994.
    (b) Procedures for Adoption of System.--If the District of Columbia 
does not enact the sentencing system described in subsection (a) by 
October 1, 1997, as determined by the head of the agency responsible 
for administering the program of grants referred to in subsection (a)--
            (1) the District of Columbia Truth in Sentencing Compliance 
        Commission (in accordance with section 313) shall develop such 
        a sentencing system; and
            (2) the system developed shall apply with respect to 
        persons convicted of a felony after the system is developed.

SEC. 312. REQUIRING ENACTMENT OF LEGISLATION MAXIMIZING EFFECTIVENESS 
              OF DRUG COURT.

    (a) In General.--In accordance with the procedures described in 
subsection (b), there shall be enacted for the District of Columbia 
provisions designed to maximize the effectiveness of the drug court of 
the Superior Court of the District of Columbia.
    (b) Procedures for Adoption of System.--If the District of Columbia 
does not enact the provisions described in subsection (a) by October 1, 
1997, as determined by the Chief Judge of the Superior Court of the 
District of Columbia not later than October 31, 1997, the Chief Judge 
shall so notify the President, Congress, and the District government.
    (c) Review of Enacted Provisions.--
            (1) In general.--If the District of Columbia enacts the 
        provisions described in subsection (a) by October 1, 1997, the 
        Chief Judge of the Superior Court of the District of Columbia 
        shall review the effectiveness of such provisions during the 
        first 1-year period for which such provisions are in effect. 
Not later than 30 days after the expiration of such 1-year period, the 
Chief Judge shall submit a report to the President, Congress, and the 
District government which includes the Chief Judge's assessment of the 
effectiveness of the provisions.
            (2) Recommendations by chief judge.--If the Chief Judge 
        finds in the report submitted under paragraph (1) that the 
        provisions enacted by the District of Columbia have not 
        maximized the effectiveness of the Drug Court of the Superior 
        Court of the District of Columbia, the Chief Judge shall submit 
        a report to the President, Congress, and the District 
        government which includes such recommendations for revisions to 
        such provisions as the Chief Judge considers appropriate.

SEC. 313. TRUTH IN SENTENCING COMPLIANCE COMMISSION.

    (a) Establishment.--
            (1) In general.--There is established as an independent 
        agency of the government of the District of Columbia the 
        District of Columbia Truth in Sentencing Compliance Commission 
        (hereafter in this section referred to as the ``Commission'') 
        which shall be composed of 7 voting members and 2 nonvoting 
        members.
            (2) No establishment if council adopts system.--If the 
        District of Columbia enacts a sentencing system which meets the 
        requirements of section 311(a) by October 1, 1997, the 
        Commission shall not be established and this section shall not 
        take effect.
    (b) Membership.--
            (1) Voting members.--Not later than 30 days after the 
        enactment of this title, the seven voting members of the 
        Commission shall be appointed as follows:
                    (A) The Attorney General, or a designee of the 
                Attorney General appointed by the Attorney General.
                    (B) Two judges of the District of Columbia Superior 
                Court shall be appointed by the Chief Judge of the 
                Court. In a case in which the Chief Judge does not 
                appoint two judges within 30 days, the Chief Judge and 
                the second most senior judge shall serve on the 
                Commission.
                    (C) One member of the District of Columbia Council 
                shall be appointed by the chairperson of the Council. 
                In a case in which the chairperson of the Council does 
                not appoint a representative within 30 days, the 
                chairperson or chairperson pro tempore of the Council 
                shall serve on the Commission.
                    (D) The director of the Department of Corrections 
                of the District of Columbia, or other senior official 
                of the District of Columbia government with official 
                responsibilities for criminal justice matters shall be 
                appointed by the Mayor of the District of Columbia.
                    (E) One representative of the District of Columbia 
                Public Defender Service shall be appointed by the 
                Director of such Service. In a case in which the 
                Director of the Public Defender Service does not 
                appoint a representative within 30 days, the Director 
                shall serve on the Commission.
                    (F) One representative of the United States 
                Attorney for the District of Columbia shall be 
                appointed by the United States Attorney. In a case in 
                which the United States Attorney for the District of 
                Columbia does not appoint a representative within 30 
                days, the United States Attorney shall serve on the 
                Commission.
            (2) Nonvoting members.--Not later than 30 days after the 
        enactment of this title, the 2 nonvoting ex-officio members of 
        the Commission shall be appointed as follows:
                    (A) One representative of the Federal Bureau of 
                Prisons shall be appointed by the Director of the 
                Federal Bureau of Prisons. In a case in which the 
                Director of the Federal Bureau of Prisons does not 
                appoint a representative within 30 days, the Director 
                shall serve on the Commission.
                    (B) One representative of the Office of Corporation 
                Counsel of the District of Columbia shall be appointed 
                by the Corporation Counsel of the District of Columbia. 
                In a case in which the Corporation Counsel of the 
                District of Columbia does not appoint a representative 
                within 30 days, the Corporation Counsel shall serve on 
                the Commission.
            (3) Chairperson.--. The Attorney General, or the Attorney 
        General's designee, shall be the chairperson of the Commission 
        and shall have the duty to convene meetings of the Commission 
        to ensure that it fulfills its responsibilities.
            (4) Terms.--
                    (A) In general.--Each member shall be appointed for 
                the life of the Commission.
                    (B) Removal.-- A member shall be subject to removal 
                only for neglect of duty, malfeasance in office, or 
                other good cause shown.
                    (C) Vacancy.-- Any vacancy in the Commission shall 
                be filled in the same manner as the original 
                appointment.
            (5) Compensation.--Members of the Commission may not 
        receive additional pay, allowances, or benefits by reason of 
        their service on the Commission. Each member of the Commission 
        shall receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with sections 5702 and 5703 of title 
        5, United States Code.
    (c) Duties.--
            (1) Adoption of sentencing system.--
                    (A) In general.--Not later than 18 months after the 
                date of enactment of this Act, the Commission shall 
                develop and adopt a sentencing system which meets the 
                requirements of section 311(a). In developing the 
                sentencing system, the Commission is authorized to 
                disregard any provisions in the District of Columbia 
                Code relating to the maximum and minimum prison terms 
                applicable to offenses under the Code as are necessary 
                to accomplish its duties, and shall not be reviewable 
                in any court. An affirmative vote of at least six 
                members of the Commission is necessary to adopt the 
                sentencing system.
                    (B) Report upon failure to adopt system.--If, 
                within 18 months after the date of enactment of this 
                Act, the Commission fails to adopt a sentencing system 
                which meets the requirements of section 311(a)--
                            (i) the Commission shall submit a report to 
                        the President, Congress, and the District 
                        government describing its activities under this 
                        section and containing such recommendations as 
                        the Commission considers appropriate; and
                            (ii) upon the submission of such report, 
                        the Commission shall immediately terminate.
            (2) Transmission to council and congress.--The Commission 
        shall transmit to Congress and the District government the 
        system adopted under this subsection, including a listing of 
        recommended amendments or repeals to the District of Columbia 
        Code.
    (d) Executive Director.--
            (1) Appointment.--The Commission may appoint an Executive 
        Director who shall conduct or supervise the general affairs of 
        the Commission. Such person shall report to the chairperson.
            (2) Salary.--
                    (A) Full-time federal employee.--If the Executive 
                Director is a full-time Federal employee, he or she 
                shall receive no additional compensation. The Executive 
                Director and any additional personnel shall receive 
                travel expenses, including per diem in lieu of 
                subsistence, in accordance with sections 5702 and 5703 
                of title 5, United States Code.
                    (B) Non full-time federal employee.--If the 
                Executive Director is not a full-time Federal employee, 
                he or she shall receive compensation at a rate 
                determined by the Commission not exceeding Level VI of 
                the Senior Executive Service Schedule (5 U.S.C. 5382).
    (e) Staff.--
            (1) Appointment.--With the approval of the chairperson, the 
        Executive Director may appoint additional personnel, without 
        regard to the provisions of title 5 of the United States Code, 
        governing appointments in the competitive service, or of 
        chapter 51 and subchapter III of chapter 53 of such title, 
        relating to classification and General Schedule pay rates.
            (2) Salary of Other Personnel.--
                    (A) Full-time federal employee.--If a person 
                appointed by the Executive Director is a full-time 
                Federal employee, he or she shall receive no additional 
                compensation. The Executive Director and any additional 
                personnel shall receive travel expenses, including per 
                diem in lieu of subsistence, in accordance with 
                sections 5702 and 5703 of title 5, United States Code.
                    (B) Non full-time federal employee.--If a person 
                appointed by the Executive Director is a not a full-
                time Federal employee, the Executive Director, with the 
                approval of the Commission, shall fix the compensation 
                of such additional personnel. Such compensation shall 
                not exceed the annual maximum rate of pay for a 
                position above GS-15 of the General Schedule (5 U.S.C. 
                5108).
    (f) Use of Federal or District Employees.--Upon request of the 
Chairperson, the head of any Federal or District of Columbia department 
or agency may detail, on a reimbursable or non reimbursable basis, any 
of the personnel of that department or agency to the Commission to 
assist it in carrying out its duties. Such personnel shall be 
considered Federal employees for pay and retirement purposes.
    (g) Powers.--
            (1) Hearings.--The Commission shall hold public hearings, 
        review appropriate sentencing guideline models, consult with 
        sentencing reform experts, and solicit written comments from 
        interested members of the public, at such times as the 
        Commission deems necessary or appropriate.
            (2) Data collection.--The Superior Court of the District of 
        Columbia, the District of Columbia Department of Corrections, 
        and any other Federal agency or District of Columbia agency 
        shall provide to the Commission any data necessary to enable it 
        to carry out this Act.
            (3) Other ancillary powers.--The Commission is authorized--
                    (A) to conduct periodic training programs of 
                instruction in sentencing techniques for judicial and 
                other personnel, and other persons connected with the 
                sentencing process;
                    (B) to hold hearings and call witnesses that might 
                assist the Commission in the exercise of its powers;
                    (C) to perform such other functions as may be 
                necessary to carry out the purposes of this section; 
                and
                    (D) except as otherwise provided, to conduct 
                business, exercise powers, and fulfill duties by the 
                vote of a majority of the members present at any 
                meeting.
            (4) Prohibition of capital punishment authority.--The 
        Commission shall not have authority to provide for capital 
        punishment under any law applicable exclusively to the District 
        of Columbia.
    (h) Reports to Congress.--The Commission shall transmit to Congress 
a copy of the sentencing system it adopts.
    (i) Litigation Authority.--
            (1) Corporation counsel.--Subject to paragraph (2), the 
        Corporation Counsel of the District of Columbia shall provide 
        litigation services to the Commission, except that the 
        Commission may instead elect, either generally or in relation 
        to particular cases or classes of cases, to hire necessary 
        staff and personnel or enter into contracts for the provision 
        of litigation services at the Commission's expense.
            (2) Attorney general.--
                    (A) In general.--Notwithstanding paragraph (1), 
                with respect to any litigation involving the 
                Commission, the Attorney General may--
                            (i) direct the litigation on behalf of the 
                        Commission; and
                            (ii) provide on a reimbursable or non-
                        reimbursable basis litigation services for the 
                        Commission at the Commission's request or on 
                        the Attorney General's own initiative.
                    (B) Approval of settlement.--With respect to any 
                litigation involving the Commission, the Commission may 
                not agree to any settlement involving any form of 
                equitable relief without the approval of the Attorney 
                General. The Commission shall provide to the Attorney 
                General such notice and reports concerning litigation 
                as the Attorney General may direct.
                    (C) Discretion.--Any decision to exercise any 
                authority under this paragraph shall be in the sole 
                discretion of the Attorney General and shall not be 
                reviewable in any court.
    (j) Termination.--
            (1) Sentencing system adopted.--If, within 18 months after 
        the date of enactment of this Act, the Commission adopts a 
        sentencing system that meets the requirements of section 
        311(a), the Commission shall terminate 90 days after such 
        adoption.
            (2) Sentencing system not adopted.--If, within 18 months 
        after the date of enactment of this Act, the Commission fails 
        to adopt a sentencing system that meets the requirements of 
        section 311(a), the Commission shall immediately terminate.
    (k) Authorization of Appropriations.--There are authorized to be 
appropriated to the Commission through the State Justice Institute such 
sums as may be necessary to carry out its purposes. Such sums as are 
appropriated shall remain available until expended.

SEC. 314. TRUTH IN SENTENCING MONITORING AGENCY.

    (a) Establishment.--Upon the establishment of a sentencing system 
for the District of Columbia which meets the requirements of section 
311(a), there is established in the Department of Justice the District 
of Columbia Truth in Sentencing Monitoring Agency (hereafter in this 
section referred to as the ``Agency'') which shall be composed of 3 
voting members and 2 nonvoting members.
    (b) Membership.--
            (1) Voting members.--The Agency shall consist of three 
        voting members, including a chairperson, appointed by the 
        President by and with the consent of the Senate, who have 
        knowledge with respect to criminal justice matters, including 
        the truth-in-sentencing requirements applicable to a State 
        receiving a truth-in-sentencing incentive grant under section 
        20104 of the Violent Crime Control and Law Enforcement Act of 
        1994.
            (2) Nonvoting members.--The Agency shall be composed of 2 
        nonvoting ex-officio members as follows:
                    (A) The United States Attorney for the District of 
                Columbia, or a designee of the United States Attorney.
                    (B) The Director of the District of Columbia Public 
                Defender Service, or a designee of the Director.
            (3) Terms.--
                    (A) In general.--Except as provided in subparagraph 
                (B), each member of the Agency shall be appointed for a 
                term of 6 years.
                    (B) Appointment for initial term.--As designated by 
                the President at the time of appointment for the 
                initial term--
                            (i) 1 member shall be appointed for a term 
                        of 2 years;
                            (ii) 1 members shall be appointed for a 
                        term of 4 years; and
                            (iii) 1 members shall be appointed for a 
                        term of 6 years.
            (4) Compensation.--Members of the Agency may not receive 
        additional pay, allowances, or benefits by reason of their 
        service to the Agency. Each member of the Agency shall receive 
        travel expenses, including per diem in lieu of subsistence, in 
        accordance with sections 5702 and 5703 of title 5, United 
        States Code.
    (c) Monitoring of Sentencing Practices.--
            (1) In general.--The Agency shall monitor sentencing 
        practices of the District of Columbia.
            (2) Transmission of certain council acts to agency.--Any 
        Act of the Council transmitted to Congress pursuant to section 
        602(c)(2) of the District of Columbia Self-Government and 
        Governmental Reorganization Act shall be transmitted 
        simultaneously to the Agency for review.
            (3) Review to determine continued compliance.--If the 
        Agency finds that an Act of the Council transmitted under 
        paragraph (2) or a change in the truth-in-sentencing 
        requirements applicable to a State receiving a truth-in-
        sentencing incentive grant under section 20104 of the Violent 
        Crime Control and Law Enforcement Act of 1994 would cause the 
        sentencing system of the District of Columbia to fail to meet 
        the requirements described in section 311(a), the Agency shall 
        submit such finding to the President, Congress, and the 
        District government.
    (d) Powers.--
            (1) Hearings.--The Agency shall hold public hearings, 
        review appropriate sentencing guideline models, consult with 
        sentencing reform experts, and solicit written comments from 
        interested members of the public, at such times as the Agency 
        deems necessary or appropriate.
            (2) Data collection.--
                    (A) In general.--The Superior Court of the District 
                of Columbia, the District of Columbia Department of 
                Corrections, and any other Federal agency or District 
                of Columbia agency shall provide to the Agency any data 
                necessary to enable it to carry out this Act.
                    (B) Offenders sentenced in superior court.--The 
                Superior Court shall submit to the Agency, in 
                connection with offenders sentenced in the Superior 
                Court, such information as is determined to be relevant 
                to the sentencing system. The Agency shall provide to 
                the Attorney General such data as are requested for 
                planning, statistical analysis or projecting future 
                prison population levels.
            (3) Other ancillary powers.--The Agency is authorized--
                    (A) to conduct periodic training programs of 
                instruction in sentencing techniques for judicial and 
                other personnel, and other persons connected with the 
                sentencing process;
                    (B) to hold hearings and call witnesses that might 
                assist the Agency in the exercise of its powers;
                    (C) to perform such other functions as may be 
                necessary to carry out the purposes of this section; 
                and
                    (D) except as otherwise provided, to conduct 
                business, exercise powers, and fulfill duties by the 
                vote of a majority of the members present at any 
                meeting.
    (e) Reports to Congress.--Beginning one year after its initial 
establishment, the Agency shall transmit an annual report of its 
activities to Congress. The Agency shall also provide Congress with a 
copy of any additions to or amendments of the guidelines adopted by the 
Agency.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Agency through the State Justice Institute such 
sums as may be necessary to carry out its purposes. Such sums as are 
appropriated shall remain available until expended.

SEC. 315. CERTAIN CLAIMS NOT LITIGABLE.

    Nothing in this Act shall be construed to create a right of any 
person to challenge in any court a sentence imposed in a criminal case 
prosecuted under a law applicable exclusively to the District of 
Columbia on the grounds that such sentence is or is not similar to that 
of comparable offenders convicted of comparable offenses under the 
United States Code or that in any other respect the sentencing system 
adopted under this title does not meet the requirements of section 
311(a).

SEC. 316. EVALUATION.

    Four years after any sentencing system enacted under this title 
takes effect, the National Institute of Justice shall evaluate the 
sentencing system to determine the success of the sentencing system in 
accomplishing its purposes.

SEC. 317. CONTINUING RESPONSIBILITY TO ENSURE COMPLIANCE WITH THIS ACT.

    (a) Attorney General.--The Attorney General shall, after the date 
of enactment of this Act, inform the Council of the District of 
Columbia, the Congress, and the Agency of--
            (1) changes in the laws of the United States and the 
        District of Columbia, including changes in sentencing 
        guidelines, commentary, and policy statements; and
            (2) any results of the four-year evaluation described in 
        section 316 that require, or may require, amendment of the 
        statutes or sentencing guidelines of the District of Columbia.
    (b) Council.--The Council shall develop legislation that ensures 
that the requirements of this Act are met.
    (c) Agency.--The Agency shall promulgate guidelines that ensure 
that the requirements of this Act are met.

              Subtitle C--Offender Supervision and Parole

SEC. 331. PAROLE.

    (a) Paroling Jurisdiction.--
            (1) Jurisdiction of parole commission to deny parole or 
        impose conditions.--Not later than one year after date of the 
        enactment of this Act, the United States Parole Commission 
        shall assume the jurisdiction and authority of the Board of 
        Parole of the District of Columbia to grant and deny parole, 
        and to impose conditions upon an order of parole, in the case 
        of any imprisoned felon who is eligible for parole or reparole 
        under the District of Columbia Code. The Parole Commission 
        shall have exclusive authority to amend or supplement any 
        regulation interpreting or implementing the parole laws of the 
        District of Columbia with respect to felons, provided that the 
        Commission adheres to the rulemaking procedures set forth in 
        section 4218 of title 18, United States Code.
            (2) Jurisdiction of parole commission to revoke parole or 
        modify conditions.--On the date in which the District of 
        Columbia Offender Supervision, Defender, and Courts Services 
        Agency is established under section 333, the United States 
        Parole Commission shall assume any remaining powers, duties, 
        and jurisdiction of the Board of Parole of the District of 
        Columbia, including jurisdiction to revoke parole and to modify 
        the conditions of parole, with respect to felons.
            (3) Jurisdiction of superior court.--On the date in which 
        the District of Columbia Offender Supervision, Defender, and 
        Courts Services Agency is established under section 333, the 
        Superior Court of the District of Columbia shall assume the 
        jurisdiction and authority of the Board of Parole of the 
        District of Columbia to grant, deny, and revoke parole, and to 
        impose and modify conditions of parole, with respect to 
        misdemeanants.
    (b) Abolition of the Board of Parole.--On the date in which the 
District of Columbia Offender Supervision, Defender, and Courts 
Services Agency is established under section 333, the Board of Parole 
established in the District of Columbia Board of Parole Amendment Act 
of 1987 shall be abolished.
    (c) Rulemaking and Legislative Responsibility for Parole Matters.--
The Parole Commission shall exercise the authority vested in it by this 
section pursuant to the parole laws and regulations of the District of 
Columbia regarding, except that the Council of the District of Columbia 
and the Board of Parole of the District of Columbia may not revise any 
such laws or regulations (as in effect on the date of the enactment of 
this Act) without the concurrence of the Attorney General.
    (d) Increase in the Authorized Number of United States Parole 
Commissioners.--Section 2(c) of the Parole Commission Phaseout Act of 
1996 (Public Law 104-232) is amended to read as follows:
    ``(c) The United States Parole Commission shall have no more than 
five members.''.

SEC. 332. PRETRIAL SERVICES, DEFENSE SERVICES, PAROLE, ADULT PROBATION 
              AND OFFENDER SUPERVISION TRUSTEE.

