[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2316 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2316

 To make technical and conforming changes to provide for the enactment 
of the Independence of the Chief Financial Officer Establishment Act of 
  2001, to establish a reporting event notification system to assist 
  Congress and the District of Columbia in maintaining the financial 
 stability of the District government and avoiding the initiation of a 
control period, to provide the District of Columbia with autonomy over 
                  its budgets, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 25, 2002

 Ms. Landrieu introduced the following bill; which was read twice and 
           referred to the Committee on Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
 To make technical and conforming changes to provide for the enactment 
of the Independence of the Chief Financial Officer Establishment Act of 
  2001, to establish a reporting event notification system to assist 
  Congress and the District of Columbia in maintaining the financial 
 stability of the District government and avoiding the initiation of a 
control period, to provide the District of Columbia with autonomy over 
                  its budgets, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``District of 
Columbia Fiscal Integrity Act of 2002''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
      TITLE I--CHIEF FINANCIAL OFFICER OF THE DISTRICT OF COLUMBIA

Sec. 101. Technical and conforming changes providing for enactment of 
                            Independence of the Chief Financial Officer 
                            Establishment Act of 2002.
Sec. 102. Special interim rule regarding personnel authority.
Sec. 103. Special interim rule regarding procurement authority.
Sec. 104. Special interim rule regarding preparation and submission of 
                            budget for Chief Financial Officer and 
                            Inspector General.
Sec. 105. Effective date.
             TITLE II--COUNCIL OF THE DISTRICT OF COLUMBIA

Sec. 201. Procedures for reprogramming of amounts during non-control 
                            years.
Sec. 202. Repeal of requirement for Council approval of contracts 
                            exceeding $1,000,000 during one-year 
                            period.
             TITLE III--REPORTING EVENT NOTIFICATION SYSTEM

Sec. 301. Reporting event notification system.
             TITLE IV--DISTRICT OF COLUMBIA BUDGET AUTONOMY

Sec. 401. Enactment of District of Columbia budget without further 
                            Congressional approval.
Sec. 402. Action by Council of District of Columbia on budget acts.
Sec. 403. Permitting employees to be hired if position authorized by 
                            act of the Council.
Sec. 404. Amendments to limitations on borrowing and spending by the 
                            District to reflect changes in budget 
                            process.
Sec. 405. Effective date.

      TITLE I--CHIEF FINANCIAL OFFICER OF THE DISTRICT OF COLUMBIA

SEC. 101. TECHNICAL AND CONFORMING CHANGES PROVIDING FOR ENACTMENT OF 
              INDEPENDENCE OF THE CHIEF FINANCIAL OFFICER ESTABLISHMENT 
              ACT OF 2001.

    (a) In General.--Part B of title IV of the District of Columbia 
Home Rule Act is amended by striking section 424 (sec. 1-204.24a et 
seq., D.C. Official Code).
    (b) Clarification of Duties of Chief Financial Officer and Mayor.--
            (1) Relation to financial duties of mayor.--Section 448(a) 
        of such Act (sec. 1-204.48(a), D.C. Official Code) is amended 
        by striking ``section 603,'' and inserting ``section 603 and 
        except to the extent provided under section 6 of the 
        Independence of the Chief Financial Officer Establishment Act 
        of 2001,''.
            (2) Relation to mayor's duties regarding accounting 
        supervision and control.--Section 449 of such Act (sec. 1-
        204.49, D.C. Official Code) is amended by striking ``The 
        Mayor'' and inserting ``Except to the extent provided under 
        section 6 of the Independence of the Chief Financial Officer 
        Establishment Act of 2001, the Mayor''.
    (c) Conforming Amendment.--Section 422(6) of such Act (sec. 1-
204.22(6), D.C. Official Code) is amended by striking the second 
sentence.
    (d) Clerical Amendment.--The table of contents for the District of 
Columbia Home Rule Act is amended by striking the item relating to 
section 424.

