[Congressional Record Volume 141, Number 61 (Monday, April 3, 1995)]
[House]
[Pages H4048-H4072]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1500
DISTRICT OF COLUMBIA FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE 
                              ACT OF 1995

  Mr. CLINGER. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1345) to eliminate budget deficits and management 
inefficiencies in the government of the District of Columbia through 
the establishment of the District of Columbia Financial Responsibility 
and Management Assistance Authority, and for other purposes, as 
amended.
  The Clerk read as follows:
                               H.R. 1345

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,
     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``District 
     of Columbia Financial Responsibility and Management 
     Assistance Act of 1995''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings; purpose.

          TITLE I--ESTABLISHMENT AND ORGANIZATION OF AUTHORITY

Sec. 101. District of Columbia Financial Responsibility and Management 
              Assistance Authority.
Sec. 102. Executive director and staff of Authority.
Sec. 103. Powers of Authority.
Sec. 104. Exemption from liability for claims.
Sec. 105. Treatment of actions arising from act.
Sec. 106. Funding for operation of Authority.
Sec. 107. Suspension of activities.
Sec. 108. Application of laws of District of Columbia to Authority.

                TITLE II--RESPONSIBILITIES OF AUTHORITY

Subtitle A--Establishment and Enforcement of Financial Plan and Budget 
                        for District Government

Sec. 201. Development of financial plan and budget for District of 
              Columbia.
Sec. 202. Process for submission and approval of financial plan and 
              annual District budget.
Sec. 203. Review of activities of District government to ensure 
              compliance with approved financial plan and budget.
Sec. 204. Restrictions on borrowing by District during control year.
``Sec. 601. Transitional provision for short-term advances.
``Sec. 602. Short-term advances for seasonal cash-flow management.
``Sec. 603. Security for advances.
``Sec. 604. Reimbursement to the Treasury.
``Sec. 605. Definitions.
Sec. 205. Deposit of annual Federal payment with Authority.
Sec. 206. Effect of finding of non-compliance with financial plan and 
              budget.
Sec. 207. Recommendations on financial stability and management 
              responsibility.
Sec. 208. Special rules for fiscal year 1996.
Sec. 209. Control periods described.

                     Subtitle B--Issuance of Bonds

Sec. 211. Authority to issue bonds.
Sec. 212. Pledge of security interest in revenues of district 
              government.
Sec. 213. Establishment of debt service reserve fund.
Sec. 214. Other requirements for issuance of bonds.
Sec. 215. No full faith and credit of the United States.

                 Subtitle C--Other Duties of Authority

Sec. 221. Duties of Authority during year other than control year.
Sec. 222. General assistance in achieving financial stability and 
              management efficiency.
Sec. 223. Obtaining reports.
Sec. 224. Reports and comments.

                  TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Other District budget reforms.
Sec. 302. Establishment of Chief Financial Officer of District of 
              Columbia.
Sec. 303. Revisions to powers and duties of Inspector General of 
              District of Columbia.
Sec. 304. Council approval of certain contracts.
Sec. 305. Definitions.
     SEC. 2. FINDINGS; PURPOSE.

       (a) Findings.--Congress finds the following:
       (1) A combination of accumulated operating deficits, cash 
     shortages, management inefficiencies, and deficit spending in 
     the current fiscal year have created a fiscal emergency in 
     the District of Columbia.
     [[Page H4049]]   (2) As a result of its current financial 
     problems and management inefficiencies, the District of 
     Columbia government fails to provide its citizens with 
     effective and efficient services in areas such as education, 
     health care, crime prevention, trash collection, drug abuse 
     treatment and prevention, human services delivery, and the 
     supervision and training of government personnel.
       (3) The current financial and management problems of the 
     District government have already adversely affected the long-
     term economic health of the District of Columbia by causing 
     the migration of residents and business out of the District 
     of Columbia and the failure of new residents and businesses 
     to move to the District of Columbia.
       (4) The fiscal and management problems in the District of 
     Columbia government are pervasive across all segments of the 
     government.
       (5) A comprehensive approach to fiscal, management, and 
     structural problems must be undertaken which exempts no part 
     of the District government and which preserves home rule for 
     the citizens of the District of Columbia.
       (6) The current deficit of the District of Columbia must be 
     resolved over a multi-year period, since it cannot be 
     effectively addressed in a single year.
       (7) The ability of the District government to obtain funds 
     from capital markets in the future will be severely 
     diminished without Congressional action to restore its 
     financial stability.
       (8) The failure to improve the financial situation of the 
     District government will adversely affect the long-term 
     economic health of the entire National Capital region.
       (9) The efficient operation of the Federal Government may 
     be adversely affected by the current problems of the District 
     of Columbia not only through the services the District 
     government provides directly to the Federal Government but 
     through services provided indirectly such as street and 
     traffic flow maintenance, public safety, and services 
     affecting tourism.
       (b) Purpose.--The purposes of this Act are as follows:
       (1) To eliminate budget deficits and cash shortages of the 
     District of Columbia through visionary financial planning, 
     sound budgeting, accurate revenue forecasts, and careful 
     spending.
       (2) To ensure the most efficient and effective delivery of 
     services, including public safety services, by the District 
     government during a period of fiscal emergency.
       (3) To conduct necessary investigations and studies to 
     determine the fiscal status and operational efficiency of the 
     District government.
       (4) To assist the District government in--
       (A) restructuring its organization and workforce to ensure 
     that the residents of the District of Columbia are served by 
     a local government that is efficient and effective;
       (B) achieving an appropriate relationship with the Federal 
     Government;
       (C) ensuring the appropriate and efficient delivery of 
     services; and
       (D) modernizing its budget, accounting, personnel, 
     procurement, information technology, and management systems 
     to ensure the maximum financial and performance 
     accountability of the District government and its officers 
     and employees.
       (5) To enhance the District government's access to the 
     capital markets and to ensure the continued orderly payment 
     of its debt service obligations.
       (6) To ensure the long-term financial, fiscal, and economic 
     vitality and operational efficiency of the District of 
     Columbia.
       (7) To examine the programmatic and structural relationship 
     between the District government and the Federal Government.
       (8) To provide for the review of the financial impact of 
     activities of the District government before such activities 
     are implemented or submitted for Congressional review.
       (c) Rules of Construction.--Nothing in this Act may be 
     construed--
       (1) to relieve any obligations existing as of the date of 
     the enactment of this Act of the District government to repay 
     any individual or entity from whom the District has borrowed 
     funds, whether through the issuance of bonds or otherwise; or
       (2) to limit the authority of Congress to exercise ultimate 
     legislative authority over the District of Columbia pursuant 
     to Article I, section 8, clause 17 of the Constitution of the 
     United States.
          TITLE I--ESTABLISHMENT AND ORGANIZATION OF AUTHORITY
     SEC. 101. DISTRICT OF COLUMBIA FINANCIAL RESPONSIBILITY AND 
                   MANAGEMENT ASSISTANCE AUTHORITY.

       (a) Establishment.--Pursuant to Article I, section 8, 
     clause 17 of the Constitution of the United States, there is 
     hereby established the District of Columbia Financial 
     Responsibility and Management Assistance Authority, 
     consisting of members appointed by the President in 
     accordance with subsection (b). Subject to the conditions 
     described in section 108 and except as otherwise provided in 
     this Act, the Authority is established as an entity within 
     the government of the District of Columbia, and is not 
     established as a department, agency, establishment, or 
     instrumentality of the United States Government.
       (b) Membership.--
       (1) In general.--The Authority shall consist of 5 members 
     appointed by the President who meet the qualifications 
     described in subsection (c), except that the Authority may 
     take any action under this Act (or any amendments made by 
     this Act) at any time after the President has appointed 3 of 
     its members.
       (2) Consultation with congress.--The President shall 
     appoint the members of the Authority after consulting with 
     the Chair of the Committee on Appropriations and the Chair of 
     the Committee on Government Reform and Oversight of the House 
     of Representatives, the Chair of the Committee on 
     Appropriations and the Chair of the Committee on Governmental 
     Affairs of the Senate, and the Delegate to the House of 
     Representatives from the District of Columbia.
       (3) Chair.--The President shall designate one of the 
     members of the Authority as the Chair of the Authority.
       (4) Sense of congress regarding deadline for appointment.--
     It is the sense of Congress that the President should appoint 
     the members of the Authority as soon as practicable after the 
     date of the enactment of this Act, but in no event later than 
     25 days after the date of the enactment of this Act.
       (5) Term of service.--
       (A) In general.--Except as provided in subparagraph (B), 
     each member of the Authority shall be appointed for a term of 
     3 years.
       (B) Appointment for term following initial term.--As 
     designated by the President at the time of appointment for 
     the term immediately following the initial term, of the 
     members appointed for the term immediately following the 
     initial term--
       (i) 1 member shall be appointed for a term of 1 year;
       (ii) 2 members shall be appointed for a term of 2 years; 
     and
       (iii) 2 members shall be appointed for a term of 3 years.
       (C) Removal.--The President may remove any member of the 
     Authority only for cause.
       (c) Qualifications for Membership.--An individual meets the 
     qualifications for membership on the Authority if the 
     individual--
       (1) has knowledge and expertise in finance, management, and 
     the organization or operation of business or government;
       (2) does not provide goods or services to the District 
     government (and is not the spouse, parent, child, or sibling 
     of an individual who provides goods and services to the 
     District government);
       (3) is not an officer or employee of the District 
     government; and
       (4) during the most recent taxable year prior to 
     appointment, paid personal income or business taxes to the 
     District government.
       (d) No Compensation for Service.--Members of the Authority 
     shall serve without pay, but may receive reimbursement for 
     any reasonable and necessary expenses incurred by reason of 
     service on the Authority.
       (e) Adoption of By-Laws for Conducting Business of 
     Authority.--
       (1) In general.--As soon as practicable after the 
     appointment of its members, the Authority shall adopt by-
     laws, rules, and procedures governing its activities under 
     this Act, including procedures for hiring experts and 
     consultants. Such by-laws, rules, and procedures shall be 
     public documents, and shall be submitted by the Authority 
     upon adoption to the Mayor, the Council, the President, and 
     Congress.
       (2) Certain activities requiring approval of majority of 
     members.--Under the by-laws adopted pursuant to paragraph 
     (1), the Authority may conduct its operations under such 
     procedures as it considers appropriate, except that an 
     affirmative vote of a majority of the members the Authority 
     shall be required in order for the Authority to--
       (A) approve or disapprove a financial plan and budget under 
     subtitle A of title II;
       (B) implement recommendations on financial stability and 
     management responsibility under section 207;
       (C) give consent to the appointment of the Chief Financial 
     Officer of the District of Columbia under section 424 of the 
     District of Columbia Self-Government and Governmental 
     Reorganization Act (as added by section 302); and
       (D) give consent to the appointment of the Inspector 
     General of the District of Columbia under section 208(a) of 
     the District of Columbia Procurement Practices Act of 1985 
     (as amended by section 303(a)).
       (3) Adoption of rules and regulations of district of 
     columbia.--The Authority may incorporate in its by-laws, 
     rules, and procedures under this subsection such rules and 
     regulations of the District government as it considers 
     appropriate to enable it to carry out its activities under 
     this Act with the greatest degree of independence 
     practicable.

     SEC. 102. EXECUTIVE DIRECTOR AND STAFF OF AUTHORITY.

       (a) Executive Director.--The Authority shall have an 
     Executive Director who shall be appointed by the Chair with 
     the consent of the Authority. The Executive Director shall be 
     paid at a rate determined by the Authority, except that such 
     rate may not exceed the rate of basic pay payable for level 
     IV of the Executive Schedule.
       (b) Staff.--With the approval of the Chair, the Executive 
     Director may appoint and fix the pay of additional personnel 
     as the Executive Director considers appropriate, except that 
     no individual appointed by the Executive Director may be paid 
     at a rate greater than the rate of pay for the Executive 
     Director.
       (c) Inapplicability of Certain Civil Service Laws.--The 
     Executive Director and staff of the Authority may be 
     appointed without 
     [[Page H4050]] regard to the provisions of title 5, United 
     States Code, governing appointments in the competitive 
     service, and may be paid without regard to the provisions of 
     chapter 51 and subchapter III of chapter 53 of that title 
     relating to classification and General Schedule pay rates.
       (d) Staff of Federal Agencies.--Upon request of the Chair, 
     the head of any Federal department or agency may detail, on a 
     reimbursable or non-reimbursable basis, any of the personnel 
     of that department or agency to the Authority to assist it in 
     carrying out its duties under this Act.
       (e) Preservation of Retirement and Certain Other Rights of 
     Federal Employees Who Become Employed by the Authority.--
       (1) In general.--A Federal employee who, within 2 months 
     after separating from the Federal Government, becomes 
     employed by the Authority--
       (A) may elect, for purposes of the retirement system in 
     which that individual last participated before so separating, 
     to have such individual's period of service with the 
     Authority treated in the same way as if performed in the 
     position within the Federal Government from which separated, 
     subject to the requisite employee deductions and agency 
     contributions being currently deposited in the appropriate 
     fund; and
       (B) if, after serving with the Authority, such employee 
     becomes reemployed by the Federal Government, shall be 
     entitled to credit, for the full period of such individual's 
     service with the Authority, for purposes of determining the 
     applicable leave accrual rate.
       (2) Retirement.--
       (A) Contributions.--For purposes of subparagraph (A) of 
     paragraph (1)--
       (i) the employee deductions referred to in such paragraph 
     shall be made from basic pay for service with the Authority, 
     and shall be computed using the same percentage as would then 
     apply if the individual were instead serving in the position 
     within the Federal Government from which separated; and
       (ii) the agency contributions referred to in such paragraph 
     shall be made by the Authority.
       (B) Double coverage not permitted.--An individual who makes 
     an election under paragraph (1)(A) shall be ineligible, while 
     such election remains in effect, to participate in any 
     retirement system for employees of the government of the 
     District of Columbia.
       (3) Regulations.--The Office of Personnel Management shall 
     prescribe such regulations as may be necessary to carry out 
     this subsection. Regulations to carry out paragraph (1)(A) 
     shall be prescribed in consultation with the office or agency 
     of the government of the District of Columbia having 
     jurisdiction over any retirement system referred to in 
     paragraph (2)(B).
     SEC. 103. POWERS OF AUTHORITY.

       (a) Hearings and Sessions.--The Authority may, for the 
     purpose of carrying out this Act, hold hearings, sit and act 
     at times and places, take testimony, and receive evidence as 
     the Authority considers appropriate. The Authority may 
     administer oaths or affirmations to witnesses appearing 
     before it.
       (b) Powers of Members and Agents.--Any member or agent of 
     the Authority may, if authorized by the Authority, take any 
     action which the Authority is authorized to take by this 
     section.
       (c) Obtaining Official Data.--
       (1) From federal government.--Notwithstanding sections 552 
     (commonly known as the Freedom of Information Act) and 552b 
     (the Government in the Sunshine Act) of title 5, United 
     States Code, the Authority may secure directly from any 
     department or agency of the United States information 
     necessary to enable it to carry out this Act, with the 
     approval of the head of that department or agency.
       (2) From district government.--Notwithstanding any other 
     provision of law, the Authority shall have the right to 
     secure copies of such records, documents, information, or 
     data from any entity of the District government necessary to 
     enable the Authority to carry out its responsibilities under 
     this Act. At the request of the Authority, the Authority 
     shall be granted direct access to such information systems, 
     records, documents or information or data as will enable the 
     Authority to carry out its responsibilities under this Act. 
     The head of the entity of the District government responsible 
     shall provide the Authority with such information and 
     assistance (including granting the Authority direct access to 
     automated or other information systems) as the Authority 
     requires under this paragraph.
       (d) Gifts, Bequests, and Devises.--The Authority may 
     accept, use, and dispose of gifts, bequests, or devises of 
     services or property, both real and personal, for the purpose 
     of aiding or facilitating the work of the Authority. Gifts, 
     bequests, or devises of money and proceeds from sales of 
     other property received as gifts, bequests, or devises shall 
     be deposited in such account as the Authority may establish 
     and shall be available for disbursement upon order of the 
     Chair.
       (e) Subpoena Power.--
       (1) In general.--The Authority may issue subpoenas 
     requiring the attendance and testimony of witnesses and the 
     production of any evidence relating to any matter under 
     investigation by the Authority. The attendance of witnesses 
     and the production of evidence may be required from any place 
     within the United States at any designated place of hearing 
     within the United States.
       (2) Failure to obey a subpoena.--If a person refuses to 
     obey a subpoena issued under paragraph (1), the Authority may 
     apply to a United States district court for an order 
     requiring that person to appear before the Authority to give 
     testimony, produce evidence, or both, relating to the matter 
     under investigation. The application may be made within the 
     judicial district where the hearing is conducted or where 
     that person is found, resides, or transacts business. Any 
     failure to obey the order of the court may be punished by the 
     court as civil contempt.
       (3) Service of subpoenas.--The subpoenas of the Authority 
     shall be served in the manner provided for subpoenas issued 
     by United States district court under the Federal Rules of 
     Civil Procedure for the United States district courts.
       (4) Service of process.--All process of any court to which 
     application is be made under paragraph (2) may be served in 
     the judicial district in which the person required to be 
     served resides or may be found.
       (f) Administrative Support Services.--Upon the request of 
     the Authority, the Administrator of General Services may 
     provide to the Authority, on a reimbursable basis, the 
     administrative support services necessary for the Authority 
     to carry out its responsibilities under this Act.
       (g) Authority To Enter Into Contracts.--The Executive 
     Director may enter into such contracts as the Executive 
     Director considers appropriate (subject to the approval of 
     the Chair) to carry out the Authority's responsibilities 
     under this Act.
       (h) Civil Actions to Enforce Powers.--The Authority may 
     seek judicial enforcement of its authority to carry out its 
     responsibilities under this Act.
       (i) Penalties.--
       (1) Acts prohibited.--Any officer or employee of the 
     District government who--
       (A) takes any action in violation of any valid order of the 
     Authority or fails or refuses to take any action required by 
     any such order; or
       (B) prepares, presents, or certifies any information 
     (including any projections or estimates) or report for the 
     Board or any of its agents that is false or misleading, or, 
     upon learning that any such information is false or 
     misleading, fails to immediately advise the Board or its 
     agents thereof in writing,

     shall be guilty of a misdemeanor.
       (2) Administrative discipline.--In addition to any other 
     applicable penalty, any officer or employee of the District 
     government who knowingly and willfully violates paragraph (1) 
     shall be subject to appropriate administrative discipline, 
     including (when appropriate) suspension from duty without pay 
     or removal from office by order of either the Mayor or 
     Authority.
       (3) Report by mayor on disciplinary actions taken.--In the 
     case of a violation of paragraph (1) by an officer or 
     employee of the District government, the Mayor shall 
     immediately report to the Board all pertinent facts together 
     with a statement of the action taken thereon.
     SEC. 104. EXEMPTION FROM LIABILITY FOR CLAIMS.

       The Authority and its members may not be liable for any 
     obligation of or claim against the District of Columbia 
     resulting from actions taken to carry out this Act.

     SEC. 105. TREATMENT OF ACTIONS ARISING FROM ACT.

       (a) Jurisdiction Established in District Court for District 
     of Columbia.--Except as provided in section 103(e)(2) 
     (relating to the issuance of an order enforcing a subpoena), 
     any action against the Authority or any action otherwise 
     arising out of this Act, in whole or in part, shall be 
     brought in the United States District Court for the District 
     of Columbia.
       (b) Prompt Appeal.--
       (1) Court of appeals.--Notwithstanding any other provision 
     of law, any order of the United States District Court for the 
     District of Columbia which is issued pursuant to an action 
     brought under subsection (a) shall be reviewable only 
     pursuant to a notice of appeal to the United States Court of 
     Appeals for the District of Columbia Circuit.
       (2) Supreme court.--Notwithstanding any other provision of 
     law, review by the Supreme Court of the United States of a 
     decision of the Court of Appeals which is issued pursuant to 
     paragraph (1) may be had only if the petition for such review 
     is filed within 10 days after the entry of such decision.
       (c) Timing of Relief.--No order of any court granting 
     declaratory or injunctive relief against the Authority, 
     including relief permitting or requiring the obligation, 
     borrowing, or expenditure of funds, shall take effect during 
     the pendency of the action before such court, during the time 
     appeal may be taken, or (if appeal is taken) during the 
     period before the court has entered its final order disposing 
     of such action.
       (d) Expedited Consideration.--It shall be the duty of the 
     United States District Court for the District of Columbia, 
     the United States Court of Appeals for the District of 
     Columbia Circuit, and the Supreme Court of the United States 
     to advance on the docket and to expedite to the greatest 
     possible extent the disposition of any matter brought under 
     subsection (a).
     SEC. 106. FUNDING FOR OPERATION OF AUTHORITY.

       (a) Annual Budgeting Process.--
       (1) Submission of budget.--The Authority shall submit a 
     proposed budget for each fiscal year to the President for 
     inclusion in the annual budget for the District of Columbia 
     [[Page H4051]] under part D of title IV of the District of 
     Columbia Self-Government and Governmental Reorganization Act 
     not later than the May 1 prior to the first day of the fiscal 
     year. In the case of the budget for fiscal year 1996, the 
     Authority shall submit its proposed budget not later than 
     July 15, 1995.
       (2) Contents of budget.--The budget shall describe--
       (A) expenditures of the Authority by each object class, 
     including expenditures for staff of the Authority;
       (B) services of personnel and other services provided by or 
     on behalf of the Authority for which the Authority made no 
     reimbursement; and
       (C) any gifts or bequests made to the authority during the 
     previous fiscal year.
       (3) Appropriations required.--No amount may be obligated or 
     expended by the Authority for a fiscal year (beginning with 
     fiscal year 1996) unless such amount has been approved by Act 
     of Congress, and then only according to such Act.
       (4) Conforming amendment.--Section 453(c) of the District 
     of Columbia Self-Government and Governmental Reorganization 
     Act (sec. 47-304.1(c), D.C. Code) is amended by striking the 
     period at the end and inserting the following: ``, or to the 
     District of Columbia Financial Responsibility and Management 
     Assistance Authority established under section 101(a) of the 
     District of Columbia Financial Responsibility and Management 
     Assistance Act of 1995.''.
       (b) Special Rule for Funding of Operations During Fiscal 
     Year 1995.--As soon as practicable after the appointment of 
     its members, the Authority shall submit to the Mayor and the 
     President--
       (1) a request for reprogramming of funds under subsection 
     (c)(1); and
       (2) a description of anticipated expenditures of the 
     Authority for fiscal year 1995 (which shall be transmitted to 
     Congress).
       (c) Sources of Funds.--
       (1) Use of previously appropriated funds in district 
     budget.--The Mayor shall transfer funds previously 
     appropriated to the District government for a fiscal year for 
     auditing and consulting services to the Authority (in such 
     amounts as are provided in the budget request of the 
     Authority under subsection (a) or, with respect to fiscal 
     year 1995, the request submitted under subsection (b)(1)) for 
     the purpose of carrying out the Authority's activities during 
     the fiscal year.
       (2) Other sources of funds.--For provisions describing the 
     sources of funds available for the operations of the 
     Authority during a fiscal year (in addition to any interest 
     earned on accounts of the Authority during the year), see 
     section 204(b)(1)(A) (relating to the set-aside of amounts 
     requisitioned from the Treasury by the Mayor) and section 
     213(b)(3) (relating to the use of interest accrued from 
     amounts in a debt service reserve fund of the Authority).

     SEC. 107. SUSPENSION OF ACTIVITIES.

       (a) Suspension Upon Payment of Authority Obligations.--
       (1) In general.--Upon the expiration of the 12-month period 
     which begins on the date that the Authority certifies that 
     all obligations arising from the issuance by the Authority of 
     bonds, notes, or other obligations pursuant to subtitle B of 
     title II have been discharged, and that all borrowings by or 
     on behalf of the District of Columbia pursuant to title VI of 
     the District of Columbia Revenue Act of 1939 (sec. 47-3401, 
     D.C. Code) have been repaid, the Authority shall suspend any 
     activities carried out under this Act and the terms of the 
     members of the Authority shall expire.
       (2) No suspension during control year.--The Authority may 
     not suspend its activities pursuant to paragraph (1) at any 
     time during a control year.
       (b) Reactivation Upon Initiation of Control Period.--Upon 
     receiving notice from the Chairs of the Appropriations 
     Committees of the House of Representatives and the Senate 
     that a control period has been initiated (as described in 
     section 209) at any time after the Authority suspends its 
     activities under subsection (a), the President shall appoint 
     members of the Authority, and the Authority shall carry out 
     activities under this Act, in the same manner as the 
     President appointed members and the Authority carried out 
     activities prior to such suspension.

     SEC. 108. APPLICATION OF LAWS OF DISTRICT OF COLUMBIA TO 
                   AUTHORITY.

