[Senate Report 108-212]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                                 SENATE
 1st Session                                                    108-212
_______________________________________________________________________

                                     

                                                       Calendar No. 418


            DISTRICT OF COLUMBIA BUDGET AUTONOMY ACT OF 2003

                               __________

                              R E P O R T

                                 of the

         COMMITTEE ON GOVERNMENTAL AFFAIRS UNITED STATES SENATE

                              to accompany

                                S. 1267

TO AMEND THE DISTRICT OF COLUMBIA HOME RULE ACT TO PROVIDE THE DISTRICT 
   OF COLUMBIA WITH AUTONOMY OVER ITS BUDGETS, AND FOR OTHER PURPOSES





               November 25, 2003.--Ordered to be printed
                   COMMITTEE ON GOVERNMENTAL AFFAIRS

                   SUSAN M. COLLINS, Maine, Chairman
TED STEVENS, Alaska                  JOSEPH I. LIEBERMAN, Connecticut
GEORGE V. VOINOVICH, Ohio            CARL LEVIN, Michigan
NORM COLEMAN, Minnesota              DANIEL K. AKAKA, Hawaii
ARLEN SPECTER, Pennsylvania          RICHARD J. DURBIN, Illinois
ROBERT F. BENNETT, Utah              THOMAS R. CARPER, Delaware
PETER G. FITZGERALD, Illinois        MARK DAYTON, Minnesota
JOHN E. SUNUNU, New Hampshire        FRANK LAUTENBERG, New Jersey
RICHARD C. SHELBY, Alabama           MARK PRYOR, Arkansas

           Michael D. Bopp, Staff Director and Chief Counsel
                    Johanna L. Hardy, Senior Counsel
   Theresa Prych, Professional Staff Member, Oversight of Government 
                              Management,
    the Federal Workforce and the District of Columbia Subcommittee
      Joyce A. Rechtschaffen, Minority Staff Director and Counsel
          Patrick J. Hart, Minority Professional Staff Member
  Marianne Clifford Upton, Minority StaffDirector and Chief Counsel, 
                              Oversight of
   Government Management, the Federal Workforce and the District of 
                         Columbia Subcommittee
                      Amy B. Newhouse, Chief Clerk



                                                       Calendar No. 418
108th Congress                                                   Report
                                 SENATE
 1st Session                                                    108-212

======================================================================



 
            DISTRICT OF COLUMBIA BUDGET AUTONOMY ACT OF 2003

                                _______
                                

               November 25, 2003.--Ordered to be printed

                                _______
                                

Ms. Collins, from the Committee on Governmental Affairs, submitted the 
                               following

                              R E P O R T

                         [To accompany S. 1267]

    The Committee on Governmental Affairs, to whom was referred 
the bill (S. 1267) to amend the District of Columbia Home Rule 
Act to provide the District of Columbia with autonomy over its 
budgets, and for other purposes, having considered the same 
reports favorably thereon with an amendment and recommends that 
the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background.......................................................2
III. Legislative History..............................................7
 IV. Section-by-Section Analysis......................................7
  V. Estimated Cost of Legislation...................................10
 VI. Evaluation of Regulatory Impact.................................11
VII. Changes in Existing Law.........................................11

                         I. Purpose and Summary

    The purpose of S. 1267, the District of Columbia Budget 
Autonomy Act of 2003, is to amend the District of Columbia Home 
Rule Act to provide the District of Columbia with autonomy over 
its budgets, and for other purposes.

                             II. Background


     EARLY HISTORY OF LOCAL GOVERNANCE IN THE DISTRICT OF COLUMBIA

    Under article I, section 8, clause 17 of the U.S. 
Constitution, Congress has responsibility over the seat of the 
federal government. Since the inception of the Nation and the 
creation of the seat of the federal government, Congress has 
delegated authority to various entities it created to govern 
the District of Columbia. The delegation of authority to a 
local governing body has been the subject of debate and 
discussion since the creation of the District. In writing about 
the citizens of the District of Columbia, James Madison 
highlighted in the Federalist Papers, ``* * * a municipal 
legislature for local purposes, derived from their own 
suffrages, will of course be allowed to them * * *'' \1\
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    \1\ Federalist Paper No. 43.
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    Indeed, during much of the 1800s, the governance structure 
in the District was altered various times, beginning in 1801 
with a Presidentially-appointed mayor and elected city council 
to the creation of a presidentially-appointed governor and 11-
member Council, and an elected 22-member House of Delegates in 
1871.
    Following problems of financial mismanagement, in 1874, 
without debate, Congress abolished the then-existing local 
governance structure and replaced it with a three-member Board 
of Commissioners. This began a 94-year period in which the 
District had no elected representatives in the local 
government.\2\ In 1967, under the District of Columbia 
Reorganization Plan No. 3, Congress replaced the three 
commissioners with a Mayor and a nine-member council, all of 
whom were presidentially-appointed.\3\
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    \2\ Report to the Attorney General on the Question of Statehood for 
the District of Columbia, Office of Legal Policy, U.S. Department of 
Justice, April 3, 1987, p. 10.
    \3\ 81 Stat. 948, as amended Pub. L. 90-623, Sec. 7(b), Oct. 22, 
1968, 82 Stat. 1315.
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    The current local governance structure was created when 
home rule was granted to the District in 1973 with the passage 
of the District of Columbia Self-Government and Governmental 
Reorganization Act (commonly referred to as the Home Rule 
Act).\4\ The purpose of the Home Rule Act was to ``grant to the 
inhabitants of the District of Columbia powers of local self-
government; modernize, reorganize, and otherwise improve the 
governmental structure of the District of Columbia; and, to the 
greatest extent possible, consistent with the constitutional 
mandate, relieve Congress of the burden of legislating upon 
essentially local District matters.'' \5\ The Home Rule Act, 
among other things, provided for an elected Mayor and an 
elected city council. The Home Rule Act delegated authority to 
the Council to ``create, abolish, or organize any office, 
agency, department, or instrumentality of the government of the 
District and to define the powers, duties, and responsibilities 
of any such office, agency, department, or instrumentality'' 
and it granted the Mayor authority to execute the laws of the 
District.\6\
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    \4\ Public Law No. 93-198 (1973).
    \5\ D.C. Code section 1-201.02(a) (2003).
    \6\ D.C. Code section 1-204.04 (2003), Section 404 of the District 
of Columbia Home Rule Act; D.C. Code section 1-204.22 (2003), Section 
422 of the District of Columbia Home Rule Act.
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    But while Congress granted the District home rule, it still 
retained its ultimate legislative authority over the 
District,\7\ retained exclusive authority over certain District 
functions,\8\ and set limitations on the local government's 
exercise of its authority.\9\ Among the authorities Congress 
retained was the power to enact the budget for the District of 
Columbia.\10\
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    \7\ See D.C. Code section 1-201.02(a) (2003).
    \8\ See for example, D.C. Code section 1-204.31 (2003) (relating to 
Judicial powers) and D.C. Code section 1-206.02 (2003) (relating to 
limitations on the Council).
    \9\ See D.C. Code section 1-206.02(c) (2003) (relating to the 
congressional review period prior to local legislation going into 
effect).
    \10\ The Senate version of the Home Rule Act did provide for a 
local budget approval process; however, the final version of the Act 
did not contain those provisions. There is no clear legislative history 
that explains why the local budget process provisions were not included 
in the final bill.
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                FINANCIAL CRISIS AND THE CONTROL PERIOD

    In 1995, the District was insolvent.\11\ Congress reacted 
by enacting the District of Columbia Financial Responsibility 
and Management Assistance Act of 1995.\12\ That Act created a 
five member financial control authority (Control Board), 
appointed by the President. The Act also strengthened the 
responsibilities of the D.C. Inspector General, created a five-
year financial plan for the District, and created the position 
of Chief Financial Officer of the District of Columbia.
---------------------------------------------------------------------------
    \11\ House Report No. 104-96, p. 5.
    \12\ Public Law No. 104-8.
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    When the 1995 Act was passed, the city was spending at a 
rate that would exceed its fiscal year 1995 expenditure limits 
by $600 million.\13\ The unpaid debts, which were accumulating, 
threatened city services provided by contractors.\14\ Congress 
considered various solutions \15\ and examined financial 
control boards that had been created by State legislatures to 
assist in the financial recovery of large cities, including 
Cleveland, New York City, and Philadelphia.\16\
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    \13\ House Report No. 104-96, p. 5.
    \14\ Ibid.
    \15\ Ibid at 17-18.
    \16\ Ibid at 19-33.
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    In 1997, Congress passed the National Capital 
Revitalization and Self-Government Improvement Act, which 
expanded the oversight responsibilities of the Control 
Board.\17\ The Control Board assumed administrative 
responsibility over nine major District agencies, including 
Administrative Services, Consumer and Regulatory Affairs, 
Corrections, Employment Services, Fire and Emergency Medical 
Services, Housing and Community Development, Human Services, 
Public Works, and Public Health.
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    \17\ Title XI of the Balanced Budget Act of 1997, Public Law No. 
105-33.
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                           FINANCIAL RECOVERY

    Following the measures taken by Congress, the District's 
management of its finances improved. Because of progress the 
District had made in its financial recovery, in 1999, the 
District of Columbia Management Restoration Act was passed. 
This Act restored the Mayor's authority over the city's nine 
largest departments.\18\ Then, in 2001, after four consecutive 
balanced budgets, the Control Board disbanded. Since that time, 
the District has continued to post balanced budgets. The 
District has improved its finances by moving from deficits to 
surpluses. At the same time, the District has moved from a BBB 
bond rating to a rating of A-.
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    \18\ Public Law No. 106-1.
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    To ensure continued fiscal responsibility, the District of 
Columbia Financial Responsibility and Management Assistance Act 
of 1995 provides for the reinstatement of the Control Board 
should the District encounter future financial problems. The 
creation of a strong, independent CFO through that Act has also 
assisted in ensuring appropriate financial management.