SEC. 102. SPECIAL INTERIM RULE REGARDING PERSONNEL AUTHORITY.

    (a) Authority Over Personnel of Office and Other Financial 
Personnel.--
            (1) In general.--Notwithstanding any provision of the 
        Independence of the Chief Financial Officer Establishment Act 
        of 2001 or any other provision of law or regulation (including 
        any law or regulation providing for collective bargaining or 
        the enforcement of any collective bargaining agreement), during 
        the period of applicability referred to in subsection (b) the 
        following personnel shall be appointed by, shall serve at the 
        pleasure of, and shall act under the direction and control of 
        the Chief Financial Officer of the District of Columbia, and 
        shall be considered at-will employees not covered by the 
        District of Columbia Government Comprehensive Merit Personnel 
        Act of 1978:
                    (A) The counsel to the Office of the Chief 
                Financial Officer of the District of Columbia and other 
                attorneys employed by the Office.
                    (B) Personnel of the Office not described in 
                subparagraph (A).
                    (C) The heads and all personnel of the offices 
                described in paragraph (2), 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).
            (2) Offices described.--The offices referred to in this 
        subparagraph are as follows:
                    (A) The Office of the Treasurer (or any successor 
                office).
                    (B) The Controller of the District of Columbia (or 
                any successor office).
                    (C) The Office of the Budget (or any successor 
                office).
                    (D) The Office of Financial Information Services 
                (or any successor office).
                    (E) The Department of Finance and Revenue (or any 
                successor office).
                    (F) The District of Columbia Lottery and Charitable 
                Games Control Board.
    (b) Period of Applicability.--The period of applicability referred 
to in this subsection is the 2-year period which begins on the 
effective date described in section 105.

SEC. 103. SPECIAL INTERIM RULE REGARDING PROCUREMENT AUTHORITY.

    (a) Exclusion From Procurement Contracting Authority of Mayor.--
Notwithstanding any provision of the Independence of the Chief 
Financial Officer Establishment Act of 2001 or any other provision of 
law, during the period of applicability described in subsection (b)--
            (1) the Mayor of the District of Columbia may not enter 
        into any contract, or issue any order, rule, or regulation, 
        with respect to the procurement of goods and services by or on 
        behalf of the Chief Financial Officer of the District of 
        Columbia;
            (2) the Chief Financial Officer may waive the application 
        of any provision of the District of Columbia Procurement 
        Practices Act of 1986 with respect to any contract entered into 
        by the Chief Financial Officer for the procurement of goods and 
        services for the use of the Office of the Chief Financial 
        Officer; and
            (3) any contract entered into by the Chief Financial 
        Officer for the procurement of goods and services for the use 
        of the Office shall be effective without review by the Mayor or 
        Council of the District of Columbia.
    (b) Period of Applicability.--The period of applicability referred 
to in this subsection is the 2-year period which begins on the 
effective date described in section 105.

SEC. 104. SPECIAL INTERIM RULE REGARDING PREPARATION AND SUBMISSION OF 
              BUDGET FOR CHIEF FINANCIAL OFFICER AND INSPECTOR GENERAL.

    (a) In General.--
            (1) Preparation.--The Chief Financial Officer of the 
        District of Columbia and the Inspector General of the District 
        of Columbia shall each prepare and annually submit to the Mayor 
        of the District of Columbia, for inclusion in the annual budget 
        of the District of Columbia government for a fiscal year, 
        annual estimates of the expenditures and appropriations 
        necessary for the year for the operation of the Office of the 
        Chief Financial Officer or the Office of the Inspector General 
        (as the case may be).
            (2) Submission to council.--In addition to the items 
        relating to the Office of the Chief Financial Officer and the 
        Office of the Inspector General which are included in the 
        annual budget submitted by the Mayor to the Council of the 
        District of Columbia under section 442 of the District of 
        Columbia Home Rule Act, the Mayor shall forward to the Council 
        without revision (at the time the Mayor submits the budget) the 
        estimates prepared under paragraph (1).
            (3) Providing independent information to council.--The 
        Chief Financial Officer and the Inspector General may provide 
        independent testimony and other information to the Council 
        regarding the estimates forwarded under paragraph (2).
    (b) Period of Applicability.--This section shall apply with respect 
to the first 2 fiscal years which begin after the effective date 
described in section 105.