    (a) Appointment and Removal.--
            (1) Appointment.--The Attorney General, in consultation 
        with the Chairman of the District of Columbia Financial 
        Responsibility and Management Assistance Authority (hereafter 
        in this section referred to as the ``D.C. Control Board'') and 
        the Mayor of the District of Columbia, shall appoint a Pretrial 
        Services, Defense Services, Parole, Adult Probation and 
        Offender Supervisions Trustee, who shall be an independent 
        officer of the government of the District of Columbia, to 
        effectuate the reorganization and transition of functions and 
        funding relating to pretrial services, defense services, 
        parole, adult probation and offender supervision.
            (2) Removal.--The Trustee may be removed by the Mayor with 
        the concurrence of the Attorney General. The Attorney General 
        shall have the authority to remove the Trustee for misfeasance 
        or malfeasance in office. At the request of the Trustee, the 
        District of Columbia Financial Responsibility and Management 
        Assistance Authority may exercise any of its powers and 
        authorities on behalf of the Trustee.
    (b) Authority.--Beginning on the date of appointment, and 
continuing until the District of Columbia Offender Supervision, 
Defender, and Courts Services Agency is established under section 332, 
the Trustee shall--
            (1) have the authority to exercise all powers and functions 
        authorized for the Director of the District of Columbia 
        Offender Supervision, Defender and Courts Services Agency;
            (2) have the authority to direct the actions of all 
        agencies of the District of Columbia whose functions will be 
        assumed by or within the District of Columbia Offender 
        Supervision, Defender and Courts Services Agency, and of the 
        Board of Parole of the District of Columbia, including the 
        authority to discharge or replace any officers or employees of 
these agencies;
            (3) exercise financial oversight over all agencies of the 
        District of Columbia whose functions will be assumed by or 
        within the District of Columbia Offender Supervision, Defender 
        and Courts Services Agency, and over the Board of Parole of the 
        District of Columbia, and allocate funds to these agencies as 
        appropriated by Congress and allocated by the President;
            (4) receive and transmit to the District of Columbia 
        Pretrial Services Agency all funds appropriated for such 
        agency; and
            (5) receive and transmit to the District of Columbia Public 
        Defender Service all funds appropriated for such agency.
    (c) Compensation.--The Trustee shall be compensated at a rate not 
to exceed the basic pay payable for Level IV of the Executive Schedule. 
The Trustee may appoint and fix the pay of additional staff without 
regard to the provisions of the District of Columbia Code governing 
appointments and salaries, without regard to the provisions of title 5, 
United States Code, governing appointments in the competitive service, 
and without regard to the provisions of chapter 51 and subchapter III 
of Chapter 53 of title 5, United States Code, relating to 
classification and General Schedule pay rates. Upon request of the 
Trustee, the head of any Federal department or agency may, on a 
reimbursable or non-reimbursable basis, provide services and/or detail 
any personnel of that department or agency to the Trusteeship to assist 
in carrying out its duties.
    (d) Procurement and Judicial Review.--The provisions of the 
District of Columbia Code governing procurement shall not apply to the 
Trustee. The Trustee may enter into such contracts as the Trustee 
considers appropriate to carry out the Trustee's duties. The Trustee 
may seek judicial enforcement of the Trustee's authority to carry out 
the Trustee's duties.
    (e) Preservation of Retirement and Certain Other Rights of Federal 
Employee Who Becomes the Trustee.--
            (1) In general.--A Federal employee who, within 3 days 
        after separating from the Federal Government, is appointed 
        Trustee, or becomes employed by the Trustee--
                    (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 Trustee 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 as or with the Trustee, such 
                employee becomes reemployed by the Federal Government, 
                he shall be entitled to credit for the full period of 
                such individual's service as Trustee, 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 as or with the Trustee, 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 Trustee.
                    (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 
        subsection (2) (B).
    (f) Funding.--Funds available for operation of the Trustee shall be 
made available to the extent provided in appropriations acts to the 
Trustee, through the State Justice Institute. Funding requests shall be 
proposed by the Trustee to the President and Congress for each Fiscal 
Year.
    (g) Litigation Authority.--
            (1) Corporation counsel.--Subject to paragraph (2), the 
        Corporation Counsel of the District of Columbia shall provide 
        litigation services to the Trustee, except that the Trustee may 
        instead elect, either generally or in relation to particular 
        cases or classes of cases, to hire necessary staff and 
        personnel or enter into contracts for the provision of 
        litigation services at the Trustee's expense.
            (2) Attorney general.--
                    (A) In general.--Notwithstanding paragraph (2), 
                with respect to any litigation involving the Trustee, 
                the Attorney General may--
                            (i) direct the litigation on behalf of the 
                        Trustee; and
                            (ii) provide on a reimbursable or non-
                        reimbursable basis litigation services for the 
                        Trustee at the Trustee's request or on the 
                        Attorney General's own initiative.
                    (B) Approval of settlement.--With respect to any 
                litigation involving the Trustee, the Trustee may not 
                agree to any settlement involving any form of equitable 
                relief without the approval of the Attorney General. 
                The Trustee shall provide to the Attorney General such 
                notice and reports concerning litigation as the 
                Attorney General may direct.
                    (C) Discretion.--Any decision to exercise any 
                authority under this paragraph shall be in the sole 
                discretion of the Attorney General and shall not be 
                reviewable in any court.
    (h) Certification.--The District of Columbia Offender Supervision, 
Defender, and Courts Services Agency shall assume its duties pursuant 
to section 333 when, within the period beginning one year after the 
date of the enactment of this title and ending three years after the 
date of the enactment of this title, the Trustee certifies to the 
Attorney General and the Attorney General concurs that the Agency can 
carry out the functions described in section 333 and the United States 
Parole Commission can carry out the functions described in section 331.

SEC. 333. OFFENDER SUPERVISION, DEFENDER AND COURTS SERVICES AGENCY.

    (a) Establishment.--There is established within the executive 
branch of the Federal Government the District of Columbia Offender 
Supervision, Defender, and Courts Services Agency (hereafter in this 
section referred to as the ``Agency'') which shall assume its duties 
not less than one year or more than three years after the enactment of 
this Act.
    (b) Director.--
            (1) Appointment and compensation.--The Agency shall be 
        headed by a Director appointed by the President, by and with 
        the advice and consent of the Senate, for a term of six years. 
        The Director shall be compensated at the rate prescribed for 
        Level IV of the Executive Schedule, and may be removed from 
        office prior to the expiration of term only for neglect of 
        duty, malfeasance in office, or other good cause shown.
            (2) Powers and duties of director.--The Director shall--
                    (A) submit annual appropriation requests for the 
                Agency to the Office of Management and Budget;
                    (B) determine, in consultation with the Chief Judge 
                of the United States District Court for the District of 
                Columbia, the Chief Judge of the Superior Court of the 
                District of Columbia, and the Chairman of the United 
                States Parole Commission, uniform supervision and 
                reporting practices for the Agency;
                    (C) hire and supervise supervision officers and 
                support staff for the Agency;
                    (D) direct the use of funds made available to the 
                Agency;
                    (E) enter into such contracts, leases, and 
                cooperative agreements as may be necessary for the 
                performance of the Agency's functions, including 
                contracts for substance abuse and other treatment and 
                rehabilitative programs;
                    (F) develop and operate intermediate sanctions 
                programs for sentenced offenders; and
                    (G) arrange for the supervision of District of 
                Columbia paroled offenders in jurisdictions outside the 
                District of Columbia.
    (c) Functions.--
            (1) In general.--The Agency shall provide supervision, 
        through qualified supervision officers, for offenders on 
        probation, parole, and supervised release pursuant to the 
        District of Columbia Code. The Agency shall carry out its 
        responsibilities on behalf of the court or agency having 
        jurisdiction over the offender being supervised.
            (2) Supervision of released offenders.--The Agency shall 
        supervise any offender who is released from imprisonment for 
        any term of supervised release imposed by the Superior Court of 
        the District of Columbia. Such offender shall be subject to the 
authority of the United States Parole Commission until completion of 
the term of supervised release. The United States Parole Commission 
shall have and exercise the same authority as is vested in the United 
States district courts by paragraphs (d) through (i) of section 3583 of 
title 18, United States Code, except that--
                    (A) the procedures followed by the Commission in 
                exercising such authority shall be those set forth in 
                chapter 311 of title 18, United States Code; and
                    (B) an extension of a term of supervised release 
                under subsection (e)(2) of section 3583 may only be 
                ordered by the Superior Court upon motion from the 
                Commission.
            (3) Supervision of probationers.--The Agency shall 
        supervise all offenders placed on probation by the Superior 
        Court of the District of Columbia. The Agency shall carry out 
        the conditions of release imposed by the Superior Court, and 
        shall make such reports to the Superior Court with respect to 
        an individual on probation as the Superior Court may require.
            (4) Supervision of district of columbia parolees.--The 
        Agency shall supervise all individuals on parole pursuant to 
        the District of Columbia Code. The Agency shall carry out the 
        conditions of release imposed by the United States Parole 
        Commission or, with respect to a misdemeanant, by the Superior 
        Court of the District of Columbia, and shall make such reports 
        to the Commission or Court with respect to an individual on 
        parole supervision as the Commission or Court may require.
    (d) Authority of Officers.--The supervision officers of the Agency 
shall have and exercise the same powers and authority as are granted by 
law to United States Probation and Pretrial Officers.
    (e) Pretrial Services Agency and Public Defender Service.--
            (1) Independent entities.--The District of Columbia 
        Pretrial Services Agency established by subchapter I of chapter 
        13 title 23, District of Columbia Code, and the District of 
        Columbia Public Defender Service established by title III of 
        the District of Columbia Court Reform and Criminal Procedure 
        Act of 1970 (D.C. Code, sec. 1-2701 et seq.) shall function as 
        independent entities within the Agency.
            (2) Submission on behalf of pretrial services.--The 
        Director of the Agency shall submit, on behalf of the District 
        of Columbia Pretrial Services Agency and with the approval of 
        the Director of the Pretrial Services Agency, an annual 
        appropriation request to the Office of Management and Budget. 
        Such request shall be separate from the request submitted for 
        the Agency.
            (3) Submission on behalf of public defender service.--The 
        Director of the Agency shall submit, on behalf of the District 
        of Columbia Public Defender Service and with the approval of 
        the Director of the Public Defender Service, an annual 
        appropriation request to the Office of Management and Budget. 
        Such request shall be separate from that submitted for the 
        Agency.

SEC. 334. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated through the State Justice 
Institute in each fiscal year such sums as may be necessary for the 
following:
            (1) District of Columbia Pretrial Services Agency.
            (2) District of Columbia Public Defender Service.
            (3) Supervision of offenders on probation, parole, or 
        supervised release for offenses under the District of Columbia 
        Code.
            (4) Operation of the parole system for offenders convicted 
        of offenses under the District of Columbia Code.
            (5) Operation of the Trusteeship described in section 335.

                Subtitle D--District of Columbia Courts

 PART 1--TRANSFER OF ADMINISTRATION AND FINANCING OF COURTS TO FEDERAL 
                               GOVERNMENT

SEC. 341. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorizations.--There are authorized to be appropriated 
through the State Justice Institute in each fiscal year such sums as 
may be necessary for the following:
            (1) The Superior Court of the District of Columbia.
            (2) The District of Columbia Court of Appeals.
            (3) The Executive Office for the District of Columbia 
        Courts.
            (4) The District of Columbia court system.
    (b) Submission to OMB.--The Executive Office of the District of 
Columbia Courts shall include in its submissions to the Office of 
Management and Budget and the Congress, the budget and appropriations 
requests of the Superior Court for the District of Columbia, the 
District of Columbia Court of Appeals, and the District of Columbia 
court system.

SEC. 342. ADMINISTRATION OF COURTS UNDER DISTRICT OF COLUMBIA CODE.

    (a) Submission of Annual Budget Requests by Joint Committee on 
Judicial Administration.--Section 11-1701(b)(4), District of Columbia 
Code, is amended to read as follows:
            ``(4) Submission of the annual budget requests of the 
        District of Columbia Court of Appeals and the Superior Court 
        through the Executive Officer of the District of Columbia 
        Courts as the integrated budget of the District of Columbia 
        court system, except that such requests may be modified upon 
        the concurrence of four of the five members of the Joint 
        Committee.''.
    (b) Audit of Accounts of Courts.--Section 11-1723(a)(3), District 
of Columbia Code, is amended to read as follows:
            ``(3) The Fiscal Officer shall be responsible for the 
        approval of vouchers and the internal auditing of the accounts 
        of the courts and shall arrange for an annual independent audit 
        of the accounts of the courts.''.
    (c) Appointment and Removal of Court Personnel.--Section 11-1725(b) 
of the District of Columbia Code is amended to read as follows:
    ``(b) The Executive Officer shall appoint, and may remove, the 
Director of Social Services, the clerks of the courts, the Auditor-
Master, and all other nonjudicial personnel for the courts (other than 
the Register of Wills and personal law clerks and secretaries of the 
judges) as may be necessary, subject to--
            ``(1) regulations approved by the Joint Committee; and
            ``(2) the approval of the chief judge of the court to which 
        the personnel are or will be assigned.
    ``Appointments and removals of court personnel shall not be subject 
to the laws, rules, and limitations applicable to District of Columbia 
employees.''.
    (d) Procurement of Equipment and Supplies.--Section 11-1742(b), 
District of Columbia Code, is amended to read as follows:
    ``(b) The Executive Officer shall be responsible for the 
procurement of necessary equipment, supplies, and services for the 
courts and shall have power, subject to applicable law, to reimburse 
the District of Columbia government for services provided and to 
contract for such equipment, supplies, and services as may be 
necessary.''.
    (e) Budget and Expenditures.--
            (1) In general.--Section 11-1743, District of Columbia 
        Code, is amended to read as follows:
``Sec. 11-743. Annual Budget and Expenditures.
    ``(a) The Joint Committee shall prepare and submit through the 
Executive Officer of the District of Columbia Courts annual estimates 
of the expenditures and appropriations necessary for the maintenance 
and operations of the District of Columbia court system. All such 
estimates shall be included in the budget without revision by the 
President but subject to the President's recommendations.
    ``(b) The District of Columbia Courts may make such expenditures as 
may be necessary to execute efficiently the functions vested in the 
Courts.
    ``(c) All expenditures of the Courts shall be allowed and paid upon 
presentation of itemized vouchers signed by the certifying officer 
designated by the Joint Committee. All such expenditures shall be paid 
out of moneys appropriated for purposes of the Courts.''.
            (2) Clerical amendment.--The item relating to section 11-
        1743 in the table of sections for subchapter III of chapter 17 
        of title 11, District of Columbia Code, is amended to read as 
        follows:

``11-1743. Annual budget and expenditures.''.

SEC. 343. BUDGETING AND FINANCING REQUIREMENTS FOR COURTS UNDER HOME 
              RULE ACT.

    (a) Budget of Courts.--Section 445 of the District of Columbia 
Self-Government and Governmental Reorganization Act (DC Code, Title 11 
App.) is amended to read as follows:
    ``Sec. 445. The District of Columbia courts shall prepare and 
annually submit through the Executive Office of the District of 
Columbia Courts to the Office of Management and Budget, for inclusion 
in the annual budget, annual estimates of the expenditures and 
appropriations necessary for the maintenance and operation of the 
District of Columbia court system. The courts shall submit as part of 
their budgets both a multiyear plan and a multiyear capital 
improvements plan and shall submit a statement presenting qualitative 
and quantitative descriptions of court activities and the status of 
efforts to comply with reports of the Comptroller General of the United 
States.''.
    (b) Financial Duties of the Mayor.--Section 448(a)(6) of such Act 
(DC Code, sec. 47-310(a)(6)) is amended to read as follows:
            ``(6) supervise and be responsible for the levying and 
        collection of all taxes, special assessments, license fees, and 
        other revenues of the District, as required by law, and receive 
        all moneys receivable by the District from the Federal 
        Government or from any agency or instrumentality of the 
        District, except that this paragraph shall not apply to moneys 
        from the District of Columbia Courts.''.
    (c) Funds of the District.--Section 450 of such Act (DC Code, sec. 
47-130), is amended to read as follows:
    ``Sec. 450. The General Fund of the District shall be composed of 
those District revenues which on the effective date of this title are 
paid into the Treasury of the United States and credited either to the 
General Fund of the District or its miscellaneous receipts, but shall 
not include any revenues which are applied by law to any special fund 
existing on the date of enactment of this title. The Council may from 
time to time establish such additional special funds as may be 
necessary for the efficient operation of the government of the 
District. All money received by any agency, officer, or employee of the 
District in its or his official capacity shall belong to the District 
government and shall be paid promptly to the Mayor for deposit in the 
appropriate fund, except that all money received by the District of 
Columbia Courts shall be deposited in the Treasury of the United 
States.''.
    (d) Reductions in Budgets of Independent Agencies.--Section 453(c) 
of such Act (DC Code, sec. 47-304.1(c)) is amended to read as follows:
    ``(c) Subsection (a) shall not apply to amounts appropriated or 
otherwise made available to the Council 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.''.
    (e) Treatment of Court Fees in Calculation of Limits on District 
Borrowing.--Section 603 of such Act (DC Code, sec. 47-313) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in the first sentence, by striking 
                        ``less court fees, any fees'' and inserting 
                        ``less any fees''; and
                            (ii) in the second sentence, by striking 
                        ``section 2501 , title 47 of the District of 
                        Columbia Code, as amended'' and inserting 
                        ``title VI of the District of Columbia Revenue 
                        Act of 1939'';
                    (B) in paragraph (3)(A), by striking ``less court 
                fees, any fees'' and inserting ``less any fees''; and
            (2) in subsection (c), by striking the last sentence 
        (relating to budget estimates of the District of Columbia 
        courts).

SEC. 344. AUDITING OF ACCOUNTS OF COURT SYSTEM.

    (a) Powers of District of Columbia Auditor.--Section 455 of the 
District of Columbia Self-Government and Governmental Reorganization 
Act (DC Code, sec. 47-117) is amended by adding at the end the 
following new subsection:
    ``(g) This section shall not apply to the District of Columbia 
Courts or the accounts and operations thereof.''
    (b) Submission of GAO Audit Reports to Mayor and Council.--Section 
715(b) of title 31, United States Code (DC Code, sec. 47-118.1(b)), is 
amended by striking ``and the Mayor'' and inserting ``and (other than 
the audit reports of the District of Columbia Courts) the Mayor''.
    (c) Independent Annual Audit.--Section 4 of Public Law 94-399 (DC 
Code, sec. 47-119) is amended by adding at the end the following new 
subsection:
    ``(d) This section shall not apply to the District of Columbia 
Courts or the financial operations thereof.''

SEC. 345. MISCELLANEOUS BUDGETING AND FINANCING REQUIREMENTS FOR COURTS 
              UNDER DISTRICT LAW.

    (a) Deposit of Public Funds.--Section 2(21) of the District of 
Columbia Depository Act of 1977 (DC Code, sec. 47-341(21)) is amended 
by striking ``a court, agency'' and inserting ``an agency''.
    (b) Reprogramming of Budget Amounts.--Section 4(h) of D.C. Law 3-
100 (DC Code, sec. 47-363(h)) is amended by striking ``the District of 
Columbia courts,''.
    (c) Control of Grant Funds.--(1) Section 3(1) of D.C. Law 3-104 (DC 
Code, sec. 47-382(1)) is amended to read as follows:
            ``(1) `Agency' means the highest organizational structure 
        of the District at which budgeting data is aggregated, but 
        shall not include the District of Columbia Courts.''
    (2) Section 4(b) of D.C. Law 3-104 (DC Code, sec. 47-383(b)) is 
amended to read at follows:
    ``(b) The Trustees of the University of the District of Columbia, 
the Board of Education, and the D.C. General Hospital Commission shall 
submit to the Mayor two copies of the application and completed 
approval form, as an advisory notice, concurrent with submitting the 
application and completed approval form to a grant-making agency in 
accordance with rules and regulations issued pursuant to subsection (c) 
of this section.''.

SEC. 346. OTHER PROVISIONS RELATING TO ADMINISTRATION OF DISTRICT OF 
              COLUMBIA COURTS.

    (a) Juror Fees.--Section 11-1912(a), District of Columbia Code, is 
amended to read as follows:
    ``(a) Notwithstanding section 602(a) of the District of Columbia 
Self-Government and Governmental Reorganization Act, grand and petit 
jurors serving in the Superior Court shall receive fees and expenses at 
rates established by the Board of Judges of the Superior Court'', 
except that such fees and expenses may not exceed the respective rates 
paid to such jurors in the Federal system.''.
    (b) Compensation of Nonjudicial Personnel Tied to Compensation for 
Federal Employees.--Section 11-1726, District of Columbia Code, is 
amended--
            (1) by striking ``without'' and inserting ``with''; and
            (2) by striking ``and District of Columbia Governments'' 
        and inserting ``Government''.

                  PART 2--JUDICIAL RETIREMENT PROGRAM

SEC. 351. JUDICIAL RETIREMENT AND SURVIVORS ANNUITY FUND.