       (a) In General.--The following laws of the District of 
     Columbia (as in effect on the date of the enactment of this 
     Act) shall apply to the members and activities of the 
     Authority:
       (1) Section 742 of the District of Columbia Self-Government 
     and Governmental Reorganization Act (sec. 1-1504, D.C. Code).
       (2) Sections 201 through 206 of the District of Columbia 
     Freedom of Information Act (secs. 1-1521 through 1-1526, D.C. 
     Code).
       (3) Section 601 of the District of Columbia Campaign 
     Finance Reform and Conflict of Interest Act (sec. 1-1461, 
     D.C. Code).
       (b) No Control, Supervision, Oversight, or Review by Mayor 
     or Council.--
       (1) In general.--Neither the Mayor nor the Council may 
     exercise any control, supervision, oversight, or review over 
     the Authority or its activities.
       (2) Prohibition against legislation affecting authority.--
     Section 602(a) of the District of Columbia Self-Government 
     and Governmental Reorganization Act (sec. 1-233(a), D.C. 
     Code) is amended--
       (A) by striking ``or'' at the end of paragraph (8);
       (B) by striking the period at the end of paragraph (9) and 
     inserting ``; or''; and
       (C) by adding at the end the following new paragraph:
       ``(10) enact any act, resolution, or rule with respect to 
     the District of Columbia Financial Responsibility and 
     Management Assistance Authority established under section 
     101(a) of the District of Columbia Financial Responsibility 
     and Management Assistance Act of 1995.''.
       (c) Authority Not Subject to Representation by Corporation 
     Counsel.--In any action brought by or on behalf of the 
     Authority, and in any action brought against the Authority, 
     the Authority shall be represented by such counsel as it may 
     select, but in no instance may the Authority be represented 
     by the Corporation Counsel of the District of Columbia.
                TITLE II--RESPONSIBILITIES OF AUTHORITY
Subtitle A--Establishment and Enforcement of Financial Plan and Budget 
                        for District Government
     SEC. 201. DEVELOPMENT OF FINANCIAL PLAN AND BUDGET FOR 
                   DISTRICT OF COLUMBIA.

       (a) Development of Financial Plan and Budget.--For each 
     fiscal year for which the District government is in a control 
     period, the Mayor shall develop and submit to the Authority a 
     financial plan and budget for the District of Columbia in 
     accordance with this section.
       (b) Contents of Financial Plan and Budget.--A financial 
     plan and budget for the District of Columbia for a fiscal 
     year shall specify the budgets for the District government 
     under part D of title IV of the District of Columbia Self-
     Government and Governmental Reorganization Act for the 
     applicable fiscal year and the next 3 fiscal years (including 
     the projected revenues and expenditures of each fund of the 
     District government for such years), in accordance with the 
     following requirements:
       (1) The financial plan and budget shall meet the standards 
     described in subsection (c) to promote the financial 
     stability of the District government.
       (2) The financial plan and budget shall provide for 
     estimates of revenues and expenditures on a modified accrual 
     basis.
       (3) The financial plan and budget shall--
       (A) describe lump sum expenditures by department by object 
     class;
       (B) describe capital expenditures (together with a schedule 
     of projected capital commitments of the District government 
     and proposed sources of funding);
       (C) contain estimates of short-term and long-term debt 
     (both outstanding and anticipated to be issued); and
       (D) contain cash flow forecasts for each fund of the 
     District government at such intervals as the Authority may 
     require.
       (4) The financial plan and budget shall include a statement 
     describing methods of estimations and significant 
     assumptions.
       (5) The financial plan and budget shall include any other 
     provisions and shall meet such other criteria as the 
     Authority considers appropriate to meet the purposes of this 
     Act, including provisions for changes in personnel policies 
     and levels for each department or agency of the District 
     government, changes in the structure and organization of the 
     District government, and management initiatives to promote 
     productivity, improvement in the delivery of services, or 
     cost savings.
       (c) Standards To Promote Financial Stability Described.--
       (1) In general.--The standards to promote the financial 
     stability of the District government applicable to the 
     financial plan and budget for a fiscal year are as follows:
       (A) In the case of the financial plan and budget for fiscal 
     year 1996, the expenditures of the District government for 
     each fiscal year (beginning with fiscal year 1999) may not 
     exceed the revenues of the District government for each such 
     fiscal year.
       (B) During fiscal years 1996, 1997, and 1998, the District 
     government shall make continuous, substantial progress 
     towards equalizing the expenditures and revenues of the 
     District government for such fiscal years (in equal annual 
     installments to the greatest extent possible).
       (C) The District government shall provide for the orderly 
     liquidation of the cumulative fund balance deficit of the 
     District government, as evidenced by financial statements 
     prepared in accordance with generally accepted accounting 
     principles.
       (D) If funds in accounts of the District government which 
     are dedicated for specific purposes have been withdrawn from 
     such accounts for other purposes, the District government 
     shall fully restore the funds to such accounts.
       (E) The financial plan and budget shall assure the 
     continuing long-term financial stability of the District 
     government, as indicated by factors including access to 
     short-term and long-term capital markets, the efficient 
     management of the District government's workforce, and the 
     effective provision of services by the District government.
       (2) Application of sound budgetary practices.--In meeting 
     the standards described in paragraph (1) with respect to a 
     financial plan and budget for a fiscal year, the District 
     government shall apply sound budgetary practices, including 
     reducing costs and other expenditures, improving 
     productivity, increasing revenues, or combinations of such 
     practices.
     [[Page H4052]]   (3) Assumptions based on current law.--In 
     meeting the standards described in paragraph (1) with respect 
     to a financial plan and budget for a fiscal year, the 
     District government shall base estimates of revenues and 
     expenditures on Federal law as in effect at the time of the 
     preparation of the financial plan and budget.
       (d) Repeal of Offsets Against Federal Payment and Other 
     District Revenues.--Section 138 of the District of Columbia 
     Appropriations Act, 1995, is amended--
       (1) by striking subsection (c); and
       (2) by redesignating subsections (d) and (e) as subsections 
     (c) and (d).
     SEC. 202. PROCESS FOR SUBMISSION AND APPROVAL OF FINANCIAL 
                   PLAN AND ANNUAL DISTRICT BUDGET.

       (a) Submission of Preliminary Financial Plan and Budget by 
     Mayor.--Not later than the February 1 preceding a fiscal year 
     for which the District government is in a control period, the 
     Mayor shall submit to the Authority and the Council a 
     financial plan and budget for the fiscal year which meets the 
     requirements of section 201.
       (b) Review by Authority.--Upon receipt of the financial 
     plan and budget for a fiscal year from the Mayor under 
     subsection (a), the Authority shall promptly review the 
     financial plan and budget. In conducting the review, the 
     Authority may request any additional information it considers 
     necessary and appropriate to carry out its duties under this 
     subtitle.
       (c) Action Upon Approval of Mayor's Preliminary Financial 
     Plan and Budget.--
       (1) Certification to mayor.--
       (A) In general.--If the Authority determines that the 
     financial plan and budget for the fiscal year submitted by 
     the Mayor under subsection (a) meets the requirements 
     applicable under section 201--
       (i) the Authority shall approve the financial plan and 
     budget and shall provide the Mayor, the Council, the 
     President, and Congress with a notice certifying its 
     approval; and
       (ii) the Mayor shall promptly submit the financial plan and 
     budget to the Council pursuant to section 442 of the District 
     of Columbia Self-Government and Governmental Reorganization 
     Act.
       (B) Deemed approval after 30 days.--
       (i) In general.--If the Authority has not provided the 
     Mayor, the Council, and Congress with a notice certifying 
     approval under subparagraph (A)(i) or a statement of 
     disapproval under subsection (d)(1) upon the expiration of 
     the 30-day period which begins on the date the Authority 
     receives the financial plan and budget from the Mayor under 
     subsection (a), the Authority shall be deemed to have 
     approved the financial plan and budget and to have provided 
     the Mayor, the Council, the President, and Congress with the 
     notice certifying approval described in subparagraph (A)(i).
       (ii) Explanation of failure to respond.--If clause (i) 
     applies with respect to a financial plan and budget, the 
     Authority shall provide the Mayor, the Council, the President 
     and Congress with an explanation for its failure to provide 
     the notice certifying approval or the statement of 
     disapproval during the 30-day period described in such 
     clause.
       (2) Adoption of financial plan and budget by council after 
     receipt of approved financial plan and budget.--
     Notwithstanding the first sentence of section 446 of the 
     District of Columbia Self-Government and Governmental 
     Reorganization Act, not later than 30 days after receiving 
     the financial plan and budget for the fiscal year from the 
     Mayor under paragraph (1)(A)(ii), the Council shall by Act 
     adopt a financial plan and budget for the fiscal year which 
     shall serve as the adoption of the budgets of the District 
     government for the fiscal year under such section, and shall 
     submit such financial plan and budget to the Mayor and the 
     Authority.
       (3) Review of council financial plan and budget by 
     authority.--Upon receipt of the financial plan and budget for 
     a fiscal year from the Council under paragraph (2) (taking 
     into account any items or provisions disapproved by the Mayor 
     or disapproved by the Mayor and reenacted by the Council 
     under section 404(f) of the District of Columbia Self-
     Government and Governmental Reorganization Act, as amended by 
     subsection (f)(2)), the Authority shall promptly review the 
     financial plan and budget. In conducting the review, the 
     Authority may request any additional information it considers 
     necessary and appropriate to carry out its duties under this 
     subtitle.
       (4) Results of authority review of council's initial 
     financial plan and budget.--
       (A) Approval of council's initial financial plan and 
     budget.--If the Authority determines that the financial plan 
     and budget for the fiscal year submitted by the Council under 
     paragraph (2) meets the requirements applicable under section 
     201--
       (i) the Authority shall approve the financial plan and 
     budget and shall provide the Mayor, the Council, the 
     President, and Congress with a notice certifying its 
     approval; and
       (ii) the Council shall promptly submit the financial plan 
     and budget to the Mayor for transmission to the President and 
     Congress under section 446 of the District of Columbia Self-
     Government and Governmental Reorganization Act.
       (B) Disapproval of council's initial budget.--If the 
     Authority determines that the financial plan and budget for 
     the fiscal year submitted by the Council under paragraph (2) 
     does not meet the requirements applicable under section 201, 
     the Authority shall disapprove the financial plan and budget, 
     and shall provide the Mayor, the Council, the President, and 
     Congress with a statement containing--
       (i) the reasons for such disapproval;
       (ii) the amount of any shortfall in the budget or financial 
     plan; and
       (iii) any recommendations for revisions to the budget the 
     Authority considers appropriate to ensure that the budget is 
     consistent with the financial plan and budget.
       (C) Deemed approval after 15 days.--
       (i) In general.--If the Authority has not provided the 
     Mayor, the Council, the President, and Congress with a notice 
     certifying approval under subparagraph (A)(i) or a statement 
     of disapproval under subparagraph (B) upon the expiration of 
     the 15-day period which begins on the date the Authority 
     receives the financial plan and budget from the Council under 
     paragraph (2), the Authority shall be deemed to have approved 
     the financial plan and budget and to have provided the Mayor, 
     the Council, the President, and Congress with the notice 
     certifying approval described in subparagraph (A)(i).
       (ii) Explanation of failure to respond.--If clause (i) 
     applies with respect to a financial plan and budget, the 
     Authority shall provide the Mayor, the Council, the President 
     and Congress with an explanation for its failure to provide 
     the notice certifying approval or the statement of 
     disapproval during the 15-day period described in such 
     clause.
       (5) Authority review of council's revised financial plan 
     and budget.--
       (A) Submission of council's revised financial plan and 
     budget.--Not later than 15 days after receiving the statement 
     from the Authority under paragraph (4)(B), the Council shall 
     promptly by Act adopt a revised financial plan and budget for 
     the fiscal year which addresses the reasons for the 
     Authority's disapproval cited in the statement, and shall 
     submit such financial plan and budget to the Mayor and the 
     Authority.
       (B) Approval of council's revised financial plan and 
     budget.--If, after reviewing the revised financial plan and 
     budget for a fiscal year submitted by the Council under 
     subparagraph (A) in accordance with the procedures described 
     in this subsection, the Authority determines that the revised 
     financial plan and budget meets the requirements applicable 
     under section 201--
       (i) the Authority shall approve the financial plan and 
     budget and shall provide the Mayor, the Council, the 
     President, and Congress with a notice certifying its 
     approval; and
       (ii) the Council shall promptly submit the financial plan 
     and budget to the Mayor for transmission to the President and 
     Congress under section 446 of the District of Columbia Self-
     Government and Governmental Reorganization Act.
       (C) Disapproval of council's revised financial plan and 
     budget.--
       (i) In general.--If, after reviewing the revised financial 
     plan and budget for a fiscal year submitted by the Council 
     under subparagraph (A) in accordance with the procedures 
     described in this subsection, the Authority determines that 
     the revised financial plan and budget does not meet the 
     applicable requirements under section 201, the Authority 
     shall--

       (I) disapprove the financial plan and budget;
       (II) provide the Mayor, the Council, the President, and 
     Congress with a statement containing the reasons for such 
     disapproval and describing the amount of any shortfall in the 
     financial plan and budget; and
       (III) approve and recommend a financial plan and budget for 
     the District government which meets the applicable 
     requirements under section 201, and submit such financial 
     plan and budget to the Mayor, the Council, the President, and 
     Congress.

       (ii) Transmission of rejected financial plan and budget.--
     The Council shall promptly submit the revised financial plan 
     and budget disapproved by the Authority under this 
     subparagraph to the Mayor for transmission to the President 
     and Congress under section 446 of the District of Columbia 
     Self-Government and Governmental Reorganization Act.
       (D) Deemed approval after 15 days.--
       (i) In general.--If the Authority has not provided the 
     Mayor, the Council, the President, and Congress with a notice 
     certifying approval under subparagraph (B)(i) or a statement 
     of disapproval under subparagraph (C) upon the expiration of 
     the 15-day period which begins on the date the Authority 
     receives the revised financial plan and budget submitted by 
     the Council under subparagraph (A), the Authority shall be 
     deemed to have approved the revised financial plan and budget 
     and to have provided the Mayor, the Council, the President, 
     and Congress with the notice certifying approval described in 
     subparagraph (B)(i).
       (ii) Explanation of failure to respond.--If clause (i) 
     applies with respect to a financial plan and budget, the 
     Authority shall provide the Mayor, the Council, the President 
     and Congress with an explanation for its failure to provide 
     the notice certifying approval or the statement of 
     disapproval during the 15-day period described in such 
     clause.
       (6) Deadline for transmission of financial plan and budget 
     by authority.--Notwithstanding any other provision of this 
     section, not later than the June 15 preceding each fiscal 
     year which is a control year, the Authority shall--
     [[Page H4053]]   (A) provide Congress with a notice 
     certifying its approval of the Council's initial financial 
     plan and budget for the fiscal year under paragraph (4)(A);
       (B) provide Congress with a notice certifying its approval 
     of the Council's revised financial plan and budget for the 
     fiscal year under paragraph (5)(B); or
       (C) submit to Congress an approved and recommended 
     financial plan and budget of the Authority for the District 
     government for the fiscal year under paragraph (5)(C).
       (d) Action Upon Disapproval of Mayor's Preliminary 
     Financial Plan and Budget.--
       (1) Statement of disapproval.--If the Authority determines 
     that the financial plan and budget for the fiscal year 
     submitted by the Mayor under subsection (a) does not meet the 
     requirements applicable under section 201, the Authority 
     shall disapprove the financial plan and budget, and shall 
     provide the Mayor and the Council with a statement 
     containing--
       (A) the reasons for such disapproval;
       (B) the amount of any shortfall in the financial plan and 
     budget; and
       (C) any recommendations for revisions to the financial plan 
     and budget the Authority considers appropriate to ensure that 
     the financial plan and budget meets the requirements 
     applicable under section 201.
       (2) Authority review of mayor's revised financial plan and 
     budget.--
       (A) Submission of mayor's revised financial plan and 
     budget.--Not later than 15 days after receiving the statement 
     from the Authority under paragraph (1), the Mayor shall 
     promptly submit to the Authority and the Council a revised 
     financial plan and budget for the fiscal year which addresses 
     the reasons for the Authority's disapproval cited in the 
     statement.
       (B) Approval of mayor's revised financial plan and 
     budget.--If the Authority determines that the revised 
     financial plan and budget for the fiscal year submitted by 
     the Mayor under subparagraph (A) meets the requirements 
     applicable under section 201--
       (i) the Authority shall approve the financial plan and 
     budget and shall provide the Mayor, the Council, the 
     President, and Congress with a notice certifying its 
     approval; and
       (ii) the Mayor shall promptly submit the financial plan and 
     budget to the Council pursuant to section 442 of the District 
     of Columbia Self-Government and Governmental Reorganization 
     Act.
       (C) Disapproval of mayor's revised financial plan and 
     budget.--
       (i) In general.--If the Authority determines that the 
     revised financial plan and budget for the fiscal year 
     submitted by the Mayor under subparagraph (A) does not meet 
     the requirements applicable under section 201, the Authority 
     shall--

       (I) disapprove the financial plan and budget;
       (II) shall provide the Mayor, the Council, the President, 
     and Congress with a statement containing the reasons for such 
     disapproval; and
       (III) recommend a financial plan and budget for the 
     District government which meets the requirements applicable 
     under section 201 and submit such financial plan and budget 
     to the Mayor and the Council.

       (ii) Submission of rejected financial plan and budget.--The 
     Mayor shall promptly submit the revised financial plan and 
     budget disapproved by the Authority under this subparagraph 
     to the Council pursuant to section 442 of the District of 
     Columbia Self-Government and Governmental Reorganization Act.
       (D) Deemed approval after 15 days.--
       (i) In general.--If the Authority has not provided the 
     Mayor, the Council, the President, and Congress with a notice 
     certifying approval under subparagraph (B)(i) or a statement 
     of disapproval under subparagraph (C) upon the expiration of 
     the 15-day period which begins on the date the Authority 
     receives the revised financial plan and budget submitted by 
     the Mayor under subparagraph (A), the Authority shall be 
     deemed to have approved the revised financial plan and budget 
     and to have provided the Mayor, the Council, the President, 
     and Congress with the notice certifying approval described in 
     subparagraph (B)(i).
       (ii) Explanation of failure to respond.--If clause (i) 
     applies with respect to a financial plan and budget, the 
     Authority shall provide the Mayor, the Council, the President 
     and Congress with an explanation for its failure to provide 
     the notice certifying approval or the statement of 
     disapproval during the 15-day period described in such 
     clause.
       (3) Action by council.--
       (A) Adoption of financial plan and budget.--Notwithstanding 
     the first sentence of section 446 of the District of Columbia 
     Self-Government and Governmental Reorganization Act, not 
     later than 30 days after receiving the Mayor's approved 
     revised financial plan and budget for the fiscal year under 
     paragraph (2)(B) or (in the case of a financial plan and 
     budget disapproved by the Authority) the financial plan and 
     budget recommended by the Authority under paragraph 
     (2)(C)(i)(III), the Council shall by Act adopt a financial 
     plan and budget for the fiscal year which shall serve as the 
     adoption of the budgets of the District government for the 
     fiscal year under such section, and shall submit the 
     financial plan and budget to the Mayor and the Authority.
       (B) Review by authority.--The financial plan and budget 
     submitted by the Council under subparagraph (A) shall be 
     subject to review by the Authority and revision by the 
     Council in the same manner as the financial plan and budget 
     submitted by the Council after an approved preliminary 
     financial plan and budget of the Mayor under paragraphs (3), 
     (4), (5), and (6) of subsection (c).
       (e) Revisions to Financial Plan and Budget.--
       (1) Permitting mayor to submit revisions.--The Mayor may 
     submit proposed revisions to the financial plan and budget 
     for a control year to the Authority at any time during the 
     year.
       (2) Process for review, approval, disapproval, and council 
     action.--Except as provided in paragraph (3), the procedures 
     described in subsections (b), (c), and (d) shall apply with 
     respect to a proposed revision to a financial plan and budget 
     in the same manner as such procedures apply with respect to 
     the original financial plan and budget, except that 
     subparagraph (B) of subsection (c)(1) (relating to deemed 
     approval by the Authority of a preliminary financial plan and 
     budget of the Mayor) shall be applied as if the reference to 
     the term ``30-day period'' were a reference to ``20-day 
     period''.
       (3) Exception for revisions not affecting appropriations.--
     To the extent that a proposed revision to a financial plan 
     and budget adopted by the Council pursuant to this subsection 
     does not increase the amount of spending with respect to any 
     account of the District government, the revision shall become 
     effective upon the Authority's approval of such revision 
     (subject to review by Congress under section 602(c) of the 
     District of Columbia Self-Government and Governmental 
     Reorganization Act).
       (f) Conforming Amendment to Budget Process Requirements 
     Under Home Rule Act.--
       (1) Submission of unbalanced budgets.--Section 603 of the 
     District of Columbia Self-Government and Governmental 
     Reorganization Act (sec. 47-313, D.C. Code) is amended--
       (A) in subsection (c), by striking ``The Council'' the 
     first place it appears and inserting ``Except as provided in 
     subsection (f), the Council'';
       (B) in subsection (d), by striking ``The Mayor'' and 
     inserting ``Except as provided in subsection (f), the 
     Mayor''; and
       (C) by adding at the end the following new subsection:
       ``(f) In the case of a fiscal year which is a control year 
     (as defined in section 305(4) of the District of Columbia 
     Financial Responsibility and Management Assistance Act of 
     1995)--
       ``(1) subsection (c) (other than the fourth sentence) and 
     subsection (d) shall not apply; and
       ``(2) the Council may not approve, and the Mayor may not 
     forward to the President, any budget which is not consistent 
     with the financial plan and budget established for the fiscal 
     year under subtitle A of title II of such Act.''.
       (2) Expedited procedures for disapproval of items and 
     provisions of council budget by mayor.--Section 404(f) of the 
     District of Columbia Self-Government and Governmental 
     Reorganization Act (sec. 1-227(f), D.C. Code) is amended by 
     adding at the end the following new sentence: ``In the case 
     of any budget act for a fiscal year which is a control year 
     (as defined in section 305(4) of the District of Columbia 
     Financial Responsibility and Management Assistance Act of 
     1995), this subsection shall apply as if the reference in the 
     second sentence to `ten-day period' were a reference to 
     `five-day period' and the reference in the third sentence to 
     `thirty calendar days' were a reference to `5 calendar 
     days'.''.
       (g) Permitting Mayor and Council to Specify Expenditures 
     Under School Board Budget During Control Year.--
       (1) Mayor's estimate included in annual financial plan and 
     budget.--Section 2(h) of the Act entitled ``An Act to fix and 
     regulate the salaries of teachers, school officers, and other 
     employees of the board of education of the District of 
     Columbia'', approved June 20, 1906 (sec. 31-103, D.C. Code) 
     is amended by striking the period at the end and inserting 
     the following: ``, except that in the case of a year which is 
     a control year (as defined in section 305(4) of the District 
     of Columbia Financial Responsibility and Management 
     Assistance Act of 1995), the Mayor shall transmit the same 
     together with the Mayor's own request for the amount of money 
     required for the public schools for the year.''.
       (2) Specification of expenditures.--Section 452 of the 
     District of Columbia Self-Government and Governmental 
     Reorganization Act (sec. 31-104, D.C. Code) is amended by 
     adding at the end the following new sentence: ``This section 
     shall not apply with respect to the annual budget for any 
     fiscal year which is a control year (as defined in section 
     305(4) of the District of Columbia Financial Responsibility 
     and Management Assistance Act of 1995).''.
       (h) Permitting Separation of Employees in Accordance With 
     Financial Plan and Budget.--The fourth sentence of section 
     422(3) of the District of Columbia Self-Government and 
     Governmental Reorganization Act (sec. 1-242(3), D.C. Code) is 
     amended by striking ``pursuant to procedures'' and all that 
     follows through ``Act of 1991'' and inserting the following: 
     ``in the implementation of a financial plan and budget for 
     the District government approved under subtitle A of title II 
     of the District of Columbia Financial Responsibility and 
     Management Assistance Act of 1995''.

[[Page H4054]]

     SEC. 203. REVIEW OF ACTIVITIES OF DISTRICT GOVERNMENT TO 
                   ENSURE COMPLIANCE WITH APPROVED FINANCIAL PLAN 
                   AND BUDGET.