                        THE NEED FOR LEGISLATION

    The District of Columbia Budget Autonomy Act would assist 
the District in improving its management of its finances, 
agencies, and services. S. 1267 would provide the District with 
autonomy over the local portion of the city's budget. Providing 
the District of Columbia with more autonomy over its local 
budget would help the Mayor and the Council of the District of 
Columbia better manage and run the city. Currently, the 
District of Columbia must submit its budget through the normal 
Federal appropriations process. Unfortunately, this process 
often extends past the start of the fiscal year. For example, 
the average delay for enactment of an appropriations bill for 
the District of Columbia has been three months past the start 
of the fiscal year. At times, the delay has been longer.
    For a local community these delays affect programs, 
planning and management initiatives important to the everyday 
lives of the residents of the city. Last year's delay affected 
planned improvements in foster care, public schools and 
improved compensation for police and firefighters. In addition, 
the delays, due to the uncertainty of the federal 
appropriations process, are taken into account by bond rating 
agencies.\19\
---------------------------------------------------------------------------
    \19\ Testimony of Natwar M. Gandhi, Chief Financial Officer, 
Government of the District of Columbia, Before the Subcommittee on 
Public Interest, Council of the District of Columbia, September 22, 
2003, p. 2.
---------------------------------------------------------------------------
    Further, budget autonomy would allow the District to 
respond quickly to changing program and financial needs.\20\ 
Unlike other budgets that are approved by Congress, the 
District budget directly effects the day-to-day lives of the 
residents of the city--everything from trash collection to 
social services to law enforcement--creating a unique problem 
for the District that no other city in the Nation has to face.
---------------------------------------------------------------------------
    \20\ Ibid at 4.
---------------------------------------------------------------------------
    In addition, while Congress approves the local budget, 
Congress has very rarely changed items contained in the local 
portion of the budget. Notwithstanding, S. 1267 would allow a 
30 calendar day review by Congress, and Congress would retain 
its authority to act should it object to any portion of the 
local budget. Federal funding for the District would continue 
to go through the normal federal appropriations process.
    In February 2003, President Bush endorsed budget autonomy 
for the District in the FY2004 President's budget proposal. In 
the budget proposal, the President notes that the budget 
autonomy proposal ``reflects the dramatic improvement in the 
District's ability to manage its budget processes in the post-
Control Board era.'' \21\
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    \21\ Fiscal Year 2004 Budget of the U.S. Government, p. 298.
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        THE CHIEF FINANCIAL OFFICER OF THE DISTRICT OF COLUMBIA

    During the Committee Business Meeting at which S. 1267 was 
considered, Chairman Susan Collins and Senator Ted Stevens 
offered, and the Committee adopted, the District of Columbia 
Independence of the Chief Financial Officer Act of 2003 as an 
amendment to S. 1267. Since its creation in 1995, the 
District's CFO has operated under authority provided to it in 
the District of Columbia Financial Responsibility and 
Management Assistance Act as well as authority delegated to it 
by the Control Board. In 2000, after the Control Board was 
phased out, section 155 of the District of Columbia 
Appropriations Act for FY2001 made permanent the 
responsibilities of the CFO.\22\ However, section 155 did not 
include all the authorities the Control Board had vested in the 
CFO, and some of the omitted authorities were necessary to 
carry out the office's responsibilities to maintain financial 
management of the city.
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    \22\ Public Law No. 107-20.
---------------------------------------------------------------------------
    In June of 2001, then-Chairman of the Appropriations 
Subcommittee on District of Columbia, Senator Mary Landrieu, 
proposed to include an extension of the CFO's personnel and 
procurement authorities in a supplemental appropriations bill. 
Because of concerns raised at that time about those 
authorities, the Senate-passed FY 2001 Supplemental 
Appropriations bill instead requested a report from the Mayor 
on the transition of the CFO's responsibilities under the Act 
to a non-control year.\23\ In July of that year, the D.C. 
Council passed and the Mayor signed the Independence of the 
Chief Financial Officer Act of 2001.\24\ This bill created a 
permanent CFO in local law and allowed for independent 
procurement and personnel authority for a two year period 
before reverting to the laws that govern other D.C. agencies. 
However, because the law creating the CFO is contained in a 
section of the Home Rule Act, unamendable by the Council, the 
local law can not take effect until Congress acts.
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    \23\ A ``non-control year'' is a year in which the Control Board is 
not in operation.
    \24\ D.C. Bill No. 14-254, D.C. Act 14-89 (2001).
---------------------------------------------------------------------------
    In the Fiscal Year 2002 District of Columbia Appropriations 
Act, Congress extended the CFO's independent personnel and 
procurement authorities until July 1, 2002. In April of 2002, 
Senator Landrieu introduced S. 2316, the District of Columbia 
Fiscal Integrity Act which would have provided D.C. with budget 
autonomy and strengthened the CFO. On April 8, 2002, a D.C. 
Superior Court decision, District of Columbia Government et al. 
v. District of Columbia Public Employee Relations Board, held 
that the CFO's authorities, as derived from the Control Board 
did not exempt the CFO from collective bargaining agreements. 
The decision also found that the CFO must rescind all personnel 
actions taken with respect to CFO employees made from April 
1996 to the present, at a cost of upwards of $10 million.
    In response, Congress, in the FY 2003 Emergency Wartime 
Supplemental Appropriations Act,\25\ extended the personnel and 
procurement authorities of the CFO through September 30, 2004. 
The intention of the extension was not only to make it clear 
that the CFO's authority was maintained, but provide the 
authorizing committees time to act on permanent legislation. 
The effect of the extension of authority delayed the 
enforcement of the Court decision.
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    \25\ Public Law No. 108-11.
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                LOCAL RESPONSE TO PROPOSED CFO LANGUAGE

    While the District has advocated for and supports 
strengthening the CFO, as evidenced by its passage of the local 
CFO law, District officials did express some concern regarding 
the section that would keep the CFO in the District charter, 
and, therefore, beyond the reach of the D.C. Council to enact 
changes without affirmative congressional action. The Committee 
understands that, generally, in keeping with the spirit of home 
rule principles, Congress ought to regularly examine the 
language in the charter. The District has asserted that 
Congress originally placed the CFO in the charter only as an 
emergency matter and argues that now that the District has 
posted seven years of balanced budgets with surpluses, 
maintains a cash reserve of $285 million (which equals seven 
percent of the District's FY04 annual budget), and enjoys a 
bond rating of A-, the emergency CFO provisions are no longer 
necessary. District officials also point out that the other 
District official recognized by the Control Board Act, the D.C. 
Inspector General, is not in the charter, but in District law, 
amendable by the D.C. Council. The District also asserts that 
retaining the CFO in the charter may unnecessarily insulate the 
CFO from accountability to District officials.
    District officials have suggested that, instead of 
retaining the CFO in the charter, federal law could provide for 
special notice to Congress of any proposed changes to the law 
affecting the CFO, above and beyond existing notification 
requirements for other local bills. The Committee believes 
that, while this is an option worth examining at some point, 
the suggested approach may produce unwanted consequences. The 
Committee believes that such special notification could 
unintentionally encourage the use of resolutions of 
disapproval,\26\ a practice that has been a rare occurrence.
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    \26\ A resolution of disapproval is part of the process by which 
Congress would formally disapprove of an action taken by the Council. 
When local authorization bills are passed by the Council and signed by 
the Mayor, they are sent to Congress for a review period. If Congress 
does not act by the end of the review period, the bill becomes law. If 
Congress wanted to disapprove of local legislation, it would pass a 
resolution of disapproval. This action has been rarely taken.
---------------------------------------------------------------------------
    However, the Committee believes that at a time when 
Congress may take a major step towards localizing the D.C. 
budget process, which would strengthen home rule for the 
District, it is important to maintain the status quo and retain 
the CFO in the District's charter. However, the Committee's 
action should not be construed as discouraging the 
reconsideration of this issue at some point in the future.
    The Committee recognizes the significance of the District's 
passage of its own CFO bill, which, if approved by Congress, 
would have moved the office of the CFO into District law. 
Indeed, the overwhelming majority of the CFO language contained 
in S.1267 is identical to the locally passed language. For 
example, the Committee has adopted an important addition from 
the District's CFO bill by including a five-year term for the 
CFO. The CFO would continue to be appointed by the Mayor and 
confirmed by the D.C. Council. Further, while the language 
approved by the Committee has differing procurement and 
personnel language, it is the Committee's understanding that 
District officials support the Committee's approach taken in 
these areas; namely, holding the CFO to existing District 
procurement rules (although the CFO will have its own 
procurement office), and preserving collective bargaining 
rights of CFO employees.
    Another area of difference between the CFO language adopted 
by the Committee and the locally-passed version relates to the 
Lottery and Charitable Games Control Board (the Lottery Board). 
The Committee's CFO language retains the status quo by keeping 
the Lottery Board within the CFO's office. While the locally-
passed version initially does the same, it would have 
eventually moved the Lottery Board out of the CFO's office. 
Notwithstanding the fact that the Committee's language would 
keep the Lottery Board in the CFO's office, the Committee does 
not intend to change the status quo and believes that the 
District and the D.C. Council will retain their authority to 
enact local legislation affecting the mission and functions of 
the Lottery Board consistent with the underlying law 
establishing the Lottery Board (Title 3, Chapter 13 of the D.C. 
Code). This interpretation is consistent with the CFO's current 
personnel, procurement and related operational authority over 
the Lottery Board.
    As mentioned previously, the Committee would recommend 
that, at least every two years, the authorizing committees 
review the CFO provisions. It is the understanding of the 
Committee that District officials desire the opportunity to 
present testimony regarding their experience after the CFO law 
is enacted and after they have some time to evaluate the impact 
of the legislation.