    (a) Establishment of Fund.--Section 11-1570, District of Columbia 
Code, is amended to read as follows:
``Sec. 11-1570. The District of Columbia Judicial Retirement and 
              Survivors Annuity Fund.
    ``(a) There is established in the Treasury a fund known as the 
District of Columbia Judicial Retirement and Survivors Annuity Fund, 
which shall consist of the following assets:
            ``(1) Amounts deposited by, or deducted and withheld from 
        the salary and retired pay of, a judge under section 1563 or 
        1567 of this title, which shall be credited to an individual 
        account of the judge.
            ``(2) Amounts transferred from the District of Columbia 
        Judges' Retirement Fund under section 124(c)(1) of the District 
        of Columbia Retirement Reform Act.
            ``(3) Any return on investment of the assets of the fund.
    ``(b) Amounts in the fund are available for the payment of judges' 
retirement salaries, annuities, refunds, and allowances under this 
subchapter.
    ``(c) The chief judges of the District of Columbia Court of Appeals 
and Superior Court of the District of Columbia shall submit to the 
President an annual estimate of the expenditures and appropriations 
necessary for the maintenance and operation of the fund, and such 
supplemental and deficiency estimates as may be required from time to 
time for the same purposes, according to law.
    ``(d)(1) The chief judge may cause periodic examinations of the 
retirement fund to be made by an actuary, who may be an actuary 
employed by another department of the Government temporarily assigned 
for the purpose.
    ``(2)(A) Subject to the availability of appropriations, there shall 
be deposited in the Treasury to the credit of the retirement fund, not 
later than the close of each fiscal year, such amounts as may be 
required to reduce to zero the unfunded liability (if any) of the fund. 
Such deposits shall be taken from sums available for that fiscal year 
for the payment of the expenses of the Court.
    ``(B) For purposes of subparagraph (A) of this paragraph, the term 
`unfunded liability', with respect to any fiscal year, means the amount 
estimated by the chief judges to be equal to the excess (as of the 
close of that fiscal year) of--
            ``(i) the present value of all benefits payable from the 
        fund (determined on an annual basis is accordance with section 
        9503 of title 31, United States Code), over
            ``(ii) the sum of--
                    ``(I) the present values of future deductions under 
                sections 11-1563 and 11-1567; and
                    ``(II) the balance in the fund as of the close of 
                the fiscal year.
    ``(C) Amounts deposited in the retirement fund under this paragraph 
shall not be credited to the account of any individual.
    ``(e) The Secretary of the Treasury shall invest from time to time 
in interest-bearing securities of the United States, such portions of 
the fund as in such Secretary's judgment may not be immediately 
required for payment from the fund.
    ``(f) None of the moneys mentioned in this subchapter (including 
moneys in the District of Columbia Judges' Retirement Fund) shall be 
assignable, either in law or in equity, or be subject to execution, 
levy, attachment, garnishment, or other legal process.''.
    (b) Clerical Amendment.--The table of sections for subchapter III 
of chapter 15 of title 11, District of Columbia Code, is amended by 
amending the item relating to section 11-1570 to read as follows:

``11-1570. The District of Columbia Judicial Retirement and Survivors 
                            Annuity Fund.''.

SEC. 352. TERMINATION OF CURRENT FUND AND PROGRAM.

    (a) Termination of Judges' Retirement Fund.--Section 124 of the 
District of Columbia Retirement Reform Act (DC Code, sec. 1-714) is 
amended by striking subsection (c) and inserting the following:
    ``(c)(1) Notwithstanding any other provision of this Act or the 
amendments made by this Act, upon the date provided for the transfer of 
assets of the Retirement Fund described in title I of the National 
Capital Revitalization and Self-Government Improvement Act of 1997, the 
assets of the District of Columbia Judges' Retirement Fund established 
under subsection (a) shall be transferred to the District of Columbia 
Judicial Retirement and Survivors Annuity Fund under section 11-1570, 
District of Columbia Code, and no amounts shall be deposited into the 
District of Columbia Judges' Retirement Fund after the date on which 
the assets are so transferred.
    ``(2) The District of Columbia Judges' Retirement Fund established 
under subsection (a) shall be continued in the Treasury and 
appropriated for the purposes provided in this Act until such time as 
all amounts in such Fund have been expended or transferred to the 
District of Columbia Judicial Retirement and Survivors Annuity Fund 
pursuant to paragraph (1). Thereafter any payments of retirement 
salaries, annuities, refunds, and allowances for judicial personnel of 
the District of Columbia shall be paid from the District of Columbia 
Judicial Retirement and Survivors Annuity Fund in accordance with 
subchapter III of chapter 15 of title 11, District of Columbia Code.''.
    (b) Removal of Judges From Retirement Board.--Section 121(b)(1)(A) 
of the District of Columbia Retirement Reform Act (DC Code, sec. 1-
711(b)(1)(A)) is amended--
            (1) in the matter preceding clause (i), by striking ``13'' 
        and inserting ``11'';
            (2) by striking clause (vii); and
            (3) by redesignating clauses (viii) and (ix) as clauses 
        (vii) and (viii).

SEC. 353. CONFORMING AMENDMENTS.

    (a) Transfer of Authority Over Fund to Secretary of Treasury.--
Title 11, District of Columbia Code, is amended as follows:
            (1) In sections 11-1561(8)(C), 11-1562(c), 11-1563(b), 11-
        1563(c), 11-1564(d)(6), 11-1564(d)(7), 11-1566(a), and 11-
        1570(c), by striking ``Commissioner [Mayor]'' each place it 
        appears and inserting ``Secretary of the Treasury''.
            (2) In sections 11-1566(b)(2), 11-1567(a), 11-1567(b), by 
        striking ``Mayor'' each place it appears and inserting 
        ``Secretary of the Treasury''.
            (3) In sections 11-1564(d)(2)(A) and 11-1568.1(1)(B), by 
        striking ``Mayor of the District of Columbia'' each place it 
        appears and inserting ``Secretary of the Treasury''.
            (4) In section 11-1563(a), by striking ``paid to the 
        Custodian of Retirement Funds (as defined in section 102(6) of 
        the District of Columbia Retirement Reform Act)'' and inserting 
        ``paid to the Secretary of the Treasury''.
    (b) Definition of fund.--Section 11-1561(4), District of Columbia 
Code, is amended to read as follows:
            ``(4) The term `fund' means the District of Columbia 
        Judicial Retirement and Survivors Annuity Fund established by 
        sections 11-1570.''.
    (c) Treatment of Federal Service of Judges.--Section 11-1564(d)(4), 
District of Columbia Code, is amended by striking ``Judges' Retirement 
Fund established by section 124(a) of the District of Columbia 
Retirement Reform Act'' and inserting ``Judicial Retirement and 
Survivors Annuity Fund under section 11-1570''.

     PART 3--MISCELLANEOUS CONFORMING AND ADMINISTRATIVE PROVISIONS

SEC. 361. TREATMENT OF COURTS UNDER MISCELLANEOUS DISTRICT LAWS.

    (a) Financial Responsibility and Management Assistance Act.--
Paragraph (5) of section 305 of the District of Columbia Financial 
Responsibility and Management Assistance Act of 1995 (DC Code, sec. 47-
393(5)) is amended to read as follows:
            ``(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 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.''.
    (b) Merit Personnel Act.--(1) Section 201 of the District of 
Columbia Comprehensive Merit Personnel Act of 1978 (DC Code, sec. 1-
602.1) is amended--
            (A) by striking ``(a) Except as provided in subsection (b) 
        or unless'' and inserting ``Unless''; and
                    (B) by striking subsection (b).
    (2) Section 301(13) of the District of Columbia Comprehensive Merit 
Personnel Act of 1978 (DC Code, sec. 1-603.1(13)) is amended by 
striking ``, the Superior Court of the District of Columbia, and the 
District of Columbia Court of Appeals shall be considered independent 
agencies'' and inserting ``shall be considered an independent agency''.

SEC. 362. REPRESENTATION OF INDIGENTS IN CRIMINAL CASES.

    (a) Budget.--Section 11-2607, District of Columbia Code, is amended 
to read as follows:
``Sec. 11-2607. Preparation of Budget.
    ``The joint committee shall prepare and include in its annual 
budget requests for the District of Columbia court system estimates of 
the expenditures and appropriations necessary for furnishing 
representation by private attorneys to persons entitled to 
representation in accordance with section 2601 of this title.''.
    (b) Authorization of Appropriations.--Section 11-2608 of the 
District of Columbia Code is amended to read as follows:
``Sec. 11-2608. Authorization of appropriations.
    ``There are authorized to be appropriated through the State Justice 
Institute to the District of Columbia Public Defender Service such sums 
as may be necessary to pay for representation by private attorneys and 
related services under this chapter. When so specified in appropriation 
Acts, such appropriations shall remain available until expended.''.
    (d) Repeal Authority of Council.--
            (1) In general.--Section 11-2609, District of Columbia 
        Code, is repealed.
            (2) Clerical amendment.--The table of sections for chapter 
        26 of title 11, District of Columbia Code, is amended by 
        striking the item relating to section 11-2609.

    Subtitle E--Pretrial Services Agency and Public Defender Service

SEC. 371. AMENDMENTS AFFECTING PRETRIAL SERVICES AGENCY.

    (a) In General.--Sections 23-1304 through 23-1308 of the District 
of Columbia Code are amended to read as follows:
``Sec. 23-1304. Executive committee; composition; appointment and 
              qualifications of Director.
    ``(a) The agency shall be advised by an executive committee of 
seven members, of which four members shall constitute a quorum. The 
Executive Committee shall be composed of the following persons or their 
designees: the Chief Judge of the United States Court of Appeals for 
the District of Columbia Circuit, the Chief Judge of the United States 
District Court for the District of Columbia, the Chief Judge of the 
District of Columbia Court of Appeals, the Chief Judge of the Superior 
Court of the District of Columbia, the United States Attorney for the 
District of Columbia, the Director of the District of Columbia Public 
Defender Service, and the Director of the District of Columbia Offender 
Supervision, Defender and Courts Services Agency.
    ``(b) The Chief Judge of the United States Court of Appeals for the 
District of Columbia Circuit and the Chief Judge of the United States 
District Court for the District of Columbia, in consultation with the 
other members of the executive committee, shall appoint a Director of 
the agency who shall be a member of the bar of the District of 
Columbia.
``Sec. 23-1305. Duties of director; compensation.
    ``(a) The Director of the agency shall be responsible for the 
supervision and execution of the duties of the agency. The Director 
shall be compensated as a member of the Senior Executive Service 
pursuant to subchapter VIII of chapter 53 of title 5, United States 
Code.
``Sec. 23-1306. Chief assistant and other agency personnel; 
              compensation.
    ``The Director shall employ a chief assistant who shall be 
compensated as a member of the Senior Executive Service pursuant to 
section 5382 of title 5, United States Code. The Director shall employ 
such agency personnel as may be necessary properly to conduct the 
business of the agency. All employees other than the chief assistant 
shall receive compensation that is comparable to levels of compensation 
established for Federal pretrial services agencies.
``Sec. 23-1307. Annual reports.
    ``(a) The Director shall each year submit to the executive 
committee and to the Director of the District of Columbia Offender 
Supervision, Defender and Courts Services Agency a report as to the 
Pretrial Services Agency's administration of its responsibilities for 
the previous fiscal year. The Director shall include in the report a 
statement of financial condition, revenues, and expenses for the past 
fiscal year.
``Sec. 23-1308. Appropriation; budget.
    ``There are authorized to be appropriated through the State Justice 
Institute in each fiscal year such sums as may be necessary to carry 
out the provisions of this subchapter. Funds appropriated by Congress 
for the District of Columbia Pretrial Services Agency shall be received 
by the Director of the District of Columbia Offender Supervision, 
Defender and Courts Services Agency, and shall be disbursed by that 
Director to and on behalf of the District of Columbia Pretrial Services 
Agency. The District of Columbia Pretrial Services Agency shall submit 
to the Director of the District of Columbia Offender Supervision, 
Defender and Courts Services Agency at the time and in the form 
prescribed by that Director, reports of its activities and financial 
position and its proposed budget.''.
    (b) Clerical Amendment.--The table of sections for subchapter I of 
chapter 13 of title 23, District of Columbia Code, is amended by 
striking the items relating to sections 23-1304 through 23-1308 and 
inserting the following:

``23-1304. Executive committee; composition; appointment and 
                            qualifications of Director.
``23-1305. Duties of director; compensation.
``23-1306. Chief assistant and other agency personnel; compensation.
``23-1307. Annual reports.
``23-1308. Appropriation; budget.

SEC. 372. AMENDMENTS AFFECTING PUBLIC DEFENDER SERVICE.

    (a) Board of Trustees.--Section 303(a) of the District of Columbia 
Court Reform and Criminal Procedure Act of 1970 (DC Code, sec. 1-
2703(a)) is amended to read as follows:
    ``(a) The Service shall be advised on matters of general policy by 
a Board of Trustees.''.
    (b) Appointment of Director and Deputy Director.--Section 304 of 
such Act (DC Code, sec. 1-2704) is amended to read as follows:

``SEC. 304. DIRECTOR AND DEPUTY DIRECTOR; APPOINTMENT; DUTIES; 
              MEMBERSHIP IN BAR REQUIRED.

    ``The Chief Judge of the United States Court of Appeals for the 
District of Columbia Circuit and the Chief Judge of the United States 
District Court for the District of Columbia, in consultation with the 
persons described in subparagraphs (B) through (D) of section 303(b)(1) 
and the Board of Trustees, shall appoint a Director and Deputy Director 
of the Service. The Director shall be responsible for the supervision 
and execution of the duties of the Service. The Deputy Director shall 
assist the Director and shall perform such duties as the Director may 
prescribe. The Director and Deputy Director shall be members of the bar 
of the District of Columbia. The Director of the District of Columbia 
Offender Supervision, Defender and Courts Services Agency shall fix the 
compensation of the Director and the Deputy Director, but the 
compensation of the Director shall not exceed the compensation received 
by the United States Attorney for the District of Columbia.''.
    (c) Annual Report and Audit.--Section 306 of such Act (DC Code, 
sec. 1-2706) is amended--
            (1) in subsection (a)--
                    (A) by striking ``Board of Trustees'' and inserting 
                ``Director'', and
                    (B) by striking ``and to the Mayor of the District 
                of Columbia'' and inserting ``to the Director of the 
                District of Columbia Offender Supervision, Defender and 
                Courts Services Agency, and to the Office of Management 
                and Budget''; and
            (2) in subsection (b)--
                    (A) by striking ``Board of Trustees'' and inserting 
                ``Director''; and
                    (B) by striking ``the Administrative Office of the 
                United States Courts'' and inserting ``the Director of 
                the District of Columbia Offender Supervision, Defender 
                and Courts Services Agency''.
    (d) Appropriations.--Section 307 of such Act (DC Code, sec. 1-2707) 
is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) There are authorized to be appropriated through the State 
Justice Institute in each fiscal year such sums as may be necessary to 
carry out the provisions of this chapter. Funds appropriated by 
Congress for the District of Columbia Public Defender Service shall be 
received by the Director of the District of Columbia Offender 
Supervision, Defender and Courts Services Agency, and shall be 
disbursed by that Director to and on behalf of the Service. The Service 
shall submit to the Director of the District of Columbia Offender 
Supervision, Defender and Courts Services Agency, at the time and in 
the form prescribed by that Director, reports of its activities and 
financial position and its proposed budget.''; and
            (2) in subsection (b), by striking ``Upon approval of the 
        Board of Trustees, the'' and inserting ``The'' .

                  Subtitle F--Miscellaneous Provisions

SEC. 381. TECHNICAL ASSISTANCE AND RESEARCH.

    There are authorized to be appropriated to the National Institute 
of Justice in each fiscal year (beginning with fiscal year 1998) such 
sums as may be necessary for the following activities:
            (1) Research and demonstration projects, evaluations, and 
        technical assistance to assess and analyze the crime problem in 
        the District of Columbia, and to improve the ability of the 
        criminal justice and other systems and entities in the District 
        of Columbia to prevent, solve, and punish crimes.
            (2) The establishment of a locally-based corporation or 
        institute in the District of Columbia supporting research and 
        demonstration projects relating to the prevention, solution, or 
        punishment of crimes in the District of Columbia, including the 
        provision of related technical assistance.

SEC. 382. EXEMPTION FROM PERSONNEL AND BUDGET CEILINGS FOR TRUSTEES AND 
              RELATED AGENCIES.

    The Trustees described in sections 301 and 335 of this title, and 
the activities of the agencies over which the Trustees exercise 
financial oversight pursuant to those sections, shall not be subject to 
the personnel or budget limitations which otherwise apply to the 
District of Columbia or its agencies.

      TITLE IV--PRIVATIZATION OF TAX COLLECTION AND ADMINISTRATION

SEC. 401. FINDINGS.

    Congress finds as follows:
            (1) The District of Columbia government has historically 
        had a poor record of determining and collecting all revenue it 
        is due under its revenue code.
            (2) The impact on the District's financial condition of 
        poor administration and collection is significant and has 
        contributed both to the size of its accumulated operating 
        deficit and to the difficulty in balancing the budget going 
        forward.
            (3) More complete collection of taxes would not only 
        increase District of Columbia revenues, but would give 
        residents and businesses a sense of equity and that all were 
        paying their fair share.
            (4) Once District tax processing and collection is 
        competently managed it will be possible for the District 
        government to accurately assess the true value of its many 
        taxes and determine that some may be reduced or eliminated 
        without a significant negative impact on revenues.
            (5) Any reduction or elimination of non-productive or 
        counterproductive taxes or taxes which cost more to administer 
        than they produce in revenue would significantly improve the 
        negative atmosphere surrounding the District of Columbia tax 
        system and its enforcement.

SEC. 402. AUTHORIZING CHIEF FINANCIAL OFFICER TO PRIVATIZE TAX 
              ADMINISTRATION AND COLLECTION.

    The Chief Financial Officer of the District of Columbia may enter 
into contracts with a private entity for the administration and 
collection of taxes of the District of Columbia.

     TITLE V--FINANCING OF DISTRICT OF COLUMBIA ACCUMULATED DEFICIT

SEC. 501. FINDINGS.

    Congress finds as follows:
            (1) The District of Columbia government sold accumulated 
        deficit financing bonds in 1991.
            (2) Between 1991 and the end of fiscal year 1997 the 
        District of Columbia government is expected to accumulate an 
        operating deficit in excess of $500,000,000.
            (3) Requiring the District of Columbia budget for fiscal 
        year 1998 to be balanced will ensure that no further addition 
        is made to the accumulated operating deficit.
            (4) In every other example of an American city in financial 
        crisis, a vital and necessary component of recovery was to 
        finance the accumulated operating deficit.
            (5) Carrying forward an accumualted operating deficit of 
        more than $500,000,000 has a significant negative impact on the 
        District of Columbia's cash flow and financial condition and on 
        its ability to improve its credit rating.
            (6) It is not feasible to carry forward such a debt with an 
        expectation of paying it off gradually from future budget 
        surpluses.
            (7) Financing the accumulated deficit would improve the 
        District's cash management position and allow more normal cash 
        management techniques.

SEC. 502. AUTHORIZATION FOR INTERMEDIATE-TERM ADVANCES OF FUNDS BY THE 
              SECRETARY OF THE TREASURY TO LIQUIDATE THE ACCUMULATED 
              GENERAL FUND DEFICIT OF THE DISTRICT OF COLUMBIA.

    Title VI of the District of Columbia Revenue Act of 1939 (DC Code, 
sec. 47-3401 et seq.) is amended--
            (1) by redesignating sections 602 through 605 as sections 
        603 through 606, respectively; and
            (2) by inserting after section 601 the following:

``SEC. 602. INTERMEDIATE-TERM ADVANCES FOR LIQUIDATION OF DEFICIT.