       (a) Review of Council Acts.--
       (1) Submission of acts to authority.--The Council shall 
     submit to the Authority each Act passed by the Council and 
     signed by the Mayor during a control year or vetoed by the 
     Mayor and repassed by two-thirds of the Council present and 
     voting during a control year, and each Act passed by the 
     Council and allowed to become effective without the Mayor's 
     signature during a control year, together with the estimate 
     of costs accompanying such Act required under section 
     602(c)(3) of the District of Columbia Self-Government and 
     Governmental Reorganization Act (as added by section 301(d)).
       (2) Prompt review by authority.--Upon receipt of an Act 
     from the Council under paragraph (1), the Authority shall 
     promptly review the Act to determine whether it is consistent 
     with the applicable financial plan and budget approved under 
     this subtitle and with the estimate of costs accompanying the 
     Act (described in paragraph (1)).
       (3) Actions by authority.--
       (A) Approval.--Except as provided in subparagraph (C), if 
     the Authority determines that an Act is consistent with the 
     applicable financial plan and budget, the Authority shall 
     notify the Council that it approves the Act, and the Council 
     shall submit the Act to Congress for review in accordance 
     with section 602(c) of the District of Columbia Self-
     Government and Governmental Reorganization Act.
       (B) Finding of inconsistency.--Except as provided in 
     subparagraph (C), if the Authority determines that an Act is 
     significantly inconsistent with the applicable financial plan 
     and budget, the Authority shall--
       (i) notify the Council that of its finding;
       (ii) provide the Council with an explanation of the reasons 
     for its finding; and
       (iii) to the extent the Authority considers appropriate, 
     provide the Council with recommendations for modifications to 
     the Act.
       (C) Exception for emergency acts.--Subparagraphs (A) and 
     (B) shall not apply with respect to any act which the Council 
     determines according to section 412(a) of the District of 
     Columbia Self-Government and Governmental Reorganization Act 
     should take effect immediately because of emergency 
     circumstances.
       (4) Effect of finding.--If the Authority makes a finding 
     with respect to an Act under paragraph (3)(B), the Council 
     may not submit the Act to Congress for review in accordance 
     with section 602(c) of the District of Columbia Self-
     Government and Governmental Reorganization Act.
       (5) Deemed approval.--If the Authority does not notify the 
     Council that it approves or disapproves an Act submitted 
     under this subsection during the 7-day period which begins on 
     the date the Council submits the Act to the Authority, the 
     Authority shall be deemed to have approved the Act in 
     accordance with paragraph (3)(A). At the option of the 
     Authority, the previous sentence shall be applied as if the 
     reference to ``7-day period'' were a reference to ``14-day 
     period'' if during such 7-day period the Authority so 
     notifies the Council and the Mayor.
       (6) Preliminary review of proposed acts.--At the request of 
     the Council, the Authority may conduct a preliminary review 
     of proposed legislation before the Council to determine 
     whether the legislation as proposed would be consistent with 
     the applicable financial plan and budget approved under this 
     subtitle, except that any such preliminary review shall not 
     be binding on the Authority in reviewing any Act subsequently 
     submitted under this subsection.
       (b) Effect of Approved Financial Plan and Budget on 
     Contracts and Leases.--
       (1) Mandatory prior approval for certain contracts and 
     leases.--
       (A) In general.--In the case of a contract or lease 
     described in subparagraph (B) which is proposed to be entered 
     into by the District government during a control year, the 
     Mayor (or the appropriate officer or agent of the District 
     government) shall submit the proposed contract or lease to 
     the Authority. The Authority shall review each contract or 
     lease submitted under this subparagraph, and the Mayor (or 
     the appropriate officer or agent of the District government) 
     may not enter into the contract or lease unless the Authority 
     determines that the proposed contract or lease is consistent 
     with the financial plan and budget for the fiscal year.
       (B) Contracts and leases described.--A contract or lease 
     described in this subparagraph is--
       (i) a labor contract entered into through collective 
     bargaining; or
       (ii) such other type of contract or lease as the Authority 
     may specify for purposes of this subparagraph.
       (2) Authority to review other contracts and leases after 
     execution.--
       (A) In general.--In addition to the prior approval of 
     certain contracts and leases under paragraph (1), the 
     Authority may require the Mayor (or the appropriate officer 
     or agent of the District government) to submit to the 
     Authority any other contract (including a contract to carry 
     out a grant) or lease entered into by the District government 
     during a control year which is executed after the Authority 
     has approved the financial plan and budget for the year under 
     section 202(c) or 202(d), or any proposal of the District 
     government to renew, extend, or modify a contract or lease 
     during a control year which is made after the Authority has 
     approved such financial plan and budget.
       (B) Review by authority.--The Authority shall review each 
     contract or lease submitted under subparagraph (A) to 
     determine if the contract or lease is consistent with the 
     financial plan and budget for the fiscal year. If the 
     Authority determines that the contract or lease is not 
     consistent with the financial plan and budget, the Mayor 
     shall take such actions as are within the Mayor's powers to 
     revise the contract or lease, or shall submit a proposed 
     revision to the financial plan and budget in accordance with 
     section 202(e), so that the contract or lease will be 
     consistent with the financial plan and budget.
       (3) Special rule for fiscal year 1995.--The Authority may 
     require the Mayor to submit to the Authority any proposal to 
     renew, extend, or modify a contract or lease in effect during 
     fiscal year 1995 to determine if the renewal, extension, or 
     modification is consistent with the budget for the District 
     of Columbia under the District of Columbia Appropriations 
     Act, 1995.
       (4) Special rule for contracts subject to council 
     approval.--In the case of a contract or lease which is 
     required to be submitted to the Authority under this 
     subsection and which is subject to approval by the Council 
     under the laws of the District of Columbia, the Mayor shall 
     submit such contract or lease to the Authority only after the 
     Council has approved the contract or lease.
       (c) Restrictions on Reprogramming of Amounts in Budget 
     During Control Years.--
       (1) Submissions of requests to authority.--If the Mayor 
     submits a request to the Council for the reprogramming of any 
     amounts provided in a budget for a fiscal year which is a 
     control year after the budget is adopted by the Council, the 
     Mayor shall submit such request to the Authority, which shall 
     analyze the affect of the proposed reprogramming on the 
     financial plan and budget for the fiscal year and submit its 
     analysis to the Council not later than 15 days after 
     receiving the request.
       (2) No action permitted until analysis received.--The 
     Council may not adopt a reprogramming during a fiscal year 
     which is a control year, and no officer or employee of the 
     District government may carry out any reprogramming during 
     such a year, until the Authority has provided the Council 
     with an analysis of a request for the reprogramming in 
     accordance with paragraph (1).
     SEC. 204. RESTRICTIONS ON BORROWING BY DISTRICT DURING 
                   CONTROL YEAR.

       (a) Prior Approval Required.--
       (1) In general.--The District government may not borrow 
     money during a control year unless the Authority provides 
     prior certification that both the receipt of funds through 
     such borrowing and the repayment of obligations incurred 
     through such borrowing are consistent with the financial plan 
     and budget for the year.
       (2) Revisions to financial plan and budget permitted.--If 
     the Authority determines that the borrowing proposed to be 
     undertaken by the District government is not consistent with 
     the financial plan and budget, the Mayor may submit to the 
     Authority a proposed revision to the financial plan and 
     budget in accordance with section 202(e) so that the 
     borrowing will be consistent with the financial plan and 
     budget as so revised.
       (3) Borrowing described.--This subsection shall apply with 
     respect to any borrowing undertaken by the District 
     government, including borrowing through the issuance of bonds 
     under part E of title IV of the District of Columbia Self-
     Government and Governmental Reorganization Act, the exercise 
     of authority to obtain funds from the United States Treasury 
     under title VI of the District of Columbia Revenue Act of 
     1939 (sec. 47-3401, D.C. Code), or any other means.
       (4) Special rules for treasury borrowing during fiscal year 
     1995.--
       (A) No prior approval required during initial period 
     following appointment.--The District government may 
     requisition advances from the United States Treasury under 
     title VI of the District of Columbia Revenue Act of 1939 
     (sec. 47-3401, D.C. Code) without the prior approval of the 
     Authority during the 45-day period which begins on the date 
     of the appointment of the members of the Authority (subject 
     to the restrictions described in such title, as amended by 
     subsection (c)).
       (B) Criteria for approval during remainder of fiscal 
     year.--The District government may requisition advances 
     described in subparagraph (A) during the portion of fiscal 
     year 1995 occurring after the expiration of the 45-day period 
     described in such subparagraph if the Authority finds that--
       (i) such borrowing is appropriate to meet the needs of the 
     District government to reduce deficits and discharge payment 
     obligations; and
       (ii) the District government is making appropriate progress 
     toward meeting its responsibilities under this Act (and the 
     amendments made by this Act).
       (b) Deposit of Funds Obtained Through Treasury With 
     Authority.--
       (1) Automatic deposit during control year.--If the Mayor 
     requisitions funds from the Secretary of the Treasury 
     pursuant to title VI of the District of Columbia Revenue Act 
     of 1939 (sec. 47-3401, D.C. Code) during a control year 
     (beginning with fiscal year 1996), such funds shall be 
     deposited by the Secretary into an escrow account held by the 
     Authority, to be used as follows:
     [[Page H4055]]   (A) The Authority shall expend a portion of 
     the funds for its operations during the fiscal year in which 
     the funds are requisitioned, in such amount and under such 
     conditions as are established under the budget of the 
     Authority for the fiscal year under section 106(a).
       (B) The Authority shall allocate the remainder of such 
     funds to the Mayor at such intervals and in accordance with 
     such terms and conditions as it considers appropriate, 
     consistent with the financial plan and budget for the year 
     and with any other withholding of funds by the Authority 
     pursuant to this Act.
       (2) Optional deposit during fiscal year 1995.--
       (A) During initial period following appointment.--If the 
     Mayor requisitions funds described in paragraph (1) during 
     the 45-day period which begins on the date of the appointment 
     of the members of the Authority, the Secretary of the 
     Treasury shall notify the Authority, and at the request of 
     the Authority shall deposit such funds into an escrow account 
     held by the Authority in accordance with paragraph (1).
       (B) During remainder of fiscal year.--If the Mayor 
     requisitions funds described in paragraph (1) during the 
     portion of fiscal year 1995 occurring after the expiration of 
     the 45-day period described in subparagraph (A), the 
     Secretary of the Treasury shall deposit such funds into an 
     escrow account held by the Authority in accordance with 
     paragraph (1) at the request of the Authority.
       (c) Conditions on Requisitions From Treasury.--Title VI of 
     the District of Columbia Revenue Act of 1939 (sec. 47-3401, 
     D.C. Code) is amended by striking all after the heading and 
     inserting the following:

     ``SEC. 601. TRANSITIONAL PROVISION FOR SHORT-TERM ADVANCES.

       ``(a) Transitional Short-Term Advances Made Before October 
     1, 1995.--
       ``(1) In general.--If the conditions in paragraph (2) are 
     satisfied, the Secretary shall make an advance of funds from 
     time to time, out of any money in the Treasury not otherwise 
     appropriated, for the purpose of assisting the District 
     government in meeting its general expenditures, as authorized 
     by Congress.
       ``(2) Conditions to making any transitional short-term 
     advance before october 1, 1995.--The Secretary shall make an 
     advance under this subsection if the following conditions are 
     satisfied:
       ``(A) the Mayor delivers to the Secretary a requisition for 
     an advance under this section;
       ``(B) as of the date on which the requisitioned advance is 
     to be made, the Authority has not approved a financial plan 
     and budget for the District government as meeting the 
     requirements of the District of Columbia Financial 
     Responsibility and Management Assistance Act of 1995;
       ``(C) the date on which the requisitioned advance is to be 
     made is not later than September 30, 1995;
       ``(D) the District government has delivered to the 
     Secretary--
       ``(i) a schedule setting forth the anticipated timing and 
     amounts of requisitions for advances under this subsection; 
     and
       ``(ii) evidence demonstrating to the satisfaction of the 
     Secretary that the District government is effectively unable 
     to obtain credit in the public credit markets or elsewhere in 
     sufficient amounts and on sufficiently reasonable terms to 
     meet the District government's financing needs;
       ``(E) the Secretary determines that there is reasonable 
     assurance of reimbursement for the advance from the amount 
     authorized to be appropriated as the annual Federal payment 
     to the District of Columbia under title V of the District of 
     Columbia Self-Government and Governmental Reorganization Act 
     for the fiscal year ending September 30, 1996; and
       ``(F) except during the 45-day period beginning on the date 
     of the appointment of the members of the Authority, the 
     Authority makes the findings described in section 
     204(a)(4)(B) of the District of Columbia Financial 
     Responsibility and Management Assistance Act of 1995.
       ``(3) Amount of any transitional short-term advance made 
     before october 1, 1995.--
       ``(A) In general.--Except as provided in subparagraph (C), 
     if the conditions described in subparagraph (B) are 
     satisfied, each advance made under this subsection shall be 
     in the amount designated by the Mayor in the Mayor's 
     requisition for such advance, except that--
       ``(i) the total amount requisitioned under this subsection 
     during the 30-day period which begins on the date of the 
     first requisition made under this subsection may not exceed 
     33\1/3\ percent of the fiscal year 1995 limit;
       ``(ii) the total amount requisitioned under this subsection 
     during the 60-day period which begins on the date of the 
     first requisition made under this subsection may not exceed 
     66\2/3\ percent of the fiscal year 1995 limit; and
       ``(iii) the total amount requisitioned under this 
     subsection after the expiration of the 60-day period which 
     begins on the date of the first requisition made under this 
     subsection may not exceed 100 percent of the fiscal year 1995 
     limit.
       ``(B) Conditions applicable to designated amount.--
     Subparagraph (A) applies if the Mayor determines that the 
     amount designated in the Mayor's requisition for such advance 
     is needed to accomplish the purpose described in paragraph 
     (1), and (except during the 45-day period beginning on the 
     date of the appointment of the members of the Authority) the 
     Authority approves such amount.
       ``(C) Aggregate maximum amount outstanding.--The sum of the 
     anticipated principal and interest requirements of all 
     advances made under this subsection may not be greater than 
     the fiscal year 1995 limit.
       ``(D) Fiscal year 1995 limit described.--In this paragraph, 
     the `fiscal year 1995 limit' means the amount authorized to 
     be appropriated to the District of Columbia as the annual 
     Federal payment to the District of Columbia under title V of 
     the District of Columbia Self-Government and Governmental 
     Reorganization Act for the fiscal year ending September 30, 
     1995.
       ``(4) Maturity of any transitional short-term advance made 
     before october 1, 1995.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     each advance made under this subsection shall mature on the 
     date designated by the Mayor in the Mayor's requisition for 
     such advance.
       ``(B) Latest permissible maturity date.--Notwithstanding 
     subparagraph (A), the maturity date for any advance made 
     under this subsection shall not be later than October 1, 
     1995.
       ``(5) Interest rate.--Each advance made under this 
     subsection shall bear interest at an annual rate equal to the 
     rate determined by the Secretary at the time that the 
     Secretary makes such advance taking into consideration the 
     prevailing yield on outstanding marketable obligations of the 
     United States with remaining periods to maturity comparable 
     to the maturity of such advance, plus \1/8\ of 1 percent.
       ``(6) Deposit of advances.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     each advance made under this subsection for the account of 
     the District government shall be deposited by the Secretary 
     into such account as is designated by the Mayor in the 
     Mayor's requisition for such advance.
       ``(B) Exception.--Notwithstanding subparagraph (A), if (in 
     accordance with section 204(b)(2) of the District of Columbia 
     Financial Responsibility and Management Assistance Act of 
     1995) the Authority delivers a letter requesting the 
     Secretary to deposit all advances made under this subsection 
     for the account of the District government in an escrow 
     account held by the Authority, each advance made under this 
     subsection for the account of the District government after 
     the date of such letter shall be deposited by the Secretary 
     into the escrow account specified by the Authority in such 
     letter.
       ``(b) Transitional Short-Term Advances Made on or After 
     October 1, 1995 and before February 1, 1996.--
       ``(1) In general.--If the conditions in paragraph (2) are 
     satisfied, the Secretary shall make an advance of funds from 
     time to time, out of any money in the Treasury not otherwise 
     appropriated, for the same purpose as advances are made under 
     subsection (a).
       ``(2) Terms and conditions.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     paragraphs (2), (4), and (5) of subsection (a) (other than 
     subparagraph (F) of paragraph (2)) shall apply to any advance 
     made under this subsection.
       ``(B) Exceptions.--
       ``(i) New conditions precedent to making advances.--The 
     conditions described in subsection (a)(2) shall apply with 
     respect to making advances on or after October 1, 1995, in 
     the same manner as such conditions apply with respect to 
     making advances before October 1, 1995, except that--

       ``(I) subparagraph (C) (relating to the last day on which 
     advances may be made) shall be applied as if the reference to 
     `September 30, 1995' were a reference to `January 31, 1996';
       ``(II) subparagraph (E) (relating to the Secretary's 
     determination of reasonable assurance of reimbursement from 
     the annual Federal payment appropriated to the District of 
     Columbia) shall be applied as if the reference to `September 
     30, 1996' were a reference to `September 30, 1997';
       ``(III) the Secretary may not make an advance under this 
     subsection unless all advances made under subsection (a) are 
     fully reimbursed by withholding from the annual Federal 
     payment appropriated to the District of Columbia for the 
     fiscal year ending September 30, 1996, under title V of the 
     District of Columbia Self-Government and Governmental 
     Reorganization Act, and applying toward reimbursement for 
     such advances an amount equal to the amount needed to fully 
     reimburse the Treasury for such advances; and
       ``(IV) the Secretary may not make an advance under this 
     subsection unless the Authority has provided the Secretary 
     with the prior certification described in section 204(a)(1) 
     of the District of Columbia Financial Responsibility and 
     Management Assistance Act of 1995.

       ``(ii) New latest permissible maturity date.--The 
     provisions of subsection (a)(4) shall apply with respect to 
     the maturity of advances made after October 1, 1995, in the 
     same manner as such provisions apply with respect to the 
     maturity of advances made before October 1, 1995, except that 
     subparagraph (B) of such subsection (relating to the latest 
     permissible maturity date) shall apply as if the reference to 
     `October 1, 1995' were a reference to `October 1, 1996'.
       ``(C) New maximum amount outstanding.--
       ``(i) In general.--Except as provided in clause (iii), if 
     the conditions described in 
     [[Page H4056]] clause (ii) are satisfied, each advance made 
     under this subsection shall be in the amount designated by 
     the Mayor in the Mayor's requisition for such advance.
       ``(ii) Conditions applicable to designated amount.-- Clause 
     (i) applies if the Mayor determines that the amount 
     designated in the Mayor's requisition for such advance is 
     needed to accomplish the purpose described in paragraph (1), 
     and the Authority approves such amount.
       ``(iii) Aggregate maximum amount outstanding.--The sum of 
     the anticipated principal and interest requirements of all 
     advances made under this paragraph may not be greater than 60 
     percent of the fiscal year 1996 limit.
       ``(D) Deposit of advances.--As provided in section 204(b) 
     of the District of Columbia Financial Responsibility and 
     Management Assistance Act of 1995, each advance made under 
     this subsection for the account of the District shall be 
     deposited by the Secretary into an escrow account held by the 
     Authority.
       ``(E) Fiscal year 1996 limit described.--In this paragraph, 
     the `fiscal year 1996 limit' means the amount authorized to 
     be appropriated to the District of Columbia as the annual 
     Federal payment to the District of Columbia under title V of 
     the District of Columbia Self-Government and Governmental 
     Reorganization Act for the fiscal year ending September 30, 
     1996.
       ``(c) Transitional Short-Term Advances Made on or After 
     February 1, 1996 and before October 1, 1996.--
       ``(1) In general.--If the conditions in paragraph (2) are 
     satisfied, the Secretary shall make an advance of funds from 
     time to time, out of any money in the Treasury not otherwise 
     appropriated, for the same purpose as advances are made under 
     subsection (a).
       ``(2) Terms and conditions.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     subsection (b)(2) shall apply to any advance made under this 
     subsection.
       ``(B) Exceptions.--The conditions applicable under 
     subsection (b)(2) (other than paragraph (2)(B) of subsection 
     (a)) shall apply with respect to making advances on or after 
     February 1, 1996, and before October 1, 1996, in the same 
     manner as such conditions apply to making advances under such 
     subsection, except that--
       ``(i) in applying subparagraph (C) of subsection (a)(2) (as 
     described in subsection (b)(2)(B)(i)(I)), the reference to 
     `October 1, 1995' shall be deemed to be a reference to 
     `September 30, 1996';
       ``(ii) subparagraph (C)(iii) of subsection (b)(2) shall 
     apply as if the reference to `60 percent' were a reference to 
     `40 percent'; and
       ``(iii) no advance may be made unless the Secretary has 
     been provided the certifications and information described in 
     paragraphs (3) through (6) of section 602(b).
       ``(d) Transitional Short-Term Advances Made on or After 
     October 1, 1996 and before October 1, 1997.--
       ``(1) In general.--If the conditions in paragraph (2) are 
     satisfied, the Secretary shall make an advance of funds from 
     time to time, out of any money in the Treasury not otherwise 
     appropriated, for the same purpose as advances are made under 
     subsection (a).
       ``(2) Terms and conditions.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     paragraphs (2), (4), and (5) of subsection (a) (other than 
     subparagraphs (B) and (F) of paragraph (2)) shall apply to 
     any advance made under this subsection.
       ``(B) Exceptions.--
       ``(i) New conditions precedent to making advances.--The 
     conditions described in subsection (a)(2) shall apply with 
     respect to making advances on or after October 1, 1996, and 
     before October 1, 1997, in the same manner as such conditions 
     apply with respect to making advances before October 1, 1995, 
     except that--

       ``(I) subparagraph (C) (relating to the last day on which 
     advances may be made) shall be applied as if the reference to 
     `September 30, 1995' were a reference to `September 30, 
     1997';
       ``(II) subparagraph (E) (relating to the Secretary's 
     determination of reasonable assurance of reimbursement from 
     the annual Federal payment appropriated to the District of 
     Columbia) shall be applied as if the reference to `September 
     30, 1996' were a reference to `September 30, 1997';
       ``(III) the Secretary may not make an advance under this 
     subsection unless all advances made under subsections (b) and 
     (c) are fully reimbursed by withholding from the annual 
     Federal payment appropriated to the District of Columbia for 
     the fiscal year ending September 30, 1997, under title V of 
     the District of Columbia Self-Government and Governmental 
     Reorganization Act, and applying toward reimbursement for 
     such advances an amount equal to the amount needed to fully 
     reimburse the Treasury for such advances; and
       ``(IV) the Secretary may not make an advance under this 
     subsection unless the Secretary has been provided the 
     certifications and information described in paragraphs (3) 
     through (6) of section 602(b).

       ``(ii) New latest permissible maturity date.--The 
     provisions of subsection (a)(4) shall apply with respect to 
     the maturity of advances made under this subsection, in the 
     same manner as such provisions apply with respect to the 
     maturity of advances made before October 1, 1995, except that 
     subparagraph (B) of such subsection (relating to the latest 
     permissible maturity date) shall apply as if the reference to 
     `September 30, 1995' were a reference to `September 30, 
     1997'.
       ``(C) New maximum amount outstanding.--
       ``(i) In general.--Except as provided in clause (iii), if 
     the conditions described in clause (ii) are satisfied, each 
     advance made under this subsection shall be in the amount 
     designated by the Mayor in the Mayor's requisition for such 
     advance.
       ``(ii) Conditions applicable to designated amount.-- Clause 
     (i) applies if the Mayor determines that the amount 
     designated in the Mayor's requisition for such advance is 
     needed to accomplish the purpose described in paragraph (1), 
     and the Authority approves such amount.
       ``(iii) Aggregate maximum amount outstanding.--The sum of 
     the anticipated principal and interest requirements of all 
     advances made under this paragraph may not be greater than 
     100 percent of the fiscal year 1997 limit.
       ``(iv) Fiscal year 1997 limit described.--In this 
     subparagraph, the `fiscal year 1997 limit' means the amount 
     authorized to be appropriated to the District of Columbia as 
     the annual Federal payment to the District of Columbia under 
     title V of the District of Columbia Self-Government and 
     Governmental Reorganization Act for the fiscal year ending 
     September 30, 1997.
       ``(D) Deposit of advances.--As provided in section 204(b) 
     of the District of Columbia Financial Responsibility and 
     Management Assistance Act of 1995, each advance made under 
     this subsection for the account of the District shall be 
     deposited by the Secretary into an escrow account held by the 
     Authority.

     ``SEC. 602. SHORT-TERM ADVANCES FOR SEASONAL CASH-FLOW 
                   MANAGEMENT.