                        III. Legislative History

    S. 1267 was introduced on June 16, 2003 by Senators 
Collins, Lieberman, Stevens, Voinovich, Durbin, DeWine and 
Landrieu and referred to the Committee on Governmental Affairs. 
On June 20, 2003 the bill was referred to the Subcommittee on 
Government Management, the Workforce, and the District of 
Columbia. The bill was polled out of subcommittee on October 
15, 2003. On October 22, 2003, the Committee considered S. 
1267. An amendment was offered by Senators Collins and Stevens. 
The amendment was agreed to and, by voice vote, the Committee 
ordered the bill, as amended, reported.

                    IV. Section-by-Section Analysis

    Section 1 entitles the bill as the District of Columbia 
Budget Autonomy Act of 2003.
    Section 2(a) re-writes section 446 of the Home Rule Act 
(the section that describes how the District's budget gets 
enacted), to draw a distinction between budgets submitted 
during a control year and those submitted in a non-control 
year.
    Section 2(b) updates section 602(c) of the Home Rule Act 
(the section that describes the congressional review process 
for local legislation) to read that, for budget related matters 
that fall under section 446, the 30-calendar-day period of 
congressional review applies. If the 30-day review period ends 
during a recess, Congress will have five additional days 
following recess to act. This section also applies the existing 
expedited review procedures in the Home Rule Act to resolutions 
of disapproval introduced in Congress to disapprove of the 
budget. This 30-calendar-day congressional review period for 
the budget only applies during non-control years.
    Section 2(c) makes technical corrections to the Home Rule 
Act, the Financial Responsibility and Management Assistance Act 
and the National Capital Revitalization and Self-Government 
Improvement Act to reflect the changes made to section 446 of 
the Home Rule Act.
    Section 3(a) updates section 404(f) of the Home Rule Act 
(the section that explains how the Council can override mayoral 
vetoes, and for other purposes), to reflect that budgets will 
no longer be submitted by the President to the Congress (except 
during control years).
    Section 3(b) makes technical changes to section 404(f) of 
the Home Rule Act to reflect the changes made in the previous 
subsection.
    Section 4 updates section 447 of the Home Rule Act (the 
section that iterates that no employee can be hired without 
appropriate funding approved in the budget) to reflect that 
budgets will no longer be approved by Congress.
    Section 5(a) updates section 603(a) of the Home Rule Act 
(stating that nothing in Home Rule changes the DC-federal 
relationship) to clarify that this legislation does change the 
local-federal relationship as it pertains to federal approval 
of the local budget.
    Section 5(b) re-writes section 603(d) (essentially 
combining existing 603(d) and 603(f)) of the Home Rule Act to 
make it clear that, during a control year, the Council may not 
approve, and the Mayor may not submit, a budget that is 
inconsistent with the financial plan and budget established by 
the Control Board.
    Section 5(c) inserts the definition of ``control year'' 
into the Home Rule Act.
    Section 6(a) continues the application of any general 
provisions (e.g. social riders) contained in the federal 
appropriations bill in effect at the time of passage on this 
Act until the subsequent appropriations bill is enacted.
    Section 6(b) authorizes the imposition of restrictions on 
the use of local funds through the federal appropriations 
process, notwithstanding local passage of the local portion of 
the budget.
    Section 7 states that this legislation will take effect 
October 1, 2004, meaning that the FY05 budget would not require 
congressional approval.
    Section 201 entitles Title II as the District of Columbia 
Independence of the Chief Financial Officer Act of 2003.
    Section 202 amends section 424 of the Home Rule Act to 
replace the existing section with a new section as follows:
    (a)(1) Establishment.--Establishes within the executive 
branch of the D.C. government, an Office of the Chief Financial 
Officer headed by the CFO.
    (2) Changes the names of the following offices: Office of 
Budget and Management to the Office of Budget and Planning; The 
Department of Finance and Revenue to the Office of Tax and 
Revenue; the Office of Treasurer to the Office of Finance and 
Treasury; and consolidates the Office of the Controller and the 
Office of Information Services into the Office of Financial 
Operations and Systems.
    (3) Transfers to the CFO the functions and personnel of the 
Office of Budget and Planning, the Office of Tax and Revenue, 
the Office of Research and Analysis, the Office of Financial 
Operations and Systems, the Office of Finance and Treasury, and 
the Lottery and Charitable Games Control Board.
    (4) Indicates that the heads of these offices shall serve 
at the pleasure of the CFO.
    (5) Indicates that the CFO shall appoint and may remove the 
heads of these offices after consultation with the Mayor and 
Council.
    (6) Requires that the CFO prepare and annually submit to 
the Mayor annual estimates of expenditures and appropriations 
necessary for the operation of the Office of the CFO and all 
other D.C. accounting, budget, and financial management 
personnel, including personnel of executive branch independent 
agencies that report to the CFO.
    (b) Appointment of the Chief Financial Officer.--
          (1) The CFO will be appointed by the Mayor with the 
        advice and consent of the Council.
          (2) The first CFO appointed under the Act shall begin 
        upon the effective date of the Act and the initial term 
        shall end on June 30, 2007. All appointments after that 
        date will be for a 5-year term, except for appointments 
        made for unexpired terms. Any CFO may continue to serve 
        beyond his term until a successor takes office. 
        Vacancies will be filled in the same manner as the 
        original appointment. Sets CFO pay at Level I of the 
        Executive Schedule.
    (c) Removal of the CFO.--The CFO may only be removed for 
cause by the Mayor.
    (d) Duties of the CFO.--Sets out the duties of the CFO 
including preparing the financial plan and budget for use by 
the Mayor; preparing the budgets of the District of Columbia 
for use by the Mayor; implementing procedures and programs, 
systems, and personnel policies within the CFO's authority; 
preparing annual estimates and quarterly re-estimates; 
supervising financial transactions; maintaining systems of 
accounting and internal control; submitting to the Council a 
financial statement; supervising the assessment of all property 
subject to assessments; supervising the levying and collections 
of taxes, special assessments, licensing fees and other 
revenues; maintaining custody of all public funds; maintaining 
custody of investment and invested funds; apportioning total of 
all appropriations and funds made available during the year; 
certifying all contracts and leases; prescribing the forms of 
receipts, vouchers and bills to be used by agencies; certifying 
and approving prior to payment all bills, invoices, payrolls, 
and other evidences of claims; coordinating with the Inspector 
General to perform internal audits of accounts and operations; 
exercising responsibility for the administration and 
supervision of the D.C. Treasurer; supervising and 
administering all borrowing programs secured by D.C.; 
administering the cash management program; administering the 
centralized payroll and retirement systems; governing the 
accounting policies and systems; preparing annual, quarterly, 
and monthly financial reports; preparing the complete financial 
statement and report on the activities of the government; 
preparing financial impact statement on regulations, multiyear 
contracts, and contracts over $1M; preparing under the Mayor's 
directions, the budget for submission by the Mayor to the 
Council; certifying all collective bargaining agreements and 
nonunion pay proposals.
    (e) Appointment of Certain Executive Branch Agency CFOs.--
All CFOs of all D.C. executive branch subordinate and 
independent agencies and associate CFOs shall be appointed by 
the CFO, in consultation with the agency head.
    (f) Functions of the Treasurer.--Restates functions of 
Treasurer as outlined in current law.
    (g) Transition Provisions.--
          (1) Any CFO appointed by the Mayor prior to the 
        enactment of the Act may continue to serve until a new 
        CFO is appointed.
          (2) Any agency CFO appointed prior to the Act may 
        continue to serve without reappointment.
    Section 203 clarifies the CFO duties as they relate to the 
Mayor's responsibilities.
    Section 204 amends the Home Rule Act to provide for a new 
section covering the CFO personnel authority. The new section 
indicates that, except as contained in any collective 
bargaining agreement entered into by the CFO, employees of the 
CFO shall serve at the pleasure of the CFO and are at-will 
employees. This section also provides the CFO with independent 
authority over legal personnel.
    Section 205 amends the Home Rule Act to create a new 
section related to the CFO's procurement authority. This 
section also requires the CFO to follow local procurement laws, 
but authorized the CFO to maintain a separate procurement 
office.
    Section 206 requires all permanent bills and resolutions of 
the Council be accompanied by fiscal impact statements.