    ``(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 and 
to the extent provided in advance in annual appropriations Acts, for 
the purpose of assisting the District government in liquidating the 
outstanding accumulated operating deficit of the general fund of the 
District government existing as of September 30, 1997.
    ``(b) Conditions to Making Any Intermediate-Term Advance.--The 
Secretary shall make an advance under this section if--
            ``(1) the Mayor delivers to the Secretary the following 
        instruments, in form and substance satisfactory to the 
        Secretary--
                    ``(A) a financing agreement in which the Mayor 
                agrees to procedures for requisitioning advances;
                    ``(B) a requisition for an advance under this 
                section; and
                    ``(C) a promissory note evidencing the District 
                government's obligation to reimburse the Treasury for 
                the requisitioned advance, which note may be a general 
                obligation bond issued under section 461(a) of the 
                District of Columbia Self-Government and Governmental 
                Reorganization Act by the District government to the 
                Secretary if the Secretary determines that such a bond 
                is satisfactory;
            ``(2) the date on which the requisitioned advance is 
        requested to be made is not later than 3 years from the date of 
        enactment of the National Capital Revitalization and Self-
        Government Improvement Act of 1997;
            ``(3) the District government delivers to the Secretary--
                    ``(A) evidence demonstrating to the satisfaction of 
                the Secretary that, 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 need for financing to accomplish the 
                purpose described in subsection (a); and
                    ``(B) a schedule setting out the anticipated timing 
                and amounts of requisitions for advances under this 
                section;
            ``(4) the Authority certifies to the Secretary that--
                    ``(A) 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 in which the requisition is 
                to be made;
                    ``(B) at the time that the Mayor's requisition for 
                an advance is delivered to the Secretary, the District 
                government is in compliance with the approved financial 
                plan and budget;
                    ``(C) both the receipt of funds from such advance 
                and the reimbursement of Treasury for such advance are 
                consistent with the approved financial plan and budget 
                for the year;
                    ``(D) such advance will not adversely affect the 
                financial stability of the District government; and
                    ``(E) at the time that the Mayor's requisition for 
                an advance is delivered to the Secretary, 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 need for financing to 
                accomplish the purpose described in subsection (a);
            ``(5) the Inspector General of the District of Columbia 
        certifies to the Secretary the information described in 
        subparagraphs (A) through (D) of paragraph (4), and in making 
        this certification, the Inspector General may rely upon an 
        audit conducted by an outside auditor engaged by the Inspector 
        General under section 208(a)(4) of the District of Columbia 
        Procurement Practices Act of 1985 if, after reasonable inquiry, 
        the Inspector General concurs in the findings of such audit;
            ``(6) the Secretary determines that--
                    ``(A) there is reasonable assurance of 
                reimbursement for the requisitioned advance; and
                    ``(B) the debt owed by the District government to 
                the Treasury on account of the requisitioned advance 
                will not be subordinate to any other debt owed by the 
                District or to any other claims against the District; 
                and
            ``(7) the Secretary receives from such persons as the 
        Secretary determines to be appropriate such additional 
        certifications and opinions relating to such matters as the 
        Secretary determines to be appropriate.
    ``(c) Amount of Any Intermediate-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 certifies that the amount 
                designated in the Mayor's requisition for such advance 
                is needed to accomplish the purpose described in 
                subsection (a) within 30 days of the time that the 
                Mayor's requisition is delivered to the Secretary; and
                    ``(B) the Authority concurs in the Mayor's 
                certification under subparagraph (A).
            ``(3) Maximum amount.--Notwithstanding paragraph (1), the 
        aggregate amount of all advances made under this section shall 
        not be greater than $500,000,000.
    ``(d) Maturity of Any Intermediate-Term Advance.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), each advance made under this section shall mature on the 
        date designated by the Mayor in the Mayor's requisition for 
        such advance.
            ``(2) Latest permissible maturity date.--Notwithstanding 
        paragraph (1), the maturity date for any advance made under 
        this section shall not be later than 15 years from the date on 
        which the first advance under this section is made.
            ``(4) Secretary's right to require early reimbursement.--
        Notwithstanding paragraph (1), if the Secretary determines, at 
        any time while any advance made under this section has not been 
        fully reimbursed, that the District is able to obtain credit in 
        the public credit markets or elsewhere in sufficient amounts 
        and on sufficiently reasonable terms, in the judgment of the 
        Secretary, to refinance all or a portion of the unpaid balance 
        of such advance in the public credit markets or elsewhere 
        without adversely affecting the financial stability of the 
        District government, the Secretary may require reimbursement 
        for all or a portion of the unpaid balance of such advance at 
        any time after the Secretary makes the determination.
    ``(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 repayment schedule of such advance, plus \1/8\ of 1 
percent.
    ``(f) Other Terms and Conditions.--Each advance made under this 
section shall be on such other terms and conditions, including 
repayment schedule, as the Secretary determines to be appropriate.
    ``(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. 503. CONFORMING AMENDMENTS.

    (a) Amendment to Section 601.--Section 601 of the District of 
Columbia Revenue Act of 1939 (DC Code, sec. 47-3401) is amended--
            (1) in subsection (c)(2)(B)(i)(IV), by striking ``602(b)'' 
        and inserting ``603(b)''; and
            (2) in subsection (d)(2)(B)(iii), by striking ``602(b)'' 
        and inserting ``603(b)''.
    (b) Amendment to Section 604.--Section 604 of the District of 
Columbia Revenue Act of 1939 (DC Code, sec. 47-3401.3) is amended--
            (1) in subsection (a)(2)(A)(i), by striking ``602'' and 
        inserting ``603''; and
            (2) in subsection (a)(2)(B)(i), by striking ``602'' and 
        inserting ``603''.

SEC. 504. TECHNICAL CORRECTIONS.

    Section 601 of the District of Columbia Revenue Act of 1939 (DC 
Code, sec. 47-3401) is amended--
            (1) in subsection (a)(3)(D), by striking ``September 30, 
        1995'' and inserting ``September 30, 1996'';
            (2) in subsection (b)(2)(E), by striking ``September 30, 
        1996'' and inserting ``September 30, 1997'';
            (3) in subsection (c)(2)(B)(i), by striking ``October 1, 
        1995'' and inserting ``September 30, 1995'';
            (4) in subsection (d)(2)(B)(i)(II), by striking ``September 
        30, 1997'' and inserting ``September 30, 1998'';
            (5) in subsection (d)(2)(B)(ii)--
                    (A) by striking ``September 30, 1995'' and 
                inserting ``October 1, 1995''; and
                    (B) by striking ``September 30, 1997'' and 
                inserting ``October 1, 1997''; and
            (6) in subsection (d)(2)(C)(iv), by striking ``September 
        30, 1997'' and inserting ``September 30, 1998''.

SEC. 505. AUTHORIZATION FOR ISSUANCE OF GENERAL OBLIGATION BONDS BY THE 
              DISTRICT OF COLUMBIA TO FINANCE OR REFUND ITS ACCUMULATED 
              GENERAL FUND DEFICIT.

    Section 461(a) of the District of Columbia Self-Government and 
Governmental Reorganization Act (DC Code, sec. 47-321(a)) is amended--
            (1) in paragraph (1), by inserting ``to finance or refund 
        the outstanding accumulated operating deficit of the general 
        fund of the District of $500,000,000, existing as of September 
        30, 1997,'' after ``existing as of September 30, 1990,''; and
            (2) in paragraph (2), by inserting ``existing as of 
        September 30, 1990'' after ``operating deficit''.

                        TITLE VI--REVENUE BONDS

SEC. 601. SHORT TITLE; FINDINGS.

    (a) Short Title.--This title may be cited as the ``District of 
Columbia Revenue Bond Financing Authority Improvements Act of 1997''.
    (b) Findings.--Congress finds as follows:
                    (A) The District of Columbia revenue bond authority 
                was written in 1973 and contained many restrictions not 
                imposed on states or by states on other local 
                governments.
                    (B) The types and uses of revenue bonds have 
                changed significantly in states and localities since 
                1973.
                    (C) The District of Columbia has never been able to 
                use all of its annual allocation of revenue bond 
                authority under its current restrictions.
                    (D) The District of Columbia has suffered a lack of 
                economic development due in part to restrictions on its 
                use of revenue bonds.
                    (E) The District of Columbia is at a competitive 
                disadvantage with its neighbors because of the 
                antiquated and restricted nature of its revenue bond 
                authority.

SEC. 602. AMENDMENTS TO HOME RULE CHARTER PROVISION GOVERNING REVENUE 
              BONDS.

    (a) Uses of Revenue Bonds.--The first sentence of section 490(a)(1) 
of the District of Columbia Self-Government and Governmental 
Reorganization Act (DC Code, sec. 47-334(a)(1)) is amended to read as 
follows: ``The Council may by act or by resolution authorize the 
issuance of taxable and tax-exempt revenue bonds, notes, or other 
obligations (including refunding bonds, notes, or other obligations) to 
borrow money on behalf of any qualified applicant to finance, 
refinance, or reimburse, or to assist in the financing, refinancing, or 
reimbursing of or for, undertakings in the areas of housing, health 
facilities, transit and utility facilities, sports, convention, tourism 
hospitality, and entertainment facilities, recreation facilities, 
facilities to house and equip operations of the District government or 
any District instrumentality, public infrastructure development and 
redevelopment, elementary, secondary, and college and university 
facilities, educational programs which provide loans for the payment of 
educational expenses for and on behalf of students, facilities for 
generating, treating, and distributing water and disposing of 
wastewater, pollution control facilities, solid and hazardous waste 
facilities, parking facilities, manufacturing facilities, industrial 
and commercial development, any of the capital expenditures that the 
District is authorized to make, and any other property or project for 
the use of others that will, as determined by the Council, contribute 
to the health, education, safety, or welfare of, or the creation or the 
preservation of jobs for, residents of the District, or to economic 
development in the District, and any facilities or property, real or 
personal, used in connection with or supplementing any of the 
foregoing, and any costs related to the issuance, carrying, security, 
or liquidity or credit enhancement of or for such bonds, notes, or 
other obligations, including capitalized interest and reserves, and the 
costs of bond or loan insurance, letters of credit, and guaranteed 
investment, forward purchase, remarketing, auction, and swap 
agreements.''.
    (b) Uses of Revenues to Pay or Secure Bonds.--The second sentence 
of section 490(a)(3) of the District of Columbia Self-Government and 
Governmental Reorganization Act (DC Code, sec. 47-334(a)(3)) is amended 
to read as follows: ``Subject to subsection (c), any act or resolution 
of the Council authorizing the issuance of revenue bonds, notes, or 
other obligations may provide for (A) the payment of such bonds, notes, 
or other obligations from any available revenues, including enterprise 
fund revenues, assets, or property ; and (B) the securing of such bond, 
note, or other obligation by the mortgage of real property and the 
creation of a security interest in available revenues, including 
enterprise fund revenues, assets, or other property.''.
    (c) Authorization to Delegate Authority.--
            (1) In general.--Section 490(a) of the District of Columbia 
        Self-Government and Governmental Reorganization Act (DC Code, 
        sec. 47-334(a)) is amended by adding at the end the following 
        new paragraph:
            ``(6)(A) The Council may by act delegate to any duly 
        created District instrumentality the authority of the Council 
        under this section to issue taxable or tax-exempt revenue 
        bonds, notes, or other obligations for the purposes specified 
        in this section. For purposes of this paragraph, the Council 
        shall specify for what undertakings revenue bonds, notes, or 
        other obligations may be issued under each delegation made 
        pursuant to this subsection. Any such District instrumentality 
        may exercise the authority and powers incident thereto 
        delegated to it by the Council as described in the first 
        sentence of this paragraph (whether such delegation is made 
        before or after the date of enactment of this subsection) only 
        in accordance with this subsection and shall be consistent with 
        this section and the terms of the delegation. The enumeration 
        of any power in this Act shall not be construed as a limitation 
upon such general powers.
            ``(B) Revenue bonds, notes, or other obligations issued by 
        any District instrumentality under a delegation of authority 
        described in subparagraph (A) shall be issued by resolution of 
        that instrumentality, and any such resolution shall not be 
        considered to be an act of the Council.
            ``(C) Nothing in this paragraph shall be construed as 
        restricting, impairing, or superseding the authority otherwise 
        vested by law in independent instrumentalities of the District 
        government.''.
            (2) Conforming amendments.--Section 490 of such Act (DC 
        Code, sec. 47-334), as amended by the District of Columbia 
        Water and Sewer Authority Act of 1996, is amended by striking 
        subsections (g) and (h).
    (d) Revenue Bonds Excluded from Certain Limitations.--Section 
490(f) of the District of Columbia Self-Government and Governmental 
Reorganization Act (DC Code, sec. 47-334(f)) is amended to read as 
follows:
    ``(f)(1) The fourth sentence of section 446 shall not apply to--
                    ``(A) any amount (including the amount of any 
                accrued interest or premium) obligated or expended from 
                the proceeds of the sale of any revenue bond, note, or 
                other obligation issued under this section;
                    ``(B) any amount obligated or expended for the 
                payment of the principal of, interest on, or any 
                premium for any revenue bond, note, or other obligation 
                issued under this section; and
                    ``(C) any amount obligated or expended to secure 
                any revenue bond, note, or other obligation issued 
                under this section.
            ``(2) The amount of any revenue bonds, notes, or other 
        obligations issued by the District or any duly created and 
        authorized District instrumentality under this section shall 
        not be taken into account in determining whether the amount of 
        funds borrowed by the District during a fiscal year as general 
        obligation bonds or Treasury capital project loans exceeds the 
        limitation on that amount provided in section 603(b).''.
    (e) Definitions.--Section 490 of the District of Columbia Self-
Government and Governmental Reorganization Act (DC Code, sec. 47-334), 
as amended by subsection (c)(2), is amended by adding at the end the 
following new subsection:
    ``(g) For purposes of this section:
            ``(1) The term `revenue bonds, notes, or other obligations' 
        means special fund bonds, notes, or other obligations 
        (including refunding bonds, notes, or other obligations) issued 
        by the District or by a duly created and authorized District 
        instrumentality to borrow money on behalf of qualified 
        applicants to finance, refinance, or reimburse, or to assist in 
        the financing, refinancing, or reimbursing of or for, the 
        undertakings referred to in subsection (a)(1), the principal of 
        and interest, if any, on which are to be paid and secured in 
        the manner described in this section, and which are special 
        obligations and to which the full faith and credit of the 
        District of Columbia is not pledged.
            ``(2) The term `District instrumentality' means any agency 
        or instrumentality (including any independent agency or 
        instrumentality), authority, commission, board, department, 
        division, office, or body of the District government 
        established by it or by the laws of the United States of 
        America (whether established before or after the date of 
        enactment of this subsection).
            ``(3) The term `available revenues' means gross revenues 
        and receipts, other than general fund tax receipts, lawfully 
        available for the purpose and not otherwise exclusively 
        committed to another purpose, including enterprise funds, 
        grants, subsidies, contributions, and proceeds of revenue 
        bonds, notes, or other obligations issued under this section.
            ``(4) The term `enterprise fund' means a fund or account 
        for operations that are financed or operated in a manner 
        similar to private business enterprises, or established so that 
        separate determinations may more readily be made periodically 
        of revenues earned, expenses incurred, or net income for 
        management control, accountability, capital maintenance, public 
        policy, or other purposes.''.

SEC. 603. CLARIFICATION OF TREATMENT OF REVENUE BONDS UNDER FINANCIAL 
              RESPONSIBILITY AND MANAGEMENT ASSISTANCE ACT.

    Section 204 of the District of Columbia Financial Responsibility 
and Management Assistance Act of 1995 (DC Code, sec. 47-392.4) is 
amended by adding at the end the following new subsection:
    ``(g) Revenue Bonds Not Treated as Borrowing.--For purposes of this 
section, the issuance of any revenue bond, note, or other obligation 
under section 490 of the District of Columbia Self-Government and 
Governmental Reorganization Act shall not be considered to be a 
borrowing of funds by the District.''.

    TITLE VII--DISTRICT OF COLUMBIA ECONOMIC DEVELOPMENT CORPORATION

                     Subtitle A--General Provisions

SEC. 701. SHORT TITLE.

    This title may be cited as the ``District of Columbia Economic 
Development Corporation Act of 1997''.

SEC. 702. FINDINGS.

    Congress finds the following:
            (1) There is a substantial need in the District of Columbia 
        for economic development to provide and maintain employment and 
        tax revenues, and the District of Columbia faces unique 
        barriers to accomplishing and realizing economic development 
        from its own resources.
            (2) The District of Columbia has a unique status under the 
        Constitution in that it is the seat of the Federal Government, 
        but it is not a State or a political subdivision of a State.
            (3) The government of the District of Columbia is uniquely 
        disadvantaged, when compared to other cities which are 
        political subdivisions of a State, in its ability to accomplish 
        and realize economic development because it does not have any 
        State government to perform the functions of coordinating, 
        supporting, and promoting economic development that State 
        governments commonly perform for other cities.
            (4) The government of the District of Columbia is uniquely 
        disadvantaged, when compared to other cities, in its ability to 
        finance economic development from local tax revenues because 
        Federal law prevents the District of Columbia government from 
        assessing and collecting certain local taxes.
            (5) No other jurisdiction has all these disadvantages, the 
        cumulative effect of which is greater than the sum of the 
        effects of the individual factors.
            (6) The Federal Government is a beneficiary of a 
        substantial number of recurring and nonrecurring unreimbursed 
        services provided by the government of the District of 
        Columbia.
            (7) It is in the national interest that the Federal 
        government assist the District of Columbia in maintaining 
        itself as a safe, clean, and beautiful city worthy of the seat 
        of the Federal Government of a Great Nation, a goal that will 
        be realized only through the development of a sound local 
        economic base in the District of Columbia.

SEC. 703. PURPOSES.

    The purposes of this title are--
            (1) to expand overall levels of economic output, income, 
        and employment in the District of Columbia;
            (2) to improve employment and business opportunities in 
        distressed neighborhoods and for low-income residents 
        throughout the District of Columbia;
            (3) to enhance the capacity of public and private 
        organizations to facilitate the expansion of employment and 
        business opportunities;
            (4) to increase the rate of private sector investment in 
        the District of Columbia;
            (5) to develop comprehensive strategies for the economic 
        development of the District of Columbia as a whole and for 
        particular areas, neighborhoods, transportation corridors, and 
        economic sectors of the District of Columbia, and to identify 
        projects and activities to fulfill the strategies;
            (6) to assist the implementation of, or implement, projects 
        throughout the District of Columbia (including a new or 
        expanded convention center and infrastructure projects) that 
        can yield substantial economic benefits for its residents;
            (7) to enhance the institutional capacity of the government 
        of the District of Columbia to accomplish and realize economic 
        development; and
            (8) to ameliorate the consequences of the limited tax base 
        and taxing authority of the District of Columbia, as described 
        in section 702.

SEC. 704. DEFINITIONS.

    For purposes of this title:
            (1) Appointed board member.--The term ``appointed Board 
        member'' or ``appointed Board members'' means a Board member or 
        Board members appointed under section 713(b)(1)(A).
            (2) Board.--The term ``Board'' means the board of directors 
        of the Corporation.
            (3) Chair.--The term ``Chair'' means the chairperson of the 
        Board.
            (4) Corporation.--The term ``Corporation'' means the 
        District of Columbia Economic Development Corporation, 
        including any subsidiary established by the Corporation (other 
        than for purposes of subtitle B).
            (5) Distressed area.--The term ``distressed area'' means 
        any population census tract having a poverty rate of at least 
        15 percent.
            (6) District government.--The term ``District government'' 
        means the government of the District of Columbia, including--
                    (A) any department, agency, or instrumentality of 
                the government of the District of Columbia;
                    (B) 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;
                    (C) any other agency, board, or commission 
                established by the Mayor or the Council;
                    (D) the courts of the District of Columbia;
                    (E) the Council; and
                    (F) any other agency, public authority, or public 
                benefit corporation that 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 Corporation.
            (7) Economic development project.--The term ``economic 
        development project'' means any project--
                    (A) that is to be used or occupied by any person;
                    (B) that is located or is to be located within the 
                District of Columbia;
                    (C) that the Corporation determines will tend to--
                            (i) create or retain jobs for residents of 
                        the District of Columbia;
                            (ii) maintain or increase the tax base of 
                        the economy of the District of Columbia;
                            (iii) maintain, expand, or diversify 
                        industry in the District of Columbia;
                            (iv) promote the export of products or 
                        services beyond the boundaries of the District 
                        of Columbia; or
                            (v) otherwise contribute to, support, or 
                        enhance existing activities that are important 
                        to the economic base of the District of 
                        Columbia; and
                    (D)(i) that is unable to obtain conventional 
                financing in sufficient amounts and on sufficiently 
                reasonable terms in the sole judgment of the 
                Corporation; or
                    (ii) whose ability, in the judgment of the 
                Corporation, to start, continue to operate, expand, or 
                maintain operations or relocate to the District of 
                Columbia is dependent upon financial assistance.
            (8) Ex officio board member.--The term ``ex officio Board 
        member'' or ``ex officio Board members'' means the Board member 
        or Board members described in section 713(b)(1)(B).
            (9) Financial assistance.--The term ``financial 
        assistance'' means any of the following provided to persons for 
        the purchase, acquisition, construction, expansion, continued 
        operation, reconstruction, rehabilitation, repair, or placing 
        into operation of an economic development project:
                    (A) Any loan, extension of credit, equity 
                investment, grant, fixed contribution to a loan loss or 
                debt service reserve fund, or any other similar form of 
                financing or refinancing, but excluding any loan 
                guarantee, insurance of payment of principal and 
                interest, and any other similar form of credit support 
                that provides recourse to the Corporation.
                    (B) Any exchange, lease, or conveyance of land;
                    (C) Any allocation of tax credits under section 
                1400D of the Internal Revenue Code of 1986 for 
                qualified loans and qualified equity investments.
                    (D) Any loan made from the proceeds of an issuance 
                by the Corporation of private activity bonds under 
                section 1400F(b) of the Internal Revenue Code of 1986 
                qualifying for tax-exempt treatment under section 1400C 
                of the Internal Revenue Code of 1986.
                    (E) Any loan made from the proceeds of an issuance 
                by the Corporation of project revenue obligations under 
                section 732.
                    (F) Any other assistance which the District 
                government may authorize the Corporation to provide.
            (10) Obligation.--The term ``obligation'' means any bond, 
        note, or other payment obligation.
            (11) Person.--The term ``person'' means any natural person, 
        partnership, corporation, or joint venture, including 
        affiliates.
            (12) Project.--The term ``project'' means--
                    (A) any facility, plant, works, system, building, 
                structure, utility, fixture, or other real property 
                improvement, and infrastructure and site improvements 
                relating thereto; and
                    (B) any machinery, equipment, furniture, fixture, 
                or other personal property, and the land on which it is 
                located or to be located, or which is reasonably 
                necessary thereto.
            (13) Return on investment.--The term ``return on 
        investment'' means any and all forms of principal or interest 
        payments, dividends, stock distributions, equity 
        participations, options, warrants, debentures, and any and all 
        other forms of remuneration to the Corporation in return for 
        any financial assistance provided or offered.
            (14) Suspension date.--The term ``suspension date'' means 
        September 30, 2007.
            (15) Targeted district resident.--The term ``targeted 
        resident'' means any individual--
                    (A)(i) whose principal place of abode
                            (I) is the District of Columbia; and
                            (II) is within a population census tract 
                        having a poverty rate of at least 15 percent; 
                        and
                    (ii) who has an annual income less than $28,500 
                (adjusted in calendar years after 1997 as provided in 
                section 1400A(d)(5) of the Internal Revenue Code of 
                1986); or
                    (B)(i) whose principal place of abode is the 
                District of Columbia; and
                    (ii) who is a member of a targeted group described 
                in section 51 of the Internal Revenue Code of 1986.
            (16) Termination date.--The term ``termination date'' means 
        September 30, 2010.