       ``(a) In General.--If the conditions in subsection (b) are 
     satisfied, the Secretary shall make an advance of funds from 
     time to time, out of any money in the Treasury not otherwise 
     appropriated, for the purpose of assisting the District 
     government in meeting its general expenditures, as authorized 
     by Congress, at times of seasonal cash-flow deficiencies.
       ``(b) Conditions to Making any Short-Term Advance.--The 
     Secretary shall make an advance under this section if--
       ``(1) the Mayor delivers to the Secretary a requisition for 
     an advance under this section;
       ``(2) the date on which the requisitioned advance is to be 
     made is in a control period;
       ``(3) the Authority certifies to the Secretary that--
       ``(A) the District government has prepared and submitted a 
     financial plan and budget for the District government;
       ``(B) there is an approved financial plan and budget in 
     effect under the District of Columbia Financial 
     Responsibility and Management Assistance Act of 1995 for the 
     fiscal year for which the requisition is to be made;
       ``(C) at the time of the Mayor's requisition for an 
     advance, the District government is in compliance with the 
     financial plan and budget;
       ``(D) both the receipt of funds from such advance and the 
     reimbursement of Treasury for such advance are consistent 
     with the financial plan and budget for the year; and
       ``(E) such advance will not adversely affect the financial 
     stability of the District government;
       ``(4) the Authority certifies to the Secretary, at the time 
     of the Mayor's requisition for an advance, that the District 
     government is effectively unable to obtain credit in the 
     public credit markets or elsewhere in sufficient amounts and 
     on sufficiently reasonable terms to meet the District 
     government's financing needs;
       ``(5) the Inspector General of the District of Columbia 
     certifies to the Secretary the information described in 
     paragraph (3) by providing the Secretary with a certification 
     conducted by an outside auditor under a contract entered into 
     pursuant to section 208(a)(4) of the District of Columbia 
     Procurement Practices Act of 1985;
       ``(6) the Secretary receives such additional certifications 
     and opinions relating to the financial position of the 
     District government as the Secretary determines to be 
     appropriate from such other Federal agencies and 
     instrumentalities as the Secretary determines to be 
     appropriate; and
       ``(7) the Secretary determines that there is reasonable 
     assurance of reimbursement for the advance from the amount 
     authorized to be appropriated as the annual Federal payment 
     to the District of Columbia under title V of the District of 
     Columbia Self-Government and Governmental Reorganization Act 
     for the fiscal year following the fiscal year in which such 
     advance is made.
       ``(c) Amount of any Short-Term Advance.--
       ``(1) In general.--Except as provided in paragraph (3), if 
     the conditions in paragraph (2) are satisfied, each advance 
     made under this section shall be in the amount designated by 
     the Mayor in the Mayor's requisition for such advance.
       ``(2) Conditions applicable to designated amount.--
     Paragraph (1) applies if--
       ``(A) the Mayor determines that the amount designated in 
     the Mayor's requisition for such advance is needed to 
     accomplish the purpose described in subsection (a); and
       ``(B) the Authority--
       ``(i) concurs in the Mayor's determination under 
     subparagraph (A); and
       ``(ii) determines that the reimbursement obligation of the 
     District government for an advance made under this section in 
     the 
     [[Page H4057]] amount designated in the Mayor's requisition 
     is consistent with the financial plan for the year.
       ``(3) Maximum amount outstanding.--
       ``(A) In general.--Notwithstanding paragraph (1), the 
     unpaid principal balance of all advances made under this 
     section in any fiscal year of the District government shall 
     not at any time be greater than 100 percent of applicable 
     limit.
       ``(B) Special rule for fiscal year 1997.--The unpaid 
     principal balance of all advances made under this section in 
     fiscal year 1997 of the District government shall not at any 
     time be greater than the difference between--
       ``(i) 150 percent of the applicable limit for such fiscal 
     year; and
       ``(ii) the unpaid principal balance of any advances made 
     under section 601(d).
       ``(C) Applicable limit defined.--In this paragraph, the 
     `applicable limit' for a fiscal year is the amount authorized 
     under title V of the District of Columbia Self-Government and 
     Governmental Reorganization Act for appropriation as the 
     Federal payment to the District of Columbia for the fiscal 
     year following the fiscal year in which the advance is made.
       ``(d) Maturity of any Short-Term Advance.--
       ``(1) In general.--Except as provided in paragraph (3), if 
     the condition in paragraph (2) is satisfied, each advance 
     made under this section shall mature on the date designated 
     by the Mayor in the Mayor's requisition for such advance.
       ``(2) Condition applicable to designated maturity.--
     Paragraph (1) applies if the Authority determines that the 
     reimbursement obligation of the District government for an 
     advance made under this section having the maturity date 
     designated in the Mayor's requisition is consistent with the 
     financial plan for the year.
       ``(3) Latest permissible maturity date.--Notwithstanding 
     paragraph (1), the maturity date for any advance made under 
     this section shall not be later than 11 months after the date 
     on which such advance is made.
       ``(e) Interest Rate.--Each advance made under this section 
     shall bear interest at an annual rate equal to a rate 
     determined by the Secretary at the time that the Secretary 
     makes such advance taking into consideration the prevailing 
     yield on outstanding marketable obligations of the United 
     States with remaining periods to maturity comparable to the 
     maturity of such advance, plus \1/8\ of 1 percent.
       ``(f) 10 Business-Day Zero Balance Requirement.--After the 
     expiration of the 12-month period beginning on the date on 
     which the first advance is made under this section, the 
     Secretary shall not make any new advance under this section 
     unless the District government has--
       ``(1) reduced to zero at the same time the principal 
     balance of all advances made under this section at least once 
     during the previous 12-month period; and
       ``(2) not requisitioned any advance to be made under this 
     section in any of the 10 business days following such 
     reduction.
       ``(g) Deposit of Advances.--As provided in section 204(b) 
     of the District of Columbia Financial Responsibility and 
     Management Assistance Act of 1995, advances made under this 
     section for the account of the District government shall be 
     deposited by the Secretary into an escrow account held by the 
     Authority.

     ``SEC. 603. SECURITY FOR ADVANCES.

       ``(a) In General.--The Secretary shall require the District 
     government to provide such security for any advance made 
     under this title as the Secretary determines to be 
     appropriate.
       ``(b) Authority to Require Specific Security.--As security 
     for any advance made under this title, the Secretary may 
     require the District government to--
       ``(1) pledge to the Secretary specific taxes and revenue of 
     the District government, if such pledging does not cause the 
     District government to violate existing laws or contracts; 
     and
       ``(2) establish a debt service reserve fund pledged to the 
     Secretary.

     ``SEC. 604. REIMBURSEMENT TO THE TREASURY.

       ``(a) Reimbursement Amount.--
       ``(1) In general.--Except as provided in paragraph (2), on 
     any date on which a reimbursement payment is due to the 
     Treasury under the terms of any advance made under this 
     title, the District shall pay to the Treasury the amount of 
     such reimbursement payment out of taxes and revenue collected 
     for the support of the District government.
       ``(2) Exceptions for transitional advances.--
       ``(A) Advances made before october 1, 1995.--
       ``(i) Financial plan and budget approved.--If the Authority 
     approves a financial plan for the District government before 
     October 1, 1995, the District government may use the proceeds 
     of any advance made under section 602 to discharge its 
     obligation to reimburse the Treasury for any advance made 
     under section 601(a).
       ``(ii) Financial plan and budget not approved.--If the 
     Authority has not approved a financial plan and budget for 
     the District government by October 1, 1995, the annual 
     Federal payment appropriated to the District government for 
     the fiscal year ending September 30, 1996, shall be withheld 
     and applied to discharge the District government's obligation 
     to reimburse the Treasury for any advance made under section 
     601(a).
       ``(B) Advances made on or after october 1, 1995.--
       ``(i) Financial plan and budget approved.--If the Authority 
     approves a financial plan and budget for the District 
     government during fiscal year 1996, the District may use the 
     proceeds of any advance made under section 602 to discharge 
     its obligation to reimburse the Treasury for any advance made 
     under section 601(b).
       ``(ii) Financial plan and budget not approved.--If the 
     Authority has not approved a financial plan and budget for 
     the District government by October 1, 1996, the annual 
     Federal payment appropriated to the District government for 
     the fiscal year ending September 30, 1997, shall be withheld 
     and applied to discharge the District government's obligation 
     to reimburse the Treasury for any advance made under section 
     601(b).
       ``(b) Remedies for Failure to Reimburse.--If, on any date 
     on which a reimbursement payment is due to the Treasury under 
     the terms of any advance made under this title, the District 
     government does not make such reimbursement payment, the 
     Secretary shall take the actions listed in this subsection.
       ``(1) Withhold annual federal payment.--Notwithstanding any 
     other law, before turning over to the Authority (on behalf of 
     the District government under section 205 of the District of 
     Columbia Financial Responsibility and Management Assistance 
     Act of 1995) any annual Federal payment appropriated to the 
     District government for any fiscal year under title V of the 
     District of Columbia Self-Government and Governmental 
     Reorganization Act (if any), the Secretary shall withhold 
     from such annual Federal payment, and apply toward 
     reimbursement for the payment not made, an amount equal to 
     the amount needed to fully reimburse the Treasury for the 
     payment not made.
       ``(2) Withhold other federal payments.--If, after the 
     Secretary takes the action described in paragraph (1), the 
     Treasury is not fully reimbursed, the Secretary shall 
     withhold from each grant, entitlement, loan, or other payment 
     to the District government by the Federal Government not 
     dedicated to making entitlement or benefit payments to 
     individuals, and apply toward reimbursement for the payment 
     not made, an amount that, when added to the amount withheld 
     from each other such grant, entitlement, loan, or other 
     payment, will be equal to the amount needed to fully 
     reimburse the Treasury for the payment not made.
       ``(3) Attach available district revenues.--If, after the 
     Secretary takes the actions described in paragraphs (1) and 
     (2), the Treasury is not fully reimbursed, the Secretary 
     shall attach any and all revenues of the District government 
     which the Secretary may lawfully attach, and apply toward 
     reimbursement for the payment not made, an amount equal to 
     the amount needed to fully reimburse the Treasury for the 
     payment not made.
       ``(4) Take other actions.--If, after the Secretary takes 
     the actions described in paragraphs (1) through (3), the 
     Treasury is not fully reimbursed, the Secretary shall take 
     any and all other actions permitted by law to recover from 
     the District government the amount needed to fully reimburse 
     the Treasury for the payment not made.

     ``SEC. 605. DEFINITIONS.

       ``For purposes of this title--
       ``(1) the term `Authority' means the District of Columbia 
     Financial Responsibility and Management Assistance Authority 
     established under section 101(a) of the District of Columbia 
     Financial Responsibility and Management Assistance Act of 
     1995;
       ``(2) the term `control period' has the meaning given such 
     term under section 305(4) of such Act;
       ``(3) the term `District government' has the meaning given 
     such term under section 305(5) of such Act;
       ``(4) the term `financial plan and budget' has the meaning 
     given such term under section 305(6) of such Act; and
       ``(5) the term `Secretary' means the Secretary of the 
     Treasury.''.
       (d) Expenditure of Funds From Account in Accordance With 
     Authority Instructions.--Any funds allocated by the Authority 
     to the Mayor from the escrow account described in subsection 
     (b)(1) may be expended by the Mayor only in accordance with 
     the terms and conditions established by the Authority at the 
     time the funds are allocated.
       (e) Prohibition Against Borrowing While Suit Pending.--The 
     Mayor may not requisition advances from the Treasury pursuant 
     to title VI of the District of Columbia Revenue Act of 1939 
     if there is an action filed by the Mayor or the Council which 
     is pending against the Authority challenging the 
     establishment of or any action taken by the Authority.

     SEC. 205. DEPOSIT OF ANNUAL FEDERAL PAYMENT WITH AUTHORITY.

       (a) In General.--
       (1) Deposit into escrow account.--In the case of a fiscal 
     year which is a control year, the Secretary of the Treasury 
     shall deposit the annual Federal payment to the District of 
     Columbia for the year authorized under title V of the 
     District of Columbia Self-Government and Governmental 
     Reorganization Act into an escrow account held by the 
     Authority, which shall allocate the funds to the Mayor at 
     such intervals and in accordance with such terms and 
     conditions as it considers appropriate to implement the 
     financial plan for the year. In establishing such terms 
     [[Page H4058]] and conditions, the Authority shall give 
     priority to using the Federal payment for cash flow 
     management and the payment of outstanding bills owed by the 
     District government.
       (2) Exception for amounts withheld for advances.--Paragraph 
     (1) shall not apply with respect to any portion of the 
     Federal payment which is withheld by the Secretary of the 
     Treasury in accordance with section 604 of title VI of the 
     District of Columbia Revenue Act of 1939 (as added by section 
     204(c)) to reimburse the Secretary for advances made under 
     title VI of such Act.
       (b) Expenditure of Funds from Account in Accordance With 
     Authority Instructions.--Any funds allocated by the Authority 
     to the Mayor from the escrow account described in paragraph 
     (1) may be expended by the Mayor only in accordance with the 
     terms and conditions established by the Authority at the time 
     the funds are allocated.

     SEC. 206. EFFECT OF FINDING OF NON-COMPLIANCE WITH FINANCIAL 
                   PLAN AND BUDGET.

       (a) Submission of Reports.--Not later than 30 days after 
     the expiration of each quarter of each fiscal year (beginning 
     with fiscal year 1996), the Mayor shall submit reports to the 
     Authority describing the actual revenues obtained and 
     expenditures made by the District government during the 
     quarter with its cash flows during the quarter, and comparing 
     such actual revenues, expenditures, and cash flows with the 
     most recent projections for these items.
       (b) Demand for Additional Information.--If the Authority 
     determines, based on reports submitted by the Mayor under 
     subsection (a), independent audits, or such other information 
     as the Authority may obtain, that the revenues or 
     expenditures of the District government during a control year 
     are not consistent with the financial plan and budget for the 
     year, the Authority shall require the Mayor to provide such 
     additional information as the Authority determines to be 
     necessary to explain the inconsistency.
       (c) Certification of Variance.--
       (1) In general.--After requiring the Mayor to provide 
     additional information under subsection (b), the Authority 
     shall certify to the Council, the President, the Secretary of 
     the Treasury, and Congress that the District government is at 
     variance with the financial plan and budget unless--
       (A)(i) the additional information provides an explanation 
     for the inconsistency which the Authority finds reasonable 
     and appropriate, or
       (ii) the District government adopts or implements remedial 
     action (including revising the financial plan and budget 
     pursuant to section 202(e)) to correct the inconsistency 
     which the Authority finds reasonable and appropriate, taking 
     into account the terms of the financial plan and budget; and
       (B) the Mayor agrees to submit the reports described in 
     subsection (a) on a monthly basis for such period as the 
     Authority may require.
       (2) Special rule for inconsistencies attributable to acts 
     of congress.--
       (A) Determination by authority.--If the Authority 
     determines that the revenues or expenditures of the District 
     government during a control year are not consistent with the 
     financial plan and budget for the year as approved by the 
     Authority under section 202 as a result of the terms and 
     conditions of the budget of the District government for the 
     year as enacted by Congress or as a result of any other law 
     enacted by Congress which affects the District of Columbia, 
     the Authority shall so notify the Mayor.
       (B) Certification.--In the case of an inconsistency 
     described in subparagraph (A), the Authority shall certify to 
     the Council, the President, the Secretary of the Treasury, 
     and Congress that the District government is at variance with 
     the financial plan and budget unless the District government 
     adopts or implements remedial action (including revising the 
     financial plan and budget pursuant to section 202(e)) to 
     correct the inconsistency which the Authority finds 
     reasonable and appropriate, taking into account the terms of 
     the financial plan and budget.
       (d) Effect of Certification.--If the Authority certifies to 
     the Secretary of the Treasury that a variance exists--
       (1) the Authority may withhold any funds deposited with the 
     Authority under section 204(b) or section 205(a) which would 
     otherwise be expended on behalf of the District government; 
     and
       (2) the Secretary shall withhold funds otherwise payable to 
     the District of Columbia under such Federal programs as the 
     Authority may specify (other than funds dedicated to making 
     entitlement or benefit payments to individuals), in such 
     amounts and under such other conditions as the Authority may 
     specify.
     SEC. 207. RECOMMENDATIONS ON FINANCIAL STABILITY AND 
                   MANAGEMENT RESPONSIBILITY.

       (a) In General.--The Authority may at any time submit 
     recommendations to the Mayor, the Council, the President, and 
     Congress on actions the District government or the Federal 
     Government may take to ensure compliance by the District 
     government with a financial plan and budget or to otherwise 
     promote the financial stability, management responsibility, 
     and service delivery efficiency of the District government, 
     including recommendations relating to--
       (1) the management of the District government's financial 
     affairs, including cash forecasting, information technology, 
     placing controls on expenditures for personnel, reducing 
     benefit costs, reforming procurement practices, and placing 
     other controls on expenditures;
       (2) the relationship between the District government and 
     the Federal Government;
       (3) the structural relationship of departments, agencies, 
     and independent agencies within the District government;
       (4) the modification of existing revenue structures, or the 
     establishment of additional revenue structures;
       (5) the establishment of alternatives for meeting 
     obligations to pay for the pensions of former District 
     government employees;
       (6) modifications or transfers of the types of services 
     which are the responsibility of and are delivered by the 
     District government;
       (7) modifications of the types of services which are 
     delivered by entities other than the District government 
     under alternative service delivery mechanisms (including 
     privatization and commercialization);
       (8) the effects of District of Columbia laws and court 
     orders on the operations of the District government;
       (9) the establishment of a personnel system for employees 
     of the District government which is based upon employee 
     performance standards; and
       (10) the improvement of personnel training and proficiency, 
     the adjustment of staffing levels, and the improvement of 
     training and performance of management and supervisory 
     personnel.
       (b) Response to Recommendations for Actions Within 
     Authority of District Government.--
       (1) In general.--In the case of any recommendations 
     submitted under subsection (a) during a control year which 
     are within the authority of the District government to adopt, 
     not later than 90 days after receiving the recommendations, 
     the Mayor or the Council (whichever has the authority to 
     adopt the recommendation) shall submit a statement to the 
     Authority, the President, and Congress which provides notice 
     as to whether the District government will adopt the 
     recommendations.
       (2) Implementation plan required for adopted 
     recommendations.--If the Mayor or the Council (whichever is 
     applicable) notifies the Authority and Congress under 
     paragraph (1) that the District government will adopt any of 
     the recommendations submitted under subsection (a), the Mayor 
     or the Council (whichever is applicable) shall include in the 
     statement a written plan to implement the recommendation 
     which includes--
       (A) specific performance measures to determine the extent 
     to which the District government has adopted the 
     recommendation; and
       (B) a schedule for auditing the District government's 
     compliance with the plan.
       (3) Explanations required for recommendations not 
     adopted.--If the Mayor or the Council (whichever is 
     applicable) notifies the Authority, the President, and 
     Congress under paragraph (1) that the District government 
     will not adopt any recommendation submitted under subsection 
     (a) which the District government has authority to adopt, the 
     Mayor or the Council shall include in the statement 
     explanations for the rejection of the recommendations.
       (c) Implementation of Rejected Recommendations by 
     Authority.--
       (1) In general.--If the Mayor or the Council (whichever is 
     applicable) notifies the Authority, the President, and 
     Congress under subsection (b)(1) that the District government 
     will not adopt any recommendation submitted under subsection 
     (a) which the District government has authority to adopt, the 
     Authority may by a majority vote of its members take such 
     action concerning the recommendation as it deems appropriate, 
     after consulting with the Committee on Government Reform and 
     Oversight of the House of Representatives and the Committee 
     on Governmental Affairs of the Senate.
       (2) Effective date.--This subsection shall apply with 
     respect to recommendations of the Authority made after the 
     expiration of the 6-month period which begins on the date of 
     the enactment of this Act.
     SEC. 208. SPECIAL RULES FOR FISCAL YEAR 1996.

       (a) Adoption of Transition Budget.--Notwithstanding any 
     provision of section 202 to the contrary, in the case of 
     fiscal year 1996, the following rules shall apply:
       (1) Not later than 45 days after the appointment of its 
     members, the Authority shall review the proposed budget for 
     the District of Columbia for such fiscal year submitted to 
     Congress under section 446 of the District of Columbia Self-
     Government and Governmental Reorganization Act (taking into 
     account any items or provisions disapproved by the Mayor or 
     disapproved by the Mayor and reenacted by the Council under 
     section 404(f) of the District of Columbia Self-Government 
     and Governmental Reorganization Act, as amended by section 
     202(f)(2)) and the multiyear plan for the District of 
     Columbia prepared pursuant to section 443 of the District of 
     Columbia Self-Government and Governmental Reorganization Act, 
     and shall submit any recommendations for modifications to 
     such financial plan and budget to promote the financial 
     stability of the District government to the Mayor, the 
     Council, the President, and Congress.
       (2) Not later than 15 days after receiving the 
     recommendations of the Authority submitted under paragraph 
     (1), the Council (in consultation with the Mayor) shall 
     promptly adopt a revised budget for the fiscal year (in this 
     section referred to as the ``transition 
     [[Page H4059]] budget''), and shall submit the transition 
     budget to the Authority, the President, and Congress.
       (3) Not later than 15 days after receiving the transition 
     budget from the Council under paragraph (2), the Authority 
     shall submit a report to the Mayor, the Council, the 
     President, and Congress analyzing the budget (taking into 
     account any items or provisions disapproved by the Mayor or 
     disapproved by the Mayor and reenacted by the Council under 
     section 404(f) of the District of Columbia Self-Government 
     and Governmental Reorganization Act, as amended by section 
     202(f)(2)), and shall include in the report such 
     recommendations for revisions to the transition budget as the 
     Authority considers appropriate to promote the financial 
     stability of the District government during the fiscal year.
       (b) Financial Plan and Budget.--
       (1) Deadline for submission.--For purposes of section 202, 
     the Mayor shall submit the financial plan and budget for 
     fiscal year 1996 as soon as practicable after the date of the 
     enactment of this Act (in accordance with guidelines 
     established by the Authority).
       (2) Adoption by council.--In accordance with the procedures 
     applicable under section 202 (including procedures providing 
     for review by the Authority)--
       (A) the Council shall adopt the financial plan and budget 
     for the fiscal year (including the supplemental budget 
     incorporated in the financial plan and budget) prior to the 
     submission by the Mayor of the financial plan and budget for 
     fiscal year 1997 under section 202(a); and
       (B) the financial plan and budget adopted by the Council 
     (and, in the case of a financial plan and budget disapproved 
     by the Authority, together with the financial plan and budget 
     approved and recommended by the Authority) shall be submitted 
     to Congress (in accordance with the procedures applicable 
     under such section) as a supplemental budget request for 
     fiscal year 1996 (in accordance with section 446 of the 
     District of Columbia Self-Government and Governmental 
     Reorganization Act).
       (3) Transition budget as temporary financial plan and 
     budget.--Until the approval of the financial plan and budget 
     for fiscal year 1996 by the Authority under this subsection, 
     the transition budget established under subsection (a) (as 
     enacted by Congress) shall serve as the financial plan and 
     budget adopted under this subtitle for purposes of this Act 
     (and any provision of law amended by this Act) for fiscal 
     year 1996.
       (c) Restrictions on Advances From Treasury.--
       (1) Monthly determination of progress toward financial plan 
     and budget.--During each month of fiscal year 1996 prior to 
     the adoption of the financial plan and budget, the Authority 
     shall determine whether the District government is making 
     appropriate progress in preparing and adopting a financial 
     plan and budget for the fiscal year under this subtitle.
       (2) Certification.--The Authority shall provide the 
     President and Congress with a certification if the Authority 
     finds that the District government is not making appropriate 
     progress in developing the financial plan and budget for a 
     month, and shall notify the President and Congress that the 
     certification is no longer in effect if the Authority finds 
     that the District government is making such progress after 
     the certification is provided.
       (3) Prohibition against allocation of advances if 
     certification in effect.--At any time during which a 
     certification under paragraph (2) is in effect, Authority may 
     not allocate any funds obtained through advances to the Mayor 
     under title VI of the District of Columbia Revenue Act of 
     1939 from the escrow account in which the funds are held.

     SEC. 209. CONTROL PERIODS DESCRIBED.

       (a) Initiation.--For purposes of this Act, a ``control 
     period'' is initiated upon the occurrence of any of the 
     following events (as determined by the Authority based upon 
     information obtained through the Mayor, the Inspector General 
     of the District of Columbia, or such other sources as the 
     Authority considers appropriate):
       (1) The requisitioning by the Mayor of advances from the 
     Treasury of the United States under title VI of the District 
     of Columbia Revenue Act of 1939 (sec. 47-3401, D.C. Code), or 
     the existence of any unreimbursed amounts obtained pursuant 
     to such authority.
       (2) The failure of the District government to provide 
     sufficient revenue to a debt service reserve fund of the 
     Authority under subtitle B.
       (3) The default by the District government with respect to 
     any loans, bonds, notes, or other form of borrowing.
       (4) The failure of the District government to meet its 
     payroll for any pay period.
       (5) The existence of a cash deficit of the District 
     government at the end of any quarter of the fiscal year in 
     excess of the difference between the estimated revenues of 
     the District government and the estimated expenditures of the 
     District government (including repayments of temporary 
     borrowings) during the remainder of the fiscal year or the 
     remainder of the fiscal year together with the first 6 months 
     of the succeeding fiscal year (as determined by the Authority 
     in consultation with the Chief Financial Officer of the 
     District of Columbia).
       (6) The failure of the District government to make required 
     payments relating to pensions and benefits for current and 
     former employees of the District government.
       (7) The failure of the District government to make required 
     payments to any entity established under an interstate 
     compact to which the District of Columbia is a signatory.
       (b) Termination.--
       (1) In general.--A control period terminates upon the 
     certification by the Authority that--
       (A) the District government has adequate access to both 
     short-term and long-term credit markets at reasonable 
     interest rates to meet its borrowing needs; and
       (B) for 4 consecutive fiscal years (occurring after the 
     date of the enactment of this Act) the expenditures made by 
     the District government during each of the years did not 
     exceed the revenues of the District government during such 
     years (as determined in accordance with generally accepted 
     accounting principles, as contained in the comprehensive 
     annual financial report for the District of Columbia under 
     section 448(a)(4) of the District of Columbia Self-Government 
     and Governmental Reorganization Act).
       (2) Consultation with inspector general.--In making the 
     determination under this subsection, the Authority shall 
     consult with the Inspector General of the District of 
     Columbia.
       (c) Control Period Deemed to Exist Upon Enactment.--For 
     purposes of this subtitle, a control period is deemed to 
     exist upon the enactment of this Act.
                     Subtitle B--Issuance of Bonds
     SEC. 211. AUTHORITY TO ISSUE BONDS.

