[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2607 Engrossed in House (EH)]


  1st Session

                               H. R. 2607

_______________________________________________________________________

                                 AN ACT

 Making appropriations for the government of the District of Columbia 
    and other activities chargeable in whole or in part against the 
  revenues of said District for the fiscal year ending September 30, 
                     1998, and for other purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
105th CONGRESS
  1st Session
                                H. R. 2607

_______________________________________________________________________

                                 AN ACT


 
 Making appropriations for the government of the District of Columbia 
    and other activities chargeable in whole or in part against the 
  revenues of said District for the fiscal year ending September 30, 
                     1998, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That the following sums 
are appropriated, out of any money in the Treasury not otherwise 
appropriated, for the District of Columbia for the fiscal year ending 
September 30, 1998, and for other purposes, namely:

                TITLE I--FISCAL YEAR 1998 APPROPRIATIONS

                             FEDERAL FUNDS

     Federal Contribution to the Operations of the Nation's Capital

    For a Federal contribution to the District of Columbia towards the 
costs of the operation of the government of the District of Columbia, 
$180,000,000; as authorized by section 11601 of the National Capital 
Revitalization and Self-Government Improvement Act of 1997, Public Law 
105-33.

                    Office of the Inspector General

    For the Office of the Inspector General, $2,000,000, to prevent and 
detect fraud, waste, and abuse in the programs and operations of all 
functions, activities, and entities within the government of the 
District of Columbia.

                     Metropolitan Police Department

    For the Metropolitan Police Department, $5,400,000, for a 5 percent 
pay increase for sworn officers who perform primarily nonadministrative 
public safety services and are certified by the Chief of Police as 
having met certain minimum standards referred to in section 148 of this 
Act.

             Fire and Emergency Medical Services Department

    For the Fire and Emergency Medical Services Department, $2,600,000, 
for a 5 percent pay increase for uniformed fire fighters.

                 Federal Contribution to Public Schools

    For the public schools of the District of Columbia, $1,000,000, 
which shall be paid to the District Education and Learning Technologies 
Advancement (DELTA) Council established by section 2604 of the District 
of Columbia School Reform Act of 1995, Public Law 104-134, within 10 
days of the effective date of the appointment of a majority of the 
Council's members.

    Federal Payment to the District of Columbia Corrections Trustee 
                               Operations

    For payment to the District of Columbia Corrections Trustee for the 
administration and operation of correctional facilities, $169,000,000, 
as authorized by the National Capital Revitalization and Self-
Government Improvement Act of 1997, Public Law 105-33.

      Payment to the District of Columbia Corrections Trustee for 
            Correctional Facilities, Construction and Repair

    For payment to the District of Columbia Corrections Trustee for 
Correctional Facilities, $302,000,000, to remain available until 
expended, of which not less than $294,900,000 is available for transfer 
to the Federal Prison System, as authorized by section 11202 of the 
National Capital Revitalization and Self-Government Improvement Act of 
1997; and $7,100,000 shall be for security improvements and repairs at 
the Lorton Correctional Complex.

                   Executive Office of the President

              federal payment to the district of columbia

                        criminal justice system

                     (including transfer of funds)

    Pursuant to the National Capital Revitalization and Self-Government 
Improvement Act of 1997 (Public Law 105-33) $146,000,000 for the Office 
of Management and Budget, of which: (1) not to exceed $121,000,000 
shall be transferred to the Joint Committee on Judicial Administration 
in the District of Columbia for operation of the District of Columbia 
Courts; (2) not to exceed $2,000,000 shall be transferred to the 
District of Columbia Truth in Sentencing Commission to implement 
section 11211 of the National Capital Revitalization and Self-
Government Improvement Act of 1997; (3) not to exceed $22,200,000 shall 
be transferred to the Pretrial Services, Defense Services, Parole, 
Adult Probation, and Offender Supervision Trustee for expenses relating 
to pretrial services, defense services, parole, adult probation and 
offender supervision in the District of Columbia, and for operating 
expenses of the Trustee; and (4) not to exceed $800,000 shall be 
transferred to the United States Parole Commission to implement section 
11231 of the National Capital Revitalization and Self-Government 
Improvement Act of 1997.

                       United States Park Police

    For payment to the United States Park Police for policing services 
performed within the District of Columbia, $12,500,000.

                Federal Contribution to the District of

                       Columbia Scholarship Fund

    For the District of Columbia Scholarship Fund, $7,000,000, as 
authorized by section 342 of this Act for scholarships to students of 
low-income families in the District of Columbia to enable them to have 
educational choice.

                          Division of Expenses

    The following amounts are appropriated for the District of Columbia 
for the current fiscal year out of the general fund of the District of 
Columbia, except as otherwise specifically provided.

               District of Columbia Taxpayers Relief Fund

    For the District of Columbia Taxpayers Relief Fund, an amount equal 
to the difference between the amount of District of Columbia local 
revenues provided under this Act and the actual amount of District of 
Columbia local revenues generated during fiscal year 1998 (as 
determined and certified by the Chief Financial Officer of the District 
of Columbia): Provided, That such amount shall be deposited into an 
escrow account held by the District of Columbia Financial 
Responsibility and Management Assistance Authority, which shall 
allocate the funds to the Mayor, or such other District official as the 
Authority may deem appropriate, in amounts and in a manner consistent 
with the requirements of this Act: Provided further, That these funds 
shall only be used to offset reductions in District of Columbia local 
revenues as a result of reductions in District of Columbia taxes or 
fees enacted by the Council of the District of Columbia (based upon the 
recommendations of the District of Columbia Tax Revision Commission and 
the Business Regulatory Reform Commission) and effective no later than 
October 1, 1998.

              District of Columbia Deficit Reduction Fund

    For the District of Columbia Deficit Reduction Fund, $200,000,000, 
to be deposited into an escrow account held by the District of Columbia 
Financial Responsibility and Management Assistance Authority, which 
shall allocate the funds to the Mayor, or such other District official 
as the Authority may deem appropriate, at such intervals and in 
accordance with such terms and conditions as the Authority considers 
appropriate: Provided, That an additional amount shall be deposited 
into the Fund each month equal to the amount saved by the District of 
Columbia during the previous month as a result of cost-saving 
initiatives of the Mayor of the District of Columbia (described in the 
fiscal year 1998 budget submission of June 1997), as determined and 
certified by the Chief Financial Officer of the District of Columbia: 
Provided further, That the District government shall make every effort 
to implement such cost-saving initiatives so that the total amount 
saved by the District of Columbia during all months of fiscal year 1998 
as a result of such initiatives is equal to or greater than 
$100,000,000: Provided further, That the Chief Financial Officer shall 
submit a report to Congress not later than January 1, 1998, on a 
timetable for the implementation of such initiatives under which all 
such initiatives shall be implemented by not later than September 30, 
1998: Provided further, That amounts in the Fund shall only be used for 
reduction of the accumulated general fund deficit existing as of 
September 30, 1997.

                   Governmental Direction and Support

    Governmental direction and support, $119,177,000 and 1,479 full-
time equivalent positions (including $98,316,000, and 1,400 full-time 
equivalent positions from local funds, $14,013,000 and 9 full-time 
equivalent positions from Federal funds, and $6,848,000 and 70 full-
time equivalent positions from other funds): Provided, That not to 
exceed $2,500 for the Mayor, $2,500 for the Chairman of the Council of 
the District of Columbia, and $2,500 for the City Administrator shall 
be available from this appropriation for official purposes: Provided 
further, That any program fees collected from the issuance of debt 
shall be available for the payment of expenses of the debt management 
program of the District of Columbia: Provided further, That no revenues 
from Federal sources shall be used to support the operations or 
activities of the Statehood Commission and Statehood Compact 
Commission: Provided further, That the District of Columbia shall 
identify the sources of funding for Admission to Statehood from its own 
locally-generated revenues: Provided further, That $240,000 shall be 
available for citywide special elections: Provided further, That all 
employees permanently assigned to work in the Office of the Mayor shall 
be paid from funds allocated to the Office of the Mayor.

                  Economic Development and Regulation

    Economic development and regulation, $120,072,000 and 1,283 full-
time equivalent positions (including $40,377,000 and 561 full-time 
equivalent positions from local funds, $42,065,000 and 526 full-time 
equivalent positions from Federal funds, and $25,630,000 and 196 full-
time equivalent positions from other funds and $12,000,000 collected in 
the form of Business Improvement Districts tax revenue collected by the 
District of Columbia on behalf of business improvement districts 
pursuant to the Business Improvement Districts Act of 1996, effective 
May 29, 1996 (D.C. Law 11-134; D.C. Code, sec. 1-2271 et seq.) and the 
Business Improvement Districts Temporary Amendment Act of 1997 (Bill 
12-230).

                       Public Safety and Justice

    Public safety and justice, including purchase of 135 passenger-
carrying vehicles for replacement only, including 130 for police-type 
use and five for fire-type use, without regard to the general purchase 
price limitation for the current fiscal year, $502,970,000 and 9,719 
full-time equivalent positions (including $483,557,000 and 9,642 full-
time equivalent positions from local funds, $13,519,000 and 73 full-
time equivalent positions from Federal funds, and $5,894,000 and 4 
full-time equivalent positions from other funds): Provided, That the 
Metropolitan Police Department is authorized to replace not to exceed 
25 passenger-carrying vehicles and the Department of Fire and Emergency 
Medical Services of the District of Columbia is authorized to replace 
not to exceed five passenger-carrying vehicles annually whenever the 
cost of repair to any damaged vehicle exceeds three-fourths of the cost 
of the replacement: Provided further, That not to exceed $500,000 shall 
be available from this appropriation for the Chief of Police for the 
prevention and detection of crime: Provided further, That the 
Metropolitan Police Department shall provide quarterly reports to the 
Committees on Appropriations of the House and Senate on efforts to 
increase efficiency and improve the professionalism in the department: 
Provided further, That notwithstanding any other provision of law, or 
Mayor's Order 86-45, issued March 18, 1986, the Metropolitan Police 
Department's delegated small purchase authority shall be $500,000: 
Provided further, That the District of Columbia government may not 
require the Metropolitan Police Department to submit to any other 
procurement review process, or to obtain the approval of or be 
restricted in any manner by any official or employee of the District of 
Columbia government, for purchases that do not exceed $500,000: 
Provided further, That the District of Columbia Fire Department shall 
provide quarterly reports to the Committees on Appropriations of the 
House and Senate on efforts to increase efficiency and improve the 
professionalism in the department: Provided further, That 
notwithstanding any other provision of law, or Mayor's Order 86-45, 
issued March 18, 1986, the District of Columbia Fire Department's 
delegated small purchase authority shall be $500,000: Provided further, 
That the District of Columbia government may not require the District 
of Columbia Fire Department to submit to any other procurement review 
or contract approval process, or to obtain the approval of or be 
restricted in any manner by any official or employee of the District of 
Columbia government, for purchases that do not exceed $500,000: 
Provided further, That the Mayor shall reimburse the District of 
Columbia National Guard for expenses incurred in connection with 
services that are performed in emergencies by the National Guard in a 
militia status and are requested by the Mayor, in amounts that shall be 
jointly determined and certified as due and payable for these services 
by the Mayor and the Commanding General of the District of Columbia 
National Guard: Provided further, That such sums as may be necessary 
for reimbursement to the District of Columbia National Guard under the 
preceding proviso shall be available from this appropriation, and the 
availability of the sums shall be deemed as constituting payment in 
advance for emergency services involved: Provided further, That the 
Metropolitan Police Department is authorized to maintain 3,800 sworn 
officers, with leave for a 50 officer attrition: Provided further, That 
no more than 15 members of the Metropolitan Police Department shall be 
detailed or assigned to the Executive Protection Unit, until the Chief 
of Police submits a recommendation to the Council for its review: 
Provided further, That $100,000 shall be available for inmates released 
on medical and geriatric parole: Provided further, That not less than 
$2,254,754 shall be available to support a pay raise for uniformed 
firefighters, when authorized by the District of Columbia Council and 
the District of Columbia Financial Responsibility and Management 
Assistance Authority, which funding will be made available as savings 
are achieved through actions within the appropriated budget: Provided 
further, That funds appropriated for expenses under the District of 
Columbia Criminal Justice Act, approved September 3, 1974 (88 Stat. 
1090; Public Law 93-412; D.C. Code, sec. 11-2601 et seq.), for the 
fiscal year ending September 30, 1998, shall be available for 
obligations incurred under the Act in each fiscal year since inception 
in fiscal year 1975: Provided further, That funds appropriated for 
expenses under the District of Columbia Neglect Representation Equity 
Act of 1984, effective March 13, 1985 (D.C. Law 5-129; D.C. Code, Sec. 
16-2304), for the fiscal year ending September 30, 1998, shall be 
available for obligations incurred under the Act in each fiscal year 
since inception in fiscal year 1985: Provided further, That funds 
appropriated for expenses under the District of Columbia Guardianship, 
Protective Proceedings, and Durable Power of Attorney Act of 1986, 
effective February 27, 1987 (D.C. Law 6-204; D.C. Code, sec. 21-2060), 
for the fiscal year ending September 30, 1998, shall be available for 
obligations incurred under the Act in each fiscal year since inception 
in fiscal year 1989: Provided further, That not to exceed $1,500 for 
the Chief Judge of the District of Columbia Court of Appeals, $1,500 
for the Chief Judge of the Superior Court of the District of Columbia, 
and $1,500 for the Executive Officer of the District of Columbia Courts 
shall be available from this appropriation for official purposes.

                        Public Education System

    Public education system, including the development of national 
defense education programs, $673,444,000 and 11,314 full-time 
equivalent positions (including $531,197,000 and 9,595 full-time 
equivalent positions from local funds, $112,806,000 and 1,424 full-time 
equivalent positions from Federal funds, and $29,441,000 and 295 full-
time equivalent positions from other funds), to be allocated as 
follows: $560,114,000 and 9,979 full-time equivalent positions 
(including $456,128,000 and 8,623 full-time equivalent positions from 
local funds, $98,491,000 and 1,251 full-time equivalent positions from 
Federal funds, and $5,495,000 and 105 full-time equivalent positions 
from other funds), for the public schools of the District of Columbia; 
$5,250,000 (including $300,000 for the Public Charter School Board) 
from local funds for public charter schools: Provided, That if the 
entirety of this allocation has not been provided as payments to one or 
more public charter schools by May 15, 1998, and remains unallocated, 
the funds will revert to the general fund of the District of Columbia 
in accordance with section 2403(a)(2)(D) of the District of Columbia 
School Reform Act of 1995 (Public Law 104-134); $8,900,000 from local 
funds for the District of Columbia Teachers' Retirement Fund; 
$1,000,000 from local funds for the District Education and Learning 
Technologies Advancement (DELTA) Council to be paid to the Council 
within 10 days of the effective date of the appointment of a majority 
of the Council's members; $70,687,000 and 872 full-time equivalent 
positions (including $37,126,000 and 562 full-time equivalent positions 
from local funds, $12,804,000 and 156 full-time equivalent positions 
from Federal funds, and $20,757,000 and 154 full-time equivalent 
positions from other funds) for the University of the District of 
Columbia (excluding the U.D.C. School of Law); $3,400,000 and 45 full-
time equivalent positions (including $665,000 and 10 full-time 
equivalent positions from local funds and $2,735,000 and 35 full-time 
equivalent positions from other funds) for the U.D.C. School of Law; 
$22,036,000 and 409 full-time equivalent positions (including 
$20,424,000 and 398 full-time equivalent positions from local funds, 
$1,158,000 and 10 full-time equivalent positions from Federal funds, 
and $454,000 and 1 full-time equivalent position from other funds) for 
the Public Library; $2,057,000 and 9 full-time equivalent positions 
(including $1,704,000 and 2 full-time equivalent positions from local 
funds and $353,000 and 7 full-time equivalent positions from Federal 
funds) for the Commission on the Arts and Humanities: Provided, That 
the public schools of the District of Columbia are authorized to accept 
not to exceed 31 motor vehicles for exclusive use in the driver 
education program: Provided further, That not to exceed $2,500 for the 
Superintendent of Schools, $2,500 for the President of the University 
of the District of Columbia, and $2,000 for the Public Librarian shall 
be available from this appropriation for official purposes: Provided 
further, That not less than $1,200,000 shall be available for local 
school allotments in a restricted line item: Provided further, That not 
less than $4,500,000 shall be available to support kindergarten aides 
in a restricted line item: Provided further, That not less than 
$2,800,000 shall be available to support substitute teachers in a 
restricted line item: Provided further, That not less than $1,788,000 
shall be available in a restricted line item for school counselors: 
Provided further, That this appropriation shall not be available to 
subsidize the education of nonresidents of the District of Columbia at 
the University of the District of Columbia, unless the Board of 
Trustees of the University of the District of Columbia adopts, for the 
fiscal year ending September 30, 1998, a tuition rate schedule that 
will establish the tuition rate for nonresident students at a level no 
lower than the nonresident tuition rate charged at comparable public 
institutions of higher education in the metropolitan area: Provided 
further, That not less than $584,000 shall be available to support high 
school dropout prevention programs: Provided further, That not less 
than $295,000 shall be available for youth leadership and conflict 
resolution programs: Provided further, That not less than $10,000,000 
shall be available to support a pay raise for principals and assistant 
principals of the District of Columbia Public Schools, and for teachers 
of the Schools with valid teaching credentials who are primarily 
engaged in classroom instruction during the SY 1997-1998: Provided 
further, That not less than $250,000 shall be available to support 
Truancy Prevention Programs: Provided further, That by the end of 
fiscal year 1998, the District of Columbia Schools shall designate at 
least 2 or more District of Columbia Public School buildings as 
``Community Hubs'' which, in addition to serving as educational 
facilities, shall serve as multi-purpose centers that provide 
opportunities to integrate support services and enable inter-
generational users to meet the lifelong learning needs of community 
residents, and may support the following activities: before and after 
school care; counseling; tutoring; vocational and career training; art 
and sports programs; housing assistance; family literacy; health and 
nutrition programs; parent education; employment assistance; adult 
education; and access to state-of-the art technology.

                         Human Support Services

    Human support services, $1,718,939,000 and 6,096 full-time 
equivalent positions (including $789,350,000 and 3,583 full-time 
equivalent positions from local funds, $886,702,000 and 2,444 full-time 
equivalent positions from Federal funds, and $42,887,000 and 69 full-
time equivalent positions from other funds): Provided, That $21,089,000 
of this appropriation, to remain available until expended, shall be 
available solely for District of Columbia employees' disability 
compensation: Provided further, That a Peer Review Committee shall be 
established to review medical payments and the type of service received 
by a disability compensation claimant: Provided further, That the 
District of Columbia shall not provide free government services such as 
water, sewer, solid waste disposal or collection, utilities, 
maintenance, repairs, or similar services to any legally constituted 
private nonprofit organization (as defined in section 411(5) of Public 
Law 100-77, approved July 22, 1987) providing emergency shelter 
services in the District, if the District would not be qualified to 
receive reimbursement pursuant to the Stewart B. McKinney Homeless 
Assistance Act, approved July 22, 1987 (101 Stat. 485; Public Law 100-
77; 42 U.S.C. 11301 et seq.).

                              Public Works

    Public works, including rental of one passenger-carrying vehicle 
for use by the Mayor and three passenger-carrying vehicles for use by 
the Council of the District of Columbia and leasing of passenger-
carrying vehicles $241,934,000 and 1,292 full-time equivalent positions 
(including $227,983,000 and 1,162 full-time equivalent positions from 
local funds, $3,350,000 and 51 full-time equivalent positions from 
Federal funds, and $10,601,000 and 79 full-time equivalent positions 
from other funds): Provided, That this appropriation shall not be 
available for collecting ashes or miscellaneous refuse from hotels and 
places of business: Provided further, That $3,000,000 shall be 
available for the lease financing, operation, and maintenance of two 
mechanical street sweepings, one flusher truck, 5 packer trucks, one 
front-end loader, and various public litter containers: Provided 
further, That $2,400,000 shall be available for recycling activities.

           Washington Convention Center Fund Transfer Payment

    For payment to the Washington Convention Center Enterprise Fund, 
$5,400,000 from local funds.

                    Repayment of Loans and Interest

    For reimbursement to the United States of funds loaned in 
compliance with An Act to provide for the establishment of a modern, 
adequate, and efficient hospital center in the District of Columbia, 
approved August 7, 1946 (60 Stat. 896; Public Law 79-648); section 1 of 
An Act to authorize the Commissioners of the District of Columbia to 
borrow funds for capital improvement programs and to amend provisions 
of law relating to Federal Government participation in meeting costs of 
maintaining the Nation's Capital City, approved June 6, 1958 (72 Stat. 
183; Public Law 85-451; D.C. Code, sec. 9-219); section 4 of An Act to 
authorize the Commissioners of the District of Columbia to plan, 
construct, operate, and maintain a sanitary sewer to connect the Dulles 
International Airport with the District of Columbia system, approved 
June 12, 1960 (74 Stat. 211; Public Law 86-515); sections 723 and 
743(f) of the District of Columbia Home Rule Act of 1973, approved 
December 24, 1973, as amended (87 Stat. 821; Public Law 93-198; D.C. 
Code, sec. 47-321, note; 91 Stat. 1156; Public Law 95-131; D.C. Code, 
sec. 9-219, note), including interest as required thereby, $366,976,000 
from local funds.

                Repayment of General Fund Recovery Debt

    For the purpose of eliminating the $331,589,000 general fund 
accumulated deficit as of September 30, 1990, $39,020,000 from local 
funds, as authorized by section 461(a) of the District of Columbia Home 
Rule Act, approved December 24, 1973, as amended (105 Stat. 540; Public 
Law 102-106; D.C. Code, sec. 47-321(a)(1)).

              Payment of Interest on Short-Term Borrowing

    For payment of interest on short-term borrowing, $12,000,000 from 
local funds.

                     Certificates of Participation

    For lease payments in accordance with the Certificates of 
Participation involving the land site underlying the building located 
at One Judiciary Square, $7,923,000.

                      Human Resources Development

    For Human resources development, including costs of increased 
employee training, administrative reforms, and an executive 
compensation system, $6,000,000.

                Management Reform and Productivity Fund

    For the Management Reform and Productivity Fund, $5,000,000, to 
improve management and service delivery in the District of Columbia.