SEC. 105. EFFECTIVE DATE.

    Except as otherwise provided, this title and the amendments made by 
this title shall take effect upon the approval by the Mayor of the 
District of Columbia of the Independence of the Chief Financial Officer 
Establishment Act of 2001 (or, in the event of a veto of such Act by 
the Mayor, upon action by the Council of the District of Columbia to 
override the veto).

             TITLE II--COUNCIL OF THE DISTRICT OF COLUMBIA

SEC. 201. PROCEDURES FOR REPROGRAMMING OF AMOUNTS DURING NON-CONTROL 
              YEARS.

    (a) In General.--Subpart 1 of part D of title IV of the District of 
Columbia Home Rule Act is amended by inserting after section 446 the 
following new section:

          ``reprogramming of amounts in budget after adoption

    ``Sec. 446A. (a) Years Other Than Control Years.--
            ``(1) In general.--After the adoption of the annual budget 
        for a fiscal year which is not a control year, no reprogramming 
        of amounts in the budget may occur unless--
                    ``(A) the Mayor submits a request for such 
                reprogramming to the Chief Financial Officer of the 
                District of Columbia;
                    ``(B) the Chief Financial Officer transmits to the 
                Council a statement approving the request and 
                containing an analysis of the effect of the proposed 
                reprogramming on the financial plan and budget for the 
                fiscal year; and
                    ``(C) the Council approves the request after 
                receiving the statement described in subparagraph (B) 
                from the Chief Financial Officer.
            ``(2) Deemed approval by cfo after 10 days.--If the Chief 
        Financial Officer does not transmit to the Council a statement 
        described in paragraph (1)(B) (or a statement disapproving the 
        request for reprogramming) during the 10-day period which 
        begins on the date the Chief Financial Officer receives the 
        request for reprogramming from the Mayor, the Chief Financial 
        Officer shall be deemed to have approved the request and to 
        have transmitted a statement approving the request to the 
        Council.
    ``(b) Control Years.--After the adoption of the annual budget for a 
fiscal year which is a control year (beginning with the annual budget 
for fiscal year 1995), no reprogramming of amounts in the budget may 
occur unless the Mayor submits to the Council a request for such 
reprogramming and the Council approves the request, but only if any 
additional expenditures provided under such request for an activity are 
offset by reductions in expenditures for another activity.
    ``(c) Control Year Defined.--In this section, the term `control 
year' has the meaning given such term in section 305(4) of the District 
of Columbia Financial Responsibility and Management Assistance Act of 
1995.''.
    (b) Conforming Amendment.--Section 446 of such Act (sec. 1-204.46, 
D.C. Official Code) is amended by striking the last sentence.
    (c) Clerical Amendment.--The table of sections for subpart 1 of 
part D of title IV of the District of Columbia Home Rule Act is amended 
by inserting after the item relating to section 446 the following new 
item:

        ``Sec. 446A. Reprogramming of amounts in budget after 
                            adoption.''.

SEC. 202. REPEAL OF REQUIREMENT FOR COUNCIL APPROVAL OF CONTRACTS 
              EXCEEDING $1,000,000 DURING ONE-YEAR PERIOD.

    Section 451 of the District of Columbia Home Rule Act (sec. 1-
204.51, D.C. Official Code) is amended--
            (1) by striking subsection (b); and
            (2) by redesignating subsections (c) and (d) as subsections 
        (b) and (c).

             TITLE III--REPORTING EVENT NOTIFICATION SYSTEM

SEC. 301. REPORTING EVENT NOTIFICATION SYSTEM.