       (a) In General.--
       (1) Request of mayor.--Subject to the requirements of this 
     subtitle, the Authority may at the request of the Mayor 
     pursuant to an Act of the Council issue bonds, notes, or 
     other obligations to borrow funds to obtain funds for the use 
     of the District government, in such amounts and in such 
     manner as the Authority considers appropriate.
       (2) Special rule for instrumentalities with independent 
     borrowing authority.--In the case of an agency or 
     instrumentality of the District government which under law 
     has the authority to issue bonds, notes, or obligations to 
     borrow funds without the enactment of an Act of the Council, 
     the Authority may issue bonds, notes, or other obligations to 
     borrow funds for the use or functions of such agency or 
     instrumentality at the request of the head of the agency or 
     instrumentality.
       (b) Deposit of Funds Obtained Through Borrowing With 
     Authority.--Any funds obtained by the District government 
     through borrowing by the Authority pursuant to this subtitle 
     shall be deposited into an escrow account held by the 
     Authority, which shall allocate such funds to the District 
     government in such amounts and at such times as the Authority 
     considers appropriate, consistent with the specified purposes 
     of such funds and the applicable financial plan and budget 
     under subtitle A.
       (c) Uses of Funds Obtained Through Bonds.--Any funds 
     obtained through the issuance of bonds, notes, or other 
     obligations pursuant to this subtitle may be used for any 
     purpose (consistent with the applicable financial plan and 
     budget) under subtitle A for which the District government 
     may use borrowed funds under the District of Columbia Self-
     Government and Governmental Reorganization Act and for any 
     other purpose which the Authority considers appropriate.

     SEC. 212. PLEDGE OF SECURITY INTEREST IN REVENUES OF DISTRICT 
                   GOVERNMENT.

       (a) In General.--The Authority may pledge or grant a 
     security interest in revenues to individuals or entities 
     purchasing bonds, notes, or other obligations issued pursuant 
     to this subtitle.
       (b) Dedication of Revenue Stream From District 
     Government.--The Authority shall require the Mayor--
       (1) to pledge or direct taxes or other revenues otherwise 
     payable to the District government (which are not otherwise 
     pledged or committed), including payments from the Federal 
     Government, to the Authority for purposes of securing 
     repayment of bonds, notes, or other obligations issued 
     pursuant to this subtitle; and
       (2) to transfer the proceeds of any tax levied for purposes 
     of securing such bonds, notes, or other obligations to the 
     Authority immediately upon collection.

     SEC. 213. ESTABLISHMENT OF DEBT SERVICE RESERVE FUND.

       (a) In General.--As a condition for the issuance of bonds, 
     notes, or other obligations pursuant to this subtitle, the 
     Authority shall establish a debt service reserve fund in 
     accordance with this section.
       (b) Requirements for Fund.--
       (1) Fund described.--A debt service reserve fund 
     established by the Authority pursuant to this subsection 
     shall consist of such funds as the Authority may make 
     available, and shall be a trust fund held for the benefit and 
     security of the obligees of the Authority whose bonds, notes, 
     or other obligations are secured by such fund.
       (2) Uses of funds.--Amounts in a debt service reserve fund 
     may be used solely for the payment of the principal of bonds 
     secured in whole or in part by such fund, the purchase or 
     redemption of such bonds, the payment of interest on such 
     bonds, or the payment of any redemption premium required to 
     be paid when such bonds and notes are redeemed prior to 
     maturity.
       (3) Restrictions on withdrawals.--
     [[Page H4060]]   (A) In general.--Amounts in a debt service 
     reserve fund may not be withdrawn from the fund at any time 
     in an amount that would reduce the amount of the fund to less 
     than the minimum reserve fund requirement established for 
     such fund in the resolution of the Authority creating such 
     fund, except for withdrawals for the purpose of making 
     payments when due of principal, interest, redemption premiums 
     and sinking fund payments, if any, with respect to such bonds 
     for the payment of which other moneys of the Authority are 
     not available, and for the purpose of funding the operations 
     of the Authority for a fiscal year (in such amounts and under 
     such conditions as are established under the budget of the 
     Authority for the fiscal year under section 106(a)).
       (B) Use of excess funds.--Nothing in subparagraph (A) may 
     be construed to prohibit the Authority from transferring any 
     income or interest earned by, or increments to, any debt 
     service reserve fund due to the investment thereof to other 
     funds or accounts of the Authority (to the extent such 
     transfer does not reduce the amount of the debt service 
     reserve fund below the minimum reserve fund requirement 
     established for such fund) for such purposes as the Authority 
     considers appropriate to promote the financial stability and 
     management efficiency of the District government.

     SEC. 214. OTHER REQUIREMENTS FOR ISSUANCE OF BONDS.

       (a) Minimum Debt Service Reserve Fund Requirement.--The 
     Authority may not at any time issue bonds, notes, or other 
     obligations pursuant to this subtitle which are secured in 
     whole or in part by a debt service reserve fund under section 
     213 if issuance of such bonds would cause the amount in the 
     debt reserve fund to fall below the minimum reserve 
     requirement for such fund, unless the Authority at the time 
     of issuance of such bonds shall deposit in the fund an amount 
     (from the proceeds of the bonds to be issued or from other 
     sources) which when added to the amount already in such fund 
     will cause the total amount on deposit in such fund to equal 
     or exceed the minimum reserve fund requirement established by 
     the Authority at the time of the establishment of the fund.
       (b) Amounts Included in Aggregate Limit on District 
     Borrowing.--Any amounts provided to the District government 
     through the issuance of bonds, notes, or other obligations to 
     borrow funds pursuant to this subtitle shall be taken into 
     account in determining whether the amount of funds borrowed 
     by the District of Columbia during a fiscal year exceeds the 
     limitation on such amount provided under section 603(b) of 
     the District of Columbia Self-Government and Governmental 
     Reorganization Act.

     SEC. 215. NO FULL FAITH AND CREDIT OF THE UNITED STATES.

       The full faith and credit of the United States is not 
     pledged for the payment of any principal of or interest on 
     any bond, note, or other obligation issued by the Authority 
     pursuant to this subtitle. The United States is not 
     responsible or liable for the payment of any principal of or 
     interest on any bond, note, or other obligation issued by the 
     Authority pursuant to this subtitle.
                 Subtitle C--Other Duties of Authority
     SEC. 221. DUTIES OF AUTHORITY DURING YEAR OTHER THAN CONTROL 
                   YEAR.

       (a) In General.--During the period beginning upon the 
     termination of a control period pursuant to section 209(b) 
     and ending with the suspension of its activities pursuant to 
     section 107(a), the Authority shall conduct the following 
     activities:
       (1) The Authority shall review the budgets of the District 
     government adopted by the Council under section 446 of the 
     District of Columbia Self-Government and Governmental 
     Reorganization Act for each fiscal year occurring during such 
     period.
       (2) At such time prior to the enactment of such budget by 
     Congress as the Authority considers appropriate, the 
     Authority shall prepare a report analyzing the budget and 
     submit the report to the Mayor, the Council, the President, 
     and Congress.
       (3) The Authority shall monitor the financial status of the 
     District government and shall submit reports to the Mayor, 
     the Council, the President, and Congress if the Authority 
     determines that a risk exists that a control period may be 
     initiated pursuant to section 209(a).
       (4) The Authority shall carry out activities under subtitle 
     B with respect to bonds, notes, or other obligations of the 
     Authority outstanding during such period.
       (b) Requiring Mayor to Submit Budgets to Authority.--With 
     respect to the budget for each fiscal year occurring during 
     the period described in subsection (a), at the time the Mayor 
     submits the budget of the District government adopted by the 
     Council to the President under section 446 of the District of 
     Columbia Self-Government and Governmental Reorganization Act, 
     the Mayor shall submit such budget to the Authority.

     SEC. 222. GENERAL ASSISTANCE IN ACHIEVING FINANCIAL STABILITY 
                   AND MANAGEMENT EFFICIENCY.

       In addition to any other actions described in this title, 
     the Authority may undertake cooperative efforts to assist the 
     District government in achieving financial stability and 
     management efficiency, including--
       (1) assisting the District government in avoiding defaults, 
     eliminating and liquidating deficits, maintaining sound 
     budgetary practices, and avoiding interruptions in the 
     delivery of services;
       (2) assisting the District government in improving the 
     delivery of municipal services, the training and 
     effectiveness of personnel of the District government, and 
     the efficiency of management and supervision; and
       (3) making recommendations to the President for 
     transmission to Congress on changes to this Act or other 
     Federal laws, or other actions of the Federal Government, 
     which would assist the District government in complying with 
     an approved financial plan and budget under subtitle A.

     SEC. 223. OBTAINING REPORTS.

       The Authority may require the Mayor, the Chair of the 
     Council, the Chief Financial Officer of the District of 
     Columbia, and the Inspector General of the District of 
     Columbia, to prepare and submit such reports as the Authority 
     considers appropriate to assist it in carrying out its 
     responsibilities under this Act, including submitting copies 
     of any reports regarding revenues, expenditures, budgets, 
     costs, plans, operations, estimates, and other financial or 
     budgetary matters of the District government.

     SEC. 224. REPORTS AND COMMENTS.

       (a) Annual Reports to Congress.--Not later than 30 days 
     after the last day of each fiscal year which is a control 
     year, the Authority shall submit a report to Congress 
     describing--
       (1) the progress made by the District government in meeting 
     the objectives of this Act during the fiscal year;
       (2) the assistance provided by the Authority to the 
     District government in meeting the purposes of this Act for 
     the fiscal year; and
       (3) any other activities of the Authority during the fiscal 
     year.
       (b) Review and Analysis of Performance and Financial 
     Accountability Reports.--
       (1) In general.--The Authority shall review each report 
     prepared and submitted by the Mayor under section 456 of the 
     District of Columbia Self-Government and Governmental 
     Reorganization Act (as added by section 3(a) of the Federal 
     Payment Reauthorization Act of 1994), and shall submit a 
     report to Congress analyzing the completeness and accuracy of 
     such reports.
       (2) Submission of reports by mayor.--Section 456 of the 
     District of Columbia Self-Government and Governmental 
     Reorganization Act, as added by section 3(a) of the Federal 
     Payment Reauthorization Act of 1994, is amended by adding at 
     the end the following new subsection:
       ``(e) Submission of Reports to District of Columbia 
     Financial Responsibility and Management Assistance 
     Authority.--In the case of any report submitted by the Mayor 
     under this section for a fiscal year (or any quarter of a 
     fiscal year) which is a control year under the District of 
     Columbia Financial Responsibility and Management Assistance 
     Act of 1995, the Mayor shall submit the report to the 
     District of Columbia Financial Responsibility and Management 
     Assistance Authority established under section 101(a) of such 
     Act in addition to any other individual to whom the Mayor is 
     required to submit the report under this section.''.
       (c) Comments Regarding Activities of District Government.--
     At any time during a control year, the Authority may submit a 
     report to Congress describing any action taken by the 
     District government (or any failure to act by the District 
     government) which the Authority determines will adversely 
     affect the District government's ability to comply with an 
     approved financial plan and budget under subtitle A or will 
     otherwise have a significant adverse impact on the best 
     interests of the District of Columbia.
       (d) Reports on Effect of Federal Laws on District 
     Government.--At any time during any year, the Authority may 
     submit a report to the Mayor, the Council, the President, and 
     Congress on the effect of laws enacted by Congress on the 
     financial plan and budget for the year and on the financial 
     stability and management efficiency of the District 
     government in general.
       (e) Making Reports Publicly Available.--The Authority shall 
     make any report submitted under this section available to the 
     public, except to the extent that the Authority determines 
     that the report contains confidential material.
                  TITLE III--MISCELLANEOUS PROVISIONS
     SEC. 301. OTHER DISTRICT BUDGET REFORMS.

       (a) Inclusion of All Funds of District in Budget of 
     District Government.--
       (1) In general.--Section 103 of the District of Columbia 
     Self-Government and Governmental Reorganization Act (sec. 1-
     202, D.C. Code) is amended--
       (A) by amending paragraph (10) to read as follows:
       ``(10) The term `District revenues' means all funds derived 
     from taxes, fees, charges, miscellaneous receipts, the annual 
     Federal payment to the District authorized under title V, 
     grants and other forms of financial assistance, or the sale 
     of bonds, notes, or other obligations, and any funds 
     administered by the District government under cost sharing 
     arrangements.'';
       (B) by amending paragraph (14) to read as follows:
       ``(14) The term `resources' means revenues, balances, 
     enterprise or other revolving funds, and funds realized from 
     borrowing.''; and
       (C) by amending paragraph (15) to read as follows:
     [[Page H4061]]   ``(15) The term `budget' means the entire 
     request for appropriations or loan or spending authority for 
     all activities of all departments or agencies of the District 
     of Columbia financed from all existing, proposed or 
     anticipated resources, and shall include both operating and 
     capital expenditures.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall apply with respect to revenues, resources, and budgets 
     of the District of Columbia for fiscal years beginning with 
     fiscal year 1996.
       (b) Restrictions on Reprogramming of Funds.--
       (1) In general.--Section 446 of such Act (sec. 47-304, D.C. 
     Code) is amended by adding at the end the following: ``After 
     the adoption of the annual budget for a fiscal year 
     (beginning with the annual budget for fiscal year 1995), no 
     reprogramming of amounts in the budget may occur unless the 
     Mayor submits to the Council a request for such reprogramming 
     and the Council approves the request, but only if any 
     additional expenditures provided under such request for an 
     activity are offset by reductions in expenditures for another 
     activity.''.
       (2) Conforming amendment.--Section 5 of D.C. Law 3-100 
     (sec. 47-364, D.C. Code) is hereby repealed.
       (c) Permitting Council to Request Budget Adjustments From 
     Mayor.--Section 442 of the District of Columbia Self-
     Government and Governmental Reorganization Act (sec. 47-301, 
     D.C. Code) is amended by adding at the end the following new 
     subsection:
       ``(d) The Mayor shall prepare and submit to the Council a 
     proposed supplemental or deficiency budget recommendation 
     under subsection (c) if the Council by resolution requests 
     the Mayor to submit such a recommendation.''.
       (d) Requiring Budgetary Impact Statements to Accompany Acts 
     of Council.--
       (1) In general.--Section 602(c) of the District of Columbia 
     Self-Government and Governmental Reorganization Act (sec. 1-
     233(c), D.C. Code) is amended by adding at the end the 
     following new paragraph:
       ``(3) The Council shall submit with each Act transmitted 
     under this subsection an estimate of the costs which will be 
     incurred by the District of Columbia as a result of the 
     enactment of the Act in each of the first 4 fiscal years for 
     which the Act is in effect, together with a statement of the 
     basis for such estimate.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply to Acts of the Council transmitted on or after 
     October 1, 1995.
       (e) Extension of Authorization of Annual Federal Payment.--
     Section 503(c) of the District of Columbia Self-Government 
     and Governmental Reorganization Act (sec. 47-3406.1(c), D.C. 
     Code), as added by section 2 of the Federal Payment 
     Reauthorization Act of 1994, is amended by striking ``fiscal 
     year 1996'' and inserting ``each of the fiscal years 1996, 
     1997, 1998, and 1999''.

     SEC. 302. ESTABLISHMENT OF CHIEF FINANCIAL OFFICER OF 
                   DISTRICT OF COLUMBIA.

       (a) In General.--Part B of title IV of the District of 
     Columbia Self-Government and Governmental Reorganization Act 
     is amended by adding at the end the following new section:


         ``chief financial officer of the district of columbia

       ``Sec. 424. (a) Establishment of Office.--
       ``(1) In general.--There is hereby established within the 
     executive branch of the government of the District of 
     Columbia an Office of the Chief Financial Officer of the 
     District of Columbia (hereafter referred to as the `Office'), 
     which shall be headed by the Chief Financial Officer of the 
     District of Columbia (hereafter referred to as the `Chief 
     Financial Officer').
       ``(2) Office of the treasurer.--The Office shall include 
     the Office of the Treasurer, which shall be headed by the 
     Treasurer of the District of Columbia, who shall be appointed 
     by the Chief Financial Officer and subject to the Chief 
     Financial Officer's direction and control.
       ``(3) Transfer of other offices.--Effective with the 
     appointment of the first Chief Financial Officer under 
     subsection (b), the functions and personnel of the following 
     offices are transferred to the Office:
       ``(A) The Controller of the District of Columbia.
       ``(B) The Office of the Budget.
       ``(C) The Office of Financial Information Services.
       ``(D) The Department of Finance and Revenue.
       ``(4) Service of heads of other offices.--
       ``(A) Office heads appointed by mayor.--With respect to the 
     head of the Office of the Budget and the head of the 
     Department of Finance and Revenue--
       ``(i) the Mayor shall appoint such individuals with the 
     advice and consent of the Council, subject to the approval of 
     the Authority during a control year; and
       ``(ii) during a control year, the Authority may remove such 
     individuals from office for cause, after consultation with 
     the Mayor.
       ``(B) Office heads appointed by chief financial officer.--
     With respect to the Controller of the District of Columbia 
     and the head of the Office of Financial Information 
     Services--
       ``(i) the Chief Financial Officer shall appoint such 
     individuals subject to the approval of the Mayor; and
       ``(ii) the Chief Financial Officer may remove such 
     individuals from office for cause, after consultation with 
     the Mayor.
       ``(b) Appointment.--
       ``(1) In general.--
       ``(A) Control year.--During a control year, the Chief 
     Financial Officer shall be appointed by the Mayor as follows:
       ``(i) Prior to the appointment of the Chief Financial 
     Officer, the Authority may submit recommendations for the 
     appointment to the Mayor.
       ``(ii) In consultation with the Authority and the Council, 
     the Mayor shall nominate an individual for appointment and 
     notify the Council of the nomination.
       ``(iii) After the expiration of the 7-day period which 
     begins on the date the Mayor notifies the Council of the 
     nomination under clause (ii), the Mayor shall notify the 
     Authority of the nomination.
       ``(iv) The nomination shall be effective subject to 
     approval by a majority vote of the Authority.
       ``(B) Other years.--During a year other than a control 
     year, the Chief Financial Officer shall be appointed by the 
     Mayor with the advice and consent of the Council. Prior to 
     appointment, the Authority may submit recommendations for the 
     appointment.
       ``(2) Removal.--
       ``(A) Control year.--During a control year, the Chief 
     Financial Officer may be removed for cause by the Authority 
     or by the Mayor with the approval of the Authority.
       ``(B) Other years.--During a year other than a control 
     year, the Chief Financial Officer shall serve at the pleasure 
     of the Mayor, except that the Chief Financial Officer may 
     only be removed for cause.
       ``(3) Salary.--The Chief Financial Officer shall be paid at 
     an annual rate determined by the Mayor, except that such rate 
     may not exceed the rate of basic pay payable for level IV of 
     the Executive Schedule.
       ``(c) Functions During Control Year.--During a control 
     year, the Chief Financial Officer shall have the following 
     duties:
       ``(1) Preparing the financial plan and budget for the use 
     of the Mayor for purposes of subtitle A of title II of the 
     District of Columbia Financial Responsibility and Management 
     Assistance Act of 1995.
       ``(2) Preparing the budgets of the District of Columbia for 
     the year for the use of the Mayor for purposes of part D.
       ``(3) Assuring that all financial information presented by 
     the Mayor is presented in a manner, and is otherwise 
     consistent with, the requirements of the District of Columbia 
     Financial Responsibility and Management Assistance Act of 
     1995.
       ``(4) Implementing appropriate procedures and instituting 
     such programs, systems, and personnel policies within the 
     Officer's authority, to ensure that budget, accounting and 
     personnel control systems and structures are synchronized for 
     budgeting and control purposes on a continuing basis.
       ``(5) With the approval of the Authority, preparing and 
     submitting to the Mayor and the Council--
       ``(A) annual estimates of all revenues of the District of 
     Columbia (without regard to the source of such revenues), 
     including proposed revenues, which shall be binding on the 
     Mayor and the Council for purposes of preparing and 
     submitting the budget of the District government for the year 
     under part D, except that the Mayor and the Council may 
     prepare the budget based on estimates of revenues which are 
     lower than those prepared by the Chief Financial Officer; and
       ``(B) quarterly re-estimates of the revenues of the 
     District of Columbia during the year.
       ``(6) Supervising and assuming responsibility for financial 
     transactions to ensure adequate control of revenues and 
     resources, and to ensure that appropriations are not 
     exceeded.
       ``(7) Maintaining systems of accounting and internal 
     control designed to provide--
       ``(A) full disclosure of the financial impact of the 
     activities of the District government;
       ``(B) adequate financial information needed by the District 
     government for management purposes;
       ``(C) effective control over, and accountability for, all 
     funds, property, and other assets of the District of 
     Columbia; and
       ``(D) reliable accounting results to serve as the basis for 
     preparing and supporting agency budget requests and 
     controlling the execution of the budget.
       ``(8) Submitting to the Council a financial statement of 
     the District government, containing such details and at such 
     times as the Council may specify.
       ``(9) Supervising and assuming responsibility for the 
     assessment of all property subject to assessment and special 
     assessments within the corporate limits of the District of 
     Columbia for taxation, preparing tax maps, and providing such 
     notice of taxes and special assessments (as may be required 
     by law).
       ``(10) Supervising and assuming responsibility for the 
     levying and collection of all taxes, special assessments, 
     licensing fees, and other revenues of the District of 
     Columbia (as may be required by law), and receiving all 
     amounts paid to the District of Columbia from any source 
     (including the Authority).
       ``(11) Maintaining custody of all public funds belonging to 
     or under the control of the District government (or any 
     department or agency of the District government), and 
     depositing all amounts paid in such depositories and under 
     such terms and conditions as may be designated by the Council 
     or the Authority.
     [[Page H4062]]   ``(12) Maintaining custody of all investment 
     and invested funds of the District government or in 
     possession of the District government in a fiduciary 
     capacity, and maintaining the safekeeping of all bonds and 
     notes of the District government and the receipt and delivery 
     of District government bonds and notes for transfer, 
     registration, or exchange.
       ``(13) Apportioning the total of all appropriations and 
     funds made available during the year for obligation so as to 
     prevent obligation or expenditure in a manner which would 
     result in a deficiency or a need for supplemental 
     appropriations during the year, and (with respect to 
     appropriations and funds available for an indefinite period 
     and all authorizations to create obligations by contract in 
     advance of appropriations) apportioning the total of such 
     appropriations, funds, or authorizations in the most 
     effective and economical manner.
       ``(14) Certifying all contracts (whether directly or 
     through delegation) prior to execution as to the availability 
     of funds to meet the obligations expected to be incurred by 
     the District government under such contracts during the year.
       ``(15) Prescribing the forms of receipts, vouchers, bills, 
     and claims to be used by all agencies, offices, and 
     instrumentalities of the District government.
       ``(16) Certifying and approving prior to payment all bills, 
     invoices, payrolls, and other evidences of claims, demands, 
     or charges against the District government, and determining 
     the regularity, legality, and correctness of such bills, 
     invoices, payrolls, claims, demands, or charges.
       ``(17) In coordination with the Inspector General of the 
     District of Columbia, performing internal audits of accounts 
     and operations and records of the District government, 
     including the examination of any accounts or records of 
     financial transactions, giving due consideration to the 
     effectiveness of accounting systems, internal control, and 
     related administrative practices of the departments and 
     agencies of the District government.
       ``(d) Functions During All Years.--At all times, the Chief 
     Financial Officer shall have the following duties:
       ``(1) Exercising responsibility for the administration and 
     supervision of the District of Columbia Treasurer (except 
     that the Chief Financial Officer may delegate any portion of 
     such responsibility as the Chief Financial Officer considers 
     appropriate and consistent with efficiency).
       ``(2) Administering all borrowing programs of the District 
     government for the issuance of long-term and short-term 
     indebtedness.
       ``(3) Administering the cash management program of the 
     District government, including the investment of surplus 
     funds in governmental and non-governmental interest-bearing 
     securities and accounts.
       ``(4) Administering the centralized District government 
     payroll and retirement systems.
       ``(5) Governing the accounting policies and systems 
     applicable to the District government.
       ``(6) Preparing appropriate annual, quarterly, and monthly 
     financial reports of the accounting and financial operations 
     of the District government.
       ``(7) Not later than 120 days after the end of each fiscal 
     year (beginning with fiscal year 1995), preparing the 
     complete financial statement and report on the activities of 
     the District government for such fiscal year, for the use of 
     the Mayor under section 448(a)(4) of the District of Columbia 
     Self-Government and Governmental Reorganization Act.
       ``(e) Functions of Treasurer.--At all times, the Treasurer 
     shall have the following duties:
       ``(1) Assisting the Chief Financial Officer in reporting 
     revenues received by the District government, including 
     submitting annual and quarterly reports concerning the cash 
     position of the District government not later than 60 days 
     after the last day of the quarter (or year) involved. Such 
     reports shall include:
       ``(A) Comparative reports of revenue and other receipts by 
     source, including tax, nontax, and Federal revenues, grants 
     and reimbursements, capital program loans, and advances. Each 
     source shall be broken down into specific components.
       ``(B) Statements of the cash flow of the District 
     government for the preceding quarter or year, including 
     receipts, disbursements, net changes in cash inclusive of the 
     beginning balance, cash and investment, and the ending 
     balance, inclusive of cash and investment. Such statements 
     shall reflect the actual, planned, better or worse dollar 
     amounts and the percentage change with respect to the current 
     quarter, year-to-date, and fiscal year.
       ``(C) Quarterly cash flow forecast for the quarter or year 
     involved, reflecting receipts, disbursements, net change in 
     cash inclusive of the beginning balance, cash and investment, 
     and the ending balance, inclusive of cash and investment with 
     respect to the actual dollar amounts for the quarter or year, 
     and projected dollar amounts for each of the 3 succeeding 
     quarters.
       ``(D) Monthly reports reflecting a detailed summary 
     analysis of all District of Columbia government investments, 
     including, but not limited to--
       ``(i) the total of long-term and short-term investments;
       ``(ii) a detailed summary analysis of investments by type 
     and amount, including purchases, sales (maturities), and 
     interest;
       ``(iii) an analysis of investment portfolio mix by type and 
     amount, including liquidity, quality/risk of each security, 
     and similar information;
       ``(iv) an analysis of investment strategy, including near-
     term strategic plans and projects of investment activity, as 
     well as forecasts of future investment strategies based on 
     anticipated market conditions, and similar information;
       ``(v) an analysis of cash utilization, including--

       ``(I) comparisons of budgeted percentages of total cash to 
     be invested with actual percentages of cash invested and the 
     dollar amounts;
       ``(II) comparisons of the next return on invested cash 
     expressed in percentages (yield) with comparable market 
     indicators and established District of Columbia government 
     yield objectives; and
       ``(III) comparisons of estimated dollar return against 
     actual dollar yield.