   Critical Improvements and Repairs to School Facilities and Streets

    For expenditures for immediate, one-time critical improvements and 
repairs to school facilities (including roof, boiler, and chiller 
renovation or replacement) and for neighborhood and other street 
repairs, to be completed not later than August 1, 1998, $30,000,000, to 
be derived from current local general fund operating revenues, to be 
expended on a pay-as-you-go basis.

District of Columbia Financial Responsibility and Management Assistance 
                               Authority

    For the District of Columbia Financial Responsibility and 
Management Assistance Authority, established by section 101(a) of the 
District of Columbia Financial Responsibility and Management Assistance 
Act of 1995, approved April 17, 1995 (109 Stat. 97; Public Law 104-8), 
$3,220,000.

         Water and Sewer Authority and the Washington Aqueduct

    For the Water and Sewer Authority and the Washington Aqueduct, 
$297,310,000 from other funds (including $263,425,000 for the Water and 
Sewer Authority and $33,885,000 for the Washington Aqueduct) of which 
$41,423,000 shall be apportioned and payable to the District's debt 
service fund for repayment of loans and interest incurred for capital 
improvement projects.

              Lottery and Charitable Games Enterprise Fund

    For the Lottery and Charitable Games Enterprise Fund, established 
by the District of Columbia Appropriation Act for the fiscal year 
ending September 30, 1982, approved December 4, 1981 (95 Stat. 1174, 
1175; Public Law 97-91), as amended, for the purpose of implementing 
the Law to Legalize Lotteries, Daily Numbers Games, and Bingo and 
Raffles for Charitable Purposes in the District of Columbia, effective 
March 10, 1981 (D.C. Law 3-172; D.C. Code, secs. 2-2501 et seq. and 22-
1516 et seq.), $213,500,000 and 100 full-time equivalent positions 
(including $7,850,000 and 100 full-time equivalent positions for 
administrative expenses and $205,650,000 for non-administrative 
expenses from revenue generated by the Lottery Board), to be derived 
from non-Federal District of Columbia revenues: Provided, That the 
District of Columbia shall identify the source of funding for this 
appropriation title from the District's own locally-generated revenues: 
Provided further, That no revenues from Federal sources shall be used 
to support the operations or activities of the Lottery and Charitable 
Games Control Board.

                    Cable Television Enterprise Fund

    For the Cable Television Enterprise Fund, established by the Cable 
Television Communications Act of 1981, effective October 22, 1983 (D.C. 
Law 5-36; D.C. Code, sec. 43-1801 et seq.), $2,467,000 and 8 full-time 
equivalent positions (including $2,135,000 and 8 full-time equivalent 
positions from local funds and $332,000 from other funds).

                       Public Service Commission

    For the Public Service Commission, $4,547,000 (including $4,250,000 
from local funds, $117,000 from Federal funds, and $180,000 from other 
funds).

                     Office of the People's Counsel

    For the Office of the People's Counsel, $2,428,000 from local 
funds.

           Department of Insurance and Securities Regulation

    For the Department of Insurance and Securities Regulation, 
$5,683,000 and 89 full-time equivalent positions from other funds.

              Office of Banking and Financial Institutions

    For the Office of Banking and Financial Institutions, $600,000 
(including $100,000 from local funds and $500,000 from other funds).

                             Starplex Fund

    For the Starplex Fund, $5,936,000 from other funds for expenses 
incurred by the Armory Board in the exercise of its powers granted by 
An Act To Establish A District of Columbia Armory Board, and for other 
purposes, approved June 4, 1948 (62 Stat. 339; D.C. Code, sec. 2-301 et 
seq.) and the District of Columbia Stadium Act of 1957, approved 
September 7, 1957 (71 Stat. 619; Public Law 85-300; D.C. Code, sec. 2-
321 et seq.): Provided, That the Mayor shall submit a budget for the 
Armory Board for the forthcoming fiscal year as required by section 
442(b) of the District of Columbia Home Rule Act, approved December 24, 
1973 (87 Stat. 824; Public Law 93-198; D.C. Code, sec. 47-301(b)).

                         D.C. General Hospital

    For the District of Columbia General Hospital, established by 
Reorganization Order No. 57 of the Board of Commissioners, effective 
August 15, 1953, $103,934,000 of which $44,335,000 shall be derived by 
transfer from the general fund and $59,599,000 shall be derived from 
other funds.

                         D.C. Retirement Board

    For the D.C. Retirement Board, established by section 121 of the 
District of Columbia Retirement Reform Act of 1979, approved November 
17, 1979 (93 Stat. 866; D.C. Code, sec. 1-711), $4,898,000 and 8 full-
time equivalent positions from the earnings of the applicable 
retirement funds to pay legal, management, investment, and other fees 
and administrative expenses of the District of Columbia Retirement 
Board: Provided, That the District of Columbia Retirement Board shall 
provide to the Congress and to the Council of the District of Columbia 
a quarterly report of the allocations of charges by fund and of 
expenditures of all funds: Provided further, That the District of 
Columbia Retirement Board shall provide the Mayor, for transmittal to 
the Council of the District of Columbia, an itemized accounting of the 
planned use of appropriated funds in time for each annual budget 
submission and the actual use of such funds in time for each annual 
audited financial report.

                      Correctional Industries Fund

    For the Correctional Industries Fund, established by the District 
of Columbia Correctional Industries Establishment Act, approved October 
3, 1964 (78 Stat. 1000; Public Law 88-622), $3,332,000 and 50 full-time 
equivalent positions from other funds.

              Washington Convention Center Enterprise Fund

    For the Washington Convention Center Enterprise Fund, $46,400,000 
of which $5,400,000 shall be derived by transfer from the general fund.

                             Capital Outlay

    For construction projects, $269,330,000 (including $105,485,000 
from local funds, $31,100,000 from the highway trust fund, and 
$132,745,000 in Federal funds), as authorized by An Act authorizing the 
laying of water mains and service sewers in the District of Columbia, 
the levying of assessments therefor, and for other purposes, approved 
April 22, 1904 (33 Stat. 244; Public Law 58-140; D.C. Code, secs. 43-
1512 through 43-1519); the District of Columbia Public Works Act of 
1954, approved May 18, 1954 (68 Stat. 101; Public Law 83-364); An Act 
to authorize the Commissioners of the District of Columbia to borrow 
funds for capital improvement programs and to amend provisions of law 
relating to Federal Government participation in meeting costs of 
maintaining the Nation's Capital City, approved June 6, 1958 (72 Stat. 
183; Public Law 85-451); including acquisition of sites, preparation of 
plans and specifications, conducting preliminary surveys, erection of 
structures, including building improvement and alteration and treatment 
of grounds, to remain available until expended: Provided, That funds 
for use of each capital project implementing agency shall be managed 
and controlled in accordance with all procedures and limitations 
established under the Financial Management System: Provided further, 
That all funds provided by this appropriation title shall be available 
only for the specific projects and purposes intended: Provided further, 
That notwithstanding the foregoing, all authorizations for capital 
outlay projects, except those projects covered by the first sentence of 
section 23(a) of the Federal-Aid Highway Act of 1968, approved August 
23, 1968 (82 Stat. 827; Public Law 90-495; D.C. Code, sec. 7-134, 
note), for which funds are provided by this appropriation title, shall 
expire on September 30, 1999, except authorizations for projects as to 
which funds have been obligated in whole or in part prior to September 
30, 1999: Provided further, That upon expiration of any such project 
authorization the funds provided herein for the project shall lapse: 
Provided further, That the District has approved projects to finance 
capital related items, such as vehicles and heavy equipment, through a 
master lease purchase program. The District will finance $13,052,000 of 
its equipment needs up to a 5 year-period. The fiscal year 1998 
operating budget includes a total of $3,741,000 for the debt associated 
with the lease purchase.

                           General Provisions

    Sec. 101. The expenditure of any appropriation under this Act for 
any consulting service through procurement contract, pursuant to 5 
U.S.C. 3109, shall be limited to those contracts where such 
expenditures are a matter of public record and available for public 
inspection, except where otherwise provided under existing law, or 
under existing Executive order issued pursuant to existing law.
    Sec. 102. Except as otherwise provided in this Act, all vouchers 
covering expenditures of appropriations contained in this Act shall be 
audited before payment by the designated certifying official and the 
vouchers as approved shall be paid by checks issued by the designated 
disbursing official.
    Sec. 103. Whenever in this Act, an amount is specified within an 
appropriation for particular purposes or objects of expenditure, such 
amount, unless otherwise specified, shall be considered as the maximum 
amount that may be expended for said purpose or object rather than an 
amount set apart exclusively therefor.
    Sec. 104. Appropriations in this Act shall be available, when 
authorized by the Mayor, for allowances for privately-owned automobiles 
and motorcycles used for the performance of official duties at rates 
established by the Mayor: Provided, That such rates shall not exceed 
the maximum prevailing rates for such vehicles as prescribed in the 
Federal Property Management Regulations 101-7 (Federal Travel 
Regulations).
    Sec. 105. Appropriations in this Act shall be available for 
expenses of travel and for the payment of dues of organizations 
concerned with the work of the District of Columbia government, when 
authorized by the Mayor: Provided, That the Council of the District of 
Columbia and the District of Columbia Courts may expend such funds 
without authorization by the Mayor.
    Sec. 106. There are appropriated from the applicable funds of the 
District of Columbia such sums as may be necessary for making refunds 
and for the payment of judgments that have been entered against the 
District of Columbia government: Provided, That nothing contained in 
this section shall be construed as modifying or affecting the provision 
of section 11(c)(3) of title XII of the District of Columbia Income and 
Franchise Tax Act of 1947, approved March 31, 1956 (70 Stat. 78; Public 
Law 84-460; D.C. Code, sec. 47-1812.11(c)(3)).
    Sec. 107. Appropriations in this Act shall be available for the 
payment of public assistance without reference to the requirement of 
section 544 of the District of Columbia Public Assistance Act of 1982, 
effective April 6, 1982 (D.C. Law 4-101; D.C. Code, sec. 3-205.44), and 
for the non-Federal share of funds necessary to qualify for Federal 
assistance under the Juvenile Delinquency Prevention and Control Act of 
1968, approved July 31, 1968 (82 Stat. 462; Public Law 90-445; 42 
U.S.C. 3801 et seq.).
    Sec. 108. No part of any appropriation contained in this Act shall 
remain available for obligation beyond the current fiscal year unless 
expressly so provided herein.
    Sec. 109. No funds appropriated in this Act for the District of 
Columbia government for the operation of educational institutions, the 
compensation of personnel, or for other educational purposes may be 
used to permit, encourage, facilitate, or further partisan political 
activities. Nothing herein is intended to prohibit the availability of 
school buildings for the use of any community or partisan political 
group during non-school hours.
    Sec. 110. None of the funds appropriated in this Act shall be made 
available to pay the salary of any employee of the District of Columbia 
government whose name, title, grade, salary, past work experience, and 
salary history are not available for inspection by the House and Senate 
Committees on Appropriations, the Subcommittee on the District of 
Columbia of the House Committee on Government Reform and Oversight, the 
Subcommittee on Oversight of Government Management and the District of 
Columbia of the Senate Committee on Governmental Affairs, and the 
Council of the District of Columbia, or their duly authorized 
representative.
    Sec. 111. There are appropriated from the applicable funds of the 
District of Columbia such sums as may be necessary for making payments 
authorized by the District of Columbia Revenue Recovery Act of 1977, 
effective September 23, 1977 (D.C. Law 2-20; D.C. Code, sec. 47-421 et 
seq.).
    Sec. 112. No part of this appropriation shall be used for publicity 
or propaganda purposes or implementation of any policy including 
boycott designed to support or defeat legislation pending before 
Congress or any State legislature.
    Sec. 113. At the start of the fiscal year, the Mayor shall develop 
an annual plan, by quarter and by project, for capital outlay 
borrowings: Provided, That within a reasonable time after the close of 
each quarter, the Mayor shall report to the Council of the District of 
Columbia and the Congress the actual borrowings and spending progress 
compared with projections.
    Sec. 114. The Mayor shall not borrow any funds for capital projects 
unless the Mayor has obtained prior approval from the Council of the 
District of Columbia, by resolution, identifying the projects and 
amounts to be financed with such borrowings.
    Sec. 115. The Mayor shall not expend any moneys borrowed for 
capital projects for the operating expenses of the District of Columbia 
government.
    Sec. 116. None of the funds appropriated by this Act may be 
obligated or expended by reprogramming except pursuant to advance 
approval of the reprogramming granted according to the procedure set 
forth in the Joint Explanatory Statement of the Committee of Conference 
(House Report No. 96-443), which accompanied the District of Columbia 
Appropriation Act, 1980, approved October 30, 1979 (93 Stat. 713; 
Public Law 96-93), as modified in House Report No. 98-265, and in 
accordance with the Reprogramming Policy Act of 1980, effective 
September 16, 1980 (D.C. Law 3-100; D.C. Code, sec. 47-361 et seq.): 
Provided, That for the fiscal year ending September 30, 1998 the above 
shall apply except as modified by Public Law 104-8.
    Sec. 117. None of the Federal funds provided in this Act shall be 
obligated or expended to provide a personal cook, chauffeur, or other 
personal servants to any officer or employee of the District of 
Columbia.
    Sec. 118. None of the Federal funds provided in this Act shall be 
obligated or expended to procure passenger automobiles as defined in 
the Automobile Fuel Efficiency Act of 1980, approved October 10, 1980 
(94 Stat. 1824; Public Law 96-425; 15 U.S.C. 2001(2)), with an 
Environmental Protection Agency estimated miles per gallon average of 
less than 22 miles per gallon: Provided, That this section shall not 
apply to security, emergency rescue, or armored vehicles.
    Sec. 119. (a) Notwithstanding section 422(7) of the District of 
Columbia Home Rule Act of 1973, approved December 24, 1973 (87 Stat. 
790; Public Law 93-198; D.C. Code, sec. 1-242(7)), the City 
Administrator shall be paid, during any fiscal year, a salary at a rate 
established by the Mayor, not to exceed the rate established for Level 
IV of the Executive Schedule under 5 U.S.C. 5315.
    (b) For purposes of applying any provision of law limiting the 
availability of funds for payment of salary or pay in any fiscal year, 
the highest rate of pay established by the Mayor under subsection (a) 
of this section for any position for any period during the last quarter 
of calendar year 1997 shall be deemed to be the rate of pay payable for 
that position for September 30, 1997.
    (c) Notwithstanding section 4(a) of the District of Columbia 
Redevelopment Act of 1945, approved August 2, 1946 (60 Stat. 793; 
Public Law 79-592; D.C. Code, sec. 5-803(a)), the Board of Directors of 
the District of Columbia Redevelopment Land Agency shall be paid, 
during any fiscal year, per diem compensation at a rate established by 
the Mayor.
    Sec. 120. Notwithstanding any other provisions of law, the 
provisions of the District of Columbia Government Comprehensive Merit 
Personnel Act of 1978, effective March 3, 1979 (D.C. Law 2-139; D.C. 
Code, sec. 1-601.1 et seq.), enacted pursuant to section 422(3) of the 
District of Columbia Home Rule Act of 1973, approved December 24, 1973 
(87 Stat. 790; Public Law 93-198; D.C. Code, sec. 1-242(3)), shall 
apply with respect to the compensation of District of Columbia 
employees: Provided, That for pay purposes, employees of the District 
of Columbia government shall not be subject to the provisions of title 
5, United States Code.
    Sec. 121. The Director of the Department of Administrative Services 
may pay rentals and repair, alter, and improve rented premises, without 
regard to the provisions of section 322 of the Economy Act of 1932 
(Public Law 72-212; 40 U.S.C. 278a), based upon a determination by the 
Director, that by reason of circumstances set forth in such 
determination, the payment of these rents and the execution of this 
work, without reference to the limitations of section 322, is 
advantageous to the District in terms of economy, efficiency, and the 
District's best interest.
    Sec. 122. No later than 30 days after the end of the first quarter 
of the fiscal year ending September 30, 1998, the Mayor of the District 
of Columbia shall submit to the Council of the District of Columbia the 
new fiscal year 1998 revenue estimates as of the end of the first 
quarter of fiscal year 1998. These estimates shall be used in the 
budget request for the fiscal year ending September 30, 1999. The 
officially revised estimates at midyear shall be used for the midyear 
report.
    Sec. 123. No sole source contract with the District of Columbia 
government or any agency thereof may be renewed or extended without 
opening that contract to the competitive bidding process as set forth 
in section 303 of the District of Columbia Procurement Practices Act of 
1985, effective February 21, 1986 (D.C. Law 6-85; D.C. Code, sec. 1-
1183.3), except that the District of Columbia Public Schools may renew 
or extend sole source contracts for which competition is not feasible 
or practical, provided that the determination as to whether to invoke 
the competitive bidding process has been made in accordance with duly 
promulgated Emergency Transitional Education Board of Trustees rules 
and procedures.
    Sec. 124. For purposes of the Balanced Budget and Emergency Deficit 
Control Act of 1985, approved December 12, 1985 (99 Stat. 1037; Public 
Law 99-177), as amended, the term ``program, project, and activity'' 
shall be synonymous with and refer specifically to each account 
appropriating Federal funds in this Act, and any sequestration order 
shall be applied to each of the accounts rather than to the aggregate 
total of those accounts: Provided, That sequestration orders shall not 
be applied to any account that is specifically exempted from 
sequestration by the Balanced Budget and Emergency Deficit Control Act 
of 1985, approved December 12, 1985 (99 Stat. 1037; Public Law 99-177), 
as amended.
    Sec. 125. In the event a sequestration order is issued pursuant to 
the Balanced Budget and Emergency Deficit Control Act of 1985, approved 
December 12, 1985 (99 Stat. 1037; Public Law 99-177), as amended, after 
the amounts appropriated to the District of Columbia for the fiscal 
year involved have been paid to the District of Columbia, the Mayor of 
the District of Columbia shall pay to the Secretary of the Treasury, 
within 15 days after receipt of a request therefor from the Secretary 
of the Treasury, such amounts as are sequestered by the order: 
Provided, That the sequestration percentage specified in the order 
shall be applied proportionately to each of the Federal appropriation 
accounts in this Act that are not specifically exempted from 
sequestration by the Balanced Budget and Emergency Deficit Control Act 
of 1985, approved December 12, 1985 (99 Stat. 1037; Public Law 99-177), 
as amended.
    Sec. 126. Nothing in this Act shall be construed to authorize any 
office, agency or entity to expend funds for programs or functions for 
which a reorganization plan is required but has not been approved by 
the Council pursuant to section 422(12) of the District of Columbia 
Home Rule Act of 1973, approved December 24, 1973 (87 Stat. 790; Public 
Law 93-198; D.C. Code, sec. 1-242(12)) and the Governmental 
Reorganization Procedures Act of 1981, effective October 17, 1981 (D.C. 
Law 4-42; D.C. Code, secs. 1-299.1 to 1-299.7). Appropriations made by 
this Act for such programs or functions are conditioned on the approval 
by the Council of the required reorganization plans.
    Sec. 127. (a) An entity of the District of Columbia government may 
accept and use a gift or donation during fiscal year 1998 if--
            (1) the Mayor approves the acceptance and use of the gift 
        or donation: Provided, That the Council of the District of 
        Columbia may accept and use gifts without prior approval by the 
        Mayor; and
            (2) the entity uses the gift or donation to carry out its 
        authorized functions or duties.
    (b) Each entity of the District of Columbia government shall keep 
accurate and detailed records of the acceptance and use of any gift or 
donation under subsection (a) of this section, and shall make such 
records available for audit and public inspection.
    (c) For the purposes of this section, the term ``entity of the 
District of Columbia government'' includes an independent agency of the 
District of Columbia.
    (d) This section shall not apply to the District of Columbia Board 
of Education, which may, pursuant to the laws and regulations of the 
District of Columbia, accept and use gifts to the public schools 
without prior approval by the Mayor.
    Sec. 128. None of the Federal funds provided in this Act may be 
used by the District of Columbia to provide for salaries, expenses, or 
other costs associated with the offices of United States Senator or 
United States Representative under section 4(d) of the District of 
Columbia Statehood Constitutional Convention Initiatives of 1979, 
effective March 10, 1981 (D.C. Law 3-171; D.C. Code, sec. 1-113(d)).

             prohibition against use of funds for abortions

    Sec. 129. None of the funds appropriated under this Act shall be 
expended for any abortion except where the life of the mother would be 
endangered if the fetus were carried to term or where the pregnancy is 
the result of an act of rape or incest.

                  prohibition on domestic partners act

    Sec. 130. None of the funds made available in this Act may be used 
to implement or enforce the Health Care Benefits Expansion Act of 1992 
(D.C. Law 9-114; D.C. Code, sec. 36-1401 et seq.) or to otherwise 
implement or enforce any system of registration of unmarried, 
cohabiting couples (whether homosexual, heterosexual, or lesbian), 
including but not limited to registration for the purpose of extending 
employment, health, or governmental benefits to such couples on the 
same basis as such benefits are extended to legally married couples.

             monthly reporting requirements--public schools

    Sec. 131. The Emergency Transitional Education Board of Trustees 
shall submit to the Congress, the Mayor, the District of Columbia 
Financial Responsibility and Management Assistance Authority, and the 
Council of the District of Columbia no later than fifteen (15) calendar 
days after the end of each month a report that sets forth--
            (1) current month expenditures and obligations, year-to-
        date expenditures and obligations, and total fiscal year 
        expenditure projections vs. budget broken out on the basis of 
        control center, responsibility center, agency reporting code, 
        and object class, and for all funds, including capital 
        financing;
            (2) a list of each account for which spending is frozen and 
        the amount of funds frozen, broken out by control center, 
        responsibility center, detailed object, and agency reporting 
        code, and for all funding sources;
            (3) a list of all active contracts in excess of $10,000 
        annually, which contains the name of each contractor; the 
        budget to which the contract is charged broken out on the basis 
        of control center, responsibility center, and agency reporting 
        code; and contract identifying codes used by the D.C. Public 
        Schools; payments made in the last month and year-to-date, the 
        total amount of the contract and total payments made for the 
        contract and any modifications, extensions, renewals; and 
        specific modifications made to each contract in the last month;
            (4) all reprogramming requests and reports that are 
        required to be, and have been, submitted to the Board of 
        Education; and
            (5) changes made in the last month to the organizational 
        structure of the D.C. Public Schools, displaying previous and 
        current control centers and responsibility centers, the names 
        of the organizational entities that have been changed, the name 
        of the staff member supervising each entity affected, and the 
        reasons for the structural change.