  Subtitle B--District of Columbia Economic Development Cor- poration 
                                Charter

SEC. 711. ESTABLISHMENT.

    Under Article I, section 8, clause 17 of the Constitution of the 
United States, there is established the District of Columbia Economic 
Development Corporation (to be known for purposes of the Revenue 
Reconciliation Act of 1997 as the ``Economic Development 
Corporation'').

SEC. 712. STATUS OF CORPORATION.

    Except as otherwise provided in this title, the Corporation is 
established as a corporate body and instrumentality of the government 
of the District of Columbia, and is not established as, and is not to 
be considered, a department, agency, establishment or instrumentality 
of the United States.

SEC. 713. BOARD OF DIRECTORS.

    (a) In General.--The powers of the Corporation shall be vested in, 
and the Corporation shall be administered by, the Board.
    (b) Membership.--
            (1) In general.--The Board shall consist of 9 voting 
        members as follows:
                    (A) Appointed board members.--
                            (i) Presidential appointments.--Five 
                        members appointed by the President from among 
                        individuals who meet the general eligibility 
                        requirements described in subparagraph (C)--
                                    (I) 4 of whom shall be individuals 
                                selected from organizations engaged in 
                                for-profit business activity, such as 
                                real estate development, retailing, 
                                manufacturing, construction, or 
                                financial services; and
                                    (II) 1 of whom shall be an 
                                individual selected from a community-
                                based organization.
                            (ii) District appointment.--One member 
                        appointed by the Mayor, with the approval of 
                        the Council--
                                    (I) from among individuals who meet 
                                the general eligibility requirements 
                                described in subparagraph (C); and
                                    (II) who shall be an individual 
                                selected from either an organization 
                                engaged in for-profit business activity 
                                or a community-based organization.
                    (B) Ex officio board members.--Three ex officio 
                Board members designated as follows:
                            (i) An officer or employee of the Federal 
                        government designated by the President from 
                        among the Office of Management and Budget, the 
                        Department of the Treasury, the Department of 
                        Commerce, the Department of Housing and Urban 
                        Development, the Department of Labor, or the 
                        Small Business Administration.
                            (ii) The Mayor or an alternate designated 
                        by the Mayor from among senior officers of the 
                        District government.
                            (iii) The Chairman of the Council or an 
                        alternate designated by the Chairman from among 
                        other members of the Council or senior officers 
                        of the District government.
                    (C) General eligibility requirements.--An 
                individual is eligible to be appointed as a Board 
                member under subparagraph (A) if that individual--
                            (i) has expertise in economic development;
                            (ii) maintains a primary residence, or has 
                        a primary place of business, in the District of 
                        Columbia; and
                            (iii) is not an officer or employee of the 
                        Federal Government or the District government.
            (2) Consultation with congress.--In appointing the Board 
        members under paragraph (1)(A), the President shall consult 
        with the Chair of the Committee on Appropriations and the Chair 
        of the Committee on Governmental 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) Sense of the congress regarding appointments.--It is 
        the sense of the Congress that the President should appoint the 
        first 6 Board members under paragraph (1)(A) as soon as 
        practicable after the date of enactment of this title.
    (c) Chair.--The President shall designate 1 of the Board members 
appointed by the President, at the time of that individual's 
appointment, to serve as the Chair of the Board.
    (d) Terms of Appointed Board Members.--
            (1) Term.--Each of the appointed Board members shall be 
        appointed to a term of 6 years.
            (2) Removal for cause.--The President may remove any 
        appointed Board member for inefficiency, neglect of duty, or 
        malfeasance in office.
            (3) Unexpired terms.--Any Board member appointed to fill a 
        vacancy occurring before the end of the term to which the 
        member's predecessor was appointed shall be appointed only for 
        the remainder of the term.
            (4) Continuation of service.--Each appointed Board member 
        may continue to serve after the expiration of the term of 
        office to which the member was appointed until a successor has 
        been appointed and qualified.
            (5) Limitation on consecutive terms.--The President may 
        reappoint a Board member appointed under section 713(b)(1)(A), 
        but no appointed Board member may consecutively serve more than 
        2 terms.
            (6) Initial terms staggered.--Notwithstanding paragraph 
        (1)--
                    (A) of the first 5 Board members appointed under 
                subsection (b)(1)(A)(i)--
                            (i) 2 shall be appointed for a term that 
                        expires 6 years after the date of appointment,
                            (ii) 2 shall be appointed for a term that 
                        expires 4 years after the date of appointment, 
                        and
                            (iii) 1 shall be appointed for a term that 
                        expires 2 years after the date of appointment; 
                        and
                    (B) the first Board member appointed under 
                subsection (b)(1)(A)(ii) shall be appointed for a term 
                that expires 2 years after the date of appointment.
    (e) Terms of Ex Officio Board Members.--Each ex officio Board 
member shall serve at the pleasure of the official who designated that 
member under subsection (b)(1)(B).
    (f) Vacancies.--A vacancy on the Board shall be filled in the same 
manner in which the original appointment was made.
    (g) Quorum.--Five Board members shall constitute a quorum for the 
conduct of business.
    (h) Adoption of Bylaws.--As soon as practicable after appointment 
of its members, the Board shall adopt bylaws, rules, and procedures for 
the governance of its affairs and the conduct of its business.
    (i) Meetings.--The Board shall meet--
            (1) at the times specified in the bylaws, which shall not 
        be less than quarterly each year; and
            (2) at other times at the call of the Chair.
    (j) Compensation.--
            (1) No additional compensation.--The Board members shall 
        serve without compensation for their membership on the Board.
            (2) Reimbursement for appointed board members.--The 
        appointed Board members may receive travel, per diem, and other 
        actual, reasonable, and necessary expenses incurred in the 
        performance of their official duties as Board members to the 
        same extent as officers of the United States.

SEC. 714. OFFICERS AND EMPLOYEES.

    (a) In General.--
            (1) Establishment of personnel system required.--The Board 
        shall establish a personnel system for the Corporation and 
        adopt written rules and procedures relating to employment 
        matters such as appointments, compensation, and adverse 
        actions.
            (2) Inapplicability of certain employment laws.--
                    (A) Civil service laws.--Except as otherwise 
                provided in this title, the provisions of title 5, 
                United States Code, shall not apply to the officers and 
                employees of the Corporation.
                    (B) District of columbia employment laws.--Except 
                as otherwise provided in this title, the provisions of 
                the District of Columbia Code governing employment with 
                the District government shall not apply to the officers 
                and employees of the Corporation.
    (b) Chief Executive Officer.--The Board shall appoint a Chief 
Executive Officer of the Corporation, who shall direct and supervise 
the general management and administrative affairs of the Corporation 
under terms and conditions prescribed by the Board.
    (c) Other Officers and Employees.--The Chief Executive Officer--
            (1) shall, with the approval of the Board, appoint a Chief 
        Financial Officer and a General Counsel; and
            (2) may appoint additional officers and employees as the 
        Chief Executive Officer determines appropriate.
    (d) Compensation.--
            (1) Chief officers.--The Board shall fix, adjust, and 
        administer the compensation (including benefits) for the Chief 
        Executive Officer, the Chief Financial Officer, and the General 
        Counsel.
            (2) Other officers and employees.--The Chief Executive 
        Officer shall fix, adjust, and administer the compensation 
        (including benefits, except as provided in subsection (e)(2)) 
        for all other officers and employees of the Corporation.
            (3) Report required.--The annual report described in 
        section 716(a) shall describe the compensation structure for 
        officers and employees of the Corporation.
    (e) Employee Benefits.--
            (1) In general.--The Corporation shall be authorized to 
        establish and administer its own employment benefits programs 
        for individuals who become employed by the Corporation other 
than individuals who make an election under paragraph (2)(A)(i).
            (2) Former employees of the federal government and rest of 
        district government.--
                    (A) In general.--Any employee of the Federal 
                Government or the District government who becomes 
                employed by the Corporation
                            (i) may elect
                                    (I) if the individual is an 
                                employee of the Federal Government at 
                                the time of the election, to be 
                                treated, for the purposes of the 
                                programs listed in subparagraph (B)(i), 
                                for as long as that individual remains 
                                continuously employed by the 
                                Corporation, as if that individual had 
                                not separated from service with the 
                                Federal Government; and
                                    (II) if the individual is an 
                                employee of the District government at 
                                the time of the election, to be 
                                treated, for the purposes of the 
                                programs referred to in subparagraph 
                                (B)(ii), for as long as that individual 
                                remains continuously employed by the 
                                Corporation, as if that individual had 
                                not separated from service with the 
                                District government; and
                            (ii) shall, if that individual subsequently 
                        becomes reemployed by the Federal Government or 
                        the District government, as the case may be, be 
                        entitled to have that individual's service with 
                        the Corporation treated, for purposes of 
                        determining the applicable leave accrual rate, 
                        as if it had been service with the Federal 
                        government or the District government, as the 
                        case may be.
                    (B) Effect of election.--An election made by an 
                individual under subparagraph (A)(i)
                            (i) if the individual is an employee of the 
                        Federal Government at the time of the election, 
                        shall qualify that individual and survivors of 
                        that individual for the treatment described in 
                        subparagraph (A)(i) for purposes of
                                    (I) chapter 83 or 84 of title 5, 
                                United States Code (relating to 
                                retirement), as appropriate, including 
                                the Thrift Savings Plan;
                                    (II) chapter 87 of title 5, United 
                                States Code (relating to life 
                                insurance); and
                                    (III) chapter 89 of title 5 United 
                                States Code (relating to health 
                                insurance);
                            (ii) if the individual is an employee of 
                        the District government at the time of the 
                        election, shall qualify that individual and 
                        survivors of that individual for the treatment 
                        described in subparagraph (A)(i) for purposes 
                        of the corresponding programs offered by the 
                        District government; and
                            (iii) shall disqualify that individual, 
                        while the election remains in effect, from 
                        participating in any program offered by the 
                        Corporation corresponding to the programs 
                        referred to in clause (i).
                    (C) Conditions for election.--An election made 
                under subparagraph (A)(i) shall be ineffective unless
                            (i) it is made before the individual 
                        separates from service with the Federal 
                        Government or the District government, as the 
                        case may be; and
                            (ii) the individual's service with the 
                        Corporation commences within 3 days after so 
                        separating (not counting any holiday observed 
                        by the government of the District of Columbia).
                    (D) Deductions and employer contributions.--If an 
                individual makes an election under subparagraph (A)(i), 
                the Corporation shall be responsible for making the 
                same deductions from pay and the same employer 
                contributions for
                            (i) the programs listed in subparagraph 
                        (B)(i) as would be required if the Corporation 
                        were an agency of the Federal government, if 
                        the individual is an employee of the Federal 
                        government at the time of the election; and
                            (ii) the corresponding programs referred to 
                        in subparagraph (B)(ii) as would be required if 
                        the Corporation were an agency of the District 
                        government, if the individual is an employee of 
                        the District government at the time of the 
                        election.
                    (E) Regulations.--Any regulations necessary to 
                carry out this subsection shall be prescribed
                            (i) by the Director of the Office of 
                        Personnel Management, to the extent that any 
                        program administered by that office is 
                        involved;
                            (ii) by the Executive Director of the 
                        Thrift Savings Plan, to the extent that the 
                        Thrift Savings Plan is involved; and
                            (iii) by the head of the corresponding 
                        office or agency of the District government, to 
                        the extent that any corresponding program 
                        administered by that office or agency is 
                        involved.
                    (F) Definitions.--
                            (i) Corresponding office or agency.--For 
                        purposes of this paragraph, the term 
                        ``corresponding office or agency of the 
                        District government'' means the office or 
                        agency in the District government responsible 
                        for administering a corresponding program.
                            (ii) Corresponding program.--For purposes 
                        of this paragraph, the term ``corresponding 
                        program'' or ``corresponding programs'' means 
                        any program or the programs offered by the 
                        District government corresponding to any 
                        program or the programs referred to in 
                        subparagraph (B)(i).
    (f) No Political Test or Qualification.--No political test or 
qualification shall be used in selecting, appointing, promoting, or 
taking other personnel actions with respect to officers and employees 
of the Corporation.
    (g) Assistance by Federal Agencies and Rest of the District 
Government.--
            (1) In general.--Upon request of the Chair, the head of any 
        department, agency, establishment, or instrumentality of the 
        Federal Government or the District government may, to the 
        extent practicable and feasible, and in the sole discretion of 
        the head of the department, agency, establishment, or 
        instrumentality, make any of the personnel and other resources 
        of that department, agency, establishment, or instrumentality 
        available to the Corporation on a reimbursable or 
        nonreimbursable basis.
            (2) Status of detailed personnel.--Any personnel detailed 
        to the Corporation under paragraph (1) shall not be considered 
        employees of the Corporation, but rather shall remain employees 
        of the government that detailed them.

SEC. 715. POLITICAL ACTIVITY.

    The Corporation may not expend any funds to influence legislation 
(other than in connection with testimony by a Board member or an 
officer or employee of the Corporation before a committee of the 
Congress or the Council of the District of Columbia, or in responding 
to a written request from a Member of Congress or the Council or a 
committee of the Congress or the Council) or in connection with any 
political campaign on behalf of or in opposition to any candidate for 
public office.

SEC. 716. REPORTS, PLANS, AND EVALUATIONS.

    (a) Annual Report and Audit.--
            (1) Annual reports required.--The Corporation shall submit 
        a report annually to the Mayor, the Council, the Authority (if 
        the activities of the Authority are not suspended under section 
        109 of the District of Columbia Financial Responsibility and 
        Management Assistance Act of 1995), the President, the 
        Congress, and the public not later than April 1 of each year 
        concerning its operations for the prior fiscal year.
            (2) Annual audits required.--The annual report shall 
        include a financial statement audited by an independent 
        auditor.
    (b) Annual Performance Plan.--
            (1) Annual performance plans required.--The Corporation 
        shall prepare annually a performance plan for the operations of 
        the Corporation during the 5-year period that begins on the 
        date of the plan.
            (2) Plan elements.--Each performance plan shall establish--
                    (A) performance goals for the Corporation;
                    (B) performance benchmarks to be used in measuring 
                or assessing the performance results of the 
                Corporation; and
                    (C) a methodology for comparing the performance 
                results of the Corporation with the established 
                performance goals.--
            (3) Reports on performance results required.--The annual 
        report described in subsection (a) shall include--
                    (A) a description of the performance plan 
                established by the Corporation for the fiscal year 
                being reported; and
                    (B) the performance results achieved by the 
                Corporation in the fiscal year being reported compared 
                with the performance goals established in the 
                performance plan for that year.
    (c) Evaluation of Changes Made to Tax Laws.--
            (1) Evaluations required.--The Corporation shall engage an 
        independent consulting form to perform, in the fiscal years 
        ending September 30, 2001 and 2005, an evaluation of the 
        efficacy of the provisions of subchapter W of chapter 1 of the 
        Internal Revenue Code of 1986 as aids to the Corporation in 
        carrying out the purposes of this title.
            (2) Reports required.--Not later than 30 days after the 
        close of a fiscal year in which an evaluation is performed 
        under paragraph (1), the Corporation shall submit a report to 
        the Mayor, the Council, the Authority (if the activities of the 
        Authority are not suspended under section 109 of the District 
        of Columbia Financial Responsibility and Management Assistance 
        Act of 1995), the President, and the Congress the conclusions 
        of the evaluation.

SEC. 717. GIFTS; PROCUREMENT OF GOODS AND SERVICES; AND DISPOSITION OF 
              PROPERTY.

    (a) Adoption of Rules.--The Corporation shall adopt written rules 
and procedures for
            (1) the solicitation, acceptance, holding, administration, 
        use, and disposition of gifts, grants, or subsidies of money by 
        the Corporation;
            (2) the procurement of goods and services by the 
        Corporation; and
            (3) the disposition of property by the Corporation.
    (b) Objective.--The rules and procedures adopted under subsection 
(a) shall be designed to ensure that any activity described in 
subsection (a)--
            (1) will not reflect unfavorably upon the ability of the 
        Corporation, or of any officer or employee of the Corporation, 
        to carry out the functions and official duties of the 
        Corporation in a fair and objective manner;
            (2) will not compromise the integrity of the Corporation or 
        any officer or employee of the Corporation; and
            (3) in the case of any procurement of goods or services or 
        any disposition of property, will produce the best value for 
        the Corporation in the judgment of the Corporation.

               Subtitle C--Operations of the Corporation

SEC. 721. GENERAL POWERS.

    Notwithstanding any other provision of law, except as provided in 
this title or as may be enacted by the Congress expressly in limitation 
of the provisions of this paragraph, the Corporation shall have power--
            (1) to have succession until dissolved as provided in 
        section 753;
            (2) to sue and be sued, and to complain and defend, in its 
        own name;
            (3) to adopt, amend, repeal, and enforce bylaws, rules, 
        regulations, and procedures as it determines appropriate for 
        the governance of its affairs and the conduct of its business;
            (4) to adopt, alter, and use a corporate seal, which shall 
        be judicially noticed;
            (5) to make and perform contracts, agreements, and 
        commitments with persons and governmental entities;
            (6) subject to section 714, to appoint and employ officers, 
        attorneys, and employees as it determines appropriate, to 
        define their duties, and to fix, adjust, and administer their 
        compensation (including benefits) as it determines appropriate;
            (7) to engage experts, advisers, consultants, legal 
        counsel, and agents (including fiscal agents) to aid the 
        Corporation in carrying out the purposes of this title, and to 
        fix and adjust their compensation;
            (8) with the approval of the agency concerned, to make use 
        of services, facilities, and property of any board, commission, 
        independent establishment, or executive department or agency of 
        the Federal government or the District government in carrying 
        out the purposes of this title, and to pay for such use;
            (9) to maintain an office at the place or places in the 
        District of Columbia as it determines appropriate;
            (10) to determine its necessary expenditures and the manner 
        in which they shall be incurred, allowed, and paid;
            (11) to settle, adjust, and compromise, and with or without 
        consideration or benefit to the Corporation release or waive in 
        whole or in part, in advance or otherwise, any claim, demand, 
        or right of, by, or against the Corporation;
            (12) to indemnify Board members and officers of the 
        Corporation as it determines appropriate;
            (13) to purchase insurance or self-insure against any loss 
        in connection with its property and other assets, in such 
        amounts and from such insurers as it determines appropriate;
            (14) to solicit, apply for, accept, receive, hold, 
        administer, use, and dispose of gifts, bequests, donations, 
        grants, or subsidies of money, services, or property (real, 
        personal, or mixed) from any source to aid the Corporation in 
        carrying out the purposes of this title;
            (15) to lease, purchase, or otherwise acquire, own, hold, 
        or otherwise manage, clear, repair, improve, construct, or 
        otherwise deal in and with any property (real, personal, or 
        mixed), or any interest therein, wherever situated;
            (16) to proceed with foreclosure action, to acquire 
        property instead of foreclosure, and to take assignments of 
        leases and rentals;
            (17) to sell (at a public or private sale, with or without 
        bidding), convey, mortgage, pledge, lease, exchange, and 
        otherwise dispose of its property and assets, or any interest 
        therein;
            (18) subject to section 723, to make and perform contracts, 
        agreements, and commitments for financial assistance;
            (19) in connection with any application received, 
        commitment made, or service provided in connection with, 
        financial assistance, to charge and collect fees that the 
        Corporation determines to be appropriate;
            (20) subject to section 723, to establish subsidiary 
        corporations consistent with the purposes of this title;
            (21) subject to section 723, to establish revolving funds 
        consistent with the purposes of this title;
            (22) to establish advisory committees to aid the 
        Corporation in carrying out the purposes of this title;
            (23) subject to section 724, to exercise, in the name of 
        the District of Columbia, the right of eminent domain to aid in 
        carrying out the purposes of this title;
            (24) subject to section 732, to issue project revenue 
        obligations;
            (25) to provide assistance to the District government 
        through the provision of information, advice, guidelines, and 
        suggestions for implementing or improving programs and services 
        of the District government;
            (26) to prepare, publish, and distribute, with or without 
        charge, studies, reports, bulletins, and other materials as it 
        determines appropriate;
            (27) to exercise any other power usually possessed by 
        public enterprises performing similar functions or private 
        corporations organized under the business corporation law of 
        the District of Columbia, in either case to the extent that the 
        exercise of that power is not inconsistent with applicable 
        Federal or District of Columbia law; and
            (28) to take all actions and do all things that it 
        determines necessary or convenient to carry out the functions 
        of the Corporation under this title that are not inconsistent 
        with applicable Federal or District of Columbia law.