                    V. Estimated Cost of Legislation

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, October 29, 2003.
Hon. Susan M. Collins,
Chairman, Committee on Governmental Affairs,
U.S. Senate, Washington, DC.
    Dear Madam Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1267, the District 
of Columbia Budget Autonomy Act of 2003.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

S. 1267--District of Columbia Budget Autonomy Act of 2003

    S. 1267 would allow the District of Columbia to enact the 
portion of its annual budget that is locally funded. Under 
current law, the District of Columbia cannot spend any local or 
federal funds until its annual appropriation from the federal 
government has been enacted. CBO estimates that enacting S. 
1267 would have no impact on the federal budget.
    S. 1267 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on the District of Columbia.
    The CBO staff contact is Matthew Pickford. This estimate 
was approved by Peter H. Fontaine, Deputy Assistant Director 
for Budget Analysis.

                  VI. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill. The 
Congressional Budget Office states that there are no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act and no costs on state, local, or 
tribal governments. The legislation contains no other 
regulatory impact.

                      VII. Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic and existing law, in which no 
change is proposed, is shown in roman):

                       DISTRICT OF COLUMBIA CODE

                    TITLE 1--GOVERNMENT ORGANIZATION

               CHAPTER 2--DISTRICT OF COLUMBIA HOME RULE


                  Subchapter IV--The District Charter


[Sec. 1-204.46. Enactment of appropriations by Congress

    [The Council, within 50 calendar days after receipt of the 
budget proposal from the Mayor, and after public hearing, shall 
by act adopt the annual budget for the District of Columbia 
government. Any supplements thereto shall also be adopted by 
act by the Council after public hearing. Such budget so adopted 
shall be submitted by the Mayor to the President for 
transmission by him to the Congress. Except as provided in 
Sec. Sec. 1-204.45a(b), 1-204.67(d), 1-204.71(c), 1-
204.72(d)(2), 1-204.75(e)(2), 1-204.83(d), and 1-204.90(f), 
(g), (h)(3), and (i)(3), no amount may be obligated or expended 
by any officer or employee of the District of Columbia 
government unless such amount has been approved by Act of 
Congress, and then only according to such Act. Notwithstanding 
any other provision of this chapter, the Mayor shall not 
transmit any annual budget or amendments or supplements 
thereto, to the President of the United States until the 
completion of the budget procedures contained in this chapter. 
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.]

                       ENACTMENT OF LOCAL BUDGET

    Sec. 446. (a) Adoption of Budgets and Supplements.--The 
Council, within 50 calendar days after receipt of the budget 
proposal from the Mayor, and after public hearing, shall by Act 
adopt the annual budget for the District of Columbia 
government. Any supplements thereto shall also be adopted by 
Act by the Council after public hearing.
    (b) Transmission to President During Control Years.--In the 
case of a budget for a fiscal year which is a control year, the 
budget so adopted shall be submitted by the Mayor to the 
President for transmission by him to the Congress, except that 
the Mayor shall not transmit any such budget, or amendments or 
supplements thereto, to the President until the completion of 
the budget procedures contained in this Act and the District of 
Columbia Financial Responsibility and Management Assistance Act 
of 1995.
    (c) Prohibiting Obligations and Expenditures Not Authorized 
Under Budget.--Except as provided in section 445A(b), section 
467(d), section 471(c), section 472(d), section 475(e), section 
483(d), and subsections (f), (g), (h)(3), and (i)(3) of section 
490, no amount may be obligated or expended by any officer or 
employee of the District of Columbia government unless--
          (1) such amount has been approved by an Act of the 
        Council (and then only in accordance with such 
        authorization) and a copy of such Act has been 
        transmitted by the Chairman to the Congress; or
          (2) in the case of an amount obligated or expended 
        during a control year, such amount has been approved by 
        an Act of Congress (and then only in accordance with 
        such authorization).
    (d) Restrictions on Reprogramming of Amounts.--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.
    (e) Definition.--In this part, the term ``control year'' 
has the meaning given such term in section 305(4) of the 
District of Columbia Financial Responsibility and Management 
Assistance Act of 1995.

           *       *       *       *       *       *       *


                       DISTRICT OF COLUMBIA CODE

                    TITLE 1--GOVERNMENT ORGANIZATION

               CHAPTER 2--DISTRICT OF COLUMBIA HOME RULE


                  Subchapter VI--The District Charter


Sec. 1-204.04. Powers of the Council

           *       *       *       *       *       *       *


    [(f)] (f)(1) In the case of any budget act adopted by the 
Council pursuant to Sec. 1-204.46 and submitted to the Mayor in 
accordance with subsection (e) of this section, the Mayor shall 
have power to disapprove any items or provisions, or both, of 
such act and approve the remainder. In any case in which the 
Mayor so disapproves of any item or provision, he shall append 
to the act when he signs it a statement of the item or 
provision which he disapproves, and shall, within such 10-day 
period, return a copy of the act and statement with his 
objections to the Council. If, within 30 calendar days after 
any such item or provision so disapproved has been timely 
returned by the Mayor to the Council, two-thirds of the members 
of the Council present and voting vote to reenact any such item 
or provision, such item or provision so reenacted shall be 
[transmitted by the Chairman to the President of the United 
States] incorporated in such Act (or, in the case of an item or 
provision contained in a budget act for a control year, 
transmitted by the Chairman to the President). In any case in 
which the Mayor fails to timely return any such item or 
provision so disapproved to the Council, the Mayor shall be 
deemed to have approved such item or provision not returned, 
and such item or provision not returned shall be transmitted by 
the [Chairman to the President of the United States] 
incorporated in such Act (or, in the case of an item or 
provision contained in a budget act for a control year, 
transmitted by the Chairman to the President). In the case of 
any budget act for a fiscal year which is a control year [(as 
defined in Sec. 47-393(4)), this subsection] this paragraph 
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.''
    (2) In this subsection, the term ``control year'' has the 
meaning given such term in section 305(4) of the District of 
Columbia Financial Responsibility and Management Assistance Act 
of 1995.

           *       *       *       *       *       *       *


Sec. 1-204.12. Acts, resolutions, and requirements for quorum

    (a) The Council, to discharge the powers and duties imposed 
herein, shall pass acts and adopt resolutions, upon a vote of a 
majority of the members of the Council present and voting, 
unless otherwise provided in this chapter or by the Council. 
Except as provided in the last sentence of this subsection, the 
Council shall use acts for all legislative purposes. Each 
proposed act (other than an act to which Sec. 1-204.46 applies 
for a fiscal year which is a control year described in such 
section) shall be read twice in substantially the same form, 
with at least 13 days intervening between each reading. Upon 
final adoption by the Council each act shall be made 
immediately available to the public in a manner which the 
Council shall determine. If the Council determines, by a vote 
of two-thirds of the members, that emergency circumstances make 
it necessary that an act be passed after a single reading, or 
that it take effect immediately upon enactment, such act shall 
be effective for a period of not to exceed 90 days. Resolutions 
shall be used (1) to express simple determinations, decisions, 
or directions of the Council of a special or temporary 
character; and (2) to approve or disapprove proposed actions of 
a kind historically or traditionally transmitted by the Mayor, 
the Board of Elections, Public Service Commission, Armory 
Board, Board of Education, the Board of Trustees of the 
University of the District of Columbia, or the Convention 
Center Board of Directors to the Council pursuant to an act. 
Such resolutions must be specifically authorized by that act 
and must be designed to implement that act.