                     monthly reporting requirements

                 university of the district of columbia

    Sec. 132. The University of the District of Columbia shall submit 
to the Congress, the Mayor, the District of Columbia Financial 
Responsibility and Management Assistance Authority, and the Council of 
the District of Columbia no later than fifteen (15) calendar days after 
the end of each month a report that sets forth--
            (1) current month expenditures and obligations, year-to-
        date expenditures and obligations, and total fiscal year 
        expenditure projections versus budget broken out on the basis 
        of control center, responsibility center, and object class, and 
        for all funds, non-appropriated funds, and capital financing;
            (2) a list of each account for which spending is frozen and 
        the amount of funds frozen, broken out by control center, 
        responsibility center, detailed object, and for all funding 
        sources;
            (3) a list of all active contracts in excess of $10,000 
        annually, which contains the name of each contractor; the 
        budget to which the contract is charged broken out on the basis 
        of control center and responsibility center, and contract 
        identifying codes used by the University of the District of 
        Columbia; payments made in the last month and year-to-date, the 
        total amount of the contract and total payments made for the 
        contract and any modifications, extensions, renewals; and 
        specific modifications made to each contract in the last month;
            (4) all reprogramming requests and reports that have been 
        made by the University of the District of Columbia within the 
        last month in compliance with applicable law; and
            (5) changes made in the last month to the organizational 
        structure of the University of the District of Columbia, 
        displaying previous and current control centers and 
        responsibility centers, the names of the organizational 
        entities that have been changed, the name of the staff member 
        supervising each entity affected, and the reasons for the 
        structural change.

                     annual reporting requirements

    Sec. 133. (a) In General.--The Emergency Transitional Education 
Board of Trustees of the District of Columbia and the University of the 
District of Columbia shall annually compile an accurate and verifiable 
report on the positions and employees in the public school system and 
the university, respectively. The annual report shall set forth--
            (1) the number of validated schedule A positions in the 
        District of Columbia Public Schools and the University of the 
        District of Columbia for fiscal year 1996, fiscal year 1997, 
        and thereafter on a full-time equivalent basis, including a 
        compilation of all positions by control center, responsibility 
        center, funding source, position type, position title, pay 
        plan, grade, and annual salary; and
            (2) a compilation of all employees in the District of 
        Columbia Public Schools and the University of the District of 
        Columbia as of the preceding December 31, verified as to its 
        accuracy in accordance with the functions that each employee 
        actually performs, by control center, responsibility center, 
        agency reporting code, program (including funding source), 
        activity, location for accounting purposes, job title, grade 
        and classification, annual salary, and position control number.
    (b) Submission.--The annual report required by subsection (a) of 
this section shall be submitted to the Congress, the Mayor, the 
District of Columbia Council, the Consensus Commission, and the 
Authority, not later than February 15 of each year.

                  annual budgets and budget revisions

    Sec. 134. (a) No later than October 1, 1997, or within 15 calendar 
days after the date of the enactment of the District of Columbia 
Appropriations Act, 1998, whichever occurs later, and each succeeding 
year, the Emergency Transitional Education Board of Trustees and the 
University of the District of Columbia shall submit to the appropriate 
congressional committees, the Mayor, the District of Columbia Council, 
the Consensus Commission, and the District of Columbia Financial 
Responsibility and Management Assistance Authority, a revised 
appropriated funds operating budget for the public school system and 
the University of the District of Columbia for such fiscal year that is 
in the total amount of the approved appropriation and that realigns 
budgeted data for personal services and other-than-personal services, 
respectively, with anticipated actual expenditures.
    (b) The revised budget required by subsection (a) of this section 
shall be submitted in the format of the budget that the Emergency 
Transitional Education Board of Trustees and the University of the 
District of Columbia submit to the Mayor of the District of Columbia 
for inclusion in the Mayor's budget submission to the Council of the 
District of Columbia pursuant to section 442 of the District of 
Columbia Home Rule Act, Public Law 93-198, as amended (D.C. Code, sec. 
47-301).

                      educational budget approval

    Sec. 135. The Emergency Transitional Education Board of Trustees, 
the Board of Trustees of the University of the District of Columbia, 
the Board of Library Trustees, and the Board of Governors of the D.C. 
School of Law shall vote on and approve their respective annual or 
revised budgets before submission to the Mayor of the District of 
Columbia for inclusion in the Mayor's budget submission to the Council 
of the District of Columbia in accordance with section 442 of the 
District of Columbia Home Rule Act, Public Law 93-198, as amended (D.C. 
Code, sec. 47-301), or before submitting their respective budgets 
directly to the Council.

                   public school employee evaluations

    Sec. 136. Notwithstanding any other provision of law, rule, or 
regulation, the evaluation process and instruments for evaluating 
District of Columbia Public Schools employees shall be a non-negotiable 
item for collective bargaining purposes.
    Sec. 137. (a) Notwithstanding any other provision of law, rule, or 
regulation, an employee of the District of Columbia Public Schools 
shall be--
            (1) classified as an Educational Service employee;
            (2) placed under the personnel authority of the Board of 
        Education; and
            (3) subject to all Board of Education rules.
    (b) School-based personnel shall constitute a separate competitive 
area from nonschool-based personnel who shall not compete with school-
based personnel for retention purposes.

  miscellaneous provisions relating to district of columbia employees

    Sec. 138. (a) Restrictions on Use of Official Vehicles.--(1) None 
of the funds made available by this Act or by any other Act may be used 
to provide any officer or employee of the District of Columbia with an 
official vehicle unless the officer or employee uses the vehicle only 
in the performance of the officer's or employee's official duties. For 
purposes of this paragraph, the term ``official duties'' does not 
include travel between the officer's or employee's residence and 
workplace (except in the case of a police officer who resides in the 
District of Columbia).
    (2) The Chief Financial Officer of the District of Columbia shall 
submit, by December 15, 1997, an inventory, as of September 30, 1997, 
of all vehicles owned, leased or operated by the District of Columbia 
government. The inventory shall include, but not be limited to, the 
department to which the vehicle is assigned; the year and make of the 
vehicle; the acquisition date and cost; the general condition of the 
vehicle; annual operating and maintenance costs; current mileage; and 
whether the vehicle is allowed to be taken home by a District officer 
or employee and if so, the officer or employee's title and resident 
location.
    (b) Source of Payment for Employees Detailed Within Government.--
For purposes of determining the amount of funds expended by any entity 
within the District of Columbia government during fiscal year 1998 and 
each succeeding fiscal year, any expenditures of the District 
government attributable to any officer or employee of the District 
government who provides services which are within the authority and 
jurisdiction of the entity (including any portion of the compensation 
paid to the officer or employee attributable to the time spent in 
providing such services) shall be treated as expenditures made from the 
entity's budget, without regard to whether the officer or employee is 
assigned to the entity or otherwise treated as an officer or employee 
of the entity.
    (c) Modification of Reduction in Force Procedures.--The District of 
Columbia Government Comprehensive Merit Personnel Act of 1978 (D.C. 
Code, sec. 1-601.1 et seq.), as amended by section 140(b) of the 
District of Columbia Appropriations Act, 1997 (Public Law 104-194), is 
amended by adding at the end the following new section:

``SEC. 2408. ABOLISHMENT OF POSITIONS FOR FISCAL YEAR 1998.

    ``(a) Notwithstanding any other provision of law, regulation, or 
collective bargaining agreement either in effect or to be negotiated 
while this legislation is in effect for the fiscal year ending 
September 30, 1998, each agency head is authorized, within the agency 
head's discretion, to identify positions for abolishment.
    ``(b) Prior to February 1, 1998, each personnel authority (other 
than a personnel authority of an agency which is subject to a 
management reform plan under subtitle B of title XI of the Balanced 
Budget Act of 1997) shall make a final determination that a position 
within the personnel authority is to be abolished.
    ``(c) Notwithstanding any rights or procedures established by any 
other provision of this title, any District government employee, 
regardless of date of hire, who encumbers a position identified for 
abolishment shall be separated without competition or assignment 
rights, except as provided in this section.
    ``(d) An employee affected by the abolishment of a position 
pursuant to this section who, but for this section would be entitled to 
compete for retention, shall be entitled to one round of lateral 
competition pursuant to Chapter 24 of the District of Columbia 
Personnel Manual, which shall be limited to positions in the employee's 
competitive level.
    ``(e) Each employee who is a bona fide resident of the District of 
Columbia shall have added 5 years to his or her creditable service for 
reduction-in-force purposes. For purposes of this subsection only, a 
nonresident District employee who was hired by the District government 
prior to January 1, 1980, and has not had a break in service since that 
date, or a former employee of the United States Department of Health 
and Human Services at Saint Elizabeths Hospital who accepted employment 
with the District government on October 1, 1987, and has not had a 
break in service since that date, shall be considered a District 
resident.
    ``(f) Each employee selected for separation pursuant to this 
section shall be given written notice of at least 30 days before the 
effective date of his or her separation.
    ``(g) Neither the establishment of a competitive area smaller than 
an agency, nor the determination that a specific position is to be 
abolished, nor separation pursuant to this section shall be subject to 
review except that--
            ``(1) an employee may file a complaint contesting a 
        determination or a separation pursuant to title XV of this Act 
        or section 303 of the Human Rights Act of 1977 (D.C. Code, sec. 
        1-2543); and
            ``(2) an employee may file with the Office of Employee 
        Appeals an appeal contesting that the separation procedures of 
        subsections (d) and (f) were not properly applied.
    ``(h) An employee separated pursuant to this section shall be 
entitled to severance pay in accordance with title XI of this Act, 
except that the following shall be included in computing creditable 
service for severance pay for employees separated pursuant to this 
section--
            ``(1) four years for an employee who qualified for veterans 
        preference under this Act, and
            ``(2) three years for an employee who qualified for 
        residency preference under this Act.
    ``(i) Separation pursuant to this section shall not affect an 
employee's rights under either the Agency Reemployment Priority Program 
or the Displaced Employee Program established pursuant to Chapter 24 of 
the District Personnel Manual.
    ``(j) With respect to agencies which are not subject to a 
management reform plan under subtitle B of title XI of the Balanced 
Budget Act of 1997, the Mayor shall submit to the Council a listing of 
all positions to be abolished by agency and responsibility center by 
March 1, 1998 or upon the delivery of termination notices to individual 
employees.
    ``(k) Notwithstanding the provisions of section 1708 or section 
2402(d), the provisions of this Act shall not be deemed negotiable.
    ``(l) A personnel authority shall cause a 30-day termination notice 
to be served, no later than September 1, 1998, on any incumbent 
employee remaining in any position identified to be abolished pursuant 
to subsection (b) of this section.
    ``(m) In the case of an agency which is subject to a management 
reform plan under subtitle B of title XI of the Balanced Budget Act of 
1997, the authority provided by this section shall be exercised to 
carry out the agency's management reform plan, and this section shall 
otherwise be implemented solely in a manner consistent with such 
plan.''.
    (d) Restricting Providers From Whom Employees May Receive 
Disability Compensation Services.--
            (1) In general.--Section 2303(a) of the District of 
        Columbia Comprehensive Merit Personnel Act of 1978 (D.C. Code, 
        sec. 1-624.3(a)) is amended by striking paragraph (3) and all 
        that follows and inserting the following:
            ``(3) By or on the order of the District of Columbia 
        government medical officers and hospitals, or by or on the 
        order of a physician or managed care organization designated or 
        approved by the Mayor.''.
            (2) Services furnished.--Section 2303 of such Act (D.C. 
        Code, sec. 1-624.3) is amended by adding at the end the 
        following new subsection:
    ``(c)(1) An employee to whom services, appliances, or supplies are 
furnished pursuant to subsection (a) shall be provided with such 
services, appliances, and supplies (including reasonable transportation 
incident thereto) by a managed care organization or other health care 
provider designated by the Mayor, in accordance with such rules, 
regulations, and instructions as the Mayor considers appropriate.
    ``(2) Any expenses incurred as a result of furnishing services, 
appliances, or supplies which are authorized by the Mayor under 
paragraph (1) shall be paid from the Employees' Compensation Fund.
    ``(3) Any medical service provided pursuant to this subsection 
shall be subject to utilization review under section 2323.''.
            (3) Repeal penalty for delayed payment of compensation.--
        Section 2324 of such Act (D.C. Code, sec. 1-624.24) is amended 
        by striking subsection (c).
            (4) Definitions.--Section 2301 of such Act (D.C. Code, sec. 
        1-624.1) is amended--
                    (A) in the first sentence of subsection (c), by 
                inserting ``and as designated by the Mayor to provide 
                services to injured employees'' after ``State law''; 
                and
                    (B) by adding at the end the following new 
                subsection:
    ``(r)(1) The term `managed care organization' means an organization 
of physicians and allied health professionals organized to and capable 
of providing systematic and comprehensive medical care and treatment of 
injured employees which is designated by the Mayor to provide such care 
and treatment under this title.
    ``(2) The term `allied health professional' means a medical care 
provider (including a nurse, physical therapist, laboratory technician, 
X-ray technician, social worker, or other provider who provides such 
care within the scope of practice under applicable law) who is employed 
by or affiliated with a managed care organization.''.
            (5) Effective date.--The amendments made by this subsection 
        shall apply with respect to services, supplies, or appliances 
        furnished under title XXIII of the District of Columbia Merit 
        Personnel Act of 1978 on or after the date of the enactment of 
        this Act.
    (e) Application of Binding Arbitration Procedures Under New 
Personnel Rules.--
            (1) In general.--Section 11105(b)(3) of the Balanced Budget 
        Act of 1997 is amended in the matter preceding subparagraph (A) 
        by striking ``pursuant'' and inserting ``in accordance with 
        binding arbitration procedures in effect under a collective 
        bargaining agreement, or pursuant''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect as if included in the enactment of the 
        Balanced Budget Act of 1997.

               ceiling on operating expenses and deficit

    Sec. 139. (a) Ceiling on Total Operating Expenses.--
            (1) In general.--Notwithstanding any other provision of 
        law, the total amount appropriated in this Act for operating 
        expenses for the District of Columbia for fiscal year 1998 
        under the caption ``Division of Expenses'' may not exceed the 
        lesser of--
                    (A) the sum of the total revenues of the District 
                of Columbia for such fiscal year less $192,741,000; or
                    (B) $4,493,375,000 (excluding intra-District funds 
                of $118,269,000) of which $2,655,232,000 is from local 
                funds; $1,072,572,000 is from Federal grants; and 
                $765,571,000 in private and other funds.
            (2) Enforcement.--The Chief Financial Officer of the 
        District of Columbia and the District of Columbia Financial 
        Responsibility and Management Assistance Authority (hereafter 
        in this section referred to as the ``Authority'') shall take 
        such steps as are necessary to assure that the District of 
        Columbia meets the requirements of this section, including the 
        apportioning or reprogramming by the Chief Financial Officer of 
        the appropriations and funds made available to the District 
        during fiscal year 1998, except that the Chief Financial 
        Officer may not reprogram for operating expenses any funds 
        derived from bonds, notes, or other obligations issued for 
        capital projects.
    (b) Acceptance and Use of Grants Not Included in Ceiling.--
            (1) In general.--Notwithstanding subsection (a), the Mayor 
        of the District of Columbia may accept, obligate, and expend 
        Federal, private, and other grants received by the District 
        government that are not reflected in the amounts appropriated 
        in this Act.
            (2) Requirement of chief financial officer report and 
        authority approval.--No such Federal, private, or other grant 
        may be accepted, obligated, or expended pursuant to paragraph 
        (1) until--
                    (A) the Chief Financial Officer of the District 
                submits to the Authority a report setting forth 
                detailed information regarding such grant; and
                    (B) the Authority has reviewed and approved the 
                acceptance, obligation, and expenditure of such grant 
                in accordance with review and approval procedures 
                consistent with the provisions of the District of 
                Columbia Financial Responsibility and Management 
                Assistance Act of 1995.
            (3) Prohibition on spending in anticipation of approval or 
        receipt.--No amount may be obligated or expended from the 
        general fund or other funds of the District government in 
        anticipation of the approval or receipt of a grant under 
        paragraph (2)(B) or in anticipation of the approval or receipt 
        of a Federal, private, or other grant not subject to such 
        paragraph.
            (4) Monthly reports.--The Chief Financial Officer of the 
        District of Columbia shall prepare a monthly report setting 
        forth detailed information regarding all Federal, private, and 
        other grants subject to this subsection. Each such report shall 
        be submitted to the Council of the District of Columbia, and to 
        the Committees on Appropriations of the House of 
        Representatives and the Senate, not later than 15 days after 
        the end of the month covered by the report.
    (c) Prohibiting Use of Non-Appropriated Funds by Certain 
Entities.--
            (1) In general.--Notwithstanding any other provision of 
        law, the District of Columbia Financial Responsibility and 
        Management Assistance Authority and the District of Columbia 
        Water and Sewer Authority may not obligate or expend any funds 
        during fiscal year 1998 or any succeeding fiscal year without 
        approval by Act of Congress.
            (2) Report on expenditures by financial responsibility and 
        management assistance authority.--Not later than November 15, 
        1997, the District of Columbia Financial Responsibility and 
        Management Assistance Authority shall submit a report to the 
        Committees on Appropriations of the House of Representatives 
        and the Senate, the Committee on Government Reform and 
        Oversight of the House, and the Committee on Governmental 
        Affairs of the Senate providing an itemized accounting of all 
        non-appropriated funds obligated or expended by the Authority 
        at any time prior to October 1, 1997. The report shall include 
        information on the date, amount, purpose, and vendor name, and 
        a description of the services or goods provided with respect to 
        the expenditures of such funds.
            (3) Effect of expenditure of non-appropriated funds.--Any 
        obligation of funds by any officer or employee of the District 
        of Columbia government (including any member, officer or 
        employee of the District of Columbia Financial Responsibility 
        and Management Assistance Authority) in violation of the fourth 
        sentence of section 446 of the District of Columbia Home Rule 
        Act shall have no legal effect, and the officer or employee 
        involved shall be removed from office and personally liable for 
        any amounts owed as a result of such obligation.

              powers and duties of chief financial officer

    Sec. 140. (a) Clarification of Authority Over Financial 
Personnel.--
            (1) In general.--Section 424(a) of the District of Columbia 
        Home Rule Act (D.C. Code, sec. 47-317.1) is amended--
                    (A) in paragraph (2), by striking ``, who shall be 
                appointed'' and all that follows through ``direction 
                and control''; and
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) Authority over financial personnel.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law or regulation (including any law or 
                regulation providing for collective bargaining or the 
                enforcement of any collective bargaining agreement), 
                the heads and all personnel of the offices described in 
                subparagraph (B), together with all other District of 
                Columbia accounting, budget, and financial management 
                personnel (including personnel of independent agencies 
                but not including personnel of the legislative or 
                judicial branches of the District government) shall be 
                appointed by, shall serve at the pleasure of, and shall 
                act under the direction and control of the Chief 
                Financial Officer, and shall be considered at-will 
                employees not covered by the District of Columbia 
                Government Comprehensive Merit Personnel Act of 1978.
                    ``(B) Offices described.--The offices referred to 
                in this subparagraph are as follows:
                            ``(i) The Office of the Treasurer (or any 
                        successor office).
                            ``(ii) The Controller of the District of 
                        Columbia (or any successor office).
                            ``(iii) The Office of the Budget (or any 
                        successor office).
                            ``(iv) The Office of Financial Information 
                        Services (or any successor office).
                            ``(v) The Department of Finance and Revenue 
                        (or any successor office).
                            ``(vi) During a control year, the District 
                        of Columbia Lottery and Charitable Games 
                        Control Board (or any successor office).
                    ``(C) Removal of personnel by authority.--In 
                addition to the power of the Chief Financial Officer to 
                remove any of the personnel covered under this 
                paragraph, the Authority may remove any such personnel 
                for cause, after written consultation with the Mayor 
                and the Chief Financial Officer.''.
            (2) Conforming amendments.--(A) Section 152(a) of the 
        District of Columbia Appropriations Act, 1996 (Public Law 104-
        134; 110 Stat. 1321-102) is hereby repealed.
            (B) Section 142(a) of the District of Columbia 
        Appropriations Act, 1997 (Public Law 104-194; 110 Stat. 2375) 
        is hereby repealed.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect as if included in the enactment of the 
        District of Columbia Appropriations Act, 1996, except that the 
        amendment made by paragraph (2)(B) shall take effect as if 
        included in the enactment of the District of Columbia 
        Appropriations Act, 1997.
    (b) Personnel Authority Under Management Reform Plans.--
            (1) In general.--Section 11105(b) of the Balanced Budget 
        Act of 1997 is amended--
                    (A) in paragraph (1), by striking ``paragraph (3)'' 
                and inserting ``paragraphs (3) and (4)''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(4) Exception for personnel under direction and control 
        of chief financial officer.--This subsection shall not apply 
        with respect to any personnel who are appointed by, serve at 
        the pleasure of, and act under the direction and control of the 
        Chief Financial Officer of the District of Columbia pursuant to 
        section 424(a)(4) of the District of Columbia Home Rule Act.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect as if included in the enactment of section 
        11105(b) of the Balanced Budget Act of 1997.
    (c) Monthly Reports on Revenues and Expenditures; Inclusion of 
Information on All Entities of District Government.--Section 424(d) of 
the District of Columbia Home Rule Act (D.C. Code, sec. 47-317.4) is 
amended by adding at the end the following new paragraphs:
            ``(8) Preparing monthly reports containing the following 
        information (and submitting such reports to Congress, the 
        Council, the Mayor, and the Authority not later than the 21st 
        day of the month following the month covered by the report):
                    ``(A) The cash flow of the District government, 
                including a statement of funds received and disbursed 
                for all standard categories of revenues and expenses.
                    ``(B) The revenues and expenditures of the District 
                government, including a comparison of the amounts 
                projected for such revenues and expenditures in the 
                annual budget for the fiscal year involved with actual 
                revenues and expenditures during the month.
                    ``(C) The obligations of funds made by or on behalf 
                of the District government, together with a statement 
                of accounts payable and the disbursements paid towards 
                such accounts during the month and during the fiscal 
                year involved.
            ``(9) Ensuring that any regular report on the status of the 
        funds of the District government prepared by the Chief 
        Financial Officer includes information on the funds of all 
        entities within the District government (including funds in any 
        accounts of the Authority and interest earned on such 
        accounts).''.
    (d) Clarification of Grounds for Removal From Office.--Section 
424(b)(2) of the District of Columbia Home Rule Act (D.C. Code, sec. 
47-317.2(2)) is amended by adding at the end the following new 
subparagraph:
                    ``(C) Consultation with congress.--The Authority or 
                the Mayor (whichever is applicable) may not remove the 
                Chief Financial Officer under this paragraph unless the 
                Authority or the Mayor (as the case may be) has 
                consulted with Congress prior to the removal. Such 
                consultation shall include at a minimum the submission 
                of a written statement to the Committees on 
                Appropriations of the Senate and the House of 
                Representatives, the Committee on Government Reform and 
                Oversight of the House of Representatives, and the 
                Committee on Governmental Affairs of the Senate, 
                explaining the factual circumstances involved.''.