SEC. 722. ECONOMIC DEVELOPMENT PLANS.

    (a) Existing Plans.--
            (1) Priority review.--The Corporation shall give priority 
        in its operations to reviewing and evaluating existing economic 
        development plans for the District of Columbia, including a new 
        or expanded convention center and infrastructure projects.
            (2) Implementation.--To the extent that the Corporation 
        determines that the implementation of an existing economic 
        development plan would carry out the purposes of this title, 
        the Corporation shall give expedited consideration to the 
        projects contemplated by the plan when reviewing applications 
        for financial assistance under this title.
    (b) Strategic Plan.--
            (1) In general.--When the Corporation has completed 
        reviewing and evaluating existing economic development plans, 
        the Corporation shall establish a comprehensive strategic plan 
        for carrying out the purposes of this title.
            (2) Duty to consult.--In establishing its comprehensive 
        strategic plan, the Corporation shall consult with the 
        executive and legislative branches of the District government 
        and, as to matters related to transportation infrastructure, 
        the Secretary of Transportation to maximize the benefit to the 
        District of Columbia and the region of projects assisted by the 
        Corporation or supported by the District government or the 
        Secretary of Transportation.

SEC. 723. FINANCIAL ASSISTANCE.

    (a) Authority to Provide Assistance.--
            (1) In general.--The Corporation may provide financial 
        assistance for economic development projects directly or in 
        participation with any one or more other financial institution, 
        fund, person, or other source of financing, private or public, 
        including any department, agency, establishment, or 
        instrumentality of the District government, and may enter into 
        any contract, agreement, or commitment it determines 
        appropriate in connection with providing financial assistance.
            (2) Voting requirement.--Any provision by the Corporation 
        of financial assistance for an economic development project 
        shall require the affirmative vote of a majority of the Board 
        members present and voting.
    (b) Limitations on Financial Assistance.--
            (1) Total financial assistance.--Except as provided in 
        paragraph (3), the total amount of financial assistance 
        provided or committed under this section shall not at any time 
        exceed the total amount of the capital of the Corporation and 
        all of its subsidiaries and the total value of the land of the 
        Corporation and all of its subsidiaries.
            (2) Individual financial assistance.--
                    (A) In general.--Except as provided in paragraph 
                (3), the total amount of financial assistance provided 
                or committed directly or indirectly under this 
                section--
                            (i) for any 1 economic development project; 
                        or
                            (ii) to any 1 person, including the 
                        person's affiliates,
                shall not at any time exceed 15 percent of the total 
                amount of the capital of the Corporation and all of its 
                subsidiaries and the total value of the land of the 
                Corporation and all of its subsidiaries.
                    (B) Waiver.--
                            (i) Waiver of limitation permitted.--The 
                        Corporation, by a vote of not less than 6 Board 
                        members, may waive the limitation in 
                        subparagraph (A).
                            (ii) Report of waiver required.--If the 
                        Corporation waives the limitation in 
                        subparagraph (A), the Corporation shall 
                        communicate promptly the reasons for doing so 
                        to the Mayor, the Council, the Authority (if 
                        the activities of the Authority are not 
                        suspended under section 109 of the District of 
                        Columbia Financial Responsibility and 
                        Management Assistance Act of 1995), the 
                        President, and the Congress.
            (3) Exceptions.--The limitations in paragraphs (1) and 
        (2)(A) shall not apply to financial assistance in the form of--
                    (A) any allocation of tax credits under section 
                1400D of the Internal Revenue Code of 1986 for 
                qualified loans and qualified equity investments;
                    (B) any loan made from the proceeds of an issuance 
                by the Corporation of private activity bonds under 
                section 1400F(b) of the Internal Revenue Code of 1986 
                qualifying for tax-exempt treatment under section 1400C 
                of the Internal Revenue Code of 1986; or
                    (C) any loan made from the proceeds of an issuance 
                by the Corporation of project revenue obligations bonds 
                under section 732.
    (c) Establishment of Subsidiaries and Revolving Funds.--
            (1) Subsidiaries.--
                    (A) In general.--In order to make the most 
                effective use its resources, the Corporation may 
                establish from time to time 1 or more for-profit or 
                not-for-profit corporate subsidiaries for or in 
                connection with providing the different types of 
                financial assistance authorized by this title. The 
                Corporation shall establish a subsidiary pursuant to 
                this paragraph for the purposes of promoting the 
                development of infrastructure along the New York Avenue 
                corridor, except that such a subsidiary may not approve 
                any projects for purposes of subchapter W of chapter 1 
                of the Internal Revenue Code of 1986, and shall fund 
                its activities through dedicated infrastructure funds 
                which are made available to the subsidiary from a 
                source other than the Corporation.
                    (B) Limitation.--No subsidiary of the Corporation 
                shall have any power that the Corporation does not 
                have.
                    (C) Board approval for provision of financial 
                assistance by subsidiaries.--Any provision by any 
                subsidiary of the Corporation of financial assistance 
                for an economic development project shall require the 
                approval of the Board of the Corporation, in accordance 
                with the voting requirement described in subsection 
                (a)(2).
            (2) Revolving funds.--
                    (A) In general.--In order to make the most 
                effective use its resources, the Corporation may 
                establish from time to time 1 or more revolving funds 
                for or in connection with providing the different types 
                of financial assistance authorized by this title.
                    (B) Deposits.--
                            (i) Returns on investment.--Payments 
                        received by the Corporation as returns on 
                        investment from financial assistance provided 
                        by the Corporation from any revolving fund may 
                        be deposited into the revolving fund from which 
                        the financial assistance was made or into any 
                        other revolving fund established by the 
                        Corporation as the Corporation determines 
                        appropriate, and may be transferred between 
                        revolving funds as the Corporation determines 
                        appropriate.
                            (ii) Other receipts.--Funds received by the 
                        Corporation from any other source which are not 
                        required to be otherwise disposed may be 
                        deposited into any revolving fund established 
                        by the Corporation and transferred between 
                        revolving funds as the Corporation determines 
                        appropriate.
                    (C) Use of funds.--Funds deposited into any 
                revolving fund established by the Corporation shall be 
                available to the Corporation for providing financial 
                assistance under this title and to pay all expenses of 
                the Corporation necessary and incident to that purpose.
    (d) Criteria for Selecting Type of Financial Assistance.--
            (1) In general.--The Corporation shall establish written 
        criteria for selecting the type of financial assistance that is 
        most appropriate for different types of economic development 
        projects.
            (2) Least commitment of capital.--The criteria shall 
        include a preference for the type of financial assistance that 
        represents the least commitment of the capital of the 
        Corporation.
            (3) Standards for return on investment.--The criteria shall 
        set out standards for returns on investment that the 
        Corporation determines appropriate to reflect the nature of the 
        risk.
    (e) Procedures for Review and Comment by Rest of District 
Government.--The Corporation shall adopt written procedures to provide 
the executive and legislative branches of the District government a 
reasonable opportunity to review and comment on economic development 
projects for which the Corporation is considering providing financial 
assistance under this title.
    (f) Criteria for Financial Assistance Determinations.--
            (1) In general.--The Corporation shall establish written 
        criteria for making its determinations--
                    (A) to approve, disapprove, or take no action with 
                respect to applications for financial assistance under 
                this title; and
                    (B) as to how much financial assistance to provide 
                under this title for an economic development project.
            (2) Required criteria.--The criteria shall include--
                    (A) the status of the project as an economic 
                development project;
                    (B) the likelihood the project can be expected to 
                create or retain private sector jobs in the District of 
                Columbia;
                    (C) the contribution of the project to the economy 
                of the District of Columbia;
                    (D) the significance of the financial assistance in 
                attracting an economic development project to the 
                District of Columbia or preventing a closing, partial 
                closing, relocation out of the District of Columbia of 
                an economic development project;
                    (E) the commitment to the District of Columbia of 
                the owners, management, and employees of the project, 
                and their willingness and ability to operate the 
                business and enhance its competitive position in the 
                District of Columbia;
                    (F) whether the project serves the interests of the 
                community where it is or will be located;
                    (G) whether the project is in a distressed area or 
                benefits the residents of a distressed area;
                    (H) whether the project is consistent with the 
                comprehensive strategic plan developed by the 
                Corporation for carrying out the purposes of this 
                title;
                    (I) whether the project will benefit the economy of 
                the District of Columbia by improving links between the 
                economy of the District of Columbia and the economy of 
                the greater Washington, D.C. metropolitan region;
                    (J) whether financial assistance from the 
                Corporation will attract funds for the project from 
                sources other than the Corporation; and
                    (K) the appropriateness of the amount and form of 
                financial assistance and the level of risk or 
                investment for the Corporation, not only in terms of 
                the Corporation's financial exposure, but also in terms 
                of the overall objectives of this title.
    (g) Requirements for Economic Development Projects.--The 
Corporation shall not approve any application for financial assistance 
for any economic development project unless--
            (1) the Corporation determines, in its judgment--
                    (A) that there is a strong probability that the 
                project would not be undertaken without financial 
                assistance from the Corporation;
                    (B) that the financial assistance from the 
                Corporation represents the least commitment of the 
                capital of the Corporation to make the project 
                feasible;
                    (C) that financial assistance from the Corporation 
                will not compete with or supplant funds from sources 
                other than the Corporation, including the District 
                government, which are otherwise available for the 
                project on reasonable terms and conditions; and
                    (D) that the executive and legislative branches of 
                the District government have been provided a reasonable 
                opportunity to review and comment on the project; and
            (2) the project complies with applicable Federal and 
        District of Columbia law.

SEC. 724. EMINENT DOMAIN.

    (a) Authority To Exercise Condemnation Powers.--
            (1) In general.--The Corporation shall have the limited 
        power to acquire and assemble land through condemnation by 
        eminent domain in the name of the District of Columbia to aid 
        in carrying out the purposes of this title.
            (2) Prohibiting delegation to subsidiary.--The Corporation 
        may not delegate its authority under this section to any 
        subsidiary.
            (3) Approval required to exercise authority.--The Board may 
        exercise its authority under this section with respect to any 
        property only with the affirmative vote of at least 7 of its 
        members (or, if fewer than 9 members are present, with the 
        affirmative vote of a majority of the members present and 
        voting plus one).
    (b) Applicable Procedures.--The provisions of title 16, chapter 13, 
subchapter II, District of Columbia Code (relating to condemnation 
proceedings by the District government), shall apply to the Corporation 
in its exercise of its authority under this section.

SEC. 725. REGULATORY RELIEF POWERS.

    (a) Request Priority for Corporation-Assisted Projects.--The 
Corporation may request appropriate officers or employees of the 
appropriate regulatory authority of the District government to give 
expedited consideration to applications for District of Columbia 
regulatory licenses, permits, and approvals for economic development 
projects that have been provided financial assistance by the 
Corporation.
    (b) Request Remedy of, or Explanation for, Delay or Denial.--If the 
Corporation determines that an economic development project provided 
financial assistance by the Corporation is experiencing delay in 
obtaining necessary District of Columbia regulatory licenses, permits, 
or approvals from, or where necessary District of Columbia regulatory 
licenses, permits, or approvals have been denied by, a regulatory 
authority of the District government, the Corporation may request the 
appropriate officers or employees of the appropriate regulatory 
authority of the District government to issue the necessary permits, 
licenses, or approvals, or to demonstrate good cause for the delay or 
denial thereof, within 30 days of the request of the Corporation.

                 Subtitle D--Capitalization and Finance

SEC. 731. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated directly 
to the Corporation in the fiscal year ending September 30, 1998, to be 
available without fiscal year limitation, $50,000,000, to carry out the 
purposes of this title and to pay all expenses of the Corporation 
necessary and incident to that purpose.
    (b) Minimum Amount Required for Certain Use.--
            (1) In general.--The Corporation shall provide financial 
        assistance in an amount not less than the lesser of $20,000,000 
        or 40 percent of the amount appropriated under subsection (a)--
                    (A) directly to nonprofit organizations to finance 
                job training, placement, and related activities for 
                targeted District residents in those organizations; or
                    (B) to nonprofit third-party intermediaries to 
                promote and finance job training, placement, and 
                related activities for targeted District residents in 
                for-profit and not-for-profit organizations.
            (2) Waiver.--
                    (A) Waiver of requirement permitted.--The 
                Corporation, by a vote of not less than 6 Board 
                members, may waive the minimum amount requirement in 
                paragraph (1).
                    (B) Report of waiver required.--If the Corporation 
                waives the minimum amount requirement in paragraph (1), 
                the Corporation shall communicate promptly the reasons 
                for doing so to the Mayor, the Council, the Authority 
                (if the activities of the Authority are not suspended 
                under section 109 of the District of Columbia Financial 
                Responsibility and Management Assistance Act of 1995), 
                the President, and the Congress.

SEC. 732. PROJECT REVENUE OBLIGATIONS ISSUED BY CORPORATION.

    (a) Authorities.--
            (1) In general.--The Corporation, by resolution of the 
        Board, may--
                    (A) authorize the issuance of taxable or tax-exempt 
                project revenue obligations from time to time, 
                including refunding project revenue obligations at or 
                before the maturity of the outstanding project revenue 
                obligations to be refunded; and
                    (B) use the proceeds of issued project revenue 
                obligations to provide financial assistance under this 
                title for economic development projects, including 
                providing funds to be paid into any reserve fund to 
                secure project revenue obligations.
            (2) Duty to consult.--In exercising its authorities under 
        this section, the Corporation shall consult with the executive 
        and legislative branches of the District government so that the 
        Corporation and the District government together--
                    (A) make the most effective use of available 
                resources and authorities;
                    (B) avoid to the extent practicable competition or 
                duplication of efforts; and
                    (C) maximize the benefit to the District of 
                Columbia.
    (b) Special Obligations; Negotiable Instruments.--Project revenue 
obligations issued by the Corporation under this section are--
            (1) special obligations of the Corporation payable solely 
        from the revenues, assets, and property of the economic 
        development project for which financial assistance is provided, 
        to the extent those revenues, assets, and property are pledged 
        therefor; and
            (2) negotiable instruments, whether or not any project 
        revenue obligation is a security as defined in section 28:8-
        102(1)(a), DC Code.
    (c) Authorizing Board Resolutions.--Any resolution of the Board 
authorizing the issuance of project revenue obligations may--
            (1) prescribe the form, terms, provisions, manner, and 
        method of issuing and selling (including sale by negotiation or 
        by competitive bid) the project revenue obligations;
            (2) provide for rights or remedies of the holders of the 
        project revenue obligations upon default;
            (3) prescribe any other details with respect to the 
        issuance, sale, or securing of the project revenue obligations; 
        and
            (4) authorize the Chief Executive Officer to take any 
        actions in connection with the issuance, sale, delivery, 
        security, and payment of the project revenue obligations, 
        including the prescribing of any terms or conditions not 
        contained in the authorizing resolution of the Board.
    (d) Agreements Relating to and Securing Project Revenue 
Obligations.--
            (1) In general.--In authorizing the issuance of any project 
        revenue obligation under this section, the Board may authorize 
        the Chief Executive Officer to enter into any agreement 
        concerning the acquisition, use, or disposition of any funds or 
        property.
            (2) Security agreements.--Any agreement authorized under 
        paragraph (1) may--
                    (A) create a security interest in any revenues, 
                assets, and property of an economic development 
                project;
                    (B) provide for the custody, collection, security, 
                investment, and payment of any funds (including any 
                funds held in trust) for the payment of the project 
                revenue obligations;
                    (C) mortgage any property of an economic 
                development project;
                    (D) provide for the acquisition, construction, 
                maintenance, and disposition of the economic 
                development project for which financial assistance is 
                provided;
                    (E) provide for the doing of any act (or the 
                refraining from doing any act) which the Corporation 
                has the right to do in the absence of such agreement; 
                and
                    (F) be assigned for the benefit of, or made a part 
                of any contract with, any holder of the project revenue 
                obligations issued under this section.
            (3) Security interests created by security agreements.--
                    (A) Notwithstanding article 9 of title 28, District 
                of Columbia Code, any security interest created under 
                an agreement entered into under paragraph (1) shall be 
                valid, binding, and perfected--
                            (i) from the time the security interest is 
                        created, with or without the physical delivery 
                        of any funds or any other property and with or 
                        without any further action;
                            (ii) whether or not any statement, 
                        document, or instrument relating to the 
                        security interest is recorded or filed; and
                            (iii) with respect to any person having 
                        claims against the Corporation, whether or not 
                        the person has notice of the security interest.
    (e) Reserve Funds.--
            (1) Establishment.--The Corporation may establish 1 or more 
        special or reserve funds in furtherance of its authority under 
        this section.
            (2) Management.--Notwithstanding any other provision of 
        District of Columbia law and subject to existing agreements 
        with the holders of project revenue obligations issued by the 
        Corporation, the Corporation may manage its special or reserve 
        funds.
    (f) Project Revenue Obligations Not Obligations of District of 
Columbia or United States.--
            (1) In general.--Project revenue obligations issued by the 
        Corporation under this section do not constitute an obligation 
        of the District of Columbia or an obligation of the United 
        States, but are payable solely from the revenues, assets, and 
        property of the economic development project for which 
        financial assistance is provided, to the extent those revenues, 
        assets, and property are pledged therefor.
            (2) No liability of district of columbia or united 
        states.--Neither the District of Columbia nor the United States 
        is responsible or shall be liable for the payment of any 
        principal of, or the interest or any premium on, any project 
        revenue obligation issued by the Corporation under this 
        section.
            (3) Full faith and credit of district of columbia and 
        united states not pledged.--Neither the faith and credit nor 
        the taxing power of the District of Columbia nor the full faith 
        and credit of the United States is pledged for the payment of 
        any principal of, or the interest or any premium on, any 
        project revenue obligation issued by the Corporation under this 
        section.
            (4) Statement required.--Each project revenue obligation 
        issued by the Corporation under this section and the offering 
        documents relating to each issue of project revenue obligations 
        shall contain on their face a statement that--
                    (A) the Corporation is not obligated to pay the 
                principal of, or the interest or any premium on, the 
                project revenue obligation except from the revenues, 
                assets, and property of the economic development 
                project for which financial assistance is provided, to 
                the extent those revenues, assets, and property are 
                pledged therefor;
                    (B) the project revenue obligation is not an 
                obligation of the District of Columbia nor an 
                obligation of the United States; and
                    (C) neither the faith and credit nor the taxing 
                power of the District of Columbia nor the full faith 
                and credit of the United States is pledged to the 
                payment of the principal of, or the interest or any 
                premium on, the project revenue obligation.
    (g) Project Revenue Obligations Excluded From Certain 
Limitations.--
            (1) Limitation on total borrowing of district government.--
        The amount of any project revenue obligations issued by the 
        Corporation under this section shall not be taken into account 
        in determining whether the amount of funds borrowed by the 
        District of Columbia during a fiscal year as general obligation 
        bonds or Treasury capital project loans exceeds the limitation 
        on that amount provided in section 603(b) of the District of 
        Columbia Self-Government and Governmental Reorganization Act.
            (2) Limitation on obligating or expending funds outside of 
        appropriations acts.--The fourth sentence of section 446 of the 
        District of Columbia Self-Government and Governmental 
        Reorganization Act shall not apply to--
                    (A) any amount (including the amount of any accrued 
                interest or premium) obligated or expended from the 
                proceeds of the sale of any project revenue obligation 
                issued by the Corporation under this section;
                    (B) any amount obligated or expended for the 
                payment of the principal of, interest on, or any 
                premium for any project revenue obligation issued by 
                the Corporation under this section; or
                    (C) any amount obligated or expended to secure any 
                project revenue obligation issued by the Corporation 
                under this section.
            (3) Limitations on acts of council.--A resolution of the 
        Corporation authorizing the issuance of project revenue 
        obligations under this section shall not be considered to be an 
        act of the Council.
            (4) Limitation on borrowing by district government during 
        control years.--Section 204 of the District of Columbia 
        Financial Responsibility and Management Assistance Act of 1995 
        (DC Code, sec. 47-392.4), as amended by section 603, is further 
        amended by adding at the end the following new subsection:
    ``(h) Revenue Bonds Not Treated as Borrowing.--For purposes of this 
section, the issuance by the District of Columbia Economic Development 
Corporation under section 732 of the District of Columbia Economic 
Development Corporation Act of 1997 of any project revenue obligations 
payable solely from the revenues, assets, and property of an economic 
development project shall not be considered to be a borrowing of money 
by the District.''.

SEC. 733. DEPOSIT AND INVESTMENT OF FUNDS.

    All funds and revenues of the Corporation received by the 
Corporation from any source that are not required to be otherwise 
disposed shall be--
            (1) held, administered, and invested by the Corporation as 
        the Corporation shall direct; or
            (2) deposited with and invested by an institution, trustee, 
        fiduciary, or other custodian designated by the Corporation and 
        paid as the Corporation shall direct.

SEC. 734. NO TAXING POWER.

    The Corporation shall not have any power to--
            (1) impose, assess, levy, or collect any taxes; or
            (2) pledge, encumber, or otherwise create any lien on any 
        revenues from taxes imposed, assessed, levied, or collected by 
        the District government.

                  Subtitle E--Miscellaneous Provisions

SEC. 741. LEGAL ACTIONS INVOLVING CORPORATION.