       ``(E) Monthly reports reflecting a detailed summary 
     analysis of long-term and short-term borrowings inclusive of 
     debt as authorized by section 603, in the current fiscal year 
     and the amount of debt for each succeeding fiscal year not to 
     exceed 5 years. All such reports shall reflect--
       ``(i) the amount of debt outstanding by type of instrument;
       ``(ii) the amount of authorized and unissued debt, 
     including availability of short-term lines of credit, United 
     States Treasury borrowings, and similar information;
       ``(iii) a maturity schedule of the debt;
       ``(iv) the rate of interest payable upon the debt; and
       ``(v) the amount of debt service requirements and related 
     debt service reserves.
       ``(2) Such other functions assigned to the Chief Financial 
     Officer under subsection (c) or subsection (d) as the Chief 
     Financial Officer may delegate.
       ``(f) Definitions.--In this section--
       ``(1) the term `Authority' means the District of Columbia 
     Financial Responsibility and Management Assistance Authority 
     established under section 101(a) of the District of Columbia 
     Financial Responsibility and Management Assistance Act of 
     1995;
       ``(2) the term `control year' has the meaning given such 
     term under section 305(4) of such Act; and
       ``(3) the term `District government' has the meaning given 
     such term under section 305(5) of such Act.''.
       (b) Prohibiting Delegation of Chief Financial Officer's 
     Authority.--Section 422(6) of the District of Columbia Self-
     Government and Governmental Reorganization Act (sec. 1-
     242(6), D.C. Code) is amended by adding at the end the 
     following: ``Nothing in the previous sentence may be 
     construed to permit the Mayor to delegate any functions 
     assigned to the Chief Financial Officer of the District of 
     Columbia under section 424, without regard to whether such 
     functions are assigned to the Chief Financial Officer under 
     such section during a control year (as defined in section 
     305(4) of the District of Columbia Financial Responsibility 
     and Management Assistance Act of 1995) or during any other 
     year.''.
       (c) Conforming Amendment.--Effective upon the appointment 
     of the Chief Financial Officer of the District of Columbia 
     under section 424(b) of the District of Columbia Self-
     Government and Governmental Reorganization Act (as added by 
     subsection (a)), D.C. Law 3-138 (sec. 47-314 et seq., D.C. 
     Code) is repealed.
       (d) Clerical Amendment.--The table of contents of part B of 
     title IV of the District of Columbia Self-Government and 
     Governmental Reorganization Act is amended by adding at the 
     end the following new item:

``Sec. 424. Chief Financial Officer of the District of Columbia.''.
     SEC. 303. REVISIONS TO POWERS AND DUTIES OF INSPECTOR GENERAL 
                   OF DISTRICT OF COLUMBIA.

       (a) Appointment and Term of Service; Independence of 
     Budget.--Section 208(a) of the District of Columbia 
     Procurement Practices Act of 1985 (sec. 1-1182.8(a), D.C. 
     Code) is amended by striking paragraphs (1) and (2) and 
     inserting the following:
       ``(1)(A) There is created within the executive branch of 
     the government of the District of Columbia the Office of the 
     Inspector General. The Office shall be headed by an Inspector 
     General appointed pursuant to subparagraph (B), who shall 
     serve for a term of 6 years and shall be subject to removal 
     only for cause by the Mayor (with the approval of the 
     District of Columbia Financial Responsibility and Management 
     Assistance Authority in a control year) or (in the case of a 
     control year) by the Authority. The Inspector General may be 
     reappointed for additional terms.
       ``(B) During a control year, the Inspector General shall be 
     appointed by the Mayor as follows:
       ``(i) Prior to the appointment of the Inspector General, 
     the Authority may submit recommendations for the appointment 
     to the Mayor.
       ``(ii) In consultation with the Authority and the Council, 
     the Mayor shall nominate an individual for appointment and 
     notify the Council of the nomination.
       ``(iii) After the expiration of the 7-day period which 
     begins on the date the Mayor notifies the Council of the 
     nomination under clause (ii), the Mayor shall notify the 
     Authority of the nomination.
     [[Page H4063]]   ``(iv) The nomination shall be effective 
     subject to approval by a majority vote of the Authority.
       ``(C) During a year which is not a control year, the 
     Inspector General shall be appointed by the Mayor with the 
     advice and consent of the Council. Prior to appointment, the 
     Authority may submit recommendations for the appointment.
       ``(D) The Inspector General shall be appointed without 
     regard to party affiliation and solely on the basis of 
     integrity and demonstrated ability in accounting, auditing, 
     financial management analysis, public administration, or 
     investigations.
       ``(E) The Inspector General shall be paid at an annual rate 
     determined by the Mayor, except that such rate may not exceed 
     the rate of basic pay payable for level IV of the Executive 
     Schedule.
       ``(2) The annual budget for the Office shall be adopted as 
     follows:
       ``(A) The Inspector General shall prepare and submit to the 
     Mayor, for inclusion in the annual budget of the District of 
     Columbia under part D of title IV of the District of Columbia 
     Self-Government and Governmental Reorganization Act for the 
     year, annual estimates of the expenditures and appropriations 
     necessary for the operation of the Office for the year. All 
     such estimates shall be forwarded by the Mayor to the Council 
     of the District of Columbia for its action pursuant to 
     sections 446 and 603(c) of such Act, without revision but 
     subject to recommendations. Notwithstanding any other 
     provision of such Act, the Council may comment or make 
     recommendations concerning such estimates, but shall have no 
     authority to revise such estimates.
       ``(B) Upon receipt of the annual Federal payment for the 
     District of Columbia authorized under title V of the District 
     of Columbia Self-Government and Governmental Reorganization 
     Act, the Mayor shall deposit a portion of the payment (equal 
     to the estimate of necessary appropriations described in 
     subparagraph (A)) into a dedicated fund within the government 
     of the District of Columbia.
       ``(C) Amounts deposited in the dedicated fund described in 
     subparagraph (B) shall be available solely for the operation 
     of the Office, and shall be paid to the Inspector General by 
     the Mayor (acting through the Chief Financial Officer of the 
     District of Columbia) in such installments and at such times 
     as the Inspector General requires.''.
       (b) Additional Powers and Duties.--
       (1) In general.--Section 208(a)(3) of the District of 
     Columbia Procurement Practices Act of 1985 (sec. 1-
     1182.8(a)(3), D.C. Code) is amended--
       (A) by striking ``and'' at the end of subparagraph (E);
       (B) by striking the period at the end of subparagraph (F) 
     and inserting a semicolon; and
       (C) by adding at the end the following new subparagraphs:
       ``(G) Pursuant to a contract described in paragraph (4), 
     provide certifications under section 602(b)(5) of title VI of 
     the District of Columbia Revenue Act of 1939;
       ``(H) Pursuant to a contract described in paragraph (4), 
     audit the complete financial statement and report on the 
     activities of the District government for such fiscal year, 
     for the use of the Mayor under section 448(a)(4) of the 
     District of Columbia Self-Government and Governmental 
     Reorganization Act; and
       ``(I) Not later than 30 days before the beginning of each 
     fiscal year (beginning with fiscal year 1996) and in 
     consultation with the Mayor, the Council, and the Authority, 
     establish an annual plan for audits to be conducted under 
     this paragraph during the fiscal year under which the 
     Inspector General shall report only those variances which are 
     in an amount equal to or greater than $1,000,000 or 1 percent 
     of the applicable annual budget for the program in which the 
     variance is found (whichever is lesser).''.
       (2) Limitation on contract with outside auditor.--Section 
     208(a) of such Act (sec. 1-1182.8(a), D.C. Code) is amended 
     by adding at the end the following new paragraph:
       ``(4) The Inspector General shall enter into a contract 
     with an auditor who is not an officer or employee of the 
     Office to--
       ``(A) audit the financial statement and report described in 
     paragraph (3)(H) for a fiscal year, except that the financial 
     statement and report may not be audited by the same auditor 
     (or an auditor employed by or affiliated with the same 
     auditor) for more than 3 consecutive fiscal years; and
       ``(B) audit the certification described in paragraph 
     (3)(G).''.
       (3) Subpoena power.--Section 208(c) of such Act (sec. 1-
     1182.8(c), D.C. Code) is amended--
       (A) by striking ``(c)'' and inserting ``(c)(1)''; and
       (B) by adding at the end the following new paragraph:
       ``(2)(A) The Inspector General may issue subpoenas 
     requiring the attendance and testimony of witnesses and the 
     production of any evidence relating to any matter under 
     investigation by the Inspector General.
       ``(B) If a person refuses to obey a subpoena issued under 
     subparagraph (A), the Inspector General may apply to the 
     Superior Court of the District of Columbia for an order 
     requiring that person to appear before the Inspector General 
     to give testimony, produce evidence, or both, relating to the 
     matter under investigation. Any failure to obey the order of 
     the court may be punished by the Superior Court as civil 
     contempt.''.
       (4) Referral of findings of criminal activity to attorney 
     general.--Section 208 of such Act (sec. 1-1182.8, D.C. Code) 
     is amended by adding at the end the following new subsection:
       ``(f) In carrying out the duties and responsibilities 
     established under this section, the Inspector General shall 
     report expeditiously to the Attorney General whenever the 
     Inspector General has reasonable grounds to believe there has 
     been a violation of Federal or District criminal law.''.
       (c) Revision of Current Powers and Duties.--
       (1) Liaison representative for all external audits of 
     district government.--Section 208(a)(3)(B) of such Act (sec. 
     1-1182.8(a)(3)(B), D.C. Code) is amended by striking 
     ``executive branch''.
       (2) Application of generally accepted accounting 
     principles.--Section 208(b) of such Act (sec. 1-1182.8(b), 
     D.C. Code) is amended by inserting ``accounting and'' after 
     ``accepted''.
       (3) Access to all necessary records.--Section 208(c)(1) of 
     such Act (sec. 1-1182.8(c), D.C. Code), as amended by 
     subsection (b)(3), is amended by striking ``relating to 
     contracts and procurement''.
       (4) Submission of reports to authority during control 
     year.--Section 208(d) of such Act (sec. 1-1182.8(d), D.C. 
     Code) is amended--
       (A) in paragraph (1), by striking ``the Mayor and the 
     Council'' and inserting ``the Authority (or, with respect to 
     a fiscal year which is not a control year, the Mayor and the 
     Council)''; and
       (B) in paragraph (2), by striking ``the Mayor'' and 
     inserting ``the Authority, the Mayor,''.
       (5) Making reports publicly available.--Section 208(d) of 
     such Act (sec. 1-1182.8(d), D.C. Code) is amended by adding 
     at the end the following new paragraph:
       ``(4) The Inspector General shall make each report 
     submitted under this subsection available to the public, 
     except to the extent that the report contains information 
     determined by the Inspector General to be privileged.''.
       (6) Responding to requests of authority.--Section 208(e) of 
     such Act (sec. 1-1182.8(e), D.C. Code) is amended by striking 
     ``the Director'' and inserting ``the Authority''.
       (d) Definitions.--Section 208 of such Act (sec. 1-1182.8, 
     D.C. Code), as amended by subsection (b)(4), is amended by 
     adding at the end the following new subsection:
       ``(g) In this section--
       ``(1) the term `Authority' means the District of Columbia 
     Financial Responsibility and Management Assistance Authority 
     established under section 101(a) of the District of Columbia 
     Financial Responsibility and Management Assistance Act of 
     1995;
       ``(2) the term `control year' has the meaning given such 
     term under section 305(4) of such Act; and
       ``(3) the term `District government' has the meaning given 
     such term under section 305(5) of such Act.''.
       (e) Deadline for Appointment.--
       (1) In general.--Not later than 30 days after its members 
     are appointed, the Authority shall appoint the Inspector 
     General of the District of Columbia pursuant to section 
     208(a)(1) of the District of Columbia Procurement Practices 
     Act of 1985 (as amended by subsection (a)).
       (2) Transition rule.--The term of service of the individual 
     serving as the Inspector General under section 208(a) of the 
     District of Columbia Procurement Practices Act of 1985 prior 
     to the appointment of the Inspector General by the Authority 
     under section 208(a)(1) of such Act (as amended by subsection 
     (a)) shall expire upon the appointment of the Inspector 
     General by the Authority.

     SEC. 304. COUNCIL APPROVAL OF CERTAIN CONTRACTS.

       (a) In General.--Section 451 of the District of Columbia 
     Self-Government and Governmental Reorganization Act (sec. 1-
     1130, D.C. Code) is amended--
       (1) by amending the heading to read as follows: ``special 
     rules regarding certain contracts'';
       (2) by striking ``No contract'' and inserting ``(a) 
     Contracts Extending Beyond One Year.--No contract''; and
       (3) by adding at the end the following new subsection:
       ``(b) Contracts Exceeding Certain Amount.--
       ``(1) In general.--No contract involving expenditures in 
     excess of $1,000,000 during a 12-month period may be made 
     unless the Mayor submits the contract to the Council for its 
     approval and the Council approves the contract (in accordance 
     with criteria established by act of the Council).
       ``(2) Deemed approval.--For purposes of paragraph (1), the 
     Council shall be deemed to approve a contract if--
       ``(A) during the 10-day period beginning on the date the 
     Mayor submits the contract to the Council, no member of the 
     Council introduces a resolution approving or disapproving the 
     contract; or
       ``(B) during the 45-calendar day period beginning on the 
     date the Mayor submits the contract to the Council, the 
     Council does not disapprove the contract.''.
       (b) Clerical Amendment.--The table of contents of the 
     District of Columbia Self-Government and Governmental 
     Reorganization Act is amended by amending the item relating 
     to section 451 to read as follows:

``Sec. 451. Special rules regarding certain contracts.''.

[[Page H4064]]

       (c) Effective Date.--The amendments made by this section 
     shall apply to contracts made on or after the date of the 
     enactment of this Act.

     SEC. 305. DEFINITIONS.

       In this Act, the following definitions apply:
       (1) The term ``Authority'' means the District of Columbia 
     Financial Responsibility and Management Assistance Authority 
     established under section 101(a).
       (2) The term ``Council'' means the Council of the District 
     of Columbia.
       (3) The term ``control period'' has the meaning given such 
     term in section 209.
       (4) The term ``control year'' means any fiscal year for 
     which a financial plan and budget approved by the Authority 
     under section 202(b) is in effect, and includes fiscal year 
     1996.
       (5) The term ``District government'' means the government 
     of the District of Columbia, including any department, agency 
     or instrumentality of the government of the District of 
     Columbia; any independent agency of the District of Columbia 
     established under part F of title IV of the District of 
     Columbia Self-Government and Governmental Reorganization Act 
     or any other agency, board, or commission established by the 
     Mayor or the Council; the courts of the District of Columbia; 
     the Council of the District of Columbia; and any other 
     agency, public authority, or public benefit corporation which 
     has the authority to receive monies directly or indirectly 
     from the District of Columbia (other than monies received 
     from the sale of goods, the provision of services, or the 
     loaning of funds to the District of Columbia), except that 
     such term does not include the Authority.
       (6) The term ``financial plan and budget'' means a 
     financial plan and budget described in subtitle A of title 
     II, and includes the budgets of the District government for 
     the fiscal years which are subject to the financial plan and 
     budget (as described in section 201(b)).
       (7) The term ``Mayor'' means the Mayor of the District of 
     Columbia.

  The SPEAKER pro tempore (Mr. Barrett of Nebraska). Pursuant to the 
rule, the gentleman from Pennsylvania [Mr. Clinger] will be recognized 
for 20 minutes, and the gentlewoman from Illinois [Mrs. Collins] will 
be recognized for 20 minutes.
  The Chair recognizes the gentleman from Pennsylvania [Mr. Clinger].
  Mr. CLINGER. Mr. Speaker, I yield myself such time as I may consume.
  (Mr. CLINGER asked and was given permission to revise and extend his 
remarks.)
  Mr. CLINGER. Mr. Speaker, as I stated the day the Government Reform 
and Oversight Committee favorably reported this bill, I believe the 
district of Columbia will today move one step closer to self-
sufficiency, to financial independence, perhaps even to true home rule. 
The District government is bankrupt. In about 1 month, the city 
government will not have the money to pay the bills that await. The 
legislation we are about to pass is designed to reverse that crisis and 
put the residents of the District and their government back on sound 
financial track.
  While I want the D.C. Subcommittee Chairman, Tom Davis, to summarize 
this legislation, I want to remind my colleagues that while other 
solutions to the District's problems were available, none of them 
provide the appropriate answers at this time.
  Some have called for a cash bailout--a solution that is simply 
unacceptable to this Member of Congress and I suspect a majority of my 
colleagues. It is quite obvious that without meaningful government 
reform and strong fiscal discipline, there is absolutely no evidence 
that a large infusion of cash would permanently relieve the underlying 
causes of the District's current budget crisis.
  At the other end of the spectrum, some have called for the District 
to be placed into receivership--in effect, the total elimination of 
home rule. While that step is not an option today, nobody should doubt 
the resolve of this body to take any steps necessary if District 
government officials do not cooperate with the financial control board 
established by this legislation. We anticipate that this cooperation 
will be forthcoming and that home rule will prevail.
  Make no mistake, however, pain and suffering is inevitable for the 
District to bring back its financial health. The day of reckoning has 
arrived.
  Some have questioned the need for a control board in the first place 
and the appropriateness of Congress, which seems incapable of balancing 
our own budget, forcing the District to balance its budget in the 
second. To that I say I agree that we in Congress need an outside 
discipline to force us to act responsibly just as much or more than the 
District does.
  Just as I believe a balanced budget amendment would have made it 
easier for Congress to say no to otherwise meritorious proposals, I 
also believe the existence of the control board and its threat of a 
hammer will make it easier for the mayor and the council to make the 
kind of tough decisions that are going to be necessary. It is my 
fervent hope that those decisions will in fact be made by the major and 
council and that it will not be necessary for the control board to be 
relevant.
  Last, I want to express my personal appreciation to the Members and 
staff responsible for bringing this bill to the floor. Tom Davis and 
Eleanor Holmes Norton have worked as an effective team to help solve 
the District's problems and bring economic vigor and vitality to the 
entire Washington region. I also thank those staff who worked 
tirelessly in drafting this bill and the committee report.
  I encourage each Member of the House to support this fine 
legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mrs. COLLINS of Illinois. Mr. Speaker, I yield myself such time as I 
may consume.
  (Mrs. COLLINS of Illinois asked and was given permission to revise 
and extend her remarks.)
  Mrs. COLLINS of Illinois. Mr. Speaker, I wish to congratulate and 
commend the D.C. Subcommittee's ranking member, Eleanor Holmes Norton, 
and the Subcommittee's Chair, Tom Davis, for the fine work that they 
did on this legislation which is so sorely needed. They put in many 
long arduous hours to produce this legislation. It took some tough 
negotiations, but they delivered the bill in time to meet the critical 
need for congressional action before the April recess. I would be 
remiss if I did not commend Chairman Clinger for insisting that the 
committee reach a bipartisan solution to the needs of the District. 
That effort is evidenced by the 45-to-0 vote to report it to the House.
  As we can all see, H.R. 1345 is a complex bill which attempts to 
carefully balance the interests of the District and Federal 
governments. The bill provides the District with desperately needed 
relief from the extreme financial crisis confronting it and yet it does 
so in a way that keeps the Congress out of the day-to-day internal 
affairs of the District government, while assuring the continued 
delivery of essential services to local residents, Federal agencies, 
and the many millions of visitors who come to the Nation's Capital each 
year.
  I am pleased that this bill won the unanimous support of the Members 
serving on our committee, and that it enjoys the broad bipartisan 
support of so many others. This should ensure that it receives the 
favorable consideration it deserves. However, I find little delight in 
what we do here today, because the District's long-standing pursuit of 
complete self-governance has been set back.
  While I recognize that the current fiscal crisis makes the action we 
take today inevitable, I am determined to ensure that this setback for 
the District is a temporary one, and I plan to work closely with 
Chairmen Clinger and Davis, and Delegate Norton, to take the steps 
necessary to restore the District's financial health and quickly bring 
an end to this new authority.
  Back in November 1993, this body considered the New Columbia 
Admission Act, a bill which I cosponsored and strongly supported. That 
bill provided for D.C. statehood. I strongly believe that its enactment 
still represents the best action Congress could take to help the 
District of Columbia. Statehood would give District residents full 
democratic rights, and give the District government the freedom to 
manage its own financial affairs, without the restraints imposed by 
Congress.
  In my view, the financial problems of the District of Columbia are 
grounded in more than declining revenues and management difficulties. 
They are attributable, to a significant extent, to the extraordinary 
burdens the Congress placed on the District when it was granted limited 
Home Rule over 20 years ago, by giving the District the responsibility 
for numerous functions normally performed by States such as: operating 
a State court system and prison system; providing mental health, foster 
care, and adoption services; and bearing the cost of Medicaid and AFDC 
benefits; to name just a few. At the same time, the Home Rule Charter 
did not confer State authority. The district's ability to pay for these 
State 
[[Page H4065]] functions was limited by a congressionally imposed ban 
on taxing nonresident income earned within its borders as other states 
and many other cities do.
  The District leads the Nation in the percentage of income earned in 
the city by nonresidents. Two of every three dollars earned here are 
earned by a nonresident. If nonresidents were subject to a flat rate of 
only 2 percent, the District could raise about $370 million per year. 
In fact, more than 22,000 of the District government's own employees 
enjoy life in the suburbs on an income drawn from the city treasury. 
The District government estimates it could raise $50 million annually 
by taxing their income. These Catch-22 circumstances are patently 
unfair and have substantially contributed to the economic distress. 
They have got to change, and I hope they will soon.
  There is also the burden of the unfunded pension liability which must 
be addressed. In 1979, Congress transferred $2 billion of liability for 
a pension system it established for police, firefighters, and teachers 
at a time when District employees were considered Federal employees. 
Now, largely due to interest, the liability has grown to almost $5 
billion. The District contributes about $300 million a year toward this 
pension system's cost, while the Federal Government contributes only 
$52 million. The Federal Government is not paying its fair share, while 
each year the spiraling costs consume more and more of the District's 
limited revenues.
  I am pleased that Members on both sides of the aisle acknowledge that 
the unfunded pension liability is a problem for which the Federal 
Government bears some responsibility, and that the D.C. Subcommittee's 
chair is committed to taking action on this matter during the 104th 
Congress.
  The District's financial stability is also encumbered by the fact 
that only 43 percent of its real property can be taxed. The rest, 57 
percent, is owned by the Federal Government, foreign governments, the 
District government, or tax exempt entities. With respect to this 
latter group, I note that the D.C. Council and even some Members are 
now questioning the propriety of continuing such tax breaks, given the 
current crisis.
  Finally, it is absolutely essential that everyone recognize that the 
financial crisis confronting the District of Columbia is not a unique 
one. The hearings which the D.C. Subcommittee held on this matter 
demonstrated that several other major American cities have reached the 
brink of insolvency before. In most of those cases, financial control 
or oversight boards were established by the State legislatures and the 
boards worked cooperatively with city officials to successfully 
stabilize each situation. I have no doubt that this will happen here.
  The District of Columbia lies in the heart of a metropolitan area 
that ranks first among the 15 largest metropolitan areas on several 
desirable income, educational, and employment indices. It ranks at the 
top in: per capita income; individuals completing more than 16 years of 
school; and employment in professional, managerial, and technical jobs. 
It has the lowest rate of unemployment. So clearly, the District is a 
city rich with talent. The District is a city with resources. The 
District is a city with a future. It will be back on its feet soon.
  Mr. Speaker, I yield the remainder of my time to the gentlewoman from 
the District of Columbia [Ms. Norton], who has worked so hard in this 
instance, and I ask unanimous consent that she be allowed to yield that 
time in such way as she sees fit.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from Illinois?
  There was no objection.
  Mr. CLINGER. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Virginia [Mr. Bliley], the chairman of the Committee on 
Commerce and a very active member who has been involved in the 
District's affairs for many, many years.
  (Mr. BLILEY asked and was given permission to revise and extend his 
remarks.)
  Mr. BLILEY. Mr. Speaker, I thank the gentleman for yielding time to 
me.
  Mr. Speaker, I rise today in strong support of the District of 
Columbia Financial Responsibility and Management Assistance Act of 
1995.
  The District of Columbia has testified under oath that it expects to 
run out of money by early May.
  Under present law the District is entitled to draw on the U.S. 
Treasury to pay its bill. This bill places necessary fiscal conditions 
on any borrowing in accordance with the findings and purposes as stated 
in the act.
  The authority in this bill is the strongest ever created for any U.S. 
city. It will finally place necessary controls on District spending. 
The authority will require an accurate, annual balanced budget and a 4-
year financial plan. It will have enforcement power.
  In the past I worked closely with Delegate Norton to ensure the 
financial stability of the District of Columbia. We worked to increase 
the Federal payment, and we worked to ensure the District would be able 
to manage itself. Sadly, this has not occurred.
  This legislation does not abolish home rule, rather during the 
control period certain fiscal functions of the District will be 
supplanted by the Board. By stabilizing the District's finances, the 
city will emerge in a stronger position that it is today.
  Without this bill city workers, residents, businesses, and visitors 
will continue to live under a cloud of fiscal uncertainty which is 
present and growing.
  The dollar-for-dollar reductions for overspending in last year's 
budget resolution must be lifted now so that the Treasury will be able 
to lend through the Authority. The annual Federal payment will serve as 
the collateral.
  The Financial Control Authority created in this bill will control 
District finance until the city balances four budgets in a row and has 
repaid any money borrowed with the Authority's cooperation.
  The Authority will have five members, appointed by the President 
after congressional consultation. These members will serve without 
salaries for 3 years, and they must be District residents.
  As soon as this bill is enacted, they must submit a 5-year financial 
recovery plan to the Authority as soon as practicable.
  The Authority will have to review this plan, adopt it or submit 
modifications to the city council. If the city council proposes 
modifications which meet with the disapproval of the Authority, it may 
then submit its own proposal to Congress for consideration.
  This plan ensures that all affected parties, the people, the council, 
the Mayor, the Authority, and the Congress will have their voices heard 
to ensure our Nation's Capital gets on sounder financial footing.
  I commend Representative Davis and Delegate Norton for reaching 
consensus on this very important initiative, and urge its adoption by 
the House.
  Mr. CLINGER. Mr. Speaker, I yield the balance of my time to the 
gentleman from Virginia [Mr. Davis], the prime author of this 
legislation, and I ask unanimous consent that he may be permitted to 
control the balance of the time remaining on the majority side.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Pennsylvania?
  There was no objection.
  Mr. DAVIS. Mr. Speaker, I yield myself such time as I may require.
  (Mr. DAVIS asked and was given permission to revise and extend his 
remarks.)
  Mr. DAVIS. Mr. Speaker, this emergency legislation is the cornerstone 
of our Nation's response to the tragic and completely unacceptable 
financial condition of our Nation's Capital. Life in Washington, DC, is 
coming apart at the seams. This legislation will halt the decay of the 
city government's ability to provide basic municipal services to the 
residents of the District and begin the difficult but necessary process 
of making the common life of the city whole once again. It is critical 
not only for this region and for those who live here, but for those who 
visit here as well.
  As chairman of the Subcommittee on the District of Columbia of the 
Government Reform and Oversight Committee, I rise as the principal 
sponsor of the District of Columbia Financial Responsibility and 
Management Assistance Act of 1995. It would not have been possible for 
this piece of emergency legislation to be here before the House so 
early in the session without the active cooperation and hard work of 
many Members and their staffs.
  Mr. Speaker, I want to thank on the staff side the GAO staff. I would 
like to thank John Simmons of Congressman 
[[Page H4066]] Walsh's staff, Migo McConey from the Appropriations 
staff, Cheryl Smith, also of the Appropriations staff, and Brian 
Seward, as well as Donna Brazile and Cedric Hendricks from the District 
of Columbia Subcommittee staff, Ron Hamm, our director, Ellen Brown, 
Howie Dennis, Roland Gunn, who put in numerous hours on this effort, Al 
Felzenberg, and Ann Mack, Tim Leeth and Kevin Sabo from the Senate 
staff, and Jim Clarke from the full committee staff.
  I also want to express my deep gratitude to the House leadership and 
to Chairman Clinger, as well as the gentlewoman from Illinois, Mrs. 
Cardiss Collins, for their willingness to provide the necessary advice 
and assistance to move this bill forward.
  I also want to thank our colleague from the District of Columbia, the 
gentlewoman from the District of Columbia [Ms. Norton], who is a true 
leader and without whose efforts and advice this bill would not be here 
today. She has shown her leadership once again on this bill, and I look 
forward to working with her in the future on many other issues 
concerning the District. And I would say to Congressman Walsh and
 the gentleman from California, Mr. Dixon, of the District of Columbia 
Appropriations Subcommittee that their efforts in this regard and their 
ability to work together as a team have brought this legislation here 
today, and I thank them for their efforts.