             police and fire fighter disability retirements

    Sec. 141. (a) Determinations of Disability Status.--Notwithstanding 
any other provisions of the District of Columbia Retirement Reform Act 
or any other law, rule, or regulation, for purposes of any retirement 
program of the District of Columbia for teachers, members of the 
Metropolitan Police Department, or members of the Fire Department, no 
individual may have disability status unless the determination of the 
individual's disability status is made by a single entity designated by 
the District to make such determinations (or, if the determination is 
made by any other person, if such entity approves the determination).
    (b) Analysis by Enrolled Actuary of Impact of Disability 
Retirements.--Not later than January 1, 1998, and every 6 months 
thereafter, the Mayor of the District of Columbia shall engage an 
enrolled actuary (to be paid by the District of Columbia Retirement 
Board) to provide an analysis of the actuarial impact of disability 
retirements occurring during the previous 6-month period on the police 
and fire fighter retirement programs of the District of Columbia.
    Sec. 142. (a) Compliance With Buy American Act.--None of the funds 
made available in this Act may be expended by an entity unless the 
entity agrees that in expending the funds the entity will comply with 
the Buy American Act (41 U.S.C. 10a-10c).
    (b) Sense of Congress; Requirement Regarding Notice.--
            (1) Purchase of american-made equipment and products.--In 
        the case of any equipment or product that may be authorized to 
        be purchased with financial assistance provided using funds 
        made available in this Act, it is the sense of the Congress 
        that entities receiving the assistance should, in expending the 
        assistance, purchase only American-made equipment and products 
        to the greatest extent practicable.
            (2) Notice to recipients of assistance.--In providing 
        financial assistance using funds made available in this Act, 
        the head of each agency of the Federal or District of Columbia 
        government shall provide to each recipient of the assistance a 
        notice describing the statement made in paragraph (1) by the 
        Congress.
    (c) Prohibition of Contracts With Persons Falsely Labeling Products 
as Made in America.--If it has been finally determined by a court or 
Federal agency that any person intentionally affixed a label bearing a 
``Made in America'' inscription, or any inscription with the same 
meaning, to any product sold in or shipped to the United States that is 
not made in the United States, the person shall be ineligible to 
receive any contract or subcontract made with funds made available in 
this Act, pursuant to the debarment, suspension, and ineligibility 
procedures described in sections 9.400 through 9.409 of title 48, Code 
of Federal Regulations.

     budgets of departments or agencies subject to court-appointed 
                             administrator

    Sec. 143. If a department or agency of the government of the 
District of Columbia is under the administration of a court-appointed 
receiver or other court-appointed official during fiscal year 1998 or 
any succeeding fiscal year, the receiver or official shall prepare and 
submit to the Mayor, for inclusion in the annual budget of the District 
of Columbia for the year, annual estimates of the expenditures and 
appropriations necessary for the maintenance and operation of the 
department or agency. All such estimates shall be forwarded by the 
Mayor to the Council, for its action pursuant to sections 446 and 
603(c) of the District of Columbia Home Rule Act, without revision but 
subject to the Mayor's recommendations. Notwithstanding any provision 
of the District of Columbia Home Rule Act, the Council may comment or 
make recommendations concerning such annual estimates but shall have no 
authority under such Act to revise such estimates.

                commencing of adverse actions for police

    Sec. 144. Section 1601(b-1) of the District of Columbia Government 
Comprehensive Merit Personnel Act of 1978, effective March 3, 1979 
(D.C. Law 2-139; D.C. Code, sec. 1-617.1(b-1)), is amended as follows:
    (a) Paragraph (1) is amended by striking the phrase ``Except as 
provided in paragraph (2)'' and inserting the phrase ``Except as 
provided in paragraphs (2) and (3)'' in its place.
    (b) A new paragraph (3) is added to read as follows:
    ``(3) Except as provided in paragraph (2) of this subsection, for 
members of the Metropolitan Police Department, no corrective or adverse 
action shall be commenced pursuant to this section more than 120 days, 
not including Saturdays, Sundays, or legal holidays, after the date 
that the agency knew or should have known of the act or occurrence 
allegedly constituting cause, as that term is defined in subsection (d) 
of this section.''.

        notice to police officers for out-of-service assignments

    Sec. 145. (a) Notwithstanding any other provision of law or 
collective bargaining agreement, the Metropolitan Police Department 
shall change the advance notice that is required to be given to 
officers for out-of-schedule assignments from 28 days to 14 days.
    (b) No officer shall be entitled to overtime for out-of-regular 
schedule assignments if the Metropolitan Police Department provides the 
officer with notice of the change in assignment at least 14 days in 
advance.
    Sec. 146. Except as provided in this Act under the heading 
``District of Columbia Taxpayers Relief Fund'', any unused surplus as 
of the end of the fiscal year shall be used to reduce the District's 
outstanding accumulated deficit.

                          retirement programs

    Sec. 147. (a) Cap on Stipends of Retirement Board Members.--Section 
121(c)(1) of the District of Columbia Retirement Reform Act (D.C. Code, 
sec. 1-711(c)(1)) is amended by striking the period at the end and 
inserting the following: ``, and the total amount to which a member may 
be entitled under this subsection during a year (beginning with 1998) 
may not exceed $5,000.''.
    (b) Resumption of Certain Terminated Annuities Paid to Child 
Survivors of District of Columbia Police and Firefighters.--
            (1) In general.--Subsection (k)(5) of the Policemen and 
        Firemen's Retirement and Disability Act (D.C. Code, sec. 4-
        622(e)) is amended by adding at the end the following new 
        subparagraph:
    ``(D) If the annuity of a child under subparagraph (A) or 
subparagraph (B) terminates because of marriage and such marriage ends, 
the annuity shall resume on the first day of the month in which it 
ends, but only if the individual is not otherwise ineligible for the 
annuity.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to any termination of marriage taking 
        effect on or after November 1, 1993, except that benefits shall 
        be payable only with respect to amounts accruing for periods 
        beginning on the first day of the month beginning after the 
        later of such termination of marriage or such date of 
        enactment.

                premium pay for certain police officers

    Sec. 148. Effective for the first full pay period following the 
date of the enactment of this Act, the salary of any sworn officer of 
the Metropolitan Police Department shall be increased by 5 percent if--
            (1) the officer performs primarily nonadministrative public 
        safety services; and
            (2) the officer is certified by the Chief of the Department 
        as having met the minimum ``Basic Certificate'' standards 
        transmitted by the District of Columbia Financial 
        Responsibility and Management Assistance Authority to Congress 
        by letter dated May 19, 1997, or (if applicable) the minimum 
        standards under any physical fitness and performance standards 
        developed by the Department in consultation with the Authority.

                prohibiting increase in welfare payments

    Sec. 149. (a) In General.--The Council of the District of Columbia 
shall have no authority to enact any act, resolution, or rule during a 
fiscal year which increases the amount of payment which may be for any 
individual under the Temporary Assistance for Needy Families Program to 
an amount greater than the amount provided under such program under the 
District of Columbia Public Assistance Act of 1982, as in effect on the 
day after the effective date of the Public Assistance Temporary 
Amendment Act of 1997.
    (b) Effective Date.--Subsection shall apply with respect to fiscal 
year 1998 and each succeeding fiscal year.
    Sec. 150. Effective as if included in the enactment of the Omnibus 
Consolidated Rescissions and Appropriations Act of 1996, section 517 of 
such Act (110 Stat. 1321-248) is amended by striking ``October 1, 
1991'' and inserting ``the date of the enactment of this Act''.

                   liens of water and sewer authority

    Sec. 151. (a) Requiring Imposition of Lien For Unpaid Bills.--The 
District of Columbia Water and Sewer Authority shall take action to 
impose a lien against each commercial property with respect to which 
any payment owed to the Authority is past due in an aggregate amount 
equal to or greater than $3,000, but only if the payment is past due 
for 120 or more consecutive days.
    (b) Disposition of Liens Through Private Sources.--Beginning 
January 31, 1998, the District of Columbia Water and Sewer Authority 
shall dispose of all pending liens described in subsection (a) by 
assigning the right to collect under such liens to a private entity in 
exchange for a cash payment, or by issuing securities secured by such 
liens.

               deemed approval of contracts by authority

    Sec. 152. Section 203(b) of the District of Columbia Financial 
Responsibility and Management Assistance Act of 1995 (D.C. Code, sec. 
47-392.3(b)), as amended by section 5203(d) of the Omnibus Consolidated 
Appropriations Act, 1997 (Public Law 104-208; 110 Stat. 3009-1456), is 
amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following new 
        paragraph:
            ``(5) Deemed approval.--
                    ``(A) In general.--If the Authority does not notify 
                the Mayor (or the appropriate officer or agent of the 
                District government) that it has determined that a 
                contract or lease submitted under this subsection is 
                consistent with the financial plan and budget or is not 
                consistent with the financial plan and budget during 
                the 30-day period (or, if the Authority meets the 
                requirements of subparagraph (B), such alternative 
                period as the Authority may elect, not to exceed 60 
                days) which begins on the first day after the Authority 
                receives the contract or lease, the Authority shall be 
                deemed to have determined that the contract or lease is 
                consistent with the financial plan and budget.
                    ``(B) Election of longer period by authority.--The 
                Authority meets the requirements of this subparagraph 
                if, prior to the expiration of the 30-day period 
                described in subparagraph (A), the Authority provides a 
                notice to the Mayor (or the appropriate officer or 
                agent of the District government) and Congress which 
                describes the period elected by the Authority, together 
                with an explanation of the Authority's decision to 
                elect an alternative period.''.

                      financial management system

    Sec. 153. (a) In General.--The Chief Financial Officer of the 
District of Columbia shall enter into a contract with a private entity 
under which the entity shall carry out the following activities (by 
contract or otherwise) on behalf of the District of Columbia:
            (1) In accordance with the requirements of subsection (b), 
        the establishment and operation of an update of the present 
        financial management system for the government of the District 
        of Columbia by not later than June 30, 1998, to provide for the 
        complete, accurate, and timely input and processing of 
        financial data and the generation of reliable output reports 
        for financial management purposes.
            (2) To execute a process in accordance with ``best 
        practice'' procedures of the information technology industry to 
        determine the need, if any, of further improving the updated 
        financial management system in subsection (a).
    (b) Specifications for Short-Term Financial Management System 
Improvements.--For purposes of subsection (a)(1), the requirements of 
this subsection are as follows:
            (1) A qualified vendor, in accordance with Office of 
        Management and Budget standards, shall update the District of 
        Columbia government's financial management system in use as of 
        October 1, 1996.
            (2) An information technology vendor shall operate the 
        financial data center environment of the District government to 
        ensure that its equipment and operations are compatible with 
        the updated financial management system.
            (3) A financial consulting vendor shall carry out an 
        assessment of the District government employees who work with 
        the financial management system, provide training in the 
        operation of the updated system for those who are capable of 
        effectively using the system, and provide recommendations to 
        the Chief Financial Officer regarding those who are not capable 
        of effectively using the system, including recommendations for 
        reassignment or for separation from District government 
        employment.
    (c) Certification of Policies and Procedures for Acquisition of 
Long-Term Financial Management System Improvements.--
            (1) In general.--The Chief Financial Officer of the 
        District of Columbia shall enter into a contract with a private 
        entity under which the entity shall conduct an independent 
        assessment to certify whether the District government 
        (including the District of Columbia Financial Responsibility 
        and Management Assistance Authority) has established and 
        implemented policies and procedures that will result in a 
        disciplined approach to the acquisition of a financial 
        management system for the District government, including 
        policies and procedures with respect to such items as--
                    (A) software acquisition planning,
                    (B) solicitation,
                    (C) requirements, development, and management,
                    (D) project office management,
                    (E) contract tracking and oversight,
                    (F) evaluation of products and services provided by 
                the contractor, and
                    (G) the method that will be used to carry out a 
                successful transition to the delivered system by its 
                users.
            (2) Model for assessment.--The independent assessment shall 
        be performed based on the Software Acquisition Capability 
        Maturity Model developed by the Software Engineering Institute 
        or a comparable methodology.
            (3) Review of assessment.--A copy of the independent 
        assessment shall be provided to the Comptroller General, the 
        Director of the Office of Management and Budget, and the 
        Inspector General of the District of Columbia, who shall review 
        and prepare a report on the assessment.
    (d) Restrictions on Spending for Other Financial Management System 
Procurement and Development.--
            (1) In general.--None of the funds made available under 
        this or any other Act may be used to improve or replace the 
        financial management system of the government of the District 
        of Columbia (including the procuring of hardware and 
        installation of new software, conversion, testing, and 
        training) until the expiration of the 30-day period which 
        begins on the date the Comptroller General, Director of the 
        Office of Management and Budget, and Inspector General of the 
        District of Columbia submit a report under subsection (c)(3) to 
        the Committees on Appropriations of the House of 
        Representatives and the Senate, the Committee on Governmental 
        Reform and Oversight of the House of Representatives, and the 
        Committee on Governmental Affairs of the Senate, which 
        certifies that the District government has established and 
        implemented the policies and procedures described in subsection 
        (c)(1).
            (2) Exceptions.--Paragraph (1) shall not apply to funds 
        used to carry out subsection (a) or to carry out the contract 
        described in subsection (c).

                 powers and duties of inspector general

    Sec. 154. (a) Clarification of Authority to Conduct Audits.--
            (1) Exclusive authority to contract for independent annual 
        audit.--None of the funds made available under this Act or any 
        other Act may be used to carry out any contract to conduct the 
        annual audit of the complete financial statement and report of 
        the activities of the District government for fiscal year 1997 
        or any succeeding fiscal year unless the contract is entered 
        into by the Inspector General of the District of Columbia.
            (2) Scope of audits.--Section 208(a) the District of 
        Columbia Procurement Practices Act of 1985 (sec. 1-1182.8(a), 
        D.C. Code) is amended by adding at the end the following new 
        paragraph:
    ``(5) The Inspector General may include in any audits conducted 
pursuant to this subsection (by contract or otherwise) of the 
activities of the District government such audits of the activities of 
the Authority as the Inspector General considers appropriate.''.
    (b) Clarification of Grounds for Removal From Office.--Section 
208(a)(1) of such Act (sec. 1-1182.8(a)(1), D.C. Code), as amended by 
subsection (b), is further amended by adding at the end the following 
new subparagraph:
    ``(G) The Authority or the Mayor (whichever is applicable) may not 
remove the Inspector General under this paragraph unless the Authority 
or the Mayor (as the case may be) has consulted with Congress prior to 
the removal. Such consultation shall include at a minimum the 
submission of a written statement to the Committees on Appropriations 
of the Senate and the House of Representatives, the Committee on 
Government Reform and Oversight of the House of Representatives, and 
the Committee on Governmental Affairs of the Senate, explaining the 
factual circumstances involved.''.
    (c) Requiring Placement of Inspector General Hotline on Permit and 
License Application Forms.--
            (1) In general.--Each District of Columbia permit or 
        license application form printed after the expiration of the 
        30-day period which begins on the date of the enactment of this 
        Act shall include the telephone number established by the 
        Inspector General of the District of Columbia for reporting 
        instances of waste, fraud, and abuse, together with a brief 
        description of the uses and purposes of such number.
            (2) Quarterly reports on use of number.--Not later than 10 
        days after the end of such calendar quarter of each fiscal year 
        (beginning with fiscal year 1998), the Inspector General of the 
        District of Columbia shall submit a report to Congress on the 
        number and nature of the calls received through the telephone 
        number described in paragraph (1) during the quarter and on the 
        waste, fraud, and abuse detected as a result of such calls.

        requiring use of direct deposit or mail for all payments

    Sec. 155. (a) In General.--Notwithstanding any other provision of 
law (including any law or regulation providing for collective 
bargaining or the enforcement of any collective bargaining agreement) 
or collective bargaining agreement, any payment made by the District of 
Columbia after the expiration of the 45-day period which begins on the 
date of the enactment of this Act to any person shall be made by--
            (1) direct deposit through electronic funds transfer to a 
        checking, savings, or other account designated by the person; 
        or
            (2) a check delivered through the United States Postal 
        Service to the person's place of residence or business.
    (b) Regulations.--The Chief Financial Officer of the District of 
Columbia is authorized to issue rules to carry out this section.

               revision of certain auditing requirements

    Sec. 156. (a) Information Included in Independent Annual Audit.--
Effective with respect to fiscal year 1997 and each succeeding fiscal 
year, the independent annual audit of the government of the District of 
Columbia conducted for a fiscal year pursuant to section 4(a) of Public 
Law 94-399 (D.C. Code, sec. 47-119(a)) shall include the following 
information in the Comprehensive Annual Financial Report:
            (1) An audited budgetary statement comparing actual 
        revenues and expenditures during the fiscal year with the 
        amounts appropriated in the annual appropriations act for the 
        entire District government and for each fund of the District 
        government (and each appropriation account with each such fund 
        as a supplemental schedule) for the fiscal year, together with 
        the revenue projections on which the appropriations are based, 
        to determine the surplus or deficit thereof.
            (2) An unaudited statement of monthly cash flows (on a 
        fund-by-fund basis) showing projected and actual receipts and 
        disbursements (with variances) by category.
            (3) A discussion and analysis of the financial condition 
        and results of operations of the District government prepared 
        by the independent auditor.
    (b) Audit of Financial Responsibility and Management Assistance 
Authority.--
            (1) In general.--Section 106 of the District of Columbia 
        Financial Responsibility and Management Assistance Act of 1995 
        (D.C. Code, sec. 47-304.1), as amended by section 11711(a) of 
        the Balanced Budget Act of 1997, is amended by adding at the 
        end the following new subsection:
    ``(e) Annual Financial Audit.--
            ``(1) In general.--For each fiscal year (beginning with 
        fiscal year 1997), the Authority shall enter into a contract, 
        using annual appropriations to the Authority, with an auditor 
        who is a certified public accountant licensed in the District 
        of Columbia to conduct an audit of the Authority's financial 
        statements for the fiscal year, in accordance with generally 
        accepted government auditing standards, and the financial 
        statements shall be prepared in accordance with generally 
        accepted accounting principles.
            ``(2) Contents.--The auditor shall include in the audit 
        conducted under this subsection the following information:
                    ``(A) An audited budgetary statement comparing 
                gross actual revenues and expenditures of the Authority 
                during the fiscal year with amounts appropriated, 
                together with the revenue projections on which the 
                appropriations are based, to determine the surplus or 
                deficit thereof.
                    ``(B) An unaudited statement of monthly cash flows, 
                showing projected and actual receipts and disbursements 
                by category (with variances).
                    ``(C) A discussion and analysis of the financial 
                condition and results of operations of the Authority 
                prepared by the independent auditor.
            ``(3) Submission.--The Authority shall submit the audit 
        reports and financial statements conducted under this 
        subsection to Congress, the President, the Comptroller General, 
        the Council, and the Mayor.''.
            (2) Responsibilities of authority.--The District of 
        Columbia Financial Responsibility and Management Assistance 
        Authority shall--
                    (A) with respect to the annual budget of the 
                Authority for fiscal year 1999 and each succeeding 
                fiscal year, provide the Mayor of the District of 
                Columbia (prior to the transmission of the budget by 
                the Mayor to the President and Congress under section 
                446 of the District of Columbia Home Rule Act) with an 
                item-by-item accounting of the planned uses of 
                appropriated and non-appropriated funds (including all 
                projected revenues) of the Authority under the budget 
                for such fiscal year; and
                    (B) with respect to the annual budget of the 
                Authority for fiscal year 1997 and each succeeding 
                fiscal year, provide the person conducting the 
                independent annual audit of the government of the 
                District of Columbia pursuant to section 4(a) of Public 
                Law 94-399 (D.C. Code, sec. 47-119(a)) (prior to the 
                completion of the audit) with the actual uses of all 
                appropriated and non-appropriated funds of the 
                Authority under the budget for such fiscal year.
            (3) Inclusion in independent annual audit.--For purposes of 
        the independent annual audit of the government of the District 
        of Columbia conducted pursuant to section 4(a) of Public Law 
        94-399 (D.C. Code, sec. 47-119(a)) for fiscal year 1997 and 
        each succeeding fiscal year, the District of Columbia Financial 
        Responsibility and Management Assistance Authority shall be 
        considered to be an entity within the government of the 
        District of Columbia accountable for appropriated funds in the 
        District of Columbia annual budget, and included as such in the 
        District of Columbia government's Comprehensive Annual 
        Financial Report.