    (a) Jurisdiction.--Any action against the Corporation or any action 
otherwise arising out of or pertaining to this title, in whole or in 
part, shall be brought in the United States District Court for the 
District of Columbia.
    (b) Appeals.--Notwithstanding any other provision of law, any order 
of the United States District Court for the District of Columbia which 
is issued in an action brought under subsection (a) shall be reviewable 
only under a notice of appeal to the United States Court of Appeals for 
the District of Columbia Circuit.
    (c) Relief.--No order of any court granting declaratory or 
injunctive relief against the Corporation in an action brought under 
subsection (a), including relief permitting or requiring the obligation 
or expenditure of funds, shall take effect during the pendency of the 
action before the 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 the action.
    (d) Legal Representation.--In any action brought by or on behalf of 
the Corporation, or against the Corporation, the Corporation shall be 
represented by the counsel that it selects.

SEC. 742. JUDICIAL REVIEW OF FINANCIAL ASSISTANCE DETERMINATIONS AND 
              RULES.

    (a) Statutes of Limitations on Judicial Review.--
            (1) Financial assistance determinations.--Any action 
        arising out of or pertaining to any determination of the 
        Corporation to approve, disapprove, or take no action with 
        respect to any request or application for financial assistance 
        shall be brought within 30 days after the date that notice of 
        the determination that is the subject of the action appears in 
        the District of Columbia Register.
            (2) Rules and procedures.--Any action arising out of or 
        pertaining to any rule, or procedure adopted or prescribed by 
        the Corporation under this title with respect to providing 
        financial assistance shall be brought within 90 days after the 
        date that notice of the adoption or prescription of the rule or 
        procedure that is the subject of the action appears in the 
        District of Columbia Register.
    (b) No Review of Rules or Procedures in Actions Arising Out of 
Financial Assistance Determinations.--Any rule or procedure adopted or 
prescribed by the Corporation under this title with respect to 
providing financial assistance shall not be the subject of review in 
any action arising out of or pertaining to any determination of the 
Corporation to approve, disapprove, or take no action with respect to a 
request or application for financial assistance.

SEC. 743. RELATIONSHIP TO OTHER LAWS.

    The following laws of the District of Columbia (as in effect on the 
date of enactment of this title) shall not apply to the Corporation, 
its activities, the Board members, or the officers or employees of the 
Corporation:
            (1) Section 742 of the District of Columbia Self-Government 
        and Governmental Reorganization Act (relating to open 
        meetings).
            (2) The provisions of the District of Columbia Code 
        governing administrative procedure.
            (3) The provisions of the District of Columbia Code 
        governing procurement.
            (4) The provisions of the District of Columbia Code 
        governing dispositions of property.
            (5) The provisions of the District of Columbia Code taxing 
        the income of corporations.

SEC. 744. RELATIONSHIP TO DISTRICT GOVERNMENT.

    (a) Independent Instrumentality.--
            (1) In general.--The Corporation is an independent 
        instrumentality governed by the Board within the government of 
        the District of Columbia.
            (2) No control by district government.--Notwithstanding any 
        other law, neither the Mayor, the Council, the Chief Financial 
        Officer of the District of Columbia, nor the Authority shall 
        exercise any control, supervision, oversight, or review over 
        the Corporation, its activities, the Board members (other than 
        the ex officio Board members appointed by the Mayor and the 
        Council), or the officers and employees of the Corporation.
            (3) Prohibition against legislation affecting 
        corporation.--Section 602(a) of the District of Columbia Self-
        Government and Governmental Reorganization Act (DC Code, sec. 
        1-233(a)) is amended--
                    (A) by striking ``or'' at the end of paragraph (9);
                    (B) by striking the period at the end of paragraph 
                (10) and inserting ``; or''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(11) enact any act, resolution, or rule with respect to 
        the District of Columbia Economic Development Corporation 
        established under section 711 of National Capital 
        Revitalization and Self-Government Improvement Act of 1997.''.
            (4) Prerogative of board.--Notwithstanding any other law, 
        the deposit of money received by the Corporation and the 
        obligation and expenditure of money by the Corporation shall be 
        sole prerogative of the Board, consistent with this title.
    (b) Application of Requirement Respecting Deposit of Receipts to 
Corporation's Receipts.--The third sentence of section 450 of the 
District of Columbia Self-Government and Governmental Reorganization 
Act shall apply to any money received by any officer or employee of the 
Corporation without the requirement to be paid promptly to the Mayor, 
and the appropriate fund for deposit of any money received by any 
officer or employee of the Corporation shall be any revolving fund 
established by the Corporation under section 723(c)(2).
    (c) Exclusion from Limitation on Obligating or Expending Funds 
Outside of Appropriations Acts.--The fourth sentence of section 446 of 
the District of Columbia Self-Government and Governmental 
Reorganization Act shall not apply to any amount obligated or expended 
by any officer or employee of the Corporation as financial assistance 
under this title or to pay all expenses of the Corporation necessary 
and incident to that purpose.
    (d) Exclusion From Personnel and Budget Limitations Applicable to 
District Government.--The Corporation shall not be subject to any 
general personnel or budget limitations which otherwise apply to the 
District government in any appropriations Act, and the personnel of or 
the funds allocated or otherwise available to the Corporation shall not 
be counted as part of the personnel or budget ceilings of the District 
government.
    (e) Other Assistance From District Government.--
            (1) In general.--At the request of the Corporation, a 
        department or agency of the executive branch of the District 
        government (as defined in paragraph (2)) shall assist the 
        Corporation in its efforts to promote economic development 
        projects, including providing assistance relating to public 
        safety and public works affecting such projects.
            (2) Department or agency of executive branch defined.--In 
        paragraph (1), the term ``department or agency of the executive 
        branch of the District government'' includes--
                    (A) 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; and
                    (B) any other agency, board, or commission 
                established by the Mayor or the Council.

                     Subtitle F--Sunset Provisions

SEC. 751. SUSPENSION OF NEW FINANCIAL ASSISTANCE.

    (a) In General.--After the suspension date, the Corporation may 
not--
            (1) enter into any contract, agreement, or commitment to 
        provide new financial assistance under section 723; or
            (2) issue any new project revenue obligations under section 
        732.
    (b) Existing Financial Assistance Commitments.--Nothing in 
paragraph (1) shall affect the authority of the Corporation to provide 
financial assistance under contracts, agreements, or commitments 
entered into under section 723 on or before the suspension date.

SEC. 752. TERMINATION OF AFFAIRS.

    (a) In General.--Beginning on the day after the suspension date, 
the Board shall take and diligently pursue all reasonable and practical 
actions to achieve an orderly termination of the affairs of the 
Corporation on or before the termination date.
    (b) Disposition of Corporation's Assets.--
            (1) Liquidation.--
                    (A) In general.--Unless the Council makes an 
                election under paragraph (2), the Board shall liquidate 
                all of the assets (other than moneys) of the 
                Corporation.
                    (B) Public notice required.--The Board shall 
                provide public notice of all liquidations of the assets 
                of the Corporation.
                    (C) Board transfer of proceeds.--Unless the Council 
                makes an election under paragraph (2), the Board shall 
                transfer promptly the proceeds of all liquidations 
                under subparagraph (A) to the Mayor for deposit into 
                the accounts or funds of the District government as the 
                Mayor determines appropriate.
            (2) Council elections.--
                    (A) Relating to transfer of assets.--
                            (i) In general.--The Council, by act, may 
                        elect to have some or all of the assets of the 
                        Corporation transferred to any department, 
                        agency, establishment, or instrumentality of 
                        the District government rather than be 
                        liquidated.
                            (ii) Contents of council's act.--The act of 
                        the Council shall identify--
                                    (I) the assets of the Corporation 
                                which the Council elects to have 
                                transferred rather than liquidated; and
                                    (II) the department, agency, 
                                establishment, or instrumentality of 
                                the District government to which the 
                                Council elects to have assets of the 
                                Corporation transferred.
                            (iii) Board transfer of assets.--If the 
                        Council makes an election under clause (i), the 
                        Board shall transfer the assets of the 
                        Corporation identified by the Council in its 
                        act to the department, agency, establishment, 
                        or instrumentality of the District government 
                        identified by the Council in its act.
                    (B) Relating to transfer of liquidation proceeds.--
                            (i) In general.--The Council, by act, may 
                        elect to have some or all of the proceeds of 
                        the liquidation of the assets of the 
                        Corporation deposited into one or more accounts 
                        or funds of the District government other than 
                        the accounts or funds of the District 
                        government selected by the Mayor under 
                        paragraph (1)(C).
                            (ii) Contents of council's act.--The act of 
                        the Council shall identify--
                                    (I) the amount of liquidation 
                                proceeds that the Council elects to 
                                have deposited into one or more 
                                accounts or funds of the District 
                                government other than the accounts or 
                                funds of the District government 
                                selected by the Mayor under paragraph 
                                (1)(C); and
                                    (II) the accounts or funds of the 
                                District government into which the 
                                Council elects to have the moneys of 
                                the Corporation deposited.
                            (iii) Board transfer of liquidation 
                        proceeds.--If the Council makes an election 
                        under clause (i), the Board shall deposit the 
                        amount of the liquidation proceeds identified 
                        by the Council in its act to the department, 
                        agency, establishment, or instrumentality of 
                        the District government identified by the 
                        Council in its act.

SEC. 753. DISSOLUTION OF CORPORATION.

    (a) In General.--
            (1) Termination complete.--
                    (A) In general.--Unless the Council makes an 
                election under subparagraph (B), if the Board completes 
                the termination of the affairs of the Corporation on or 
                before the termination date, the Board shall
                            (i) transfer to the Mayor the moneys of the 
                        Corporation that are reserved to fulfill the 
                        obligations of the Corporation to provide 
                        financial assistance under contracts, 
                        agreements, or commitments entered into under 
                        section 723 on or before the suspension date;
                            (ii) transfer to the Mayor the balance of 
                        the moneys of the Corporation for deposit into 
                        the accounts or funds of the District 
                        government as the Mayor determines appropriate; 
                        and
                            (iii) submit a final report on the 
                        Corporation to the Council, the Authority (if 
                        the activities of the Authority are not 
                        suspended under section 109 of the District of 
                        Columbia Financial Responsibility and 
                        Management Assistance Act of 1995), the 
                        President, and the Congress.
                    (B) Council election relating to transfer of 
                corporation moneys.--
                            (i) In general.--The Council, by act, may 
                        elect to have some or all of the balance of the 
                        Corporation's moneys deposited into one or more 
                        accounts or funds of the District government 
                        other than the accounts or funds of the 
                        District government selected by the Mayor under 
                        paragraph (1)(A)(ii).
                            (ii) Contents of council's act.--The act of 
                        the Council shall identify--
                                    (I) the amount of the balance of 
                                the Corporation's moneys that the 
                                Council elects to have deposited into 
                                one or more accounts or funds of the 
                                District government other than the 
                                accounts or funds of the District 
                                government selected by the Mayor under 
                                paragraph (1)(A)(ii); and
                                    (II) the accounts or funds of the 
                                District government into which the 
                                Council elects to have the moneys of 
                                the Corporation deposited.
                            (iii) Board transfer of balance of 
                        corporation's moneys.--If the Council makes an 
                        election under clause (i), the Board shall--
                                    (I) transfer to the Mayor the 
                                moneys of the Corporation that are 
                                reserved to fulfill the obligations of 
                                the Corporation to provide financial 
                                assistance under contracts, agreements, 
                                or commitments entered into under 
                                section 723 on or before the suspension 
                                date;
                                    (II) deposit the amount of the 
                                balance of the moneys of the 
                                Corporation identified by the Council 
                                in its act to the accounts or funds of 
                                the District government identified by 
                                the Council in its resolution; and
                                    (III) submit a final report on the 
                                Corporation to the Council, the 
                                Authority (if the activities of the 
                                Authority are not suspended under 
                                section 109 of the District of Columbia 
                                Financial Responsibility and Management 
                                Assistance Act of 1995), the President, 
                                and the Congress.
            (2) Termination incomplete.--If the Board has not completed 
        the termination of the affairs of the Corporation and the 
        disposition of all of the assets of the Corporation on or 
        before the termination date, the Mayor shall, on the day after 
        the termination date, succeed to all of the powers, rights, 
        assets, duties, obligations, and liabilities of the Corporation 
        and the Board.
    (b) Disposition by Mayor.--If the Mayor succeeds to the powers, 
rights, assets, duties, obligations, and liabilities of the Corporation 
and the Board under subsection (a)(2), the Mayor shall act as follows:
            (1) If the Board has not completed the liquidation of the 
        assets of the Corporation, and unless the Council has made an 
        election under section 752(b)(2), the Mayor shall complete the 
        liquidation of those assets and deposit the proceeds of the 
        liquidations into the accounts or funds of the District 
        government as the Mayor determines appropriate.
            (2) If the Council has made an election under section 
        752(b)(2) and the Board has not completed the transfer of the 
        assets of the Corporation identified in the act of the Council 
        to the department, agency, establishment, or instrumentality of 
        the District government identified in the resolution, the Mayor 
        shall complete the transfer promptly.
            (3) If the Council has made an election under section 
        752(b)(2) and the Board has not completed the deposit of the 
        amount of liquidation proceeds identified by the Council in its 
        act into the accounts or funds of the District government 
        identified by the Council in its act, the Mayor shall complete 
        the deposit promptly.
            (4) Unless the Council has made an election under 
        subsection (a)(1)(B), when the Mayor completes the termination 
        of the affairs of the Corporation and the disposition of all of 
        the assets of the Corporation, the Mayor shall deposit the 
        balance of the moneys of the Corporation into the accounts or 
        funds of the District government as the Mayor determines 
        appropriate.
            (5) If the Council has made an election under subsection 
        (a)(1)(B), when the Mayor completes the termination of the 
        affairs of the Corporation and the disposition of all of the 
        assets of the Corporation, the Mayor shall deposit the amount 
        of the balance of the moneys of the Corporation identified by 
        the Council in its act into the accounts or funds of the 
District government identified by the Council in its act.
            (6) The Mayor shall submit a final report on the 
        Corporation to the Council, the Authority (if the activities of 
        the Authority are not suspended under section 109 of the 
        District of Columbia Financial Responsibility and Management 
        Assistance Act of 1995), the President, and the Congress.
    (c) Dissolution of Corporation.--The Corporation shall be 
dissolved--
            (1) if subsection (a)(1)(A) applies, on the latest of the 
        dates on which the Board completes the actions described in 
        clauses (i), (ii), and (iii) thereof;
            (2) if subsection (a)(1)(B) applies, on the latest of the 
        dates on which the Board completes the actions described in 
        subclauses (I), (II), and (III) of clause (iii) thereof; or
            (3) if subsection (a)(2) applies, on the latest of the 
        dates on which the Mayor completes the actions described in 
        subsection (b).
    (d) Succession.--
            (1) In general.--Upon dissolution of the Corporation under 
        subsection (c), the District government shall succeed to all of 
        the assets and liabilities of the Corporation.
            (2) District government successor issuer of project revenue 
        obligations.--For purposes of any outstanding project revenue 
        obligation issued by the Corporation under section 732 on or 
        before the suspension date, the District government shall be 
        deemed to be the issuer after the dissolution of the 
        Corporation.
    (e) Savings Provision.--Nothing in this section shall affect
            (1) the validity of any undischarged contract, agreement, 
        or commitment to provide financial assistance entered into 
        under section 723 on or before the suspension date;
            (2) the validity or maturity of any outstanding project 
        revenue obligation issued by the Corporation under section 732 
        on or before the suspension date; or
            (3) any right or privilege accrued, any penalty or 
        liability incurred, any civil or criminal proceeding commenced, 
        or any authority conferred on or before the termination date.

   TITLE VIII--DISTRICT OF COLUMBIA GOVERNMENT BUDGET; EFFECTIVE DATE

SEC. 801. ELIMINATION OF THE ANNUAL FEDERAL PAYMENT TO THE DISTRICT OF 
              COLUMBIA.

    (a) Elimination of Payment.--
            (1) In general.--Title V of the District of Columbia Self-
        Government and Governmental Reorganization Act (DC Code, sec. 
        47-3406 et seq.) is hereby repealed.
            (2) Clerical amendment.--The table of contents of such Act 
        is amended by striking the items relating to title V.
    (b) Conforming Amendments.--
            (1) Home rule act.--The District of Columbia Self-
        Government and Governmental Reorganization Act is amended as 
        follows:
                    (A) In section 103(10) (DC Code, sec. 1-202(10)), 
                by striking ``the annual Federal payment to the 
                District authorized under title V,''.
                    (B) In section 483 (DC Code, sec. 47-331.2), by 
                striking subsection (c).
                    (C) In section 603(c) (DC Code, sec. 47-313(c)), by 
                striking the fourth sentence.
                    (D) In section 603(f)(1) (DC Code, sec. 47-
                313(f)(1)), by striking ``(other than the fourth 
                sentence)''.
            (2) Financial responsibility and management assistance 
        act.--The District of Columbia Financial Responsibility and 
        Management Assistance Act of 1995 is amended--
                    (A) by striking section 205 (DC Code, sec. 47-
                392.5); and
                    (B) in the table of contents for such Act, by 
                striking the item relating to section 205.
            (3) Procurement practices act.--Section 208(a)(2) of the 
        District of Columbia Procurement Practices Act of 1985 (DC 
        Code, sec. 1-1182.8(a)(2)) is amended--
            (1) by striking subparagraph (B);
            (2) by redesignating subparagraph (C) as subparagraph (B); 
        and
            (3) in subparagraph (B), as so redesignated, by striking 
        ``Amounts deposited in the dedicated fund described in 
        subparagraph (B)'' and inserting ``Amounts appropriated for the 
        Inspector General''.
            (4) District of columbia revenue act of 1939.--The District 
        of Columbia Revenue Act of 1939 (DC Code, sec. 47-3401 et seq.) 
        is amended as follows:
                    (A) In section 603(b) (as redesignated by section 
                501)--
                            (i) in paragraph (5), by adding ``and'' at 
                        the end;
                            (ii) in paragraph (6), by striking ``; 
                        and'' and inserting a period; and
                            (iii) by striking paragraph (7).
                    (B) In section 603(c) (as redesignated by section 
                501), by striking paragraph (3).
                    (C) In section 605(b) (as redesignated by section 
                501)--
                            (i) by striking paragraph (1) and 
                        redesignating paragraphs (2) through (4) as 
                        paragraphs (1) through (3);
                            (ii) in paragraph (1) (as so redesignated), 
                        by striking ``other'' in the heading;
                            (iii) in paragraph (1) (as so 
                        redesignated), by striking ``If, after'' and 
                        all that follows through ``the Secretary'' and 
                        inserting ``The Secretary'';
                            (iv) in paragraph (2) (as so redesignated), 
                        by striking ``paragraphs (1) and (2)'' and 
                        inserting ``paragraph (1)''; and
                            (v) in paragraph (3) (as so redesignated), 
                        by striking ``(1) through (3)'' and inserting 
                        ``(1) and (2)''.
    (c) Federal Contribution to Operations of Government of Nation's 
Capital.--
            (1) Findings.--Congress finds as follows:
                    (A) Congress has reduced the District of Columbia's 
                ability to raise revenue by limiting the height of 
                buildings in the District and imposing other 
                limitations relating to the Federal presence in the 
                District.
                    (B) Congress has imposed limitations on the 
                District's ability to tax revenue at its source.
                    (C) The District government cannot tax a high 
                proportion of the real property of the District of 
                Columbia, and the effect of this inability on the 
                District's revenues is magnified by the District's 
                relatively small geographic size.
                    (D) The unique status of the District of Columbia 
                as the seat of the government of the United States 
                imposes unusual costs and requirements which are not 
                imposed on other jurisdictions and many of which are 
                not directly reimbursed by the Federal government.
                    (E) As a result of these factors, the relative tax 
                burden on District residents is considerably greater 
                than the burden on residents in other jurisdictions in 
                the Washington, D.C. metropolitan area and in other 
                cities of comparable size.
            (2) Federal contribution.--There is authorized to be 
        appropriated a Federal contribution towards the costs of the 
        operation of the government of the Nation's capital--
                    (A) for fiscal year 1998, $140,000,000; and
                    (B) for each subsequent fiscal year, such amount as 
                may be necessary for such contribution.
        In determining the amount appropriated pursuant to the 
        authorization under this paragraph, Congress shall take into 
        account the findings described in paragraph (1).

SEC. 802. REQUIREMENT THAT THE DISTRICT OF COLUMBIA BALANCE ITS BUDGET 
              IN FY 1998.

    (a) In General.--Section 201(c)(1) of the District of Columbia 
Financial Responsibility and Management Assistance Act of 1995 is 
amended--
            (1) in subparagraph (A), by striking ``1999'' and inserting 
        ``1998''; and
            (2) in subparagraph (B), by striking ``1996, 1997, and 
        1998,'' and inserting ``1996 and 1997,''.
    (b) Conforming Amendment.--Section 603(f) of the District of 
Columbia Self-Government and Governmental Reorganization Act (DC Code, 
sec. 47-313(f)) is amended by striking ``Act of 1995)--'' and all that 
follows through ``(2) the Council'' and inserting ``Act of 1995), the 
Council''.

SEC. 803. PERMITTING EXPEDITED SUBMISSION AND APPROVAL OF CONSENSUS 
              BUDGET AND FINANCIAL PLAN.