  Without their constant personal attention throughout a seemingly 
endless series of negotiations, we would not be nearly so far along in 
our response to the problems of the District. I also want to thank the 
members of the subcommittee, especially my vice-chair, Mr. Gutknecht, 
for their willingness to hold hearings on short notice and to move this 
legislation on an exceptionally fast tract. But, above all, I am 
grateful for the willingness of all of the Members involved in this 
process to reach across party and ideological lines for the good of the 
entire Nation. This effort has been extraordinary and inspirational. 
Finally, none of this would have been possible without the long, hard 
hours of work by the personal and committee staff who have devoted 
themselves to working out the details of this complex bill. They are 
all deeply aware of the urgency of the crisis facing the District of 
Columbia.
  The current crisis stems from the unwillingness of the political 
leadership of the city and of past Congresses to make the hard but 
necessary decisions to keep the District's spending in line with its 
income. The result of this policy is not surprising: the District of 
Columbia is insolvent. If the city were to begin to write the checks 
necessary to pay all its current bills, it would run out of cash long 
before it came to the bottom of its stack of bills. The dire condition 
of the city's finances spills over to and harms the entire region. 
Currently, the city is not able to make its payments to regional 
authorities like Metro and Council of Governments. Without the city 
paying its full share, these vital regional organizations will not be 
able to carry out their important missions. One of the things this bill 
seeks to accomplish is the orderly payment of these obligations. Piled 
up, unpaid bills force many small businesses all across the region to 
lay off workers, or in some cases, to fail. Thus the whole region 
suffers as long as the city is broke. The time to act is now.
  The city's insolvency is not the result of an unanticipated natural 
disaster. It is not the result of an inadequate revenue stream. In 
fact, for a city its size, it has more than adequate revenue to fund 
the full range of services needed by its citizens. But, beginning with 
the collapse of real estate values in 1989 and continuing even as I 
speak, the city simply spends
 more money than it collects. The District of Columbia's government 
continues to try to fund everything it wants while neglecting to 
adequately fund what it truly needs as a municipal government. Much of 
the money it spends, it does not spend wisely. According to a recent 
study by Thomas Edmonds and Raymond Keating, during the 1991-92 school 
year the District spent more per pupil on primary and secondary 
education than any State in our Nation. Yet, we read in the local press 
that there are over 8,000 fire code violations in the schools in need 
of repair. This is but one of many instances of local political 
decisions that have unintended but completely unacceptable consequences 
for the city's least powerful and most vulnerable residents.

  It would be all too easy for me to place all the blame for the 
unraveling of the city on poor decisions made by Washington's local 
political leaders. But, this would be neither an accurate nor a 
responsible course for me to take. Our Constitution clearly gives 
Congress the responsibility ``to exercise exclusive Legislation in all 
Cases whatsover,'' in the seat of the national government. Congress has 
not always used this power wisely. There has been an understandable 
reluctance to interfere with local political decisions. This 
reluctance, has perhaps, at times slipped over into failure to provide 
proper oversight. There has been a spirit of generosity that gave the 
District government access to $1.277 billion more cash during the Kelly 
administration than previously scheduled payments dictated. This 
generosity became indulgence. The result of inadequate congressional 
oversight is not acceptable. We see before us today a broken city. We 
cannot continue these policies. We must carry out our oversight 
responsibilities in a more responsible and effective way. The bill 
before us this afternoon provides us with the appropriate vehicle to 
meet our responsibility.
  H.R. 1345 is designed to provide the strong medicine necessary to 
heal our beloved but battered Capital City. It establishes the 
strongest financial oversight authority in our Nation's history. We 
have looked with great care at what other cities facing similar crises 
have done to solve their problems. We have studied what has worked well 
and what has failed. We think we have applied these lessons to the 
unique and special facts of Washington, DC. We have carefully crafted 
our nation's response to this crisis. The most important thing we have 
learned is that no city has been able to solve its problems alone. In 
the case of other cities, State governments have stepped in to provide 
assistance. In this respect, Washington, DC, is unique. It has no State 
to turn to for assistance. The entire American people, acting as a 
collective body through their elected Representatives in Congress, 
constitute Washington, DC's state.
  I am not going to present a complete outline of this 145-page 
legislation. I want to focus on its essential features. The central 
feature of this legislation is the establishment of the District of 
Columbia Financial Responsibility and Management Assistance Authority 
to assist our Nation's Capital on its way back to financial soundness. 
The purpose of the Authority is to help the city knit itself back 
together. It is designed to work with Congress and the local government 
without being a component part of either government. I expect it will 
make many recommendations both to Congress and the city about necessary 
changes in the management of the city and the role of the Federal 
Government in the city's life. The Authority is composed of five 
Presidential appointees who are stake-holders in the city. The 
President will make these selections after consultation with the 
relevant committee chairs and the Delegate from the District. The 
Authority will be assisted by a small professional staff.
  The Authority has all the power to accomplish its mission of 
financial responsibility and management assistance. In dealing with the 
local government, the initiative generally belongs to local elected 
leaders. For example, the Mayor still submits his budget the city 
council. But, it is submitted to the Authority as well. The Authority, 
as well as the city council, examine the budget critically. If the 
Authority decides the proposed budget is neither balanced or in not 
accordance with the city's long-term plan, the Authority cannot approve 
the budget. It is returned with the Authority's recommendations to the 
council. After this process works itself out, Congress receives either 
an Authority-approved budget or the final council-approved budget along 
with the Authority's comments. Congress retains its responsibility to 
give final approval to the city's budget.
  In addition to the creation of the Authority, this legislation 
creates a permanent, statutory
 chief financial officer for the District of Columbia. The 
[[Page H4067]] CFO is appointed by the Mayor, in consultation with the 
city council, and the approval of the Authority. The CFO is responsible 
for assembling accurate financial information to serve as the 
foundation of the city's budgetary and spending decisions. The CFO also 
must certify all bills and contracts, assess and collect all taxes, and 
provide accurate accounting. This office reports to the Mayor, the 
council, and the Authority.
  The creation of the Authority and of a CFO provides only part of the 
administrative framework necessary to assist the city back to financial 
health. The final structural change is the enhancement of the Office of 
the Inspector General. The IG, like the CFO, is appointed by the Mayor 
in consultation with the city council and the approval of the 
Authority. We have taken special care to make sure the IG has the 
political independence and financial resources to act as a strong 
watchdog over the city government. In addition to a fixed 6-year term, 
the budget of the IG can only be changed by Congress. In order to 
assure the timely dissemination of information, the IG's reports become 
public documents in a timely manner. The IG reports not only to the 
Mayor, but also to the council and the Authority. The IG is also 
responsible for letting the contract for an annual, independent audit 
of the city's finances.
  The Authority, the CFO, and the enhanced IG form the nucleus of a 
more efficient, responsible, and responsive city government. It 
provides the city with an ideal opportunity to examine critically the 
range and level of services it seeks to provide. The locally elected 
leaders of the city need to decide what they can realistically afford 
to fund. I hope the enactment of this legislation provides the occasion 
for a dramatic restructuring of the local government. After the 
District has begun to make the hard choices necessary to bring their 
spending in line with their revenue, the question of the proper 
relationship between the city and the Federal Government will be 
addressed.
  This legislation is not punitive. It is the strong medicine needed to 
bring the city back to financial health. One of the effects of this 
legislation will be the restoration of the city's access to the credit 
markets. This is important for the enhancement of home rule. I hope 
that the Authority and the city working together with the Congress 
will, sooner rather than later, be holding groundbreaking ceremonies 
for the new arena and convention center. These projects will enhance 
the quality of life not only in the District but throughout the entire 
region.
  We stand at a critical moment in the life of our Nation's Capital. We 
can no longer afford the price of congressional inaction. The District 
will soon run out of cash. Under present law, the Mayor can requisition 
cash from the Federal Treasury. If we fail to act, Mayor Barry will be 
forced to take the District's bills to the Treasury Department without 
conditions or restrictions. We must not allow this to happen. If we 
enact this legislation, when the city runs out of cash, Congress will 
have put the proper structure in place to regulate and facilitate its 
access to the Treasury window. There are no viable alternatives. We are 
in effect pulling the District's credit card to the U.S. Treasury and 
setting conditions for borrowing that can lead to economic recovery. 
The present crisis is a direct consequence of destructive fiscal 
policies. This bill represents fundamental change. I urge you to vote 
in favor of H.R. 1345.
  Mr. Speaker, I reserve the balance of my time.
                              {time}  1515

  Ms. NORTON. Mr. Speaker, I yield myself such time as I may consume.
  (Ms. NORTON asked and was given permission to revise and extend her 
remarks.)
  Ms. NORTON. Mr. Speaker, thanks to Chairman Bill Clinger, ranking 
Member Cardiss Collins, and subcommittee Chairman Tom Davis, we are 
seeing a rare moment in any Congress, and certainly in this one. A very 
difficult bill has been crafted and then unanimously embraced in 
subcommittee and committee because of their leadership. Yet, H.R. 1345 
has no precedent in this House. It has substantial precedent in this 
country, of course. New York City, Philadelphia, and Cleveland, among 
other jurisdictions, became insolvent and have had similar authorities 
or boards established to guide them back to fiscal health. To those 
inclined to harshly judge the District, the self-same ordeals of these 
great American cities should give some pause. And, unlike those cities, 
the District has had to fund not only municipal but also State and 
county functions as well, among them today's daunting costs of Medicaid 
and prisons. Before long, the Congress will have to face the reality 
that no American city today can fund these State and county missions 
alone and that the District will need more funds from the Congress. 
Such huge cost, as well as the congressionally imposed unfunded pension 
liability, in today's atmosphere of urban distress, have simply 
overwhelmed the city.
  Chairman Clinger and ranking Member Collins were executive producers 
of this effort, setting the tone, steering the course, insisting upon 
flexibility, yet drawing the bright lines to achieve an effective bill. 
Subcommittee Chairman Tom Davis was the producer. He worked closely 
with D.C. Appropriations Subcommittee Chairman Jim Walsh, whose strong 
and skillful leadership is also reflected throughout the bill.
  Chairman Davis has given the world ``freshman'' new respect for the 
extraordinary reach of his vision for the bill and the determined skill 
with which he carried his vision to fruition. Setting for himself the 
expansive goal of a consensus bill, Chairman Davis first wrote H.R. 
1345 simultaneously with majority Members in the House and the Senate. 
Onto this bicameralism, he superimposed bipartisanship, inviting 
ranking Members to suggest and negotiate changes. Representative Julian 
Dixon, the ranking member of the D.C. Appropriations Subcommittee, was 
an indispensable party to this bill, bringing unmatched depth, 
intelligence, and objectivity. Some of our changes were rejected and 
others compromised, but many were accepted.
  The process that Chairman Davis developed is what has enabled me to 
cosponsor H.R. 1345 and to urge my colleagues to vote today for 
passage. Like all bills that come to the floor, it is the majority's 
bill, but it has accommodated many changes and compromises not only 
from me but from the Mayor and the chairman and members of the city 
council of my city. Thus, this bill is quite literally a collaboration 
among all directly concerned: The chairs and ranking members of the 
authorizing and appropriations committees and subcommittees of the 
House and Senate and the elected representatives of the District of 
Columbia.
  Section upon section of the bill vindicate both the process and the 
substance of H.R. 1345. Many of the changes are modifications and 
nuances that only locally elected officials and others who live with 
the District's problems could recognize. By accepting changes that 
reflect the experience of governing and living in the District, 
Chairman Davis and his colleagues have gone a long way toward assuring 
that H.R. 1345 is able to do its job.
  Two urgent reasons make this bill not only mandatory but also the 
only viable option available: First, without the authority established 
in this bill, the District, already technically insolvent, will run out 
of cash sufficient to pay its employees and keep services in operation 
within the next few weeks; second, without the authority established in 
this bill, the District will bear a destructive penalty for being in 
violation of existing law that requires a balanced budget, a mandate 
that cannot possibly be met without spreading the city's huge 
structural deficit over several years.
  However, I am able to cosponsor H.R. 1345, not only because of its 
urgent necessity. I am a cosponsor of this bill because it does not 
violate the other essential and overriding principle--the right of 
District residents to maintain every bit of what limited home rule 
powers we have managed to achieve. Our democratic right to self-
government is more precious to us than to other Americans quite simply 
because they, all of them, including the four territories, have it, and 
we don't. For this reason, I have measured self-government by the 
strictest standard I could locate: whether the provisions of H.R. 1345 
are any more
 intrusive than those of the other similarly situated 
[[Page H4068]] jurisdictions. This is the best standard because no one 
has suggested that with the establishment of similar authorities, New 
York, Philadelphia, or Cleveland lost their dignity or independence. 
Anyone who takes the time and trouble to compare H.R. 1345 with prior 
State statutes, especially New York's law, as I did throughout the 
negotiations, will find the self-government standard fully met.
  The Mayor and the city council retain their respective powers. The 
initiative in all matters committed to them under the home rule charter 
remains theirs alone. This is important not only to preserve democracy. 
It is important because the point of this effort is to encourage 
elected leaders to take responsibility so that when the authority 
recedes, their necessary discipline is fully built into the way they 
conduct the city's business. Thus, the authority is a monitor whose 
purpose is to check and enforce new rules of fiscal and operational 
discipline that the Mayor and the council place upon themselves in 
multiyear plans and annual budgets that these elected officials 
themselves will write.
  I have no doubt that the District will take the initiative to solve 
its own problems, just as our elected officials have helped make H.R. 
1345 a better bill. This morning before this matter had even come to 
the floor, at the invitation of the Mayor, I went to his cabinet 
meeting to discuss H.R. 1345 and what it means for District officials. 
Further, today the Mayor has announced a nationwide search for a chief 
financial officer, who will be a central figure in the District's 
financial recovery.
  I take special pride in these early initiatives by the Mayor to make 
H.R. 1345 work and in the recent rough and tough actions of the city 
council, who even without the monitoring authority, have made 
courageous cuts and taken their lumps for their trouble.
  I take particular comfort from Members of the House, who have 
uniformly expressed respect and admiration for what authorities like 
that established in H.R. 1345 have done, working with local officials, 
in their own cities. Expect no less from the District.
  Notwithstanding this crisis, the District remains one of the most 
promising large cities in the United States. Among the 25 largest 
cities, we proudly rank first per capita in residents in the Nation's 
top job categories, third per capita in residents with college and 
post-college degrees, and fifth per capita in income. In the midst of 
this crisis, our business community is using its own private resources 
to build an arena and a convention center which will bring many 
millions in revenue to the District. This is the raw material for a 
dazzling comeback.
  Just beyond the horizon, the Capital of the United States is a city 
with a future. But, it is more than that. It is such livable city that 
more Members of the House and Senate have chosen to live here than in 
any part of the region. It is city of world class beauty. The 
District's problems must not be allowed to obscure its potential. With 
help from the Congress, but under its own initiative and by its own 
hand, this shall soon be a city on the rise like the sun on a clear 
morning.

                              {time}  1530

  Mr. Speaker, I reserve the balance of my time.
  Mr. DAVIS. Mr. Speaker, may I inquire of the Chair how much time 
remains on both sides?
  The SPEAKER pro tempore (Mr. Hastings of Washington). The gentleman 
from Virginia [Mr. Davis] has 3 minutes remaining, and the gentlewoman 
from the District of Columbia [Ms. Norton] has 7 minutes remaining.
  Mr. DAVIS. Mr. Speaker, I ask unanimous consent that both sides be 
given an additional 5 minutes.
  Ms. NORTON. Mr. Speaker, I join in the request of the gentleman.
  The SPEAKER pro tempore. Without objection, each side will have an 
additional 5 minutes.
  There was no objection.
  Mr. DAVIS. Mr. Speaker, I yield 4 minutes and 30 seconds to the 
gentleman from New York [Mr. Walsh], the chairman of the Appropriations 
Subcommittee, who has done so much to help bring this bill to its final 
stages. We appreciate his efforts.
  (Mr. WALSH asked and was given permission to revise and extend his 
remarks.)
  Mr. WALSH. Mr. Speaker, I thank the gentleman for yielding time to me 
and I thank him for his hard work on a very vigorous project, one 
sorely in need.
  Mr. Speaker, I rise in strong support of H.R. 1345. I think this is a 
good bill. It is the culmination of many hours and long days of 
discussions and negotiations. It is a nonpartisan issue. Every one on 
both sides of the aisle in this body as well as the other body and the 
White House has worked diligently with one objective in mind, to do 
what is best for our Nation's Capital.
  This bill will establish a financial responsibility and management 
assistance authority, a control board, consisting of five members to be 
appointed by the President in consultation with the Congress within 25 
days of its enactment.
  Results of our hearings indicate that the District's financial 
management and information systems are inadequate to provide the data 
that is essential for the efficient operation of the District 
government. H.R. 1345 establishes a chief financial officer of the 
District of Columbia who will be appointed by the Mayor and subject to 
the approval by a majority of the vote of the authority and removed 
only with authority approval.
  The CFO will be responsible for all financial activities of the 
District government, from revenue estimates and cash receipts to 
expenditures and cash disbursements. So this is going to be a very 
important position, in my judgment, the most important position. 
Because the position is so important, this person must have as much 
independence to carry out the mission of getting local government back 
on track financially.
  Another position that is key to the success of the authority is an 
inspector general who also must be truly independent to pursue 
investigations that will lead to the prevention and detection of fraud 
and abuse.
  We in the Congress must continue our vigilance to ensure the 
independence of both of these offices.
  Mr. Speaker, I want to touch on what I consider to be the crucial 
issue of the authority. In the event that there is a stalemate, an 
impasse between the authority and city government, the bill allows the 
authority to implement its own recommendations, whether they be 
executive or legislative in nature. This power is absolute and it is 
absolutely necessary if the authority is to be effective and have the 
desired impact on the efficient operation of District government.
  This authority needs to have control. It is our intention that it 
have control. In my opinion, the bill before you is drafted so that the 
authority will have control, the control it needs to get the District 
government back on a sound financial footing.
  We felt very strongly this had to be a tough bill, tough love for our 
Nation's Capital. This bill meets that standard.
  Lastly, Mr. Speaker, the gentleman from Virginia [Mr. Davis] talked 
about the ability of the District to go to the Treasury to borrow. That 
authority continues under this new regime. And that is important 
because the individual, the organizations that have loaned money to the 
District, their interests need to be protected, along with the 
interests of the District. That will continue under this law and, in 
fact, ensure that if the District does go back to Treasury and borrow, 
that the money will go directly to the control board and will be 
disbursed under their authority.
  Finally, I believe, Mr. Speaker, that sufficient safeguards are in 
place to protect the Federal taxpayer, all Americans who send their tax 
dollars to support the city.
  This is not a partisan bill. The people who really put this together, 
the gentleman from Virginia [Mr. Davis], the gentlewoman from the 
District of Columbia [Ms. Norton], did a marvelous job, a truly 
marvelous job negotiating this. The gentleman from California [Mr. 
Dixon], former chairman in the seat that I now sit in, lent his 
toughness and his wisdom to this product. I thank him and I also thank 
from my staff John Simmons and Migo Miconi who worked so hard to 
support my activities.
  Ms. NORTON. Mr. Speaker, I yield 4 minutes to the gentleman from 
California [Mr. Dixon], the ranking minority 
[[Page H4069]] member of the Subcommittee on the District of Columbia 
of the Committee on Appropriations and an unusually wise and 
knowledgeable and essential partner in the negotiations that led to 
H.R. 1345.
  (Mr. DIXON asked and was given permission to revise and extend his 
remarks.)
  Mr. DIXON. Mr. Speaker, I thank the gentlewoman for her kind remarks 
and for yielding time to me.
  Mr. Speaker, as the ranking minority member of the Committee on 
Appropriations Subcommittee on the District of Columbia, I rise in 
support of H.R. 1345, the District of Columbia Financial Responsibility 
and Management Assistance Act of 1995. We consider this bill at a 
critical moment in the short history of self-government for the 
District of Columbia.
  The District of Columbia is in a financial crisis that it cannot 
solve on its own. Like other major cities across the country, the 
District of Columbia is not alone in feeling the multiple pressures of 
a dwindling tax base and increasing social service costs. The District, 
however, carries the additional burden of being the only governmental 
entity with responsibilities traditionally implemented by State and 
county, as well as city, governments.
  Over the past few months, we have received convincing and mounting 
evidence that the District of Columbia is nearing a financial collapse. 
The Mayor has reported to us that the District has a fiscal year 1995 
budget gap of $631 million and a precarious cash position. Although the 
Mayor has proposed to reduce this budget gap by $224 million through 
reduced agency spending and other initiatives, these actions alone are 
not sufficient to close a gap which amounts to nearly 20 percent of the 
District's annual appropriated budget. The General Accounting Office 
has reported to us that the District will run out of cash this summer 
and that the city currently does not have enough cash to pay its bills.
  In recent years, other cities, including Philadelphia, New York City, 
and Yonkers, have confronted financial insolvency requiring emergency 
assistance from their States. But, the District is unable to turn to a 
State government to provide such extraordinary assistance; the District 
can turn only to the Federal Treasury and to the Congress for help.
  Mr. Speaker, in the process of considering the District's financial 
crisis, we have tried hard to separate the rhetoric from reality. With 
the excellent assistance of the General Accounting Office, we have 
tried to separate fact from fiction. And, while we may disagree with 
the Mayor about whether the District has too little revenue, too much 
spending, or simply inefficient management of its resources, I believe 
that there is no disagreement that the problem is real. The hard 
reality is that a remedy must be provided before the District becomes 
insolvent, and the bill before us provides the necessary cure.
  H.R. 1345 is not a perfect bill, nor do I agree with all of its 
provisions. But, I do agree with the bill's fundamental purposes: 
First, to assist the District in getting immediate control over its 
deficit spending and, second, to provide for the long-term fiscal 
stability of the District by providing a comprehensive approach to the 
fiscal, management, and structural problems in the District Government. 
This bill provides a
 speedy recovery to D.C. financial health while preserving home rule 
for its citizens.