                    treatment of unclaimed property

    Sec. 157. (a) Definitions of Certain Terms.--Section 102 of the 
Uniform Disposition of Unclaimed Property Act of 1980 (D.C. Code, sec. 
42-202) is amended--
            (1) by amending paragraph (4) to read as follows:
            ``(4) `Business association' means a corporation, joint 
        stock company, investment company, partnership, unincorporated 
        association, joint venture, limited liability, business trust, 
        trust company, financial organization, insurance company, 
        mutual fund, utility, or other business entity consisting of 
        one or more persons, whether or not for profit.''; and
            (2) by adding at the end the following new paragraphs:
            ``(18) `Record' means information that is inscribed on a 
        tangible medium or that is stored in an electronic or other 
        medium and is retrievable in perceivable form.
            ``(19) `Property' means a fixed and certain interest in or 
        right in property that is held, issued, or owed in the course 
        of a holder's business, or by a government or governmental 
        entity, and all income or increments therefrom, including an 
        interest referred to as or evidenced by any of the following:
                    ``(A) Money, check, draft, deposit, interest, 
                dividend, and income.
                    ``(B) Credit balance, customer overpayment, gift 
                certificate, security deposit, refund, credit 
                memorandum, unpaid wage, unused airline ticket, unused 
                ticket, mineral proceed, and unidentified remittance 
                and electronic fund transfer.
                    ``(C) Stock or other evidence of ownership of an 
                interest in a business association.
                    ``(D) Bond, debenture, note, or other evidence of 
                indebtedness.
                    ``(E) Money deposited to redeem stocks, bonds, 
                coupons, or other securities or to make distributions.
                    ``(F) An amount due and payable under the terms of 
                an insurance policy, including policies providing life 
                insurance, property and casualty insurance, workers 
                compensation insurance, or health and disability 
                benefits insurance.
                    ``(G) An amount distributable from a trust or 
                custodial fund established under a plan to provide 
                health, welfare, pension, vacation, severance, 
                retirement, death, stock purchase, profit sharing, 
                employee savings, supplemental unemployment insurance, 
                or similar benefits.''.
    (b) Shortening Period for Presumption of Abandonment.--
            (1) In general.--Section 103(a) of such Act (D.C. Code, 
        sec. 42-203(a)) is amended by striking ``5 years'' and 
        inserting ``3 years''.
            (2) Bank deposits and funds in financial organizations.--
        Section 106 of such Act (D.C. Code, sec. 42-206) is amended by 
        striking ``5 years'' each place it appears in subsections (a) 
        and (d) and inserting ``3 years''.
            (3) Funds held by life insurance companies.--Section 107 of 
        such Act (D.C. Code, sec. 42-207) is amended by striking ``5 
        years'' each place it appears in subsections (a) and (c)(2)(C) 
        and inserting ``3 years''.
            (4) Deposits and refunds held by utilities.--Section 108 of 
        such Act (D.C. Code, sec. 42-208) is amended by striking ``5 
        years'' each place it appears and inserting ``1 year''.
            (5) Stock and other intangible interests in business 
        associations.--Section 109 of such Act (D.C. Code, sec. 42-209) 
        is amended--
                    (A) by striking ``5 years'' each place it appears 
                in subsections (a) and (b)(1) and inserting ``3 
                years''; and
                    (B) in subsection (b)(2), by striking ``5-year'' 
                and inserting ``3-year''.
            (6) Property held by fiduciaries.--Section 111(a) of such 
        Act (D.C. Code, sec. 42-211(a)) is amended by striking ``5 
        years'' and inserting ``3 years''.
            (7) Property held by public officers and agencies.--Section 
        112 of such Act (D.C. Code, sec. 42-212) is amended by striking 
        ``2 years'' and inserting ``1 year''.
            (8) Employee benefit trust distributions.--Section 113 of 
        such Act (D.C. Code, sec. 42-213) is amended by striking ``5 
        years'' and inserting ``3 years''.
            (9) Contents of safe deposit box.--Section 115 of such Act 
        (D.C. Code, sec. 42-215) is amended by striking ``5 years'' and 
        inserting ``3 years''.
    (c) Criteria for Presumption of Abandonment.--
            (1) In general.--Section 103 of such Act (D.C. Code, sec. 
        42-203) is amended by adding at the end the following new 
        subsection:
    ``(d) A record of the issuance of a check, draft, or similar 
instrument by a holder is prima facie evidence of property held or owed 
to a person other than the holder. In claiming property from a holder 
who is also the issuer, the Mayor's burden of proof as to the existence 
and amount of the property and its abandonment is satisfied by showing 
issuance of the instrument and passage of the requisite period of 
abandonment. Defenses of payment, satisfaction, discharge, and want of 
consideration are affirmative defenses that may be established by the 
holder.''.
            (2) Special rules regarding stock and other intangible 
        interests in business associations.--Section 109 of such Act 
        (D.C. Code, sec. 42-209) is amended by adding at the end the 
        following new subsections:
    ``(d) For purposes of subsection (b), the return of official 
shareholder notifications or communications by the postal service as 
undeliverable shall be evidence that the association does not know the 
location of the owner.
    ``(e) In the case of property consisting of stock or other 
intangible ownership interest enrolled in a plan that provides for the 
automatic reinvestment of dividends, distribution, or other sums 
payable as a result of the interest, the property may not be presumed 
to be abandoned under this section unless either of the following 
applies:
            ``(1) The records available to the administrator of the 
        plan show, with respect to any intangible ownership interest 
        not enrolled in the reinvestment plan, that the owner has not 
        within 3 years communicated in any manner described in 
        subsection (a).
            ``(2) 3 years have elapsed since the location of the owner 
        became unknown to the association, as evidenced by the return 
        of official shareholder notifications or by the postal service 
        as undeliverable, and the owner has not within those 3 years 
        communicated in any manner described in subsection (a). The 3-
        year period from the return of official shareholder 
        notifications or communications shall commence from the earlier 
        of the return of the second such mailing or the time the holder 
        discontinues mailings to the shareholder.''.
            (3) Special rule regarding property distributed through 
        litigation or settlement of dispute.--Section 110 of such Act 
        (D.C. Code, sec. 42-210) is amended--
                    (A) by striking ``All intangible'' and inserting 
                ``(a) All intangible''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(b) All intangible property payable or distributable to a member 
or participant in a class action suit, either one allowed by the court 
to be maintained as such or one essentially handled as a class action 
suit and remaining for more than one year after the time for the final 
payment or distribution is presumed abandoned, unless within the 
preceding one year, there has been a communication between the member 
or participant and the holder concerning the property. Intangible 
property payable or distributable as the result of litigation or 
settlement of a dispute before a judicial or administrative body and 
remaining unclaimed for more than one year after the time for the final 
distribution is presumed abandoned.''.
    (d) Requirements for Persons Holding Property Presumed Abandoned.--
            (1) Deadline for filing report with mayor.--Section 117(d) 
        of such Act (D.C. Code, sec. 42-217(d)) is amended to read as 
        follows:
    ``(d)(1) The report as of the prior June 30th must be filed before 
November 1st of each year, but a report with respect to a life 
insurance company must be filed before May 1st of each year as of the 
prior December 31. The Mayor may postpone the reporting date upon 
written request by any person required to file a report.
    ``(2) In calendar year 1998, a report concerning all property 
presumed to be abandoned as of October 31, 1997, must be filed no later 
than January 2, 1998.''.
            (2) Notification of owner.--Section 117(e) of such Act 
        (D.C. Code, sec. 42-217(e)) is amended to read as follows:
    ``(e) Not earlier than 120 days prior to filing the report required 
under this section (and not later than 60 days prior to filing such 
report), the holder of property presumed abandoned shall send written 
notice to the apparent owner of the property stating that the holder is 
in possession of property subject to this Act, but only if--
            ``(1) the holder has in its records an address for the 
        apparent owner, unless the holder's records indicate that such 
        address is not accurate; and
            ``(2) the value of the property is at least $50.''.
            (3) Payment or delivery of property to mayor.--Section 119 
        of such Act (D.C. Code, sec. 42-219) is amended by striking 
        subsections (a), (b), and (c) and inserting the following:
    ``(a) Upon the filing of the report required under section 117 with 
respect to property presumed abandoned, the holder of the property 
shall pay or deliver (or cause to be paid or delivered) to the Mayor 
the property described in the report as abandoned, except that--
            ``(1) in the case of property consisting of an 
        automatically renewable deposit for which a penalty or 
        forfeiture in the payment of interest would result if payment 
        were made to the Mayor at such time, the holder may delay the 
        payment or delivery of the property to the Mayor until such 
        time as the penalty or forfeiture will not occur; and
            ``(2) in the case of tangible property held in a safe 
        deposit box or other safekeeping depository, the holder shall 
        pay or deliver (or cause to be paid or delivered) the property 
        to the Mayor upon the expiration of the 120-day period which 
        begins on the date the holder files the report required under 
        section 117.
    ``(b) If the Mayor postpones the reporting date with respect to the 
property under section 117(d), the holder, upon receipt of the 
extension, may make an interim payment under this section on the amount 
the holder estimates will ultimately be due.''.
            (4) Clarification of use of estimated payments and 
        reports.--Section 130(d) of such Act (D.C. Code, sec. 42-
        230(d)) is amended to read as follows:
    ``(d) If a holder fails to maintain the records required by section 
132 and the records of the holder available for the periods for which 
this Act applies to the property involved are insufficient to permit 
the preparation of a report and delivery of the property, the holder 
shall be required to report and pay such amounts as may reasonably be 
estimated from any available records.''.
            (5) Retention of records.--Section 132(a) of such Act (D.C. 
        Code, sec. 42-232(a)) is amended to read as follows:
    ``(a) Except as provided in subsection (b) and unless the Mayor 
provides otherwise by rule, every holder required to file a report 
under section 117 shall retain all books, records, and documents 
necessary to establish the accuracy of such report and the compliance 
of the report with the requirements of this Act for 10 years after the 
property becomes reportable, together with a record of the name and 
address of the owner of the property in the case of any property for 
which the holder has obtained the last known address of the owner.''.
    (e) Duties and Powers of Mayor.--
            (1) Information included in published notice of abandoned 
        property.--Section 118(b)(3) of such Act (D.C. Code, sec. 42-
        218(b)(3)) is amended to read as follows:
            ``(3) A statement that property of the owner is presumed to 
        be abandoned and has been taken into the protective custody of 
        the Mayor, except in the case of property described in section 
        119(a)(1) which is not paid or delivered to the Mayor pursuant 
        to such section.''.
            (2) Information included in mailed notice.--Section 
        118(e)(3) of such Act (D.C. Code, sec. 42-218(e)(3)) is amended 
        to read as follows:
            ``(3) A statement explaining that property of the owner is 
        presumed to be abandoned, the property has been taken into the 
        protective custody of the Mayor (other than property described 
        in section 119(a)(1) which is not paid or delivered to the 
        Mayor pursuant to such section), and information about the 
        property and its return to the owner is available to a person 
        having a legal or beneficial interest in the property, upon 
        request to the Mayor.''.
            (3) Transition rule for 1997.--Section 118(g) of such Act 
        (D.C. Code, sec. 42-218(g)) is amended to read as follows:
    ``(g) With respect to property reported and delivered on or before 
January 2, 1998, pursuant to section 117(d)(2), the Mayor shall cause 
the newspaper notice required by subsection (a) and the notice mailed 
under subsection (d) to be completed no later than May 1, 1998.''.
            (4) Imposition of one-year waiting period for sale of 
        property.--The first sentence of section 122(a) of such Act 
        (D.C. Code, sec. 42-222(a)) is amended by striking ``may be 
        sold'' and inserting the following: ``which remains unclaimed 
        one year after the delivery to the Mayor may be sold''.
            (5) Special rule for sale of property consisting of 
        securities.--Section 122 of such Act (D.C. Code, sec. 42-222) 
        is amended by adding at the end the following new subsection:
    ``(d)(1) Notwithstanding subsection (a), abandoned property 
consisting of securities delivered to the Mayor under this Act may not 
be sold under this section until the expiration of the 3-year period 
which begins on the date the property is delivered to the Mayor, except 
that the Mayor may sell the property prior to the expiration of such 
period if the Mayor finds that sale at such time is in the best 
interests of the District of Columbia.
    ``(2) If the Mayor sells any property described in paragraph (1) 
prior to the expiration of the 3-year period described in such 
paragraph, any person making a claim with respect to the property 
pursuant to this Act prior to the expiration of such period is entitled 
to either the proceeds of the sale of the securities or the market 
value of the securities at the time the claim is made, whichever is 
greater, less any deduction for fees pursuant section 123(c). If the 
Mayor does not sell any such property prior to the expiration of such 
3-year period, a person may make a claim with respect to the property 
in accordance with section 124 and other applicable provisions of this 
Act.''.
            (6) Statute of limitations.--Section 129(b) of such Act 
        (D.C. Code, sec. 42-229(b)) is amended to read as follows:
    ``(b) No action or proceeding may be commenced by the Mayor to 
enforce any provision of this Act with respect to the reporting, 
delivery, or payment of property more than 10 years after the holder 
specifically identified the property in a report filed with the Mayor 
or gave express notice to the Mayor of a dispute regarding the 
property. The period of limitation shall be tolled in the absence of 
such a report or other express notice, or by the filing of a report 
that is fraudulent.''.
    (f) Interest and Penalties.--
            (1) In general.--Section 135 of such Act (D.C. Code, sec. 
        42-235) is amended by striking subsections (b), (c), and (d) 
        and inserting the following:
    ``(b) Except as otherwise provided in subsection (c), a person who 
fails to report, pay, or deliver property within the time prescribed 
under this Act, or fails to perform other duties imposed by this Act, 
shall pay (in addition to the interest required under subsection (a)) a 
civil penalty of $200 for each day the report, payment, or delivery is 
withheld or the duty is not performed, up to a maximum of $10,000.
    ``(c) A person who willfully fails to report, pay, or deliver 
property within the time prescribed under this Act, or fails to perform 
other duties imposed by this Act, shall pay (in addition to the 
interest required under subsection (a)) a civil penalty of $1,000 for 
each day the report, payment, or delivery is withheld or the duty is 
not performed, up to a maximum of $25,000, plus 25 percent of the value 
of any property that should have been paid or delivered.
    ``(d) The Mayor may waive the imposition of any interest or penalty 
(or any part thereof) against any person under subsection (b) or (c) if 
the person's failure to pay or deliver property is satisfactorily 
explained to the Mayor and if the failure has resulted from a mistake 
by the person in understanding or applying the law or the facts 
involved.''.
            (2) Failure of holder to exercise due diligence with 
        respect to items subject to reporting.--Section 135 of such Act 
        (D.C. Code, sec. 42-235) is amended by adding at the end the 
        following new subsection:
    ``(f) A holder who fails to exercise due diligence with respect to 
information required to be reported under section 117 shall pay (in 
addition to any other interest or penalty which may be imposed under 
this section) a penalty of $10 with respect to each item involved.''.
    (g) Miscellaneous Revisions.--
            (1) Restriction on amount charged for holding certain bank 
        deposits and funds.--(A) Section 106(e) of such Act (D.C. Code, 
        sec. 42-206(e)) is amended by adding at the end the following 
        new paragraph:
    ``(4) The amount of the deduction is limited to an amount that is 
not unconscionable.''.
            (B) Section 106(f) of such Act (D.C. Code, sec. 42-206(f)) 
        is amended by adding at the end the following new paragraph:
    ``(3) The amount of the deduction is limited to an amount that is 
not unconscionable.''.
            (2) Clarification of application of law to wages and other 
        compensation.--Section 116 of such Act (D.C. Code, sec. 42-216) 
        is amended by striking ``Unpaid wages or outstanding payroll 
        checks'' and inserting ``Wages or other compensation for 
        personal services''.
    (h) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        take effect on the date of the enactment of this Act.
            (2) Transition rule.--In the case of any property which is 
        presumed to be abandoned under the Uniform Disposition of 
        Unclaimed Property Act of 1980 (as amended by this Act) during 
        the 6-month period which begins on the date of the enactment of 
        this Act and which would not be presumed to be abandoned under 
        such Act during such period but for the amendments made by this 
        Act, the property may not be presumed to be abandoned under 
        such Act prior to the expiration of such period.

                       restrictions on borrowing

    Sec. 158. (a) Prohibiting Use of Borrowing to Finance or Refund 
Accumulated General Fund Deficit.--None of the funds made available in 
this Act or in any other Act may be used by the District of Columbia 
(including the District of Columbia Financial Responsibility and 
Management Assistance Authority) at any time before, on, or after the 
date of the enactment of this Act to obtain borrowing to finance or 
refund the accumulated general fund deficit of the District of Columbia 
existing as of September 30, 1997.
    (b) Restrictions on Use of Funds for Debt Restructuring.--None of 
the funds made available in this Act or in any other Act may be used by 
the District of Columbia (including the District of Columbia Financial 
Responsibility and Management Assistance Authority) during fiscal year 
1998 or any succeeding fiscal year to obtain borrowing (including 
borrowing through the issuance of any bonds, notes, or other 
obligations) to repay any other borrowing of funds or issuance of 
bonds, notes, or other obligations unless--
            (1) the aggregate cost to the District of the new borrowing 
        or issuance does not exceed the aggregate cost of the original 
        borrowing or issuance; and
            (2) the date provided for the final repayment of the new 
        borrowing or issuance is not later than the date provided for 
        the final repayment of the original borrowing or issuance.
    (c) Prohibiting Use of Funds for Private Bond Sales.--None of the 
funds made available in this Act or in any other Act may be used by the 
District of Columbia (including the District of Columbia Financial 
Responsibility and Management Assistance Authority) during fiscal year 
1998 or any succeeding fiscal year to sell any bonds at a private sale.

                    reopening of pennsylvania avenue

    Sec. 159. Notwithstanding any other provision of law or any other 
rule or regulation, beginning January 1, 1998, the portion of 
Pennsylvania Avenue in front of the White House shall be reopened to 
regular vehicular traffic.

 independence in contracting for chief financial officer and inspector 
                                general

    Sec. 160. (a) In General.--Notwithstanding any other provision of 
law, neither the Mayor of the District of Columbia or the District of 
Columbia Financial Responsibility and Management Assistance Authority 
may enter into any contract with respect to any authority or activity 
under the jurisdiction of the Chief Financial Officer or Inspector 
General of the District of Columbia without the consent and approval of 
the Chief Financial Officer or Inspector General (as the case may be).
    (b) Effect on Other Powers and Duties of Authority.--Nothing in 
this section may be construed--
            (1) to affect the ability of the District of Columbia 
        Financial Responsibility and Management Assistance Authority to 
        remove the Chief Financial Officer or Inspector General of the 
        District of Columbia from office during a control year (as 
        defined in section 305(4) of the District of Columbia Financial 
        Responsibility and Management Assistance Act of 1995); or
            (2) to exempt any contracts entered into by the Chief 
        Financial Officer or Inspector General from review by the 
        Authority under section 203(b) of such Act.

                        miscellaneous provisions

    Sec. 161. (a) Deposit of Annual Federal Contribution With 
Authority.--
            (1) In general.--The District of Columbia Financial 
        Responsibility and Management Assistance Act of 1995, as 
        amended by section 11601(b)(2) of the Balanced Budget Act of 
        1997, is amended by inserting after section 204 the following 
        new section:

``SEC. 205. DEPOSIT OF ANNUAL FEDERAL CONTRIBUTION WITH AUTHORITY.

    ``(a) In General.--
            ``(1) Deposit into escrow account.--In the case of a fiscal 
        year which is a control year, the Secretary of the Treasury 
        shall deposit any Federal contribution to the District of 
        Columbia for the year authorized under section 11601(c)(2) of 
        the Balanced Budget Act of 1997 into an escrow account held by 
        the Authority, which shall allocate the funds to the Mayor at 
        such intervals and in accordance with such terms and conditions 
        as it considers appropriate to implement the financial plan for 
        the year. In establishing such terms and conditions, the 
        Authority shall give priority to using the Federal contribution 
        for cash flow management and the payment of outstanding bills 
        owed by the District government.
            ``(2) Exception for amounts withheld for advances.--
        Paragraph (1) shall not apply with respect to any portion of 
        the Federal contribution which is withheld by the Secretary of 
        the Treasury in accordance with section 605(b)(2) of title VI 
        of the District of Columbia Revenue Act of 1939 to reimburse 
        the Secretary for advances made under title VI of such Act.
    ``(b) Expenditure of Funds from Account in Accordance With 
Authority Instructions.--Any funds allocated by the Authority to the 
Mayor from the escrow account described in paragraph (1) may be 
expended by the Mayor only in accordance with the terms and conditions 
established by the Authority at the time the funds are allocated.''.
            (2) Clerical amendment.--The table of contents for such Act 
        is amended by inserting after the item relating to section 204 
        the following new item:

        ``Sec. 205. Deposit of annual Federal contribution with 
                            Authority.''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect as if included in the enactment of the 
        Balanced Budget Act of 1997.
    (b) Dishonored Check Collection.--The Act entitled ``An Act to 
authorize the Commissioners of the District of Columbia to prescribe 
penalties for the handling and collection of dishonored checks'', 
approved September 28, 1965 (D.C. Code, sec. 1-357) is amended--
            (1) in subsection (a) by inserting after the third sentence 
        the following: ``The Mayor may enter into a contract to collect 
        the amount of the original obligation.''; and
            (2) by adding at the end the following new subsections:
    ``(c) In a case in which the amount of a dishonored or unpaid check 
is collected as a result of a contract, the Mayor shall collect any 
costs or expenses incurred to collect such amount from such person who 
gives or causes to be given, in payment of any obligation or liability 
due the government of the District of Columbia, a check which is 
subsequently dishonored or not duly paid. In a case in which the amount 
of a dishonored or unpaid check is collected as a result of an action 
at law or in equity, such costs and expenses shall include litigation 
expenses and attorney's fees.
    ``(d) An action at law or in equity for the recovery of any amount 
owed to the District as a result of subsection (c), including any 
litigation expenses or attorney's fees may be initiated--
            ``(1) by the Corporation Counsel of the District of 
        Columbia; or
            ``(2) in a case in which the Corporation Counsel does not 
        exercise his or her authority, by the person who provides 
        collection services as a result of a contract with the Mayor.
    ``(e) Nothing in this section may be construed to eliminate the 
Mayor's exclusive authority with respect to any obligations and 
liabilities of the District of Columbia.''.
    (c) Requiring District Government Officials to Provide Information 
Upon Request to Congressional Committees.--Notwithstanding any 
provision of law or any other rule or regulation, during fiscal year 
1998 and each succeeding fiscal year, at the request of the Committee 
on Appropriations of the House of Representatives, the Committee on 
Appropriations of the Senate, the Committee on Government Reform and 
Oversight of the House of Representatives, or the Committee on 
Governmental Affairs of the Senate, any officer or employee of the 
District of Columbia government (including any officer or employee of 
the District of Columbia Financial Responsibility and Management 
Assistance Authority) shall provide the Committee with such information 
and materials as the Committee may require, within such deadline as the 
Committee may require.
    (d) Prohibiting Certain Helicopter Flights Over District.--None of 
the funds made available in this Act or in any other Act may be used by 
the District of Columbia to grant a permit or license to any person for 
purposes of any business in which the person provides tours of any 
portion of the District of Columbia by helicopter.
    (e) Conforming References to Internal Revenue Code of 1986.--
Section 4(28A) of the District of Columbia Income and Franchise Act of 
1947 (D.C. Code, sec. 47-1801.4(28A)) is amended to read as follows:
            ``(28A) The term `Internal Revenue Code of 1986' means the 
        Internal Revenue Code of 1986 (100 Stat. 2085; 26 U.S.C. 1 et 
        seq.), as amended through August 20, 1996. The provisions of 
        the Internal Revenue Code of 1986 shall be effective on the 
        same dates that they are effective for Federal tax purposes.''.
    (f) Standard for Review of Recommendations of Business Regulatory 
Reform Commission in Review of Regulations by Authority.--Section 
11701(a)(1) of the Balanced Budget Act of 1997 is amended by striking 
the second sentence and inserting the following: ``In carrying out such 
review, the Authority shall include an explicit reference to each 
recommendation made by the Business Regulatory Reform Commission 
pursuant to the Business Regulatory Reform Commission Act of 1994 (D.C. 
Code, sec. 2-4101 et seq.), together with specific findings and 
conclusions with respect to each such recommendation.''.
    (g) Technical Corrections Relating to Balanced Budget Act of 
1997.--(1) Effective as if included in the enactment of the Balanced 
Budget Act of 1997, section 453(c) of the District of Columbia Home 
Rule Act (D.C. Code, sec. 47-304.1(c)), as amended by section 11243(d) 
of the Balanced Budget Act of 1997, is amended to read as follows:
    ``(c) Subsection (a) shall not apply to amounts appropriated or 
otherwise made available to the Council, 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, or 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.''.
    (2) Section 11201(g)(2)(A)(ii) of the Balanced Budget Act of 1997 
is amended--
            (A) in the heading, by striking ``Department of parks and 
        recreation'' and inserting ``parks authority''; and
            (B) by striking ``Department of Parks and Recreation'' and 
        inserting ``Parks Authority''.
    (h) Repeal of Prior Notice Requirement for Federal Activities 
Affecting Real Property in District of Columbia.--Effective October 1, 
1997, the Balanced Budget Act of 1997 (Public Law 105-33) is amended by 
striking section 11715.
    This title may be cited as the ``District of Columbia 
Appropriations Act, 1998''.