           *       *       *       *       *       *       *


[Sec. 1-204.24a. Establishment of office

    [(a) 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'').
    [(b) 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.
    [(c) Transfer of Other Offices.--Effective with the 
appointment of the first Chief Financial Officer under Sec. 1-
204.24b, the functions and personnel of the following offices 
are transferred to the Office:
          [(1) The Controller of the District of Columbia;
          [(2) The Office of the Budget;
          [(3) The Office of Financial Information Services; 
        and
          [(4) The Department of Finance and Revenue.
    [(d) Service of Heads of Other Offices.--
          [(1) 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:
                  [(A) 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
                  [(B) During a control year, the Authority may 
                remove such individuals from office for cause, 
                after consultation with the Mayor.]
          [(2) 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:
                  [(A) The Chief Financial Officer shall 
                appoint such individuals subject to the 
                approval of the Mayor; and
                  [(B) The Chief Financial Officer may remove 
                such individuals from office for cause, after 
                consultation with the Mayor.]

   Office of the Chief Financial Officer of the District of Columbia

    Sec. 424. (a) In General.--
          (1) Establishment.--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 (``Office''), which 
        shall be headed by the Chief Financial Officer of the 
        District of Columbia (``Chief Financial Officer'').
          (2) Organizational analysis.--
                  (A) Office of budget and planning.--The name 
                of the Office of Budget and Management, 
                established by Commissioner's Order 69-96, 
                issued March 7, 1969, is changed to the Office 
                of Budget and Planning.
                  (B) Office of tax and revenue.--The name of 
                the Department of Finance and Revenue, 
                established by Commissioner's Order 69-96, 
                issued March 7, 1969, is changed to the Office 
                of Tax and Revenue.
                  (C) Office of finance and treasury.--The name 
                of the Office of Treasurer, established by 
                Mayor's Order 89-244, dated October 23, 1989, 
                is changed to the Office of Finance and 
                Treasury.
                  (D) Office of financial operations and 
                systems.--The Office of the Controller, 
                established by Mayor's Order 89-243, dated 
                October 23, 1989, and the Office of Financial 
                Information Services, established by Mayor's 
                Order 89-244, dated October 23, 1989, are 
                consolidated into the Office of Financial 
                Operations and Systems.
          (3) Transfers.--Effective with the appointment of the 
        first Chief Financial Officer under subsection (b), the 
        functions and personnel of the following offices are 
        established as subordinate offices within the Office of 
        the Chief Financial Officer:
                  (A) The Office of Budget and Planning, headed 
                by the Deputy Chief Financial Officer for the 
                Office of Budget and Planning.
                  (B) The Office of Tax and Revenue, headed by 
                the Deputy Chief Financial Officer for the 
                Office of Tax and Revenue.
                  (C) The Office of Research and Analysis, 
                headed by the Deputy Chief Financial Officer 
                for the Office of Research and Analysis.
                  (D) The Office of Financial Operations and 
                Systems, headed by the Deputy Chief Financial 
                Officer for the Office of Financial Operations 
                and Systems.
                  (E) The Office of Finance and Treasury, 
                headed by the District of Columbia Treasurer.
                  (F) The Lottery and Charitable Games Control 
                Board, established by the Law to Legalize 
                Lotteries, Daily Numbers Games, and Bingo and 
                Raffles for Charitable Purposes in the District 
                of Columbia, effective March 10, 1981 (D.C. Law 
                3-172; D.C. Official Code section 3-1301 et 
                seq.).
          (4) Supervisor.--The heads of the offices listed in 
        paragraph (3) of this section shall serve at the 
        pleasure of the Chief Financial Officer.
          (5) Appointment and removal of office employees.--The 
        Chief Financial Officer shall appoint the heads of the 
        subordinate offices designated in paragraph (3), after 
        consultation with the Mayor and the Council. The Chief 
        Financial Officer may remove the heads of the offices 
        designated in paragraph (3), after consultation with 
        the Mayor and the Council.
          (6) Annual budget submission.--The Chief Financial 
        Officer of the District of Columbia shall prepare and 
        annually submit to the Mayor of the District of 
        Columbia, for inclusion in the annual budget of the 
        District of Columbia government for a fiscal year, 
        annual estimates of the expenditures and appropriations 
        necessary for the year for the operation of the Office 
        of the Chief Financial Officer and all other District 
        of Columbia accounting, budget, and financial 
        management personnel (including personnel of executive 
        branch independent agencies) that report to the Office 
        of the Chief Financial Officer pursuant to this Act.

           *       *       *       *       *       *       *


[Sec. 1-204.24b. Appointment and dismissal

    [(a) In General.
          [(1) Control year.--During a control year, the Chief 
        Financial Officer shall be appointed by the Mayor as 
        follows:
                  [(A) Prior to the appointment of the Chief 
                Financial Officer, the Authority may submit 
                recommendations for the appointment to the 
                Mayor.
                  [(B) In consultation with the Authority and 
                the Council, the Mayor shall nominate an 
                individual for appointment and notify the 
                Council of the nomination.
                  [(C) After the expiration of the 7-day period 
                which begins on the date the Mayor notifies the 
                Council of the nomination under subparagraph 
                (B) of this paragraph, the Mayor shall notify 
                the Authority of the nomination.
                  [(D) The nomination shall be effective 
                subject to approval by a majority vote of the 
                Authority.
          [(2) 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. Upon confirmation 
        by the Council, the name of the Chief Financial Officer 
        shall be submitted to the Committees on Appropriations 
        of the Senate and House of Representatives, the 
        Committee on Governmental Affairs of the Senate, and 
        the Committee on Government Reform of the House of 
        Representatives for a 30-day period of review and 
        comment before the appointment takes effect.
    [(b) Removal.--
          [(1) 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.
          [(2) 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 upon dismissal by 
        the Mayor and approval of that dismissal by a 2/3 vote 
        of the Council. Upon approval of the dismissal by the 
        Council, notice of the dismissal shall be submitted to 
        the Committees on Appropriations of the Senate and 
        House of Representatives, the Committee on Governmental 
        Affairs of the Senate, and the Committee on Government 
        Reform of the House of Representatives for a 30-day 
        period of review and comment before the dismissal takes 
        effect.
    [(c) Salary.--The Chief Financial Officer shall be paid at 
an annual rate equal to the rate of basic pay payable for level 
I of the Executive Schedule.]
    (b) Appointment of the Chief Financial Officer.--
          (1) In general.--The Chief Financial Officer shall be 
        appointed by the Mayor with the advice and consent, by 
        resolution, of the Council.
          (2) Term.--
                  (A) In general.--All appointments made after 
                June 30, 2007, shall be for a term of 5 years, 
                except for appointments made for the remainder 
                of unexpired terms. The appointments shall have 
                an anniversary date of July 1.
                  (B) Temporary.--The term of office of the 
                Chief Financial Officer first appointed 
                pursuant to subsection (a) shall begin upon the 
                date of enactment of the District of Columbia 
                Independence of the Chief Financial Officer Act 
                of 2003. The initial term shall end on June 30, 
                2007.
                  (C) Continuance.--Any Chief Financial Officer 
                may continue to serve beyond his term until a 
                successor takes office.
                  (D) Vacancies.--Any vacancy in the Office of 
                Chief Financial Officer shall be filled in the 
                same manner as the original appointment under 
                paragraph (1).
                  (E) Pay.--The Chief Financial Officer shall 
                be paid at an annual rate equal to the rate of 
                basic pay payable for level I of the Executive 
                Schedule.

           *       *       *       *       *       *       *


[Sec. 1-204.24c. Functions

    [The Chief Financial Officer shall have the following 
duties:
          [(1) During a control year, preparing the financial 
        plan and budget for the use of the Mayor for purposes 
        of subpart B of subchapter VII of Chapter 3 of Title 
        47;
          [(2) Preparing the budgets of the District of 
        Columbia for the year for the use of the Mayor for 
        purposes of Sec. Sec. 1-204.41 to 1-204.53 and 1-204.55 
        to 1-204.56e.
          [(3) During a control year, 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 [Pub. L. 104-8];
          [(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) Preparing and submitting to the Mayor and the 
        Council, with the approval of the Authority during a 
        control year:
                  [(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 Sec. Sec. 1-
                204.41 to 1-204.53 and 1-204.55 to 1-204.56e, 
                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 by the Authority 
        during a control year);
          [(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;
          [(18) 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);
          [(19) Administering all borrowing programs of the 
        District government for the issuance of long-term and 
        short-term indebtedness;
          [(20) 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;
          [(21) Administering the centralized District 
        government payroll and retirement systems;
          [(22) Governing the accounting policies and systems 
        applicable to the District government;
          [(23) Preparing appropriate annual, quarterly, and 
        monthly financial reports of the accounting and 
        financial operations of the District government; and
          [(24) Not later than 120 days after the end of each 
        fiscal year, 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 
        Sec. 1-204.48(a)(4).]
    (c) Removal of the Chief Financial Officer.--The Chief 
Financial Officer may only be removed for cause by the Mayor.