  H.R. 1345 has many important provisions. It will enable the city to 
borrow from the U.S. Treasury to meet its short-term, emergency cash 
needs, but only with stringent controls that will impose a rigorous 
fiscal discipline on the city that has not existed before.
  The bill creates the strongest Financial Oversight Board ever created 
for any U.S. city. A five-member authority, appointed by the President 
with congressional consultation, will have extensive latitude in 
monitoring and overseeing the District's financial affairs until such 
time that it has balanced its budget for 4 consecutive years and repaid 
any funds borrowed on its behalf. Most important, the authority will be 
comprised of individuals who pay either personal income or business 
taxes to the District and, thus, have a real stake in the District's 
future.
  During any control period, the authority will make recommendations to 
the District to promote financial stability and improve the delivery of 
city services, including reviewing the structural relationship between 
the District government and the Federal Government. The authority must 
approve a multi-year financial plan developed by the District aimed at 
achieving a truly balanced budget by 1999. The authority may reject the 
city's annual budget, disapprove contracts, and disapprove District 
borrowing if not consistent with the financial plan and annual budget.
  The bill enhances the powers of the District's chief financial 
officer and inspector general to ensure the integrity and accuracy of 
financial information presented by the District, and to improve the 
quality of the city's financial management systems. Because of the 
significant powers that will reside with these individuals, a difficult 
issue to resolve in our negotiations was how these individuals should 
be appointed. The consensus that emerged from our discussions was that 
both officers would be nominated by the Mayor with the advice and 
consent of the city council, but subject to confirmation by the 
authority. Further, only the authority would be permitted to dismiss 
these key officials.
  Mr. Speaker, by granting the authority such broad powers, some may 
argue that this bill strips away home rule. But, I would argue that the 
bill carefully protects the prerogative of self-government and that 
preservation of home rule rests squarely on the shoulder's of the 
District's elected officials. Only if District officials do not make 
responsible and fiscally sound decisions, will it be necessary for the 
authority to step in to implement its own recommendations.
  This bill is the product of intense negotiations conducted over the 
past few weeks. Although these discussions have been difficult, all 
parties involved have acted in good faith with a common goal of 
restoring the District of Columbia to sound financial health.
  I want to applaud the efforts of the manager of the bill, the 
distinguished chairman of the Government Reform and Oversight 
Subcommittee on the District of Columbia, the gentleman from Virginia, 
Tom Davis, who worked tirelessly to bring together a consensus bill in 
time for the House and Senate to act prior to the April recess.
  I also want to pay tribute to the delegate from the District of 
Columbia, Eleanor Holmes Norton, for her tenacious efforts to preserve 
the principle of home rule for D.C. residents. She has fought 
courageously to preserve the rights of locally elected officials to 
determine the city's financial future, while she led the fight for an 
agreement that recognizes the seriousness of the District's financial 
crisis.
  My good friend, the gentleman from New York, [Mr. Walsh], the 
distinguished chairman of the Committee on Appropriations Subcommittee 
on District of Columbia, also played a critical role in shaping this 
legislation. I look forward to our continued mutual cooperation as we 
move later in the year to consider the District's fiscal year 1996 
budget. And to the staff, thank you for your excellent work.
  With the enactment of this bill, we have a wonderful opportunity for 
a unique partnership between the District and Federal Government to 
reinvent and improve the delivery of services to the thousands of 
District residents who pay hard earned tax dollars and to those local 
residents who are not getting the quality education, housing, and 
social services they need and deserve. The road to financial recovery 
for the District will not be smooth. There may be setbacks and relapses 
along the way. But, the surgery which the city must undergo--the hard 
choices, tough decisions, and real actions that have to be taken--will 
restore the well being of the District and its residents and, 
ultimately, provide the foundation for a real and lasting recovery for 
years to come.
  Mr. Speaker, I urge adoption of the bill.
                              {time}  1545

  Mr. DAVIS. Mr. Speaker, I yield 1 minute and 15 seconds to my 
colleague, the gentleman from New York [Mr. Gilman].
  (Mr. GILMAN asked and was given permission to revise and extend his 
remarks.)
  Mr. GILMAN. Mr. Speaker, I rise today in support of H.R. 1345, the 
District of Columbia Financial Responsibility and Management Act of 
1995. I commend the distinguished gentleman from Virginia [Mr. Davis], 
District of Columbia Subcommittee chairman, and the ranking minority 
member of the District of Columbia Subcommittee, Ms. Norton, for the 
work which they and their staffs have accomplished under severe time 
constraints. I also wish to commend the gentleman from Pennsylvania 
[Mr. Clinger], who serves as the distinguished chairman of our 
Committee on Government Reform and Oversight, for his efforts in 
bringing this important measure to the floor 
[[Page H4070]] at a time when the District of Columbia has been 
teetering on the brink of bankruptcy. I am supporting this timely 
measure because I believe that it will provide workable solutions to 
the severe financial problems that have beset our Nation's Capital 
City. The financial recovery and management responsibility authority 
will provide fiscal oversight while preserving the essence of home 
rule.
  At this urgent time, Mr. Speaker, I wish to commend what has been an 
exemplary bipartisan effort to attack an extremely pressing problem. I 
encourage support of this bill which will help bring financial 
stability and budgetary control to the District of Columbia.
  Ms. NORTON. Mr. Speaker, I yield 2 minutes to the gentleman from 
Maryland [Mr. Wynn], a Member from this region who has been helpful to 
the District.
  (Mr. WYNN asked and was given permission to revise and extend his 
remarks.)
  Mr. WYNN. Mr. Speaker, I thank the gentlewoman for yielding to me, 
and for her kind remarks.
  Mr. Speaker, I do rise as a Member of our region representing Prince 
Georges and Montgomery Counties, the neighbors to the north and east of 
the District of Columbia. Let me begin by extending commendations to 
the chairman, the gentleman from Pennsylvania [Mr. Clinger], and to the 
ranking member, the gentlewoman from Michigan [Miss Collins], and also 
to the subcommittee chairman, the gentleman from Virginia [Mr. Davis], 
a freshman who has done exemplary work on this project. I am certainly 
appreciative, and all of my constituents are appreciative.
  Finally, let me note the outstanding work of the gentlewoman from the 
District of Columbia [Ms. Norton], who has done yeoman's work on this 
bill in both being an advocate for the District of Columbia and a 
strong negotiator here in Congress, in helping to bring this measure to 
fruition.
  Mr. Speaker, we in the suburbs do recognize the importance of the 
District of Columbia to the Nation's vitality. That is why I am here to 
support the District of Columbia Financial Responsibility and 
Management Assistance Act. I hope my colleagues in this body also 
recognize the importance of the District of Columbia as the seat of our 
Nation's Capital and would also support this measure.
  Looking at our current situation, Mr. Speaker, it is in fact a 
crisis. There have been some mistakes on the part of the District of 
Columbia, but the Congress also bears a significant part of the 
responsibility for this situation. We have helped create this 
structural deficit that includes congressionally imposed unfunded 
pension liabilities, so it is good that both parties have come 
together.
  Again, the gentleman from Virginia [Mr. Davis] has been inclusive in 
allowing the District of Columbia officials to participate and 
accepting their suggestions as to how to make this proposal work. Mr. 
Speaker, it retains the strong role of the District officials, the 
Mayor, and the council. It also maintains limited home rule.
  I believe the bill is a significant movement in the right direction 
toward correcting the problems of the District of Columbia, and urge 
its adoption.
  Ms. NORTON. Mr. Speaker, I yield 3 minutes to the gentleman from 
Maryland [Mr. Hoyer], my good and helpful friend, a member of the 
Committee on Appropriations, and a leader of this region.
  Mr. HOYER. Mr. Speaker, I thank the gentlewoman for yielding time to 
me.
  Mr. Speaker, I want to first of all say that I have served here for 
some time, and without reference to anybody else in comparison, I do 
not think anybody else in this body represents their area better than 
she does. It is obviously a difficult area to represent in that 
everybody is watching it, every day. As she says, so many people live 
here. She does an extraordinary job in bringing the message of the 
District of Columbia, its hopes and aspirations, to this body. I 
commend her for her leadership on this bill.
  Mr. Speaker, those of us in the Washington metropolitan area are also 
proud of the fact that we act together in a bipartisan fashion. We are 
very proud of the fact that Tom Davis has done such an extraordinary 
job in his leadership in bringing all of the various points of view 
together. As always, it is a pleasure to deal and work with my 
chairman, the gentleman from California [Mr. Dixon], and the chairman, 
the gentleman from New York [Mr. Walsh], on this matter.
  Mr. Speaker, this legislation before us is a useful, important, and 
necessary vehicle to move the District of Columbia in the direction of 
getting its fiscal house in order. It contains tough provisions which 
require the District to be responsible and accountable by requiring 
accurate annual budgets and a 4-year financial plan. More, it cuts off 
the District's direct entitlement to drawing funds from the Treasury 
should it run out of money.
  Consequently, without this control board the District will live under 
a growing dark cloud of financial uncertainty. If the District lives 
under such a dark cloud, the Maryland and Virginia suburbs, as well as 
the rest of the country, will be adversely affected. A healthy Capital 
City makes for a healthier Nation and is, as well, critical to a 
healthy Washington metropolitan area.
  In closing, as we do our part in protecting the viability and 
stability of the Nation's Capital, it is my expectation, as the 
gentlewoman from the District of Columbia has said, that we will 
receive and are receiving full cooperation from the District of 
Columbia.
  Mr. Speaker, I urge my colleagues to support this act.
  If I might, Mr. Speaker, just make one additional statement, I have 
had discussions with the gentleman from Virginia [Mr. Davis], the 
chairman of the subcommittee, with reference to an item regarding the 
financing and the obligations of the District of Columbia with 
reference to the Washington Metropolitan Area Transit Authority. I was 
hoping we could deal with that on this legislation.
  It is my understanding, however, that the gentleman from Virginia 
will have another piece of legislation dealing with the convention 
center. I have talked to the gentlewoman from the District of Columbia 
about this. I do not believe this is controversial in any way, and I 
hope we can deal with it on that legislation.
  Mr. DAVIS. Mr. Speaker, if the gentleman will yield, the gentleman is 
correct. I think it will be addressed in that vehicle hopefully in the 
May timeframe.
  Mr. HOYER. I thank the gentleman, and again I congratulate my 
colleague from Washington, DC.
  Ms. NORTON. Mr. Speaker, may I inquire how much time I have 
remaining?
  The SPEAKER. The gentlewoman from the District of Columbia [Ms. 
Norton] has 3 minutes remaining, and the gentleman from Virginia [Mr. 
Davis] has 2\1/4\ minutes remaining.
  Ms. NORTON. Mr. Speaker, I yield 2 minutes to my good friend and 
always ally, the gentleman from Virginia [Mr. Moran], also a Member 
from this region.
  Mr. MORAN. Mr. Speaker, I thank my friend from the District of 
Columbia for yielding to me, but most importantly, for the role she has 
played within the Washington metropolitan region. When her leadership 
was called for, she came through in flying colors. As has been said 
previously, I do not think any constituency represented by any Member 
of this body is served better than by the gentlewoman from the District 
of Columbia [Ms. Norton].
  In fact, this was a perfect time to demagog to achieve short-term 
political benefits at the long-term expense of the health of the 
District of Columbia. She chose instead to work in a constructive 
fashion.
  Likewise, I think we ought to give some credit, as I said in the full 
committee, to the gentleman from Georgia, Mr. Gingrich, the Speaker, in 
having the foresight to make the gentleman from Virginia, Tom Davis, 
the chairman of this subcommittee. The fact is that he could not have 
chosen better.
  The gentleman from Virginia has proven himself fully worthy of the 
task. He deserves a great deal of credit, not just from us in the 
Washington region, but from this entire body.
  Mr. Speaker, this is a terribly important first step, but it is only 
a first step. This board will distribute the limited resources that are 
available to the 
[[Page H4071]] District of Columbia, and I know that it is going to do 
a responsible job in that, but it is only a first step in that those 
resources are too limited. We need to take many more steps.
  One such step may be giving the responsibility for Lorton, for 
example, over to the Federal Bureau of Prisons, because that is a State 
function, and the city has only normal city resources available to it. 
We ought to examine other steps like that.
  We also ought to look at possibilities of setting aside large tax-
free zones. The board might want to take the initiative to seek out 
consortia, bankers, developers, city planners, and find areas in the 
city that are currently not yielding any Federal revenue, so it would 
not cost us anything in terms of Federal income taxes, but perhaps take 
the initiative to give the city an opportunity to rebuild its tax base. 
That ultimately is what is needed.
  The fact is this entire body ought to be proud of this piece of 
legislation. It is the right thing to do, done by the right people in 
the right way.
  Ms. NORTON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I hope the House will regard this as a historic day for 
a new beginning, not a sad day, but a day that marked the period when 
the District shot out of its doldrums, the kind of doldrums many large 
cities find themselves in today.
  I am appreciative for the work of the subcommittee, particularly the 
gentleman from Virginia [Mr. Davis]. As a native Washingtonian in a 
region without borders, he has made that understood by the way he has 
transformed the committee process for these purposes.
  Mr. DAVIS. Mr. Speaker, I yield myself 2\1/4\ minutes.
  Mr. Speaker, debt service is one of the basic functions of a 
municipal government. One of the stated purposes of this act is to 
assist the District of Columbia in attaining and then maintaining 
access to the credit and bond markets.
  The subcommittee has tried to make abundantly clear that existing 
debt and its debt service payments are of concern. Lack of timely debt 
service payment would be counter to one of the major purposes of this 
legislation. Debt service is a foundational part of the District of 
Columbia budgets. The subcommittee expects that already dedicated funds 
be used to pay debt service.
  If those funds are not sufficient, then other available funds can and 
should be used by either the District government or the Authority to 
ensure timely payment of debt service.
  Mr. Speaker, I would also like to put into the Record additional 
cosponsors: the gentleman from Texas [Mr. Armey], the gentleman from 
Missouri [Mr. Gephardt], the gentleman from Louisiana [Mr. Livingston], 
the gentleman from Indiana [Mr. Burton], the gentleman from Texas [Mr. 
DeLay], the gentleman from Michigan [Mr. Bonior], the gentleman from 
New York [Mr. Gilman], the gentleman from Indiana [Mr. McIntosh], the 
gentleman from New Jersey [Mr. Frelinghuysen], the gentleman from 
Georgia [Mr. Kingston], the gentleman from Texas [Mr. Bonilla], the 
gentleman from Illinois [Mr. Durbin], the gentleman from Pennsylvania 
[Mr. Fox], the gentleman from New Jersey [Mr. Payne], the gentleman 
from New York [Mr. Owens], the gentleman from Georgia [Mr. Lewis], the 
gentlewoman from Florida [Mrs. Meek], the gentleman from New York [Mr. 
Towns], the gentleman from Maryland [Mr. Mfume], the gentleman from New 
Mexico [Mr. Richardson], the gentleman from Maryland [Mr. Ehrlich], the 
gentleman from New Mexico [Mr. Schiff], the gentleman from New 
Hampshire [Mr. Zeliff], the gentleman from Washington [Mr. Tate], the 
gentleman from Michigan [Mr. Chrysler], the gentleman from Florida [Mr. 
Scarborough], the gentlewoman from Georgia [Ms. McKinney], the 
gentlewoman from Ohio [Ms. Kaptur], and the gentleman from Virginia 
[Mr. Payne].
  Finally, Mr. Speaker, I want to thank several individuals I did not 
thank in my opening colloquy. Mr. Noah Wofsy, the legislative counsel, 
did an outstanding job, working many late hours around the clock to 
satisfy the many demands placed upon him, in a timely manner. We are 
very, very grateful for his efforts, Noah. I want to thank him.
  Also I want to thank Mr. Ed Desev and Alice Rivlin from the 
President's Office and OMB, who worked with us in drafting this 
legislation. Finally, from my staff, I want to thank Mr. John Hishta, 
Chip Nottingham, and Cathy Walsh, who were very helpful in coordinating 
this.
  With that, Mr. Speaker, I would urge adoption of H.R. 1345.
  Mr. BONILLA. Mr. Speaker, I rise in support of H.R. 1345, the 
District of Columbia Financial Responsibility and Management Assistance 
Act. Unfortunately, the continued deterioration of the District's 
financial status and the inaction of local officials has left us no 
other choice but to pursue this legislation. The oversight board 
created by this bill will stabilize the District's financial health. 
For far too many years local officials have been unwilling to accept 
responsibility and make the tough decisions that must be made. 
Presently, the demands of municipal unions are given priority over the 
needs of schoolchildren. This govenrment-union conglomerate threatens 
the safety of this community. Citizens do not know from one day to the 
next if they will have police, fire, and medical protection, or if they 
will have basic services like waste disposal or street repair.
  Mr. Speaker, I am concerned for the long-term future of the District 
of Columbia. The Oversight Board will help bring financial stability to 
the District government, but what happens after the Board dissolves? 
The Congress must help the District maintain long-term stability, 
stability that will exist long after the Financial Oversight Board 
dissolves. To attain this security, I propose the adoption of a city 
manager form of government. This form of government would bring long-
term fiscal accountability to the city. I support maintaining home rule 
for the citizens of Washington, DC, and believe that a city manager 
would be instrumental in preventing the need for future Federal 
intervention.
  Currently, the city bureaucracy is bloated and out of control. There 
is no accountability and a clear lack of professionalism. A financial 
control board can help bring the current crisis under control, but this 
Board should not be a permanent fixture for the District government. If 
an oversight board is in place for only 5 years, as currently 
suggested, then long-term solvency can only be solved by restructuring 
the D.C. government.
  A city manager would increase bureaucratic efficiency. A full-time, 
professional city manager would be responsible for the bureaucratic 
structure presently controlled by the Mayor. The manager would be hired 
by, and accountable to, the city council, with appointments and 
terminations to be approved by the House and Senate oversight 
subcommittees. Appointing a professional to run the city would increase 
the likelihood that congressionally mandated cuts and reforms would be 
appropriately instituted. The District government needs a leader who 
can insure tax dollars are not wasted and services are delivered.
  The council-manager form of government is compatible with the 
implementation of a financial oversight board. The District faces many 
problems that can only be solved by making tough decisions that will 
undoubtedly be unpopular with some constituents. A city manager will 
make home rule finally work. HUD Secretary Henry Cisneros and 
California Governor Pete Wilson both served as mayors under a council-
manager form of government in San Antonio and San Diego respectively. 
These are 2 of the 10 largest cities in the country. As a matter of 
fact, many of the Nation's most successfully run cities have council-
manager systems in place. Some examples are: Dallas, TX; Phoenix, AZ; 
Austin, TX; San Jose, CA; Cincinnati, OH; Norfolk, VA; Little Rock, AR; 
and St. Louis, MO.
  Sadly, elected representatives in the District of Columbia have 
addressed political problems without concern for the consequences. The 
division of responsibilities between the District and Congress has led, 
and perhaps encouraged, local officials to finger point rather than 
solve problems.
  Mr. Speaker, I believe the District of Columbia is one of the 
greatest cities in the world. All America has a vested interest in 
seeing this city succeed. We cannot succeed without consideration of a 
long-term solution. I trust the Congress will give this proposal 
serious consideration.
  Mr. FRELINGHUYSEN. Mr. Speaker, I rise today to express my full 
support for moving forward with taking emergency steps to restore the 
District of Columbia to a sound financial status. I also want to 
congratulate Chairmen Thomas Davis of Virginia and James Walsh of New 
York, and Washington, DC Delegate Eleanor Holmes Norton for all their 
hard work.
  As a member of the Subcommittee on the District of Columbia, I am 
disturbed by the reports of fiscal mismanagement throughout the 
[[Page H4072]] District, and I share my colleagues' concern about this 
current financial crisis.
  Having spent time in this city as a child, and now as a U.S. 
Representative, residents of the District and visitors to our Nation's 
Capital deserve better. They deserve to know how their money is being 
spent and they deserve more accountability. And, frankly, so do all the 
American people. It is our Nation's Capital, and it should reflect 
America at its best.
  That is why I joined as a cosponsor of H.R. 1345, the D.C. Financial 
Responsibility and Management Assistance Act of 1995. I believe that 
the proposed Financial Control Board will help put the District of 
Columbia back on the right track.
  I have spent the first 3 months of my term in committee hearings on 
this matter, and from what I have learned, the Financial Board is the 
only true option we have to making the city solvent again. This Control 
Board will have the authority to review city budgets, all District 
master plans, labor contracts before they are approved, all city 
borrowing, including loans from the U.S. Treasury and borrowing for the 
D.C. government. The Board will continue to operate at full authority 
until the District balances its budget for at least 4 straight years 
and it remain in a reduced oversight capacity until the city pays off 
all loans taken out under its authority. A five-member board will be 
individuals with proven financial or management expertise.
  Mr. Speaker, I urge the Board to be formed as soon as possible so 
that the city will be returned to a fiscally sound status, such that 
all citizens, especially its children, are given a better quality of 
life by the District's government.
  Miss COLLINS of Michigan. Mr. Speaker, I want to add my voice today 
to those who have offered their support for H.R. 1345, the District of 
Columbia Financial Responsibility and Management Assistance Act.
  In a Congress where recent debates have given new meaning to the word 
``partisan,'' this bill is indeed a rarity. It is a rapid bipartisan 
response to a crisis which, by its very nature, has invited 
partisanship at every turn.
  Also, unlike many other critical bills in this Congress, H.R. 1345 
has had appropriate deliberations. In addition to meeting with D.C. 
government officials, the Subcommittee on the District of Columbia 
heard testimony from State and municipal officials who have worked 
extensively with municipal financial control boards. Because control 
boards are rarely used, the knowledge derived from the testimony of 
these experts was priceless.
  Finally, subcommittee members and staff worked around the clock to 
incorporate what they had learned into the legislation before us today. 
This is a model bill, and I hope that other committees will take heed 
of our example.
  I yield back the balance of my time.
  The SPEAKER pro tempore. All time has expired.
  The question is on the motion offered by the gentleman from 
Pennsylvania [Mr. Clinger], that the House suspend the rules and pass 
the bill, H.R. 1345, as amended.
  The question was taken, and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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