        TITLE II--DISTRICT OF COLUMBIA MEDICAL LIABILITY REFORM

 Subtitle A--Standards for Health Care Liability Actions and Claims in 
                        the District of Columbia

SEC. 201. SHORT TITLE.

    This title may be cited as the ``District of Columbia Medical 
Liability Reform Act of 1997''.

SEC. 202. STATUTE OF LIMITATIONS.

    A District of Columbia health care liability action may not be 
brought after the expiration of the 2-year period that begins on the 
date on which the alleged injury that is the subject of the action was 
discovered or should reasonably have been discovered, but in no case 
after the expiration of the 5-year period that begins on the date the 
alleged injury occurred.

SEC. 203. TREATMENT OF NONECONOMIC DAMAGES.

    (a) Limitation on Noneconomic Damages.--The total amount of 
noneconomic damages that may be awarded to a claimant for losses 
resulting from the injury which is the subject of a District of 
Columbia health care liability action may not exceed $250,000, 
regardless of the number of parties against whom the action is brought 
or the number of actions brought with respect to the injury.
    (b) Joint and Several Liability.--In any District of Columbia 
health care liability action, a defendant shall be liable only for the 
amount of noneconomic damages attributable to such defendant in direct 
proportion to such defendant's share of fault or responsibility for the 
claimant's actual damages, as determined by the trier of fact. In all 
such cases, the liability of a defendant for noneconomic damages shall 
be several and not joint.

SEC. 204. CRITERIA FOR AWARDING OF PUNITIVE DAMAGES; LIMITATION ON 
              AMOUNT AWARDED.

    (a) In General.--Punitive damages may, to the extent permitted by 
applicable District of Columbia law, be awarded in any District of 
Columbia health care liability action if the claimant establishes by 
clear and convincing evidence that the harm suffered was the result 
of--
            (1) conduct specifically intended to cause harm, or
            (2) conduct manifesting a conscious, flagrant indifference 
        to the rights or safety of others.
    (b) Proportional Awards.--The amount of punitive damages that may 
be awarded in any District of Columbia health care liability action may 
not exceed 3 times the amount of damages awarded to the claimant for 
economic loss, or $250,000, whichever is greater. This subsection shall 
be applied by the court and shall not be disclosed to the jury.
    (c) Applicability.--This subsection shall apply to any District of 
Columbia health care liability action brought on any theory under which 
punitive damages are sought. This subsection does not create a cause of 
action for punitive damages. This subsection does not preempt or 
supersede any law to the extent that such law would further limit the 
award of punitive damages.
    (d) Bifurcation.--At the request of any party, the trier of fact 
shall consider in a separate proceeding whether punitive damages are to 
be awarded and the amount of such award. If a separate proceeding is 
requested, evidence relevant only to the claim of punitive damages, as 
determined by applicable District of Columbia law, shall be 
inadmissible in any proceeding to determine whether actual damages are 
to be awarded.

SEC. 205. TREATMENT OF PUNITIVE DAMAGES IN ACTIONS RELATING TO DRUGS OR 
              MEDICAL DEVICES.

    (a) Prohibiting Award of Punitive Damages With Respect to Certain 
Approved Drugs and Devices.--
            (1) In general.--In any District of Columbia health care 
        liability action, punitive damages may not be awarded against a 
        manufacturer or product seller of a drug or medical device 
        which caused the claimant's harm if--
                    (A) such drug or device was subject to premarket 
                approval by the Food and Drug Administration with 
                respect to the safety of the formulation or performance 
                of the aspect of such drug or device which caused the 
                claimant's harm, or the adequacy of the packaging or 
                labeling of such drug or device which caused the harm, 
                and such drug, device, packaging, or labeling was 
                approved by the Food and Drug Administration; or
                    (B) the drug is generally recognized as safe and 
                effective pursuant to conditions established by the 
                Food and Drug Administration and applicable 
                regulations, including packaging and labeling 
                regulations.
            (2) Exception.--Paragraph (1) shall not apply in any case 
        in which the defendant, before or after premarket approval of a 
        drug or device--
                    (A) intentionally and wrongfully withheld from or 
                misrepresented to the Food and Drug Administration 
                information concerning such drug or device required to 
                be submitted under the Federal Food, Drug, and Cosmetic 
                Act (21 U.S.C. 301 et seq.) or section 351 of the 
                Public Health Service Act (42 U.S.C. 262) that is 
                material and relevant to the harm suffered by the 
                claimant, or
                    (C) made an illegal payment to an official or 
                employee of the Food and Drug Administration for the 
                purpose of securing or maintaining approval of such 
                drug or device.
    (b) Special Rule Regarding Claims Relating to Packaging.--In a 
District of Columbia health care liability action relating to the 
adequacy of the packaging or labeling of a drug which is required to 
have tamper-resistant packaging under regulations of the Secretary of 
Health and Human Services (including labeling regulations related to 
such packaging), the manufacturer or product seller of the drug shall 
not be held liable for punitive damages unless such packaging or 
labeling is found by the court by clear and convincing evidence to be 
substantially out of compliance with such regulations.
    (c) Definitions.--In this section, the following definitions apply:
            (1) Drug.--The term ``drug'' has the meaning given such 
        term in section 201(g)(1) of the Federal Food, Drug, and 
        Cosmetic Act (21 U.S.C. 321(g)(1)).
            (2) Medical device.--The term ``medical device'' has the 
        meaning given such term in section 201(h) of the Federal Food, 
        Drug, and Cosmetic Act (21 U.S.C. 321(h)).
            (3) Product seller.--
                    (A) In general.--Subject to subparagraph (B), the 
                term ``product seller'' means a person who, in the 
                course of a business conducted for that purpose--
                            (i) sells, distributes, rents, leases, 
                        prepares, blends, packages, labels, or is 
                        otherwise involved in placing, a product in the 
                        stream of commerce, or
                            (ii) installs, repairs, or maintains the 
                        harm-causing aspect of a product.
                    (B) Exclusion.--Such term does not include--
                            (i) a seller or lessor of real property;
                            (ii) a provider of professional services in 
                        any case in which the sale or use of a product 
                        is incidental to the transaction and the 
                        essence of the transaction is the furnishing of 
                        judgment, skill, or services; or
                            (iii) any person who--
                                    (I) acts in only a financial 
                                capacity with respect to the sale of a 
                                product; or
                                    (II) leases a product under a lease 
                                arrangement in which the selection, 
                                possession, maintenance, and operation 
                                of the product are controlled by a 
                                person other than the lessor.

SEC. 206. PERIODIC PAYMENTS FOR FUTURE LOSSES.

    (a) In General.--In any District of Columbia health care liability 
action in which the damages awarded for future economic and noneconomic 
loss exceeds $50,000, a person shall not be required to pay such 
damages in a single, lump-sum payment, but shall be permitted to make 
such payments periodically based on when the damages are found likely 
to occur, as such payments are determined by the court.
    (b) Finality of Judgment.--The judgment of the court awarding 
periodic payments under this section may not, in the absence of fraud, 
be reopened at any time to contest, amend, or modify the schedule or 
amount of the payments.
    (c) Lump-sum Settlements.--This section may not be construed to 
preclude a settlement providing for a single, lump-sum payment.

SEC. 207. TREATMENT OF COLLATERAL SOURCE PAYMENTS.

    (a) Introduction Into Evidence.--In any District of Columbia health 
care liability action, any defendant may introduce evidence of 
collateral source payments. If any defendant elects to introduce such 
evidence, the claimant may introduce evidence of any amount paid or 
contributed or reasonably likely to be paid or contributed in the 
future by or on behalf of the claimant to secure the right to such 
collateral source payments.
    (b) No Subrogation.--No provider of collateral source payments may 
recover any amount against the claimant or receive any lien or credit 
against the claimant's recovery or be equitably or legally subrogated 
the right of the claimant in a District of Columbia health care 
liability action.
    (c) Application to Settlements.--This section shall apply to an 
action that is settled as well as an action that is resolved by a fact 
finder.
    (d) Collateral Source Payments Defined.--In this section, the term 
``collateral source payments'' means any amount paid or reasonably 
likely to be paid in the future to or on behalf of a claimant, or any 
service, product, or other benefit provided or reasonably likely to be 
provided in the future to or on behalf of a claimant, as a result of an 
injury or wrongful death, pursuant to--
            (1) any State or Federal health, sickness, income-
        disability, accident or workers' compensation Act;
            (2) any health, sickness, income-disability, or accident 
        insurance that provides health benefits or income-disability 
        coverage;
            (3) any contract or agreement of any group, organization, 
        partnership, or corporation to provide, pay for, or reimburse 
        the cost of medical, hospital, dental, or income disability 
        benefits; and
            (4) any other publicly or privately funded program.

SEC. 208. APPLICATION OF STANDARDS TO CLAIMS RESOLVED THROUGH 
              ALTERNATIVE DISPUTE RESOLUTION.

    (a) In General.--Any alternative dispute resolution system used to 
resolve a District of Columbia health care liability action or claim 
shall contain provisions relating to statute of limitations, non-
economic damages, joint and several liability, punitive damages, 
collateral source rule, and periodic payments which are identical to 
the provisions relating to such matters in this title.
    (b) Alternative Dispute Resolution System Defined.--In this title, 
the term ``alternative dispute resolution system'' means a system that 
provides for the resolution of District of Columbia health care 
liability claims in a manner other than through District of Columbia 
health care liability actions.

                     Subtitle B--General Provisions

SEC. 211. GENERAL DEFINITIONS.

    (a) District of Columbia Health Care Liability Action.--
            (1) In general.--In this title, the term ``District of 
        Columbia health care liability action'' means a civil action 
        brought against a health care provider, an entity which is 
        obligated to provide or pay for health benefits under any 
        health benefit plan (including any person or entity acting 
        under a contract or arrangement to provide or administer any 
        health benefit), or the manufacturer, distributor, supplier, 
        marketer, promoter, or seller of a medical product, in which 
        the claimant alleges a claim (including third party claims, 
        cross claims, counter claims, or distribution claims) based 
        upon the provision of (or the failure to provide or pay for) 
        health care services or the use of a medical product within the 
        District of Columbia, regardless of the theory of liability on 
        which the claim is based or the number of plaintiffs, 
        defendants, or causes of action.
            (2) Health benefit plan.--The term ``health benefit plan'' 
        means--
                    (A) a hospital or medical expense incurred policy 
                or certificate,
                    (B) a hospital or medical service plan contract,
                    (C) a health maintenance subscriber contract, or
                    (D) a Medicare+Choice plan (as described in section 
                1859(b)(1) of the Social Security Act),
        that provides benefits with respect to health care services.
            (3) Health care provider.--The term ``health care 
        provider'' means any person that is engaged in the delivery of 
        health care services in the District of Columbia and that is 
        required by the laws or regulations of the District of Columbia 
        to be licensed or certified to engage in the delivery of such 
        services in the District of Columbia, and includes an employee 
        of the government of the District of Columbia (including an 
        independent agency of the District of Columbia).
    (b) District of Columbia Health Care Liability Claim.--The term 
``District of Columbia health care liability claim'' means a claim in 
which the claimant alleges that injury was caused by the provision of 
(or the failure to provide) health care services within the District of 
Columbia.
    (c) Other Definitions.--As used in this title:
            (1) Actual damages.--The term ``actual damages'' means 
        damages awarded to pay for economic loss.
            (2) Claimant.--The term ``claimant'' means any person who 
        brings a District of Columbia health care liability action and 
        any person on whose behalf such an action is brought. If such 
        action is brought through or on behalf of an estate, the term 
        includes the claimant's decedent. If such action is brought 
        through or on behalf of a minor or incompetent, the term 
        includes the claimant's legal guardian.
            (3) Clear and convincing evidence.--The term ``clear and 
        convincing evidence'' is that measure or degree of proof that 
        will produce in the mind of the trier of fact a firm belief or 
        conviction as to the truth of the allegations sought to be 
        established. Such measure or degree of proof is more than that 
        required under preponderance of the evidence but less than that 
        required for proof beyond a reasonable doubt.
            (4) Economic loss.--The term ``economic loss'' means any 
        pecuniary loss resulting from injury (including the loss of 
        earnings or other benefits related to employment, medical 
        expense loss, replacement services loss, loss due to death, 
        burial costs, and loss of business or employment 
        opportunities), to the extent recovery for such loss is allowed 
        under applicable District of Columbia law.
            (5) Harm.--The term ``harm'' means any legally cognizable 
        wrong or injury for which punitive damages may be imposed.
            (6) Health care service.--The term ``health care service'' 
        means any service for which payment may be made under a health 
        benefit plan including services related to the delivery or 
        administration of such service.
            (7) Noneconomic damages.--The term ``noneconomic damages'' 
        means damages paid to an individual for pain and suffering, 
        inconvenience, emotional distress, mental anguish, loss of 
        consortium, injury to reputation, humiliation, and other 
        nonpecuniary losses.
            (8) Person.--The term ``person'' means any individual, 
        corporation, company, association, firm, partnership, society, 
        joint stock company, or any other entity, including any 
        governmental entity.
            (9) Punitive damages.--The term ``punitive damages'' means 
        damages awarded against any person not to compensate for actual 
        injury suffered, but to punish or deter such person or others 
        from engaging in similar behavior in the future.

SEC. 212. NONAPPLICATION TO CERTAIN ACTIONS; PREEMPTION.

    (a) Applicability.--This title shall not apply to--
            (1) an action for damages arising from a vaccine-related 
        injury or death to the extent that title XXI of the Public 
        Health Service Act applies to the action, or
            (2) an action under the Employee Retirement Income Security 
        Act of 1974 (29 U.S.C. 1001 et seq.).
    (b) Preemption.--This title shall preempt any District of Columbia 
law to the extent such law is inconsistent with the limitations 
contained in this title. This title shall not preempt any District of 
Columbia law that provides for defenses or places limitations on a 
person's liability in addition to those contained in this title or 
otherwise imposes greater restrictions than those provided in this 
title.
    (c) Effect on Sovereign Immunity and Choice of Law or Venue.--
Nothing in this title may be construed to--
            (1) waive or affect any defense of sovereign immunity 
        asserted by the District of Columbia under any provision of 
        law;
            (2) waive or affect any defense of sovereign immunity 
        asserted by the United States;
            (3) affect the applicability of any provision of the 
        Foreign Sovereign Immunities Act of 1976;
            (4) preempt any choice-of-law rules with respect to claims 
        brought by a foreign nation or a citizen of a foreign nation; 
        or
            (5) affect the right of any court to transfer venue or to 
        apply the law of a foreign nation or to dismiss a claim of a 
        foreign nation or of a citizen of a foreign nation on the 
        ground of inconvenient forum.

SEC. 213. RULES OF CONSTRUCTION REGARDING JURISDICTION OF FEDERAL 
              COURTS.

    (a) Amount in Controversy.--In an action to which this title 
applies and which is brought under section 1332 of title 28, United 
States Code, the amount of noneconomic damages or punitive damages, and 
attorneys' fees or costs, shall not be included in determining whether 
the matter in controversy exceeds the sum or value of $50,000.
    (b) Federal Court Jurisdiction Not Established on Federal Question 
Grounds.--Nothing in this title shall be construed to establish any 
jurisdiction in the district courts of the United States over District 
of Columbia health care liability actions on the basis of section 1331 
or 1337 of title 28, United States Code.

                       Subtitle C--Effective Date

SEC. 221. EFFECTIVE DATE.

    This title shall apply to any District of Columbia health care 
liability action and to any District of Columbia health care liability 
claim subject to an alternative dispute resolution system, that is 
initiated on or after the date of the enactment of this title, except 
that any such action or claim arising from an injury occurring prior to 
such date shall be governed by the applicable statute of limitations 
provisions in effect at the time the injury occurred.

      TITLE III--DISTRICT OF COLUMBIA EDUCATION REFORM ACT OF 1997

  Subtitle A--Amendments to District of Columbia School Reform Act of 
                                  1995

SEC. 301. SHORT TITLE.

    This title may be cited as the ``District of Columbia Education 
Reform Amendments Act of 1997''.

SEC. 302. GENERAL EFFECTIVE DATE.

    Section 2003 of the District of Columbia School Reform Act of 1995 
(Public Law 104-134; 110 Stat. 1321-112; D.C. Code Sec. 31-2851) is 
amended by striking ``shall be effective'' and all that follows through 
the period at the end and inserting ``shall take effect on the date of 
the enactment of this Act.''.

SEC. 303. TIMETABLE FOR APPROVAL OF PUBLIC CHARTER SCHOOL PETITIONS.

    Section 2203(i)(2)(A) of the District of Columbia School Reform Act 
of 1995 (Public Law 104-134; 110 Stat. 3009-504; D.C. Code Sec. 31-
2853.13(i)(2)(A)) is amended to read as follows:
                    ``(A) In general.--
                            ``(i) Annual limit.--Subject to 
                        subparagraph (B) and clause (ii), during 
                        calendar year 1997, and during each subsequent 
                        calendar year, each eligible chartering 
                        authority shall not approve more than 10 
                        petitions to establish a public charter school 
                        under this subtitle.
                            ``(ii) Timetable.--Any petition approved 
                        under clause (i) shall be approved during an 
                        application approval period that terminates on 
                        April 1 of each year. Such an approval period 
                        may commence before or after January 1 of the 
                        calendar year in which it terminates, except 
                        that any petition approved at any time during 
                        such an approval period shall count, for 
                        purposes of clause (i), against the total 
                        number of petitions approved during the 
                        calendar year in which the approval period 
                        terminates.''.

SEC. 304. INCREASE IN PERMITTED NUMBER OF TRUSTEES OF PUBLIC CHARTER 
              SCHOOL.

    Section 2205(a) of the District of Columbia School Reform Act of 
1995 (Public Law 104-134; 110 Stat. 1321-122; D.C. Code Sec. 31-
2853.15(a)) is amended by striking ``7,'' and inserting ``15,''.

SEC. 305. LEASE TERMS FOR PERSONS OPERATING CHARTER SCHOOLS.