    (a) Findings.--Congress finds the following:
            (1) The District of Columbia Financial Responsibility and 
        Management Assistance Act (hereafter in this subsection 
        referred to as the ``Act'') was structured as to preserve the 
        maximum prerogatives of each branch of elected self-government 
        consistent with returning the District of Columbia to full 
        financial stability and health.
            (2) The Act was intended to eliminate unnecessary 
        bureaucratic barriers and procedures throughout the District 
        government, including the budget process.
            (3) Preservation of home rule and self-government are 
        consistent with cooperation between elected officials and the 
        Authority in drawing the annual budget and other matters 
        affecting the District of Columbia government, and are 
        preferable to achieve greater efficiency, communication among 
        the parties, and avoidance of conflict and delay.
    (b) In General.--Section 202 of the District of Columbia Financial 
Responsibility and Management Assistance Act of 1995 is amended by 
adding at the end the following new subsection:
    ``(i) Expedited Submission and Approval of Consensus Budget and 
Financial Plan.--Notwithstanding any other provision of this section, 
if the Mayor, the Council, and the Authority jointly develop a 
financial plan and budget for the fiscal year which meets the 
requirements applicable under section 201 and which the Mayor, Council, 
and Authority certify reflects a consensus among them--
            ``(1) such financial plan and budget shall serve as the 
        budget of the District government for the fiscal year adopted 
        by the Council under section 446 of the District of Columbia 
        Self-Government and Governmental Reorganization Act; and
            ``(2) the Mayor shall transmit the financial plan and 
        budget to the President and Congress under such section.''.
    (c) Effective Date.--The amendment made by subsection (b) shall 
apply with respect to fiscal years beginning with fiscal year 1998.

SEC. 804. INCREASE IN MAXIMUM AMOUNT OF PERMITTED DISTRICT BORROWING.

    Section 603(b) of the District of Columbia Self-Government and 
Governmental Reorganization Act (DC Code, sec. 47-313(b)) is amended by 
striking ``14 per centum'' each place it appears in paragraph (1) and 
paragraph (3) and inserting ``17 percent''.

                   TITLE IX--MISCELLANEOUS PROVISIONS

       Subtitle A--Regulatory Reform in the District of Columbia

SEC. 901. REVIEW AND REVISION OF REGULATIONS AND PERMIT AND APPLICATION 
              PROCESSES.

    (a) Review of Current Regulations by Authority.--
            (1) In general.--Not later than 6 months after the date of 
        the enactment of this Act, the District of Columbia Financial 
        Responsibility and Management Assistance Authority shall 
        complete a review of regulations of the District of Columbia in 
        effect as of the date of the enactment of this Act and analyze 
        the extent to which such regulations unnecessarily and 
        inappropriately impair economic development in the District of 
        Columbia and the financial stability and management efficiency 
        of the District of Columbia government. To the greatest extent 
        possible, such review shall take into account the work and 
        recommendations of the Business Regulatory Reform Commission 
        pursuant to the Business Regulatory Reform Commission Act of 
        1994 (DC Code, sec. 2-4101 et seq.) and other existing and 
        ongoing public and private regulatory reform efforts. The 
        Authority shall transmit the findings of its review to the 
        Mayor, Council, and Congress.
            (2) Revision.--Based on the review conducted under 
        paragraph (1) and taking into account actions by the Council 
        and the Executive Branch of the District of Columbia 
        government, the Authority shall take such additional actions as 
        it considers appropriate to repeal or revise the regulations of 
        the District of Columbia, in accordance with (and subject to 
        the terms and conditions described in) section 207 of the 
        District of Columbia Financial Responsibility and Management 
        Assistance Act of 1995.
    (b) Survey and Revision of Permit and Application Processes.--
            (1) In general.--Not later than 6 months after the date of 
        the enactment of this Act, the Authority shall complete a 
        review of the current processes of the District of Columbia for 
        obtaining permits and applications of all types and analyze the 
        extent to which such processes and their completion times vary 
        from the processes applicable in other jurisdictions. To the 
        greatest extent possible, such review shall take into account 
        the work and recommendations of the Business Regulatory Reform 
        Commission pursuant to the Business Regulatory Reform 
        Commission Act of 1994 (DC Code, sec. 2-4101 et seq.) and other 
        existing and ongoing public and private regulatory reform 
        efforts. The Authority shall transmit the findings of its 
        review to the Mayor, Council, and Congress.
            (2) Revision.--Based on the review conducted under 
        paragraph (1) and taking into account actions by the Council 
        and the Executive Branch of the District of Columbia 
        government, the Authority shall take such additional actions as 
        it considers appropriate to repeal or revise the permit and 
        application processes (and their completion times) of the 
        District of Columbia, in accordance with (and subject to the 
        terms and conditions described in) section 207 of the District 
        of Columbia Financial Responsibility and Management Assistance 
        Act of 1995. In carrying out such repeals or revisions, the 
        Authority shall seek to ensure that the average time required 
        to obtain a permit or application from the District of Columbia 
        is consistent with the average time for other similar 
        jurisdictions in the United States.
    (c) Reports to Congress.--Upon the expiration of the 6-month period 
which begins on the date of the enactment of this Act and on a 
quarterly basis thereafter, the Authority shall submit a report to 
Congress describing the steps taken to carry out the requirements of 
this section and the effectiveness of the regulatory, permit, and 
application processes of the District of Columbia.

SEC. 902. REPEAL OF CLEAN AIR COMPLIANCE FEE ACT OF 1994.

    (a) Repeal.--
            (1) In general.--Effective March 21, 1995, the Clean Air 
        Compliance Fee Act of 1994 is hereby repealed (DC Code, sec. 
        47-2731 et seq.), except as provided in subsection (b).
            (2) Conforming amendment.--Section 2(b)(2) of the Stable 
        and Reliable Source of Revenues for WMATA Act of 1982 (DC Code, 
        sec. 1-2466(b)(2)) is amended by striking subparagraph (H).
    (b) Exception for Provisions Exempting Delivery of Newspapers From 
Application of Certain Taxes.--Subsection (a) shall not apply to 
section 14 of the Clean Air Compliance Fee Act of 1994.

SEC. 903. REPEAL OF FEDERAL CHARTER OF GROUP HOSPITALIZATION AND 
              MEDICAL SERVICES, INC.

    (a) Repeal of Federal Charter.--
            (1) In general.--The Act entitled ``An Act providing for 
        the incorporation of certain persons as Group Hospitalization, 
Inc.'', approved August 11, 1939 (53 Stat. 1412), is repealed.
            (2) Authorization to file articles of incorporation.--Group 
        Hospitalization and Medical Services, Inc. is hereby authorized 
        to file articles of incorporation under the District of 
        Columbia Nonprofit Corporation Act.
            (3) Effective date.--The amendment made by paragraph (1) 
        shall take effect upon the filing and effectiveness of articles 
        of incorporation of Group Hospitalization and Medical Services, 
        Inc. under the District of Columbia Nonprofit Corporation Act.
    (b) Effects of Becoming a District of Columbia Nonprofit 
Corporation.--Effective upon the filing and effectiveness of articles 
of incorporation of Group Hospitalization and Medical Services, Inc. as 
authorized in paragraph (2) of subsection (a), Group Hospitalization 
and Medical Services, Inc.--
            (1) shall be a District of Columbia nonprofit corporation 
        subject to the articles of incorporation;
            (2) shall be deemed organized and existing under the 
        District of Columbia Nonprofit Corporation Act, notwithstanding 
        any of the provisions of section 4 of the District of Columbia 
        Nonprofit Corporation Act regarding organizations subject to 
        any of the provisions of the insurance laws of the District of 
        Columbia;
            (3) shall be legally domiciled in the District of Columbia;
            (4) shall be regulated by the Superintendent of Insurance 
        of the District of Columbia in accordance with the laws and 
        regulations of the District of Columbia;
            (5) shall continue to exist; and
            (6) shall continue to be authorized to transact business--
                    (A) under existing certificates of authority and 
                licenses issued to Group Hospitalization and Medical 
                Services, Inc. before such filing and effectiveness,
                    (B) under the name ``Group Hospitalization and 
                Medical Services, Inc.'', and
                    (C) under applicable laws and regulations.
    (d) Waiver of Congressional Review Period.--Notwithstanding section 
602(c)(1) of the District of Columbia Self-Government and Governmental 
Reorganization Act (sec. 1-233(c)(1), D.C. Code), the Hospital and 
Medical Services Corporation Regulatory Act of 1996 (D.C. Act 11-505) 
shall take effect on the date of the enactment of such Act or the date 
of the enactment of this Act, whichever is later.

SEC. 904. EXEMPTION OF CERTAIN CONTRACTS FROM COUNCIL REVIEW.

    (a) In General.--Section 451 of the District of Columbia Self-
Government and Governmental Reorganization Act (sec. 1-1130, D.C. Code) 
is amended by adding at the end the following new subsection:
    ``(d) Exemption for Certain Contracts.--The requirements of this 
section shall not apply with respect to any of the following contracts:
            ``(1) Any contract entered into by the Washington 
        Convention Center Authority for preconstruction activities, 
        project management, design, or construction.
            ``(2) Any contract entered into by the District of Columbia 
        Water and Sewer Authority established pursuant to the Water and 
        Sewer Authority Establishment and Department of Public Works 
        Reorganization Act of 1996, other than contracts for the sale 
        or lease of the Blue Plains Wastewater Treatment Plant.
            ``(3) At the option of the Council, any contract for a 
        highway improvement project carried out under title 23, United 
        States Code.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to contracts entered into on or after the date of 
the enactment of this Act.

               Subtitle B--Other Miscellaneous Provisions

SEC. 911. REVISIONS TO FINANCIAL RESPONSIBILITY AND MANAGEMENT 
              ASSISTANCE ACT.

    (a) Use of Interest on Accounts of Authority for Benefit of 
District.--Section 106 of the District of Columbia Financial 
Responsibility and Management Assistance Act of 1995 (DC Code, sec. 47-
391.6) is amended by adding at the end the following new subsection:
    ``(d) Use of Interest on Accounts for District.--
            ``(1) In general.--Notwithstanding any other provision of 
        this Act, the Authority may transfer or otherwise expend any 
        amounts derived from interest earned on accounts held by the 
        Authority on behalf of the District of Columbia for such 
        purposes as it considers appropriate to promote the economic 
        stability and management efficiency of the District government.
            ``(2) Spending not subject to appropriation by congress.--
        Notwithstanding subsection (a)(3), any amounts transferred or 
        otherwise expended pursuant to paragraph (1) may be obligated 
        or expended without approval by Act of Congress.''.
    (b) Appointment of Inspector General.--Section 303(e)(1) of such 
Act (DC Code, sec. 1-1182.8 note) is amended by striking ``the 
Authority'' and inserting ``the Mayor''.

SEC. 912. COOPERATIVE AGREEMENTS BETWEEN FEDERAL AGENCIES AND 
              METROPOLITAN POLICE DEPARTMENT.

    (a) Agreements.--Each covered Federal law enforcement agency may 
enter into a cooperative agreement with the Metropolitan Police 
Department of the District of Columbia to assist the Department in 
carrying out crime prevention and law enforcement activities in the 
District of Columbia, including taking appropriate action to enforce 
subsection (e) (except that nothing in such an agreement may be 
construed to grant authority to the United States to prosecute 
violations of subsection (e)).
    (b) Contents of Agreement.--An agreement entered into between a 
covered Federal law enforcement agency and the Metropolitan Police 
Department pursuant to this Act may include agreements relating to--
            (1) sending personnel of the agency on patrol in areas of 
        the District of Columbia which immediately surround the area of 
        the agency's jurisdiction, and granting personnel of the agency 
        the power to arrest in such areas;
            (2) sharing and donating equipment and supplies with the 
        Metropolitan Police Department;
            (3) operating on shared radio frequencies with the 
        Metropolitan Police Department;
            (4) permitting personnel of the agency to carry out 
        processing and papering of suspects they arrest in the District 
        of Columbia; and
            (5) such other items as the agency and the Metropolitan 
        Police Department may agree to include in the agreement.
    (c) Coordination by U.S. Attorney's Office.--The United States 
Attorney for the District of Columbia shall coordinate the agreements 
entered into pursuant to this Act and shall provide technical 
assistance to covered Federal law enforcement agencies in carrying out 
their responsibilities under this Act and under such agreements.
    (d) Covered Federal Law Enforcement Agencies Described.--In this 
section, the term ``covered Federal law enforcement agency'' means any 
of the following:
            (1) United States Capitol Police.
            (2) United States Marshals Service.
            (3) Library of Congress Police.
            (4) Bureau of Engraving and Printing Police Force.
            (5) Supreme Court Police.
            (6) Amtrak Police Department.
            (7) Department of Protective Services, United States 
        Holocaust Museum.
            (8) Government Printing Office Police.
            (9) United States Park Police.
            (10) Bureau of Alcohol, Tobacco, and Firearms.
            (11) Drug Enforcement Administration.
            (12) Federal Bureau of Investigation.
            (13) Criminal Investigation Division, Internal Revenue 
        Service.
            (14) Department of the Navy Police Division, Naval District 
        Washington.
            (15) Naval Criminal Investigative Service.
            (16) 11th Security Police Squadron, Bolling Air Force Base.
            (17) United States Army Military District of Washington.
            (18) United States Customs Service.
            (19) Immigration and Naturalization Service.
            (20) Postal Inspection Service, United States Postal 
        Service.
            (21) Uniformed Division, United States Secret Service.
            (22) United States Secret Service.
            (23) National Zoological Park Police.
            (24) Federal Protective Service, General Services 
        Administration, National Capital Region.
            (25) Defense Protective Service, Department of Defense 
        Washington Headquarters Services.
            (26) Office of Protective Services, Smithsonian 
        Institution.
            (27) Office of Protective Services, National Gallery of 
        Art.
            (28) United States Army Criminal Investigation Command, 
        Department of the Army Washington District, 3rd Military Police 
        Group.
            (29) Marine Corps Law Enforcement.
            (30) Department of State Diplomatic Security.
            (31) United States Coast Guard.
            (32) United States Postal Police.
    (e) Certain Prohibited Activity.--Effective with respect to conduct 
occurring on or after the date of the enactment of this Act, whoever in 
the District of Columbia knowingly and willfully obstructs any bridge 
connecting the District of Columbia and the Commonwealth of Virginia--
            (1) shall be fined not less than $1,000 or not more than 
        $5,000, and in addition may be imprisoned not more than 30 
        days; or
            (2) if applicable, shall be subject to prosecution by the 
        District of Columbia under the provisions of District law and 
        regulation amended by the Safe Streets Anti-Prostitution 
        Amendment Act of 1996 (D.C. Law 11-130).

SEC. 913. PERMITTING GARNISHMENT OF WAGES OF OFFICERS AND EMPLOYEES OF 
              DISTRICT OF COLUMBIA GOVERNMENT.

    Section 2 of D.C. Law 2-14 (DC Code, sec. 1-516) is amended--
            (1) by striking ``After July 25'' and inserting ``(a) After 
        July 25''; and
            (2) by adding at the end the following new subsection:
    ``(b) After October 1, 1997, wages salaries, annuities, retirement 
and disability benefits, and other remuneration based upon employment, 
or other income owed by, due from, and payable by the government of the 
District of Columbia to any individual shall be subject to attachment, 
garnishment, assignment, or withholding in accordance with subchapter 
III of chapter 5 of title 16 of the District of Columbia Code in the 
same manner and to the same extent as if the government of the District 
of Columbia were a private person.''.

SEC. 914. PERMITTING EXCESS APPROPRIATIONS BY WATER AND SEWER AUTHORITY 
              FOR CAPITAL PROJECTS.

    (a) In General.--Section 445A of the District of Columbia Self-
Government and Governmental Reorganization Act (DC Code, sec. 43-1691), 
as added by section 4(a) of the District of Columbia Water and Sewer 
Authority Act of 1996, is amended--
            (1) by striking ``The District'' and inserting ``(a) In 
        General.--The District''; and
            (2) by adding at the end the following new subsection:
    ``(b) Permitting Expenditure of Excess Revenues for Capital 
Projects in Excess of Budget.--Notwithstanding the amount appropriated 
for the District of Columbia Water and Sewer Authority for capital 
projects for a fiscal year, if the revenues of the Authority for the 
year exceed the estimated revenues of the Authority provided in the 
annual budget of the District of Columbia for the fiscal year, the 
Authority may obligate or expend an additional amount for capital 
projects during the year equal to the amount of such excess 
revenues.''.
    (b) Conforming Amendment.--The fourth sentence of section 446 of 
such Act (DC Code, sec. 47-304), as amended by section 2(c)(2) of the 
District of Columbia Water and Sewer Authority Act of 1996, is amended 
by striking ``in section 467(d)'' and inserting ``in section 445A(b), 
section 467(d)''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to fiscal years beginning on or after October 1, 
1996.

SEC. 915. REQUIRING CERTAIN FEDERAL OFFICIALS TO PROVIDE NOTICE BEFORE 
              CARRYING OUT ACTIVITIES AFFECTING REAL PROPERTY LOCATED 
              IN DISTRICT OF COLUMBIA.

    (a) Heads of Federal Agencies.--
            (1) In general.--Except as provided in subsection (d), the 
        head of any Federal agency may not carry out any activity that 
        affects real property located in the District of Columbia 
        unless--
                    (A) not later than 60 days before carrying out such 
                activity, the head of the agency provides a notice 
                describing such activity and the property affected to 
                the Administrator of General Services and the 
                Administrator of General Services transmits such notice 
                to the individuals described in subsection (c); and
                    (B) the head of the agency provides the individuals 
                described in subsection (c) with the opportunity to 
                present oral or written comments on the activity to a 
                representative of the head of the agency before the 
                head of the agency carries out the activity.
            (2) Federal agency defined.--In subsection (a), the term 
        ``Federal agency'' means an executive department (as defined in 
        section 101 of title 5, United States Code).
    (b) Architect of the Capitol.--Except as provided in subsection 
(d), the Architect of the Capitol may not carry out any activity that 
affects real property located in the District of Columbia unless--
            (1) not later than 60 days before carrying out such 
        activity, the Architect provides a notice describing such 
        activity and the property affected to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Environment and Public 
        Works of the Senate and such Committees transmit such notice to 
        the individuals described in subsection (c); and
            (2) the Architect provides the individuals described in 
        subsection (c) with the opportunity to present oral or written 
        comments on the activity to a representative of the Architect 
        before the Architect carries out the activity.
    (c) Individuals Described.--The individuals described in this 
paragraph (with respect to the activity and the real property involved) 
are the Mayor of the District of Columbia, the Chair of the Council of 
the District of Columbia, and the Chair of the Advisory Neighborhood 
Commission (as established pursuant to section 738 of the District of 
Columbia Self-Government and Governmental Reorganization Act) in whose 
neighborhood such property is located.
    (d) Exception for Emergencies.--The head of a Federal agency or the 
Architect of the Capitol may waive the requirements of subsection (a) 
if the head of the agency or the Architect finds that compliance with 
the requirements would jeopardize the public safety or the national 
security interests of the United States, but only if the head of the 
agency or the Architect--
            (1) certifies such finding and the reasons for such finding 
        to the individuals described in subsection (c) and to Congress; 
        and
            (2) at the earliest time practicable, provides such 
        individuals with the notice described in paragraph (1) of 
        subsection (a) or (b) (whichever is applicable) and the 
        opportunity to present comments described in paragraph (2) of 
        subsection (a) or (b).
    (e) Effective Date.--Section 1 shall apply to activities carried 
out after the expiration of the 60-day period that begins on the date 
of the enactment of this Act.

SEC. 916. SHORT TITLE OF HOME RULE ACT.

    (a) In General.--Section 101 of the District of Columbia Self-
Government and Governmental Reorganization Act is amended by striking 
``District of Columbia Self-Government and Governmental Reorganization 
Act'' and inserting ``District of Columbia Home Rule Act''.
    (b) References in Law.--Any reference in law or regulation to the 
District of Columbia Self-Government and Governmental Reorganization 
Act shall be deemed to be a reference to the District of Columbia Home 
Rule Act.

             Subtitle C--Effective Date; General Provisions

SEC. 921. EFFECTIVE DATE.

    Except as otherwise provided in this Act, the provisions of this 
Act shall take effect on the later of October 1, 1997, or the day the 
District of Columbia Financial Responsibility and Management Assistance 
Authority certifies that the financial plan and budget for the District 
government for fiscal year 1998 meet the requirements of section 
201(c)(1) of the District of Columbia Financial Responsibility and 
Management Assistance Act of 1995, as amended by this Act.

SEC. 922. TECHNICAL ASSISTANCE.

    Any Federal agency (as defined in section 101 of title 31, United 
States Code) may provide, at the discretion of the head of the agency, 
technical assistance to, and training for, personnel of the Government 
of the District of Columbia. Such assistance shall be limited to 
assistance that does not interfere with the mission of the agency. The 
authority provided by this section shall expire three years from the 
date of enactment of this statute.

SEC. 923. LIABILITY.

    The United States, its agencies, and personnel will not incur any 
liability on the basis of the activities of the District of Columbia, 
its agencies, or personnel as a result of any acts or omissions in 
carrying out this Act or any amendments made by this Act.
                                 <all>