    (a) In General.--Subtitle A of title II of the District of Columbia 
Financial Responsibility and Management Assistance Act of 1995 (sec. 
47-392.01 et seq., D.C. Official Code) is amended by adding at the end 
the following new section:

``SEC. 210. REPORTING EVENT NOTIFICATION SYSTEM.

    ``(a) Establishment of System.--
            ``(1) In general.--Not later than 30 days after the date of 
        the enactment of the District of Columbia Fiscal Integrity Act 
        of 2001, the Chief Financial Officer of the District of 
        Columbia shall develop a reporting event notification system 
        under which the Chief Financial Officer shall, on an ongoing 
        basis--
                    ``(A) monitor the financial performance of the 
                District government, economic trends in the Washington 
                metropolitan area, and other factors affecting the 
                financial stability of the District of Columbia;
                    ``(B) on the basis of such factors, determine 
                whether an event is likely to occur which will result 
                in the initiation of a control period (as provided in 
                section 209(a)) if the District of Columbia does not 
                take prompt and sufficient steps to respond to the 
                event; and
                    ``(C) notify the Mayor and Congress upon making a 
                determination described in subparagraph (B).
            ``(2) Consultation.--The Chief Financial Officer shall 
        develop the reporting event notification system. In developing 
        the system, the Chief Financial Officer shall consult with the 
        Mayor, the Council, the Inspector General of the District of 
        Columbia, the Comptroller General, and the Director of the 
        Office of Management and Budget.
            ``(3) Submission to congress.--The reporting event 
        notification system developed under this subsection shall take 
        effect upon the expiration of the 30-day period which begins on 
        the date the Chief Financial Officer submits a detailed 
        description of the system to the Committees on Appropriations 
        of the House of Representatives and Senate, the Committee on 
        Government Reform of the House of Representatives, and the 
        Committee on Governmental Affairs of the Senate.
    ``(b) Response by Mayor.--
            ``(1) In general.--If the Mayor receives a notification 
        from the Chief Financial Officer under subsection (a)(1)(C), 
        the Mayor shall develop an action plan to respond to the event 
        which is the subject of the notification, and shall include in 
        the plan--
                    ``(A) a description of the event and the causes of 
                the event;
                    ``(B) an assessment of the risk to the financial 
                stability of the District government caused by the 
                event; and
                    ``(C) a list of actions the District will take to 
                respond to the event, including--
                            ``(i) who is responsible for each action;
                            ``(ii) the timeframe for each action; and
                            ``(iii) performance measures to assess 
                        progress with regard to each action.
            ``(2) Deadline.--The Mayor shall develop the action plan 
        required under paragraph (1) as soon as practicable after 
        receiving the notification from the Chief Financial Officer, 
        but in no event later than 15 days after receiving the 
        notification.
            ``(3) Submission.--The Mayor shall submit each action plan 
        developed under this subsection to the President, the Council, 
        the Committees on Appropriations of the House of 
        Representatives and Senate, the Committee on Government Reform 
        of the House of Representatives, and the Committee on 
        Governmental Affairs of the Senate.''.
    (b) Clerical Amendment.--The table of sections for subtitle A of 
title II of such Act is amended by adding at the end the following new 
item:

        ``Sec. 210. Reporting event notification system.''.

             TITLE IV--DISTRICT OF COLUMBIA BUDGET AUTONOMY

SEC. 401. ENACTMENT OF DISTRICT OF COLUMBIA BUDGET WITHOUT FURTHER 
              CONGRESSIONAL APPROVAL.