    (a) Leasing Former or Unused Public School Properties.--
            (1) In general.--Section 2209(b)(1)(A) of the District of 
        Columbia School Reform Act of 1995 (Public Law 104-134; 110 
        Stat. 3009-505; D.C. Code Sec. 31-2853.19(b)(1)(A)) is amended 
        to read as follows:
                    ``(A) In general.--Notwithstanding any other 
                provision of law relating to the disposition of a 
                facility or property described in subparagraph (C), the 
                Mayor and the District of Columbia Government--
                            ``(i) subject to clause (ii), shall give 
                        preference to an eligible applicant whose 
                        petition to establish a public charter school 
                        has been conditionally approved under section 
                        2203(d)(2), or a Board of Trustees, with 
                        respect to the purchase of a facility or 
                        property described in subparagraph (C), if 
                        doing so will not result in a significant loss 
                        of revenue that might be obtained from other 
                        dispositions or uses of the facility or 
                        property; and
                            ``(ii) shall lease a facility or property 
                        described in subparagraph (C), at an annual 
                        rate of $1, to an eligible applicant whose 
                        petition to establish a public charter school 
                        has been conditionally approved under section 
                        2203(d)(2), or a Board of Trustees, if--
                                    ``(I) the eligible applicant or 
                                Board of Trustees requests a lease 
                                pursuant to this paragraph for the 
                                purpose of operating the facility or 
                                property as a public charter school 
                                under this subtitle; and
                                    ``(II) the facility or property is 
                                not yet otherwise disposed of (by sale, 
                                lease, or otherwise).''.
            (2) Termination of lease.--Section 2209(b)(1) of the 
        District of Columbia School Reform Act of 1995 (Public Law 104-
        134; 110 Stat. 3009-505; D.C. Code Sec. 31-2853.19(b)(1)) is 
        amended--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (B) by inserting after subparagraph (A) the 
                following:
                    ``(B) Termination of lease.--Any lease entered into 
                pursuant to this paragraph with respect to a public 
                charter school shall be deemed to terminate--
                            ``(i) upon the denial of an application to 
                        renew the charter granted to the school under 
                        section 2212, or, in a case where judicial 
                        review of the denial is sought under section 
                        2212(d)(6), upon the entry of an order, not 
                        subject to further review, upholding a decision 
                        to deny such an application, whichever occurs 
                        later;
                            ``(ii) upon the revocation of the charter 
                        granted to the school under section 2213, or, 
                        in a case where judicial review of the 
                        revocation is sought under section 2213(c)(6), 
                        upon the entry of an order, not subject to 
                        further review, upholding the revocation, 
                        whichever occurs later; or
                            ``(iii) in the case of a lease to an 
                        eligible applicant whose petition to establish 
                        a public charter school has been conditionally 
                        approved under section 2203(d)(2), upon the 
                        termination of such conditional approval by 
                        reason of the applicant's failure timely to 
                        submit the identification and information 
                        described in section 2202(6)(B)(i).''.
            (3) Conforming amendment.--Section 225(d) of the District 
        of Columbia Financial Responsibility and Management Assistance 
        Act of 1995 (Public Law 104-8; 110 Stat. 3009-508; D.C. Code 
        Sec. 47-392.25(d)) is amended by striking ``section 
        2209(b)(1)(B) of the District of Columbia School Reform Act of 
        1995'' and inserting ``section 2209(b)(1)(C) of the District of 
        Columbia School Reform Act of 1995, other than a facility or 
        real property that is subject to a lease under section 
        2209(b)(1)(A)(ii) of such Act,''.
    (b) Conversions of Public Schools.--Section 2209(b) of the District 
of Columbia School Reform Act of 1995 (Public Law 104-134; 110 Stat. 
3009-505; D.C. Code Sec. 31-2853.19(b)) is amended by adding at the end 
the following:
            ``(3) Special rule for persons converting public school 
        into charter school.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law relating to the disposition of a 
                facility or property described in this paragraph, the 
                Mayor and the District of Columbia Government shall 
                lease a facility or property, at an annual rate of $1, 
                to an eligible applicant whose petition to establish a 
                public charter school has been conditionally approved 
                under section 2203(d)(2), or a Board of Trustees, if--
                            ``(i) the facility or property is under the 
                        jurisdiction of the Board of Education;
                            ``(ii) the eligible applicant or Board of 
                        Trustees requests a lease pursuant to this 
                        paragraph for the purpose of operating the 
                        facility or property as a public charter school 
                        under this subtitle; and
                            ``(iii) immediately prior to the date of 
                        such request, the facility or property--
                                    ``(I) was operated as a District of 
                                Columbia public school, and the 
                                requirements of section 2202(a) were 
                                met; or
                                    ``(II) was operated as a public 
                                charter school under this subtitle.
                    ``(B) Termination of lease.--Any lease entered into 
                pursuant to this paragraph with respect to a public 
                charter school shall be deemed to terminate--
                            ``(i) upon the denial of an application to 
                        renew the charter granted to the school under 
                        section 2212, or, in a case where judicial 
                        review of the denial is sought under section 
                        2212(d)(6), upon the entry of an order, not 
                        subject to further review, upholding a decision 
                        to deny such an application, whichever occurs 
                        later;
                            ``(ii) upon the revocation of the charter 
                        granted to the school under section 2213, or, 
                        in a case where judicial review of the 
                        revocation is sought under section 2213(c)(6), 
                        upon the entry of an order, not subject to 
                        further review, upholding the revocation, 
                        whichever occurs later; or
                            ``(iii) in the case of a lease to an 
                        eligible applicant whose petition to establish 
                        a public charter school has been conditionally 
                        approved under section 2203(d)(2), upon the 
                        termination of such conditional approval by 
                        reason of the applicant's failure timely to 
                        submit the identification and information 
                        described in section 2202(6)(B)(i).''.
    (c) Leasing Current Public School Properties.--
            (1) In general.--Section 2209(b)(2)(A) of the District of 
        Columbia School Reform Act of 1995 (Public Law 104-134; 110 
        Stat. 3009-506; D.C. Code Sec. 31-2853.19(b)(2)(A)) is amended 
        to read as follows:
                    ``(A) In general.--Notwithstanding any other 
                provision of law relating to the disposition of a 
                facility or property described in subparagraph (C), but 
                subject to paragraph (3), the Mayor and the District of 
                Columbia Government shall lease a facility or property 
                described in subparagraph (C), at an annual rate of $1, 
                to an eligible applicant whose petition to establish a 
                public charter school has been conditionally approved 
                under section 2203(d)(2), or a Board of Trustees, if 
                the eligible applicant or Board of Trustees requests a 
                lease pursuant to this paragraph for the purpose of--
                            ``(i) operating the facility or property as 
                        a public charter school under this subtitle; or
                            ``(ii) using the facility or property for a 
                        purpose directly related to the operation of a 
                        public charter school under this subtitle.''.
            (2) Termination of lease.--Section 2209(b)(2) of the 
        District of Columbia School Reform Act of 1995 (Public Law 104-
        134; 110 Stat. 3009-506; D.C. Code Sec. 31-2853.19(b)(2)) is 
        amended--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (B) by inserting after subparagraph (A) the 
                following:
                    ``(B) Termination of lease.--Any lease entered into 
                pursuant to this paragraph with respect to a public 
                charter school shall be deemed to terminate--
                            ``(i) upon the denial of an application to 
                        renew the charter granted to the school under 
                        section 2212, or, in a case where judicial 
                        review of the denial is sought under section 
                        2212(d)(6), upon the entry of an order, not 
                        subject to further review, upholding a decision 
                        to deny such an application, whichever occurs 
                        later;
                            ``(ii) upon the revocation of the charter 
                        granted to the school under section 2213, or, 
                        in a case where judicial review of the 
                        revocation is sought under section 2213(c)(6), 
                        upon the entry of an order, not subject to 
                        further review, upholding the revocation, 
                        whichever occurs later; or
                            ``(iii) in the case of a lease to an 
                        eligible applicant whose petition to establish 
                        a public charter school has been conditionally 
                        approved under section 2203(d)(2), upon the 
                        termination of such conditional approval by 
                        reason of the applicant's failure timely to 
                        submit the identification and information 
                        described in section 2202(6)(B)(i).''.

SEC. 306. AUTHORIZATION OF APPROPRIATIONS FOR PUBLIC CHARTER SCHOOL 
              BOARD.

    Section 2214(g) of the District of Columbia School Reform Act of 
1995 (Public Law 104-134; 110 Stat. 1321-133; D.C. Code Sec. 31-
2853.24(g)) is amended by inserting ``to the Board'' after 
``appropriated''.

SEC. 307. ADJUSTMENT OF ANNUAL PAYMENT FOR RESIDENTIAL SCHOOLS.

    Section 2401(b)(3)(B) of the District of Columbia School Reform Act 
of 1995 (Public Law 104-134; 110 Stat. 1321-137; D.C. Code Sec. 31-
2853.41(b)(3)(B)) is amended--
            (1) in clause (i), by striking ``or'';
            (2) in clause (ii), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                            ``(iii) to whom the school provides room 
                        and board in a residential setting.''.

SEC. 308. ADJUSTMENT OF ANNUAL PAYMENT FOR FACILITIES COSTS.

    Section 2401(b)(3) of the District of Columbia School Reform Act of 
1995 (Public Law 104-134; 110 Stat. 1321-137; D.C. Code Sec. 31-
2853.41(b)(3)) is amended by adding at the end the following:
                    ``(C) Adjustment for facilities costs.--
                Notwithstanding paragraph (2), the Mayor and the 
                District of Columbia Council, in consultation with the 
                Board of Education and the Superintendent, shall adjust 
                the amount of the annual payment under paragraph (1) to 
                increase the amount of such payment for a public 
                charter school to take into account leases or purchases 
                of, or improvements to, real property, if the school, 
                not later than April 1 of the fiscal year preceding the 
                payment, requests such an adjustment.''.

SEC. 309. PAYMENTS TO NEW CHARTER SCHOOLS.

    (a) In General.--Section 2403(b) of the District of Columbia School 
Reform Act of 1995 (Public Law 104-134; 110 Stat. 1321-140; D.C. Code 
Sec. 31-2853.43(b)) is amended to read as follows:
    ``(b) Payments to New Schools.--
            ``(1) Establishment of fund.--There is established in the 
        general fund of the District of Columbia a fund to be known as 
        the `New Charter School Fund'.
            ``(2) Contents of fund.--The New Charter School Fund shall 
        consist of--
                    ``(A) unexpended and unobligated amounts 
                appropriated from local funds for public charter 
                schools for fiscal year 1997 that reverted to the 
                general fund of the District of Columbia;
                    ``(B) amounts credited to the fund in accordance 
                with this subsection upon the receipt by a public 
                charter school described in paragraph (5) of its first 
                initial payment under subsection (a)(2)(A) or its first 
                final payment under subsection (a)(2)(B); and
                    ``(C) any interest earned on such amounts.
            ``(3) Expenditures from fund.--
                    ``(A) In general.--Not later than June 1, 1998, and 
                not later than June 1 of each year thereafter, the 
                Chief Financial Officer of the District of Columbia 
                shall pay, from the New Charter School Fund, to each 
                public charter school described in paragraph (5), an 
                amount equal to 25 percent of the amount yielded by 
                multiplying the uniform dollar amount used in the 
                formula established under section 2401(b) by the total 
                anticipated enrollment as set forth in the petition to 
                establish the public charter school.
                    ``(B) Pro rata reduction.--If the amounts in the 
                New Charter School Fund for any year are insufficient 
                to pay the full amount that each public charter school 
                described in paragraph (5) is eligible to receive under 
                this subsection for such year, the Chief Financial 
                Officer of the District of Columbia shall ratably 
                reduce such amounts for such year on the basis of the 
                formula described in section 2401(b).
                    ``(C) Form of payment.--Payments under this 
                subsection shall be made by electronic funds transfer 
                from the New Charter School Fund to a bank designated 
                by a public charter school.
            ``(4) Credits to fund.--Upon the receipt by a public 
        charter school described in paragraph (5) of--
                    ``(A) its first initial payment under subsection 
                (a)(2)(A), the Chief Financial Officer of the District 
                of Columbia shall credit the New Charter School Fund 
                with 75 percent of the amount paid to the school under 
                paragraph (3); and
                    ``(B) its first final payment under subsection 
                (a)(2)(B), the Chief Financial Officer of the District 
                of Columbia shall credit the New Charter School Fund 
                with 25 percent of the amount paid to the school under 
                paragraph (3).
            ``(5) Schools described.--A public charter school described 
        in this paragraph is a public charter school that--
                    ``(A) did not enroll any students during any 
                portion of the fiscal year preceding the most recent 
                fiscal year for which funds are appropriated to carry 
                out this subsection; and
                    ``(B) operated as a public charter school during 
                the most recent fiscal year for which funds are 
                appropriated to carry out this subsection.
            ``(6) Authorization of appropriations.--There are 
        authorized to be appropriated to the Chief Financial Officer of 
        the District of Columbia such sums as may be necessary to carry 
        out this subsection for each fiscal year.''.
    (b) Reduction of Annual Payment.--
            (1) Initial payment.--Section 2403(a)(2)(A) of the District 
        of Columbia School Reform Act (Public Law 104-134; 110 Stat. 
        1321-139; D.C. Code Sec. 31-2853.43(a)(2)(A)) is amended to 
        read as follows:
                    ``(A) Initial payment.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), not later than October 15, 1996, 
                        and not later than October 15 of each year 
                        thereafter, the Mayor shall transfer, by 
                        electronic funds transfer, an amount equal to 
                        75 percent of the amount of the annual payment 
                        for each public charter school determined by 
                        using the formula established pursuant to 
                        section 2401(b) to a bank designated by such 
                        school.
                            ``(ii) Reduction in case of new school.--In 
                        the case of a public charter school that has 
                        received a payment under subsection (b) in the 
                        fiscal year immediately preceding the fiscal 
                        year in which a transfer under clause (i) is 
                        made, the amount transferred to the school 
                        under clause (i) shall be reduced by an amount 
                        equal to 75 percent of the amount of the 
                        payment under subsection (b).''.
            (2) Final payment.--Section 2403(a)(2)(B) of the District 
        of Columbia School Reform Act (Public Law 104-134; 110 Stat. 
        1321-139; D.C. Code Sec. 31-2853.43(a)(2)(B)) is amended--
                    (A) in clause (i)--
                            (i) by inserting ``In general.--'' before 
                        ``Except''; and
                            (ii) by striking ``clause (ii),'' and 
                        inserting ``clauses (ii) and (iii),'';
                    (B) in clause (ii), by inserting ``Adjustment for 
                enrollment.--'' before ``Not later than March 15, 
                1997,''; and
                    (C) by adding at the end the following:
                            ``(iii) Reduction in case of new school.--
                        In the case of a public charter school that has 
                        received a payment under subsection (b) in the 
                        fiscal year immediately preceding the fiscal 
                        year in which a transfer under clause (i) is 
                        made, the amount transferred to the school 
                        under clause (i) shall be reduced by an amount 
                        equal to 25 percent of the amount of the 
                        payment under subsection (b).''.

SEC. 310. ELIGIBILITY CRITERIA FOR PRIVATE, NONPROFIT CORPORATION.

    Section 2603 of the District of Columbia School Reform Act (Public 
Law 104-134; 110 Stat. 1321-144; D.C. Code Sec. 31-2853.63) is amended 
to read as follows:

``SEC. 2603. ELIGIBILITY CRITERIA FOR PRIVATE, NONPROFIT CORPORATION.

    ``A private, nonprofit corporation shall be eligible to receive a 
grant under section 2602 if the corporation is a business organization 
incorporated in the District of Columbia, that--
            ``(1) has a board of directors which includes members who 
        are also executives of technology-related corporations involved 
        in education and workforce development issues;
            ``(2) has extensive practical experience with initiatives 
        that link business resources and expertise with education and 
        training systems;
            ``(3) has experience in working with State and local 
        educational agencies with respect to the integration of 
        academic studies with workforce preparation programs; and
            ``(4) has a structure through which additional resources 
        can be leveraged and innovative practices disseminated.''.

              Subtitle B--Student Opportunity Scholarships

SEC. 341. DEFINITIONS.

    As used in this subtitle--
            (1) the term ``Board'' means the Board of Directors of the 
        Corporation established under section 342(b)(1);
            (2) the term ``Corporation'' means the District of Columbia 
        Scholarship Corporation established under section 342(a);
            (3) the term ``eligible institution''--
                    (A) in the case of an eligible institution serving 
                a student who receives a tuition scholarship under 
                section 343(d)(1), means a public, private, or 
                independent elementary or secondary school; and
                    (B) in the case of an eligible institution serving 
                a student who receives an enhanced achievement 
                scholarship under section 343(d)(2), means an 
                elementary or secondary school, or an entity that 
                provides services to a student enrolled in an 
                elementary or secondary school to enhance such 
                student's achievement through activities described in 
                section 343(d)(2);
            (4) the term ``parent'' includes a legal guardian or other 
        person standing in loco parentis; and
            (5) the term ``poverty line'' means the income official 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Community Services Block Grant Act (42 U.S.C. 9902(2)) 
        applicable to a family of the size involved.

SEC. 342. DISTRICT OF COLUMBIA SCHOLARSHIP CORPORATION.

    (a) General Requirements.--
            (1) In general.--There is authorized to be established a 
        private, nonprofit corporation, to be known as the ``District 
        of Columbia Scholarship Corporation'', which is neither an 
        agency nor establishment of the United States Government or the 
        District of Columbia Government.
            (2) Duties.--The Corporation shall have the responsibility 
        and authority to administer, publicize, and evaluate the 
        scholarship program in accordance with this subtitle, and to 
        determine student and school eligibility for participation in 
        such program.
            (3) Consultation.--The Corporation shall exercise its 
        authority--
                    (A) in a manner consistent with maximizing 
                educational opportunities for the maximum number of 
                interested families; and
                    (B) in consultation with the District of Columbia 
                Board of Education or entity exercising administrative 
                jurisdiction over the District of Columbia Public 
                Schools, the Superintendent of the District of Columbia 
                Public Schools, and other school scholarship programs 
                in the District of Columbia.
            (4) Application of provisions.--The Corporation shall be 
        subject to the provisions of this subtitle, and, to the extent 
        consistent with this subtitle, to the District of Columbia 
        Nonprofit Corporation Act (D.C. Code, sec. 29-501 et seq.).
            (5) Residence.--The Corporation shall have its place of 
        business in the District of Columbia and shall be considered, 
        for purposes of venue in civil actions, to be a resident of the 
        District of Columbia.
            (6) Fund.--There is established in the Treasury a fund that 
        shall be known as the District of Columbia Scholarship Fund, to 
        be administered by the Secretary of the Treasury.
            (7) Disbursement.--The Secretary of the Treasury shall make 
        available and disburse to the Corporation, before October 15 of 
        each fiscal year or not later than 15 days after the date of 
        enactment of an Act making appropriations for the District of 
        Columbia for such year, whichever occurs later, such funds as 
        have been appropriated to the District of Columbia Scholarship 
        Fund for the fiscal year in which such disbursement is made.
            (8) Availability.--Funds authorized to be appropriated 
        under this subtitle shall remain available until expended.
            (9) Uses.--Funds authorized to be appropriated under this 
        subtitle shall be used by the Corporation in a prudent and 
        financially responsible manner, solely for scholarships, 
        contracts, and administrative costs.
            (10) Authorization.--
                    (A) In general.--There are authorized to be 
                appropriated to the District of Columbia Scholarship 
                Fund--
                            (i) $7,000,000 for fiscal year 1998;
                            (ii) $8,000,000 for fiscal year 1999; and
                            (iii) $10,000,000 for each of fiscal years 
                        2000 through 2002.
                    (B) Limitation.--Not more than 7.5 percent of the 
                amount appropriated to carry out this subtitle for any 
                fiscal year may be used by the Corporation for salaries 
                and administrative costs.
    (b) Organization and Management; Board of Directors.--
            (1) Board of directors; membership.--
                    (A) In general.--The Corporation shall have a Board 
                of Directors (referred to in this subtitle as the 
                ``Board''), comprised of 7 members with 6 members of 
                the Board appointed by the President not later than 30 
                days after receipt of nominations from the Speaker of 
                the House of Representatives and the majority leader of 
                the Senate.
                    (B) House nominations.--The President shall appoint 
                3 of the members from a list of 9 individuals nominated 
                by the Speaker of the House of Representatives in 
                consultation with the minority leader of the House of 
                Representatives.
                    (C) Senate nominations.--The President shall 
                appoint 3 members from a list of 9 individuals 
                nominated by the majority leader of the Senate in 
                consultation with the minority leader of the Senate.
                    (D) Deadline.--The Speaker of the House of 
                Representatives and majority leader of the Senate shall 
                submit their nominations to the President not later 
                than 30 days after the date of the enactment of this 
                Act.
                    (E) Appointee of mayor.--The Mayor shall appoint 1 
                member of the Board not later than 60 days after the 
                date of the enactment of this Act.
                    (F) Possible interim members.--If the President 
                does not appoint the 6 members of the Board in the 30-
                day period described in subparagraph (A), then the 
                Speaker of the House of Representatives and the 
                Majority Leader of the Senate shall each appoint 2 
                members of the Board, and the Minority Leader of the 
                House of Representatives and the Minority Leader of the 
                Senate shall each appoint 1 of the Board, from among 
                the individuals nominated pursuant to subparagraphs (A) 
                and (B), as the case may be. The appointees under the 
                preceding sentence together with the appointee of the 
                Mayor, shall serve as an interim Board with all the 
                powers and other duties of the Board described in this 
                subtitle, until the President makes the appointments as 
                described in this paragraph.
            (2) Powers.--All powers of the Corporation shall vest in 
        and be exercised under the authority of the Board.
            (3) Elections.--Members of the Board annually shall elect 1 
        of the members of the Board to be chairperson of the Board.
            (4) Residency.--All members appointed to the Board shall be 
        residents of the District of Columbia at the time of 
        appointment and while serving on the Board.
            (5) Nonemployee.--No member of the Board may be an employee 
        of the United States Government or the District of Columbia 
        Government when appointed to or during tenure on the Board, 
        unless the individual is on a leave of absence from such a 
        position while serving on the Board.
            (6) Incorporation.--The members of the initial Board shall 
        serve as incorporators and shall take whatever steps are 
        necessary to establish the Corporation under the District of 
        Columbia Nonprofit Corporation Act (D.C. Code, sec. 29-501 et 
        seq.).
            (7) General term.--The term of office of each member of the 
        Board shall be 5 years, except that any member appointed to 
        fill a vacancy occurring prior to the expiration of the term 
        for which the predecessor was appointed shall be appointed for 
        the remainder of such term.
            (8) Consecutive term.--No member of the Board shall be 
        eligible to serve in excess of 2 consecutive terms of 5 years 
        each. A partial term shall be considered as 1 full term. Any 
        vacancy on the Board shall not affect the Board's power, but 
        shall be filled in a manner consistent with this subtitle.
            (9) No benefit.--No part of the income or assets of the 
        Corporation shall inure to the benefit of any Director, 
        officer, or employee of the Corporation, except as salary or 
        reasonable compensation for services.
            (10) Political activity.--The Corporation may not 
        contribute to or otherwise support any political party or 
        candidate for elective public office.
            (11) No officers or employees.--The members of the Board 
        shall not, by reason of such membership, be considered to be 
        officers or employees of the United States Government or of the 
        District of Columbia Government.
            (12) Stipends.--The members of the Board, while attending 
        meetings of the Board or while engaged in duties related to 
        such meetings or other activities of the Board pursuant to this 
        subtitle, shall be provided a stipend. Such stipend shall be at 
        the rate of $150 per day for which the member of the Board is 
        officially recorded as having worked, except that no member may 
        be paid a total stipend amount in any calendar year in excess 
        of $5,000.
    (c) Officers and Staff.--
            (1) Executive director.--The Corporation shall have an 
        Executive Director, and such other staff, as may be appointed 
        by the Board for terms and at rates of compensation, not to 
        exceed level EG-16 of the Educational Service of the District 
        of Columbia, to be fixed by the Board.
            (2) Staff.--With the approval of the Board, the Executive 
        Director may appoint and fix the salary of such additional 
        personnel as the Executive Director considers appropriate.
            (3) Annual rate.--No staff of the Corporation may be 
        compensated by the Corporation at an annual rate of pay greater 
        than the annual rate of pay of the Executive Director.
            (4) Service.--All officers and employees of the Corporation 
        shall serve at the pleasure of the Board.
            (5) Qualification.--No political test or qualification may 
        be used in selecting, appointing, promoting, or taking other 
        personnel actions with respect to officers, agents, or 
        employees of the Corporation.
    (d) Powers of the Corporation.--
            (1) Generally.--The Corporation is authorized to obtain 
        grants from, and make contracts with, individuals and with 
        private, State, and Federal agencies, organizations, and 
        institutions.
            (2) Hiring authority.--The Corporation may hire, or accept 
        the voluntary services of, consultants, experts, advisory 
        boards, and panels to aid the Corporation in carrying out this 
        subtitle.
    (e) Financial Management and Records.--
            (1) Audits.--The financial statements of the Corporation 
        shall be--
                    (A) maintained in accordance with generally 
                accepted accounting principles for nonprofit 
                corporations; and
                    (B) audited annually by independent certified 
                public accountants.
            (2) Report.--The report for each such audit shall be 
        included in the annual report to Congress required by section 
        350(c).
    (f) Responsibilities of the Corporation.--
            (1) Application schedule and procedures for 
        certification.--Not later than 60 days after the Board has been 
        appointed, the Corporation shall implement a schedule and 
        procedures for processing applications for awarding student 
        scholarships under this subtitle that includes a list of 
        certified eligible institutions, distribution of information to 
        parents and the general public (including through a newspaper 
        of general circulation), and deadlines for steps in the 
        scholarship application and award process.
            (2) Application.--An eligible institution that desires to 
        participate in the scholarship program under this subtitle 
        shall file an application with the Corporation for 
        certification for participation in the scholarship program 
        under this subtitle which shall--
                    (A) demonstrate that the eligible institution has 
                operated with not less than 25 students during the 3 
                years preceding the year for which the determination is 
                made unless the eligible institution is applying for 
                certification as a new eligible institution under 
                subsection (c);
                    (B) contain an assurance that the eligible 
                institution will comply with all applicable 
                requirements of this subtitle;
                    (C) contain an annual statement of the eligible 
                institution's budget; and
                    (D) describe the eligible institution's proposed 
                program, including personnel qualifications and fees.
            (3) Certification.--
                    (A) In general.--Not later than 60 days after 
                receipt of an application in accordance with paragraph 
                (2), the Corporation shall certify an eligible 
                institution to participate in the scholarship program 
                under this subtitle.
                    (B) Continuation.--An eligible institution's 
                certification to participate in the scholarship program 
                shall continue unless such eligible institution's 
                certification is revoked in accordance with paragraph 
                (5).
            (4) New eligible institution.--
                    (A) In general.--An eligible institution that did 
                not operate with at least 25 students in the 3 years 
                preceding the year for which the determination is made 
                may apply for a 1-year provisional certification to 
                participate in the scholarship program under this 
                subtitle for a single year by providing to the 
                Corporation not later than July 1 of the year preceding 
                the year for which the determination is made--
                            (i) a list of the eligible institution's 
                        board of directors;
                            (ii) letters of support from not less than 
                        10 members of the community served by such 
                        eligible institution;
                            (iii) a business plan;
                            (iv) an intended course of study;
                            (v) assurances that the eligible 
                        institution will begin operations with not less 
                        than 25 students;
                            (vi) assurances that the eligible 
                        institution will comply with all applicable 
                        requirements of this subtitle; and
                            (vii) a statement that satisfies the 
                        requirements of paragraphs (2) and (4) of 
                        subsection (a).
                    (B) Certification.--Not later than 60 days after 
                the date of receipt of an application described in 
                paragraph (2), the Corporation shall certify in writing 
                the eligible institution's provisional certification to 
                participate in the scholarship program under this 
                subtitle unless the Corporation determines that good 
                cause exists to deny certification.
                    (C) Renewal of provisional certification.--After 
                receipt of an application under subparagraph (A) from 
                an eligible institution that includes a statement of 
                the eligible institution's budget completed not earlier 
                than 12 months before the date such application is 
                filed, the Corporation shall renew an eligible 
                institution's provisional certification for the second 
                and third years of the school's participation in the 
                scholarship program under this subtitle unless the 
                Corporation finds--
                            (i) good cause to deny the renewal, 
                        including a finding of a pattern of violation 
                        of requirements described in paragraph (6)(A); 
                        or
                            (ii) consistent failure of 25 percent or 
                        more of the students receiving scholarships 
                        under this subtitle and attending such school 
                        to make appropriate progress (as determined by 
                        the Corporation) in academic achievement.
                    (D) Denial of certification.--If provisional 
                certification or renewal of provisional certification 
                under this paragraph is denied, then the Corporation 
                shall provide a written explanation to the eligible 
                institution of the reasons for such denial.
            (5) Revocation of eligibility.--
                    (A) In general.--The Corporation, after notice and 
                hearing, may revoke an eligible institution's 
                certification to participate in the scholarship program 
                under this subtitle for a year succeeding the year for 
                which the determination is made for--
                            (i) good cause, including a finding of a 
                        pattern of violation of program requirements 
                        described in paragraph (6)(A); or
                            (ii) consistent failure of 25 percent or 
                        more of the students receiving scholarships 
                        under this subtitle and attending such school 
                        to make appropriate progress (as determined by 
                        the Corporation) in academic achievement.
                    (B) Explanation.--If the certification of an 
                eligible institution is revoked, the Corporation shall 
                provide a written explanation of its decision to such 
                eligible institution and require a pro rata refund of 
                the payments received under this subtitle.
            (6) Participation requirements for eligible institutions.--
                    (A) Requirements.--Each eligible institution 
                participating in the scholarship program under this 
                subtitle shall--
                            (i) provide to the Corporation not later 
                        than June 30 of each year the most recent 
                        annual statement of the eligible institution's 
                        budget; and
                            (ii) charge a student that receives a 
                        scholarship under this subtitle not more than 
                        the cost of tuition and mandatory fees for, and 
                        transportation to attend, such eligible 
                        institution as other students who are residents 
                        of the District of Columbia and enrolled in 
                        such eligible institution.
                    (B) Compliance.--The Corporation may require 
                documentation of compliance with the requirements of 
                subsection (a), but neither the Corporation nor any 
                governmental entity may impose additional requirements 
                upon an eligible institution as a condition of 
                participation in the scholarship program under this 
                subtitle.