           *       *       *       *       *       *       *


[Sec. 1-204.24d. 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; and
                          [(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; and
                  [(E) Monthly reports reflecting a detailed 
                summary analysis of long-term and short-term 
                borrowings inclusive of debt as authorized by 
                Sec. 1-206.03, 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; and
          [(2) Such other functions assigned to the Chief 
        Financial Officer under Sec. 1-204.24c as the Chief 
        Financial Officer may delegate.]
    (d) Duties of the Chief Financial Officer.--The Chief 
Financial Officer shall have the following duties and shall 
take such steps as are necessary to perform these duties:
          (1) Preparing the financial plan and the budget for 
        the use of the Mayor for purposes of subpart B of 
        subchapter VII of chapter 3 of title 47 of the D.C. 
        Code and preparing the 5-year financial plan based upon 
        the adopted budget for submission with the District of 
        Columbia budget by the Mayor to Congress.
          (2) Preparing the budgets of the District of Columbia 
        for the year for the use of the Mayor for purposes of 
        sections 441-444, 446, 448-452, 455 of the District of 
        Columbia Home Rule Act, approved (87 Stat. 798-803; 
        D.C. Official Code sections 1-204.41 through 1-204.44, 
        1-204.46, 1-204.48 through 1-204.52, 1-204.55), section 
        445a of the District of Columbia Home Rule Act, 
        approved August 6, 1996 (110 Stat. 1698; D.C. Official 
        Code section 1-204.45a), section 453 of the District of 
        Columbia Home Rule Act, approved April 17, 1991 (105 
        Stat. 539; D.C. Official Code section 1-204.53), 
        sections 456(a) through 456(d) of the District of 
        Columbia Home Rule Act, approved October 19, 1994 (108 
        Stat. 3488; D.C. Official Code sections 1-204.56a 
        through 1-204.56d), and section 456(e) of the District 
        of Columbia Home Rule Act, approved April 17, 1995 (109 
        Stat. 140; D.C. Official Code section 1-204.56e).
          (3) 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 and to ensure that 
        appropriations are not exceeded.
          (4) Preparing and submitting to the Mayor and the 
        Council and making public--
                  (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 sections 441 
                through 444, 446, 448 through 452, and 455 of 
                the District of Columbia Home Rule Act, 
                approved December 24, 1973 (87 Stat. 798-803; 
                D.C. Official Code sections 1-204.41 through 1-
                204.44, 1-204.46, 1-204.48 through 1-204.52, 1-
                204.55), section 445a of the District of 
                Columbia Home Rule Act, approved August 6, 1996 
                (110 Stat. 1698; D.C. Official Code section 1-
                204.45a), section 453 of the District of 
                Columbia Home Rule Act, approved April 17, 1991 
                (105 Stat. 539; D.C. Official Code section 1-
                204.53), sections 456(a) through 456(d) of the 
                District of Columbia Home Rule Act, approved 
                October 19, 1994 (108 Stat. 3488; D.C. Official 
                Code sections 1-204.56a through 1-204.56d), and 
                section 456(e) of the District of Columbia Home 
                Rule Act, approved April 17, 1995 (109 Stat. 
                140; D.C. Official Code section 1-204.56e), 
                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.
          (5) Supervising and assuming responsibility for 
        financial transactions to ensure adequate control of 
        revenues and resources.
          (6) 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) accounting 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.
          (7) Submitting to the Council a financial statement 
        of the District government, containing such details and 
        at such times as the Council may specify.
          (8) 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).
          (9) 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 District of Columbia 
        Financial Responsibility and Management Assistance 
        Authority).
          (10) 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.
          (11) 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.
          (12) 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.
          (13) Certifying all contracts and leases (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 and leases during the year.
          (14) Prescribing the forms of receipts, vouchers, 
        bills, and claims to be used by all agencies, offices, 
        and instrumentalities of the District government.
          (15) Certifying and approving prior to payment of 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.
          (16) 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.
          (17) 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).
          (18) Supervising and administering all borrowing 
        programs secured by the full faith and credit of the 
        District government for the issuance of long-term and 
        short-term indebtedness.
          (19) 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.
          (20) Administering the centralized District 
        government payroll and retirement systems.
          (21) Governing the accounting policies and systems 
        applicable to the District government.
          (22) Preparing appropriate annual, quarterly, and 
        monthly financial reports of the accounting and 
        financial operations of the District government.
          (23) Not later than 120 days after the end of each 
        fiscal year, 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 Home Rule 
        Act, approved December 24, 1973 (87 Stat. 801; D.C. 
        Official Code section 1-204.48(a)(4)).
          (24) Preparing fiscal impact statements on 
        regulations, multiyear contracts, contracts over 
        $1,000,000 and on legislation, as required by section 
        4a of the General Legislative Procedures Act of 1975.
          (25) Preparing under the direction of the Mayor, who 
        has the specific responsibility for formulating budget 
        policy using Chief Financial Officer technical and 
        human resources, the budget for submission by the Mayor 
        to the Council and to the public and upon final 
        adoption to Congress and to public.
          (26) Certifying all collective bargaining agreements 
        and nonunion pay proposals prior to submission to the 
        Council for approval as to the availability of funds to 
        meet the obligations expected to be incurred by the 
        District government under such collective bargaining 
        agreements and nonunion pay proposals during the year.

           *       *       *       *       *       *       *


[Sec. 1-204.24e. Definitions

    [In this part:
          [(1) The term ``Authority'' means the District of 
        Columbia Financial Responsibility and Management 
        Assistance Authority established under Sec. 47-
        391.01(a);
          [(2) The term ``control year'' has the meaning given 
        such term under Sec. 47-393(4); and
          [(3) The term ``District government'' has the meaning 
        given such term under Sec. 47-393(5).]
    (e) Appointment of Certain Executive Branch Agency Chief 
Financial Officers.--The chief financial officers of all 
District of Columbia executive branch subordinate and 
independent agencies not included in subsection a(3) and 
associate chief financial officers shall be appointed by the 
Chief Financial Officer, in consultation with the agency head, 
where applicable. The appointment shall be made from a list of 
qualified candidates developed by the Chief Financial Officer.

           *       *       *       *       *       *       *

    (f) 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 which 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--
                          (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; and
                          (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; and
                  (E) monthly reports reflecting a detailed 
                summary analysis of long-term and short-term 
                borrowings inclusive of debt as authorized by 
                section 1-206.03, 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 un-
                        issued 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 (d) as the Chief 
        Financial Officer may delegate.
    (g) Transition Provisions.--
          (1) CFO.--Any Chief Financial Officer appointed by 
        the Mayor prior to the date of enactment of the 
        District of Columbia Independence of the Chief 
        Financial Officer Act of 2003 may continue to serve in 
        that capacity without reappointment until a new 
        appointment under subsection (a) becomes effective.
          (2) Executive branch cfo.--any executive branch 
        agency chief financial officer appointed prior to the 
        date of enactment of the District of Columbia 
        Independence of the Chief Financial Officer Act of 2003 
        may continue to serve in that capacity without 
        reappointment.
    Sec. 424h. (a) In General.--Notwithstanding any provision 
of law or regulation, employees of the Office of the Chief 
Financial Officer, including personnel described in subsection 
(b), shall be appointed by, shall serve at the pleasure of, and 
shall act under the direction and control of the Chief 
Financial Officer of the District of Columbia, and shall be 
considered at-will employees, except that the Chief Financial 
Officer shall comply with any collective bargaining agreement 
entered into by the Office of the Chief Financial Officer.
    (b) Personnel.--The personnel described in this subsection 
are as follows:
          (1) The Office of the General Counsel within the 
        Office of the Chief Financial Officer of the District 
        of Columbia, such office shall include the General 
        Counsel to the Chief Financial Officer and individuals 
        hired or retained as attorneys by the Chief Financial 
        Officer or any office under the personnel authority of 
        the Office of the Chief Financial Officer, all such 
        attorneys shall act under the direction and control of 
        the General Counsel to the Chief Financial Officer.
          (2) Personnel of the Office not described in 
        paragraph (1).
          (3) The heads and all personnel of the offices 
        described in subsection (c) and the Chief Financial 
        Officers of all District of Columbia executive branch 
        subordinate and independent agencies, Associate chief 
        financial officers, together with all other District of 
        Columbia accounting, budget, and financial management 
        personnel (including personnel of executive branch 
        independent agencies).
    (c) Offices Described.--The offices referred to in this 
subsection are as follows:
          (1) The Office of Finance and Treasury (or any 
        successor office).
          (2) The Office of Financial Operations and Systems 
        (or any successor office).
          (3) The Office of the Budget and Planning (or any 
        successor office).
          (4) The Office of Tax and Revenue (or any successor 
        office).
          (5) The District of Columbia Lottery and Charitable 
        Games Control Board.
    (d) Independent Authority Over Legal Personnel.--Sections 
851 through 862 of the District of Columbia Government 
Comprehensive Merit Personnel Act of 1978, effective March 3, 
1979 (D.C. Law 2-260; D.C. Official Code section 1-608.51-1-
608.62) shall not apply to attorneys employed by the Office of 
the Chief Financial Officer.
    Sec. 424i. The Office of the Chief Financial Officer's 
procurement practices shall be governed by the provisions of 
chapter 3 of title 2 of the D.C. Official Code, except that the 
Office of the Chief Financial Officer shall maintain a 
procurement office or division that shall operate independent 
of, and shall not be governed by, the Office of Contracting and 
Procurement, established by section 2-301.05, or its successor 
office.