    (a) In General.--Section 446 of the District of Columbia Home Rule 
Act (sec. 1-204.46, D.C. Official Code) is amended by striking the 
third, fourth, and fifth sentences and inserting the following: ``Any 
such act by the Council adopting the annual budget or any supplements 
thereto shall take effect upon the transmittal of the act by the 
Council to the Congress. Except as provided in section 445A(b), section 
467(d), section 471(c), section 472(d), section 475(e), section 483(d), 
and subsections (f), (g), (h)(3), and (i)(3) of section 490, no amount 
may be obligated or expended by any officer or employee of the District 
of Columbia government unless such amount has been approved by an act 
of the Council (and then only in accordance with such authorization) 
and a copy of such act has been transmitted by the Chairman to the 
Congress.''.
    (b) Conforming Amendments.--(1) Section 412(a) of such Act (sec. 1-
204.12(a), D.C. Official Code) is amended by striking ``(other than an 
act to which section 446 applies)''.
    (2) Section 602(c)(1) of such Act (sec. 1-206.02(c)(1), D.C. 
Official Code) is amended in the first sentence by striking ``section 
462(c) and section 472(d)(1)'' and inserting ``sections 446, 462(c), 
and 472(d)(1)''.
    (c) Clerical Amendments.--(1) The heading of section 446 of such 
Act is amended to read as follows:

                ``enactment of budget by the council''.

    (2) The item relating to section 446 in the table of contents of 
such Act is amended to read as follows:

        ``Sec. 446. Enactment of budget by the Council.''.

SEC. 402. ACTION BY COUNCIL OF DISTRICT OF COLUMBIA ON BUDGET ACTS.

    Section 404(f) of the District of Columbia Home Rule Act (sec. 1-
204.4(f), D.C. Official Code) is amended by striking ``transmitted by 
the Chairman to the President of the United States'' both places it 
appears and inserting ``incorporated in such Act''.

SEC. 403. PERMITTING EMPLOYEES TO BE HIRED IF POSITION AUTHORIZED BY 
              ACT OF THE COUNCIL.

    Section 447 of the District of Columbia Home Rule Act (sec. 1-
204.47, D.C. Official Code) is amended--
            (1) by striking ``Act of Congress'' and inserting ``act of 
        the Council'' both places it appears; and
            (2) by striking ``Acts of Congress'' and inserting ``acts 
        of the Council''.

SEC. 404. AMENDMENTS TO LIMITATIONS ON BORROWING AND SPENDING BY THE 
              DISTRICT TO REFLECT CHANGES IN BUDGET PROCESS.

    (a) Federal Authority Over Budget-Making Process.--Section 603 of 
the District of Columbia Home Rule Act (sec. 1-206.03, D.C. Official 
Code) is amended--
            (1) by striking subsections (a) and (d); and
            (2) by redesignating subsections (b), (c), and (e) as 
        subsections (a), (b), and (c).
    (b) Conforming Amendments.--(1) Section 443(8) of such Act (sec. 1-
204.43(8), D.C. Official Code) is amended by striking ``section 
603(b)'' and inserting ``section 603(a)''.
    (2) Section 445 of such Act (sec. 1-204.46, D.C. Official Code) is 
amended by striking ``603(c)'' and inserting ``603(b)''.
    (3) Section 445A of such Act (sec. 1-204.45a, D.C. Official Code) 
is amended by striking ``603(c)'' and inserting ``603(b)''.
    (4) Section 461(a)(1) of such Act (sec. 1-204.61(a)(1), D.C. 
Official Code) is amended by striking ``section 603(b)'' and inserting 
``section 603(a)''.
    (5) Section 475(b) of such Act (sec. 1-204.75(b), D.C. Official 
Code) is amended by striking ``section 603(b)'' and inserting ``section 
603(a)''.
    (6) Section 487(a) of such Act (sec. 1-204.87(a), D.C. Official 
Code) is amended by striking ``section 603(b)'' and inserting ``section 
603(a)''.
    (7) Section 490(i) of such Act (sec. 1-204.90(i), D.C. Official 
Code) is amended by striking ``section 603(b)'' and inserting ``section 
603(a)''.

SEC. 405. EFFECTIVE DATE.

    The amendments made by this title shall apply to budgets of the 
District of Columbia for fiscal years beginning on or after October 1, 
2003.
                                 <all>