SEC. 343. SCHOLARSHIPS AUTHORIZED.

    (a) Eligible Students.--The Corporation is authorized to award 
tuition scholarships under subsection (d)(1) and enhanced achievement 
scholarships under subsection (d)(2) to students in kindergarten 
through grade 12--
            (1) who are residents of the District of Columbia; and
            (2) whose family income does not exceed 185 percent of the 
        poverty line.
    (b) Scholarship Priority.--
            (1) First.--The Corporation shall first award scholarships 
        to students described in subsection (a) who--
                    (A) are enrolled in a District of Columbia public 
                school or preparing to enter a District of Columbia 
                kindergarten, except that this subparagraph shall apply 
                only for academic years 1997, 1998, and 1999; or
                    (B) have received a scholarship from the 
                Corporation in the year preceding the year for which 
                the scholarship is awarded.
            (2) Second.--If funds remain for a fiscal year for awarding 
        scholarships after awarding scholarships under paragraph (1), 
        the Corporation shall award scholarships to students described 
        in subsection (a) who are not described in paragraph (1).
    (c) Random Selection.--Except as provided in subsections (a) and 
(b), if there are more applications to participate in the scholarship 
program than there are spaces available, a student shall be admitted 
using a random selection process.
    (d) Use of Scholarship.--
            (1) Tuition scholarships.--A tuition scholarship may be 
        used for the payment of the cost of the tuition and mandatory 
        fees at a public, private, or independent school located within 
        the geographic boundaries of the District of Columbia or the 
        cost of the tuition and mandatory fees at a public, private, or 
        independent school located within Montgomery County, Maryland; 
        Prince Georges County, Maryland; Arlington County, Virginia; 
        Alexandria City, Virginia; Falls Church City, Virginia; Fairfax 
        City, Virginia; or Fairfax County, Virginia.
            (2) Enhanced achievement scholarship.--An enhanced 
        achievement scholarship may be used only for the payment of the 
        costs of tuition and mandatory fees for, or transportation to 
        attend, a program of instruction provided by an eligible 
        institution which enhances student achievement of the core 
        curriculum and is operated outside of regular school hours to 
        supplement the regular school program.
    (e) Not School Aid.--A scholarship under this subtitle shall be 
considered assistance to the student and shall not be considered 
assistance to an eligible institution.

SEC. 344. SCHOLARSHIP AWARDS.

    (a) Awards.--From the funds made available under this subtitle, the 
Corporation shall award a scholarship to a student and make payments in 
accordance with section 345 on behalf of such student to a 
participating eligible institution chosen by the parent of the student.
    (b) Notification.--Each eligible institution that accepts a student 
who has received a scholarship under this subtitle shall notify the 
Corporation not later than 10 days after--
            (1) the date that a student receiving a scholarship under 
        this subtitle is enrolled, of the name, address, and grade 
        level of such student;
            (2) the date of the withdrawal or expulsion of any student 
        receiving a scholarship under this subtitle, of the withdrawal 
        or expulsion; and
            (3) the date that a student receiving a scholarship under 
        this subtitle is refused admission, of the reasons for such a 
        refusal.
    (c) Tuition Scholarship.--
            (1) Equal to or below poverty line.--For a student whose 
        family income is equal to or below the poverty line, a tuition 
        scholarship may not exceed the lesser of--
                    (A) the cost of tuition and mandatory fees for, and 
                transportation to attend, an eligible institution; or
                    (B) $3,200 for fiscal year 1998, with such amount 
                adjusted in proportion to changes in the Consumer Price 
                Index for all urban consumers published by the 
                Department of Labor for each of fiscal years 1999 
                through 2002.
            (2) Above poverty line.--For a student whose family income 
        is greater than the poverty line, but not more than 185 percent 
        of the poverty line, a tuition scholarship may not exceed the 
        lesser of--
                    (A) 75 percent of the cost of tuition and mandatory 
                fees for, and transportation to attend, an eligible 
                institution; or
                    (B) $2,400 for fiscal year 1998, with such amount 
                adjusted in proportion to changes in the Consumer Price 
                Index for all urban consumers published by the 
                Department of Labor for each of fiscal years 1999 
                through 2002.
    (d) Enhanced Achievement Scholarship.--An enhanced achievement 
scholarship may not exceed the lesser of--
            (1) the costs of tuition and mandatory fees for, or 
        transportation to attend, a program of instruction at an 
        eligible institution; or
            (2) $500 for 1998, with such amount adjusted in proportion 
        to changes in the Consumer Price Index for all urban consumers 
        published by the Department of Labor for each of fiscal years 
        1999 through 2002.

SEC. 345. SCHOLARSHIP PAYMENTS.

    (a) Disbursement of Scholarships.--The funds may be distributed by 
check or another form of disbursement which is issued by the 
Corporation and made payable directly to a parent of a student 
participating in the scholarship program under this subtitle. The 
parent may use such funds only as payment for tuition, mandatory fees, 
and transportation costs associated with attending or obtaining 
services from a participating eligible institution.
    (b) Pro Rata Amounts for Student Withdrawal.--
            (1) Before payment.--If a student receiving a scholarship 
        withdraws or is expelled from an eligible institution before a 
        scholarship payment is made, the eligible institution shall 
        receive a pro rata payment based on the amount of the 
        scholarship and the number of days the student was enrolled in 
        the eligible institution.
            (2) After payment.--If a student receiving a scholarship 
        withdraws or is expelled after a scholarship payment is made, 
        the eligible institution shall refund to the Corporation on a 
        pro rata basis the proportion of any scholarship payment 
        received for the remaining days of the school year. Such refund 
        shall occur not later than 30 days after the date of the 
        withdrawal or expulsion of the student.

SEC. 346. CIVIL RIGHTS.

    (a) In General.--An eligible institution participating in the 
scholarship program under this subtitle shall not engage in any 
practice that discriminates on the basis of race, color, national 
origin, or sex.
    (b) Exception.--Nothing in this Act shall be construed to prevent a 
parent from choosing or an eligible institution from offering, a 
single-sex school, class, or activity.
    (c) Revocation.--Notwithstanding section 342(f), if the Corporation 
determines that an eligible institution participating in the 
scholarship program under this title is in violation of any of the laws 
listed in subsection (a), then the Corporation shall revoke such 
eligible institution's certification to participate in the program.

SEC. 347. CHILDREN WITH DISABILITIES.

    Nothing in this subtitle shall affect the rights of students, or 
the obligations of the District of Columbia public schools, under the 
Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.).

SEC. 348. RULE OF CONSTRUCTION.

    (a) In General.--Nothing in this Act shall be construed to bar any 
eligible institution which is operated, supervised, or controlled by, 
or in connection with, a religious organization from limiting 
employment, or admission to, or giving preference to persons of the 
same religion as is determined by such institution to promote the 
religious purpose for which it is established or maintained.
    (b) Sectarian Purposes.--Nothing in this Act shall preclude the use 
of funds authorized under this Act for sectarian educational purposes 
or to require an eligible institution to remove religious art, icons, 
scripture, or other symbols.

 SEC. 349. REPORTING REQUIREMENTS.

    (a) In General.--An eligible institution participating in the 
scholarship program under this subtitle shall report not later than 
July 30 of each year in a manner prescribed by the Corporation, the 
following data:
            (1) Student achievement in the eligible institution's 
        programs.
            (2) Grade advancement for scholarship students.
            (3) Disciplinary actions taken with respect to scholarship 
        students.
            (4) Graduation, college admission test scores, and college 
        admission rates, if applicable for scholarship students.
            (5) Types and amounts of parental involvement required for 
        all families of scholarship students.
            (6) Student attendance for scholarship and nonscholarship 
        students.
            (7) General information on curriculum, programs, 
        facilities, credentials of personnel, and disciplinary rules at 
        the eligible institution.
            (8) Number of scholarship students enrolled.
            (9) Such other information as may be required by the 
        Corporation for program appraisal.
    (b) Confidentiality.--No personal identifiers may be used in such 
report, except that the Corporation may request such personal 
identifiers solely for the purpose of verification.

 SEC. 350. PROGRAM APPRAISAL.

    (a) Study.--Not later than 4 years after the date of enactment of 
this Act, the Comptroller General shall enter into a contract, with an 
evaluating agency that has demonstrated experience in conducting 
evaluations, for an independent evaluation of the scholarship program 
under this subtitle, including--
            (1) a comparison of test scores between scholarship 
        students and District of Columbia public school students of 
        similar backgrounds, taking into account the students' academic 
        achievement at the time of the award of their scholarships and 
        the students' family income level;
            (2) a comparison of graduation rates between scholarship 
        students and District of Columbia public school students of 
        similar backgrounds, taking into account the students' academic 
        achievement at the time of the award of their scholarships and 
        the students' family income level;
            (3) the satisfaction of parents of scholarship students 
        with the scholarship program; and
            (4) the impact of the scholarship program on the District 
        of Columbia public schools, including changes in the public 
        school enrollment, and any improvement in the academic 
        performance of the public schools.
    (b) Public Review of Data.--All data gathered in the course of the 
study described in subsection (a) shall be made available to the public 
upon request except that no personal identifiers shall be made public.
    (c) Report to Congress.--Not later than September 1 of each year, 
the Corporation shall submit a progress report on the scholarship 
program to the appropriate committees of Congress. Such report shall 
include a review of how scholarship funds were expended, including the 
initial academic achievement levels of students who have participated 
in the scholarship program.
    (d) Authorization.--There are authorized to be appropriated for the 
study described in subsection (a), $250,000, which shall remain 
available until expended.

 SEC. 351. JUDICIAL REVIEW.

    (a) In General.--The United States District Court for the District 
of Columbia shall have jurisdiction in any action challenging the 
scholarship program under this subtitle and shall provide expedited 
review.
    (b) Appeal to Supreme Court.--Notwithstanding any other provision 
of law, any order of the United States District Court for the District 
of Columbia which is issued pursuant to an action brought under 
subsection (a) shall be reviewable by appeal directly to the Supreme 
Court of the United States.

 SEC. 352. EFFECTIVE DATE.

    This subtitle shall be effective for each of the fiscal years 1998 
through 2002.

                  Subtitle C--Other Education Reforms

SEC. 361. REDUCTION IN ADMINISTRATIVE STAFF.

    At any time after June 30, 1998, the total number of full-time-
equivalent employees of the District of Columbia Public Schools whose 
principal duty is not classroom instruction may not exceed the number 
of such full-time-equivalent employees as of September 30, 1997, 
reduced by 200.

SEC. 362. DEVELOPMENT OF PERFORMANCE CRITERIA FOR TEACHERS.

    The District of Columbia Public Schools shall develop and implement 
performance benchmarks for teachers, based on the ability of students 
to improve by at least one grade level each year in performance on 
standardized tests, and shall establish incentives to encourage 
teachers to meet such benchmarks.

SEC. 363. REPEAL OF TAX EXEMPTION FOR LABOR ORGANIZATIONS.

    (a) In General.--Notwithstanding any provision of any Federally-
granted charter or any other provision of law, the real property of any 
labor organization located in the District of Columbia shall be subject 
to taxation by the District of Columbia in the same manner as any 
similar organization.
    (b) Labor Organization Defined.--In subsection (a), the term 
``labor organization'' means any organization of any kind, or any 
agency or employee representation committee or plan, in which employees 
participate and which exists for the purpose, in whole or in part, of 
dealing with employers concerning grievances, labor disputes, wages, 
rates of pay, hours of employment, or conditions of work.

SEC. 364. TREATMENT OF SUPERVISORY PERSONNEL AS AT-WILL EMPLOYEES.

    Notwithstanding any other provision of law or regulation (including 
any law or regulation providing for collective bargaining or the 
enforcement of any collective bargaining agreement), all supervisory 
personnel of the District of Columbia Public Schools shall be appointed 
by, shall serve at the pleasure of, and shall act under the direction 
and control of the Emergency Transitional Education Board of Trustees, 
and shall be considered at-will employees not covered by the District 
of Columbia Government Comprehensive Merit Personnel Act of 1978.

SEC. 365. DETERMINATION OF NUMBER OF STUDENTS ENROLLED.

    Not later than 30 days after the date of the enactment of this Act, 
and not later than 30 days after the beginning of each semester which 
begins after such date, the District of Columbia Auditor shall submit a 
report to Congress, the Mayor, the Council, the Chief Financial Officer 
of the District of Columbia, and the District of Columbia Financial 
Responsibility and Management Assistance Authority providing the most 
recent information available on the number of students enrolled in the 
District of Columbia Public Schools and the average daily attendance of 
such students.

SEC. 366. BUDGETING ON SCHOOL-BY-SCHOOL BASIS.

    (a) Preparation of Initial Budgets.--Not later than 30 days after 
the date of the enactment of this Act, the District of Columbia Public 
Schools shall prepare and submit to Congress a budget for each public 
elementary and secondary school for fiscal year 1998 which describes 
the amount expected to be expended with respect to the school for 
salaries, capital, and other appropriate categories of expenditures.
    (b) Use of Budgets for Future Aggregate Budget.--The District of 
Columbia Public Schools shall use the budgets prepared for individual 
schools under subsection (a) to prepare the overall budget for the 
Schools for fiscal year 1999.

SEC. 367. REQUIRING PROOF OF RESIDENCY FOR INDIVIDUALS ATTENDING 
              SCHOOLS AND SCHOOL CHILD CARE PROGRAMS.

    None of the funds made available in this Act or any other Act may 
be used by the District of Columbia Public Schools in fiscal year 1998 
or any succeeding fiscal year to provide classroom instruction or child 
care services to any minor whose parent or guardian does not supply the 
Schools with proof of the State of the minor's residence.

SEC. 368. DISTRICT OF COLUMBIA SCHOOL OF LAW.

    (a) Requiring Full Accreditation.--
            (1) In general.--If the District of Columbia School of Law 
        is not fully, unconditionally accredited by the American Bar 
        Association at its midyear meeting in February 1998, none of 
        the funds made available in this Act or any other Act may be 
        expended for or on behalf of the School except for purposes of 
        providing assistance to assist students enrolled at the School 
        as of such date who are residents of the District of Columbia 
        in paying the tuition for enrollment at other law schools in 
        the Washington Metropolitan Area, in accordance with a plan 
        submitted to Congress.
            (2) Restrictions on use of funds prior to accreditation.--
        None of the funds made available in this Act or any other Act 
        may be used by or on behalf of the District of Columbia School 
        of Law for recruiting or capital projects until the School is 
        fully, unconditionally accredited by the American Bar 
        Association.
    (b) No Other Source of Funding Permitted.--None of the funds made 
available in this Act or any other Act for the use of any entity 
(including the University of the District of Columbia) other than the 
District of Columbia School of Law may be transferred to, made 
available for, or expended for or on behalf of the District of Columbia 
School of Law.

SEC. 369. WAIVER OF LIABILITY IN PRO BONO ARRANGEMENTS.

    (a) In General.--Notwithstanding any other provision of law or any 
rule or regulation--
            (1) any person who voluntarily provides goods or services 
        to or on behalf of the District of Columbia Public Schools 
        without the expectation of receiving or intending to receive 
        compensation shall be immune from civil liability, both 
        personally and professionally, for any act or omission 
        occurring in the course of providing such goods or services 
        (except as provided in subsection (b)); and
            (2) the District of Columbia (including the District of 
        Columbia Public Schools) shall be immune from civil liability 
        for any act or omission of any person voluntarily providing 
        goods or services to or on behalf of the District of Columbia 
        Public Schools.
    (b) Exception for Intentional Acts or Acts of Gross Negligence.--
Subsection (a)(1) shall not apply with respect to any person if the act 
or omission involved--
            (1) constitutes gross negligence;
            (2) constitutes an intentional tort; or
            (3) is criminal in nature.
    (c) Effective Date.--This section shall apply with respect to the 
provision of goods and services occurring during fiscal year 1998 or 
any succeeding fiscal year.
    This Act may be cited as the ``District of Columbia Appropriations, 
Medical Liability Reform, and Education Reform Act of 1998''.

            Passed the House of Representatives October 9, 1997.

            Attest:

                                                                 Clerk.