           *       *       *       *       *       *       *


Sec. 1-204.47. Consistency of budget, accounting, and personnel systems

    The Mayor shall implement appropriate procedures to insure 
that budget, accounting, and personnel control systems and 
structures are synchronized for budgeting and control purposes 
on a continuing basis. No employee shall be hired on a full-
time or part-time basis unless such position is authorized by 
[act of Congress] act of the Council (or Act of Congress, in 
the case of a year which is a control year). Employees shall be 
assigned in accordance with the program, organization, and fund 
categories specified in the [act of Congress] act of the 
Council (or Act of Congress, in the case of a year which is a 
control year) authorizing such position. Hiring of temporary 
employees and temporary employee transfers among programs shall 
be consistent with applicable [acts of Congress] acts of the 
Council (or Acts of Congress, in the case of a year which is a 
control year) and reprogramming procedures to insure that costs 
are accurately associated with programs and sources of funding.

           *       *       *       *       *       *       *


Sec. 1-204.48. Financial duties of Mayor

    (a) Subject to the limitations in [Sec. 1-206.03,] section 
603 and except to the extent provided under section 424(d), the 
Mayor shall have charge of the administration of the financial 
affairs of the District and to that end he shall:

           *       *       *       *       *       *       *


Sec. 1-204.49. Accounting supervision and control

    [The Mayor] Except to the extent provided under section 
424(d), the Mayor shall:
          (1) Prescribe the forms of receipts, vouchers, bills, 
        and claims to be used by all the agencies, offices, and 
        instrumentalities of the District government;

           *       *       *       *       *       *       *


Sec. 1-204.67. Authority to create security interests in District 
                    revenues

           *       *       *       *       *       *       *


    (d) Obligations and Expenditures Not Subject to 
Appropriation.--[The fourth sentence of Sec. 1-204.46]Section 
446(c) shall not apply to any obligation or expenditure of any 
District revenues to secure any general obligation bond or note 
under subsection (a) of this section.

           *       *       *       *       *       *       *


                       DISTRICT OF COLUMBIA CODE

                    TITLE 1--GOVERNMENT ORGANIZATION

               CHAPTER 2--DISTRICT OF COLUMBIA HOME RULE


                  Subchapter VI--The District Charter


Sec. 1-204.71. Borrowing to meet appropriations

           *       *       *       *       *       *       *


    (c) [The 4th sentence of Sec. 1-204.46] Section 446(c) 
shall not apply to any amount obligated or expended by the 
District for the payment of the principal of, interest on, or 
redemption premium for any general obligation note issued under 
subsection (a) of this section.

           *       *       *       *       *       *       *


Sec. 1-204.72. Borrowing in anticipation of revenues

           *       *       *       *       *       *       *


    (d) Effective Date of Authorization Acts; Payments Not 
Subject to Appropriation.--
          (1) Effective date.--Notwithstanding Sec. 1-
        206.02(c)(1), any act of the Council authorizing the 
        issuance of revenue anticipation notes under subsection 
        (a) of this section shall take effect:
                  (A) if such act is enacted during a control 
                year (as defined in Sec. 47-393(4)), on the 
                date of approval by the District of Columbia 
                Financial Responsibility and Management 
                Assistance Authority; or
                  (B) if such act is enacted during any other 
                year, on the date of enactment of such act.
          (2) Payments not subject to appropriation.--[The 
        fourth sentence of Sec. 1-204.46] Section 446(c) shall 
        not apply to any amount obligated or expended by the 
        District for the payment of the principal of, interest 
        on, or redemption premium for any revenue anticipation 
        note issued under subsection (a) of this section.

           *       *       *       *       *       *       *


Sec. 1-204.75. Bond anticipation notes

           *       *       *       *       *       *       *


    (e) Effective Date of Authorization Acts; Payments Not 
Subject to Appropriation.--
          (1) Effective date.--Notwithstanding Sec. 1-
        206.02(c)(1), any act of the Council authorizing the 
        renewal of bond anticipation notes under subsection (c) 
        [subsection (d)] or the issuance of general obligation 
        bonds under Sec. 1-204.61(a) to refund any bond 
        anticipation notes shall take effect--
                  (A) if such act is enacted during a control 
                year (as defined in Sec. 47-393(4)), on the 
                date of approval by the District of Columbia 
                Financial Responsibility and Management 
                Assistance Authority; or
                  (B) if such act is enacted during any other 
                year, on the date of enactment of such act.
          (2) Payment not subject to appropriation.--[The 
        fourth sentence of Sec. 1-204.46] Section 446(c) shall 
        not apply to any amount obligated or expended by the 
        District for the payment of the principal of, interest 
        on, or redemption premium for any bond anticipation 
        note issued under this section.

           *       *       *       *       *       *       *


Sec. 1-204.83. Payment of the general obligation bonds and notes

           *       *       *       *       *       *       *


    (d) [The 4th sentence of Sec. 1-204.46] Section 446(c) 
shall not apply to:
          (1) Any amount set aside in a debt service fund under 
        Sec. 1-204.81(a);

           *       *       *       *       *       *       *


Sec. 1-204.90. Revenue bonds and other obligations

    (f) [The fourth sentence of Sec. 1-204.46] Section 446(c) 
shall not apply to:
          (1) Any amount (including the amount of any accrued 
        interest or premium) obligated or expended from the 
        proceeds of the sale of any revenue bond, note, or 
        other obligations issued under subsection (a)(1) of 
        this section;
          (2) Any amount obligated or expended for the payment 
        of the principal of, interest on, or any premium for 
        any revenue bond, note, or other obligation issued 
        under subsection (a)(1) of this section;
          (3) Any amount obligated or expended pursuant to 
        provisions made to secure any revenue bond, note, or 
        other obligations issued under subsection (a)(1) of 
        this section; and
          (4) Any amount obligated or expended pursuant to 
        commitments made in connection with the issuance of 
        revenue bonds, notes, or other obligations for repair, 
        maintenance, and capital improvements relating to 
        undertakings financed through any revenue bond, note, 
        or other obligation issued under subsection (a)(1) of 
        this section.
    (g)(1) The Council may delegate to any housing finance 
agency established by it (whether established before or after 
April 12, 1980) the authority of the Council under subsection 
(a) of this section to issue revenue bonds, notes, and other 
obligations to borrow money to finance or assist in the 
financing of undertakings in the area of primarily low- and 
moderate-income housing. The Council shall define for the 
purposes of the preceding sentence what undertakings shall 
constitute undertakings in the area of primarily low- and 
moderate-income housing. Any such housing finance agency may 
exercise authority delegated to it by the Council as described 
in the first sentence of this paragraph (whether such 
delegation is made before or after April 12, 1980) only in 
accordance with this subsection.
    (2) Revenue bonds, notes, and other obligations issued by a 
housing finance agency of the District under a delegation of 
authority described in paragraph (1) of this subsection shall 
be issued by resolution of the agency, and any such resolution 
shall not be considered to be an act of the Council.
    (3) [The 4th sentence of Sec. 1-204.46] Section 446(c) 
shall not apply to:
          (A) Any amount (including the amount of any accrued 
        interest or premium) obligated or expended from the 
        proceeds of the sale of any revenue bond, note, or 
        other obligation issued under paragraph (1) of this 
        subsection;
          (B) Any amount obligated or expended for the payment 
        of the principal of, interest on, or any premium for 
        any revenue bond, note, or other obligation issued 
        under paragraph (1) of this subsection; and
          C) Any amount obligated or expended to secure any 
        revenue bond, note, or other obligation issued under 
        paragraph (1) of this subsection.
    (h)(1) The Council may delegate to the District of Columbia 
Water and Sewer Authority established pursuant to Sec. 34-
2202.02 the authority of the Council under subsection (a) of 
this section to issue revenue bonds, notes, and other 
obligations to borrow money to finance or assist in the 
financing or refinancing of undertakings in the area of 
utilities facilities, pollution control facilities, and water 
and sewer facilities (as defined in subsection (a)(5) of this 
section). The Authority may exercise authority delegated to it 
by the Council as described in the first sentence of this 
paragraph (whether such delegation is made before or after 
August 6, 1996) only in accordance with this subsection.
    (2) Revenue bonds, notes, and other obligations issued by 
the District of Columbia Water and Sewer Authority under a 
delegation of authority described in paragraph (1) of this 
subsection shall be issued by resolution of the Authority, and 
any such resolution shall not be considered to be an act of the 
Council.
    (3) [The fourth sentence of Sec. 1-204.46] Section 446(c) 
shall not apply to:
          (A) Any amount (including the amount of any accrued 
        interest or premium) obligated or expended from the 
        proceeds of the sale of any revenue bond, note, or 
        other obligation issued pursuant to this subsection;
          (B) Any amount obligated or expended for the payment 
        of the principal of interest on, or any premium for any 
        revenue bond, note, or other obligation issued pursuant 
        to this subsection;
          (C) Any amount obligate or expended to secure any 
        revenue bond, not, or other obligation issued pursuant 
        to this subsection; or
          (D) Any amount obligated or expended for repair, 
        maintenance, and capita improvements to facilities 
        financed pursuant to this subsection.
    (i)(1) The Council may delegate to the District of Columbia 
Tobacco Settlement Financing Corporation (hereafter in this 
subsection referred to as the ``Corporation'') established 
pursuant to subchapter III of Chapter 18 of Title 7 the 
authority of the Council under subsection (a) to issue revenue 
bonds, notes, and other obligations which are used to borrow 
money to finance or assist in the financing or refinancing of 
capital projects and other undertakings of the District of 
Columbia and which are payable solely from and secured by 
payments under the Master Tobacco Settlement Agreement. The 
Corporation may exercise authority delegated to it by the 
Council as described in the first sentence of this paragraph 
(whether such delegation is made before or after the date of 
the enactment of this subsection) only in accordance with this 
subsection and the provisions of subchapter III of Chapter 18 
of Title 7.
    (2) Revenue bonds, notes, and other obligations issued by 
the Corporation under a delegation of authority described in 
paragraph (1) of this subsection shall be issued by resolution 
of the Corporation, and any such resolution shall not be 
considered to be an act of the Council.
    (3) [The fourth sentence of Sec. 1-204.46] Section 446(c) 
shall not apply to:

           *       *       *       *       *       *       *


                       DISTRICT OF COLUMBIA CODE

                    TITLE 1--GOVERNMENT ORGANIZATION

               CHAPTER 2--DISTRICT OF COLUMBIA HOME RULE


         Subchapter VI--Reservation of Congressional Authority


Sec. 1-206.02. Limitations on the Council

           *       *       *       *       *       *       *


    (c)(1) Except acts of the Council which are submitted to 
the President in accordance with Chapter 11 of Title 31, United 
States Code, any act which the Council determines, according to 
Sec. 1-204.12(a), should take effect immediately because of 
emergency circumstances, and acts proposing amendments to 
subchapter IV of this chapter and except as provided in Sec. 1-
204.62(c) and Sec. 1-204.72(d)(1) the Chairman of the Council 
shall transmit to the Speaker of the House of Representatives, 
and the President of the Senate, a copy of each act passed by 
the Council and signed by the Mayor, or vetoed by the Mayor and 
repassed by two-thirds of the Council present and voting, each 
act passed by the Council and allowed to become effective by 
the Mayor without his signature, and each initiated act and act 
subject to referendum which has been ratified by a majority of 
the registered qualified electors voting on the initiative or 
referendum. Except as provided in [paragraph (2)] paragraphs 
(2) and (4) of this subsection, such act shall take effect upon 
the expiration of the 30-calendar-day period (excluding 
Saturdays, Sundays, and holidays, and any day on which neither 
House is in session because of an adjournment sine die, a 
recess of more than 3 days, or an adjournment of more than 3 
days) beginning on the day such act is transmitted by the 
Chairman to the Speaker of the House of Representatives and the 
President of the Senate, or upon the date prescribed by such 
act, whichever is later, unless during such 30-day period, 
there has been enacted into law a joint resolution disapproving 
such act. In any case in which any such joint resolution 
disapproving such an act has, within such 30-day period, passed 
both Houses of Congress and has been transmitted to the 
President, such resolution, upon becoming law, subsequent to 
the expiration of such 30-day period, shall be deemed to have 
repealed such act, as of the date such resolution becomes law. 
The provisions of Sec. 1-206.04, except subsections (d), (e), 
and (f) of such section, shall apply with respect to any joint 
resolution disapproving any act pursuant to this paragraph.
    (2) In the case of any such act transmitted by the Chairman 
with respect to any act codified in Title 22, 23, or 24 of the 
District of Columbia Code, such act shall take effect at the 
end of the 60-day period beginning on the day such act is 
transmitted by the Chairman to the Speaker of the House of 
Representatives and the President of the Senate unless, during 
such 60-day period, there has been enacted into law a joint 
resolution disapproving such act. In any case in which any such 
joint resolution disapproving such an act has, within such 60-
day period, passed both Houses of Congress and has been 
transmitted to the President, such resolution, upon becoming 
law subsequent to the expiration of such 60-day period shall be 
deemed to have repealed such act, as of the date such 
resolution becomes law. The provisions of Sec. 1-206.04, 
relating to an expedited procedure for consideration of joint 
resolutions, shall apply to a joint resolution disapproving 
such act as specified in this 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.
    (4) In the case of any Act transmitted under the first 
sentence of paragraph (1) to which section 446 applies and for 
which the fiscal year involved is not a control year, such Act 
shall take effect upon the expiration of the 30-calendar-day 
period beginning on the day such Act is transmitted, or upon 
the date prescribed by such Act, whichever is later, unless 
during such 30-day period, there has been enacted into law a 
joint resolution disapproving such Act. If such 30-day period 
expires on any day on which neither House is in session because 
of an adjournment sine die, a recess of more than three days, 
or an adjournment of more than three days, the period 
applicable under the previous sentence shall be extended for 5 
additional days (excluding Saturdays, Sundays, and holidays, 
and any day on which neither House is in session because of an 
adjournment sine die, a recess of more than three days, or an 
adjournment of more than three days). In any case in which any 
such joint resolution disapproving such an Act has, within the 
applicable period, passed both Houses of Congress and has been 
transmitted to the President, such resolution, upon becoming 
law, subsequent to the expiration of such period, shall be 
deemed to have repealed such Act, as of the date such 
resolution becomes law. The provisions of section 604 shall 
apply with respect to any joint resolution disapproving any Act 
pursuant to this paragraph.

           *       *       *       *       *       *       *


Sec. 1-206.03. Budget process; limitations on borrowing and spending

    (a) Nothing in this chapter shall be construed as making 
any change in existing law, regulation, or basic procedure and 
practice relating to the respective roles of the Congress, the 
President, the Federal Office of Management and Budget, and the 
Comptroller General of the United States in the preparation, 
review, submission, examination, authorization, and 
appropriation of the total budget of the District of Columbia 
government for a fiscal year which is a control year.

           *       *       *       *       *       *       *

    [(d) Except as provided in subsection (f) of this section, 
the Mayor shall not forward to the President for submission to 
Congress a budget which is not balanced according to the 
provision of subsection (c) of this section.] (d) In the case 
of a fiscal year which is a control year, 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 the District of Columbia Financial Responsibility 
and Management Assistance Act of 1995.

           *       *       *       *       *       *       *

    [(f) In the case of a fiscal year which is a control year 
(as defined in Sec. 47-393(4)), 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 part B of subchapter VII 
of chapter 3 of Title 47.] (f) In this section, the term 
``control year'' has the meaning given such term in section 
305(4) of the District of Columbia Financial Responsibility and 
Management Assistance Act of 1995.

           *       *       *       *       *       *       *


              CHAPTER 3--SPECIFIED GOVERNMENTAL AUTHORITY


   Subchapter I--Additional Governmental Powers and Responsibilities


Sec. 1-301.47. Definition of terms set forth in acts and resolutions 
                    [Formerly Sec. 1-232]

    For the purposes of any act or resolution of the Council of 
the District of Columbia, unless specifically provided 
otherwise:
          (1) The term ``Council'' means the Council of the 
        District of Columbia established under Sec. 1-204.01.
          (2) The term ``Mayor'' means the Mayor of the 
        District of Columbia established under Sec. 1-204.21.
          (3) The term ``Act'' means an Act of the Congress.
          (4) The term ``act'' means an act of the Council.

Sec. 1-301.47a. * * *

    (a) Bills and Resolutions.--
          (1) In general.--Notwithstanding any other law, 
        except as provided in subsection (c), all permanent 
        bills and resolutions shall be accompanied by a fiscal 
        impact statement before final adoption by the Council.
          (2) Contents.--The fiscal impact statement shall 
        include the estimate of the costs which will be 
        incurred by the District as a result of the enactment 
        of the measure in the current and each of the first 
        four fiscal years for which the act or resolution is in 
        effect, together with a statement of the basis for such 
        estimate.
          (b) Appropriations.--Permanent and emergency acts 
        which are accompanied by fiscal impact statements which 
        reflect unbudgeted costs, shall be subject to 
        appropriations prior to becoming effective.
          (c) Applicability.--Subsection (a) shall not apply to 
        emergency declaration, ceremonial, confirmation, and 
        sense of the Council resolutions.

           *       *       *       *       *       *       *


                   CHAPTER 6--MERIT PERSONNEL SYSTEM


                Subchapter VIII-B--Government Attorneys


Sec. 1-608.62. Applicability

    The provisions of this subchapter shall apply on April 20, 
1999, except as follows:
          (1) Section 1-608.52 shall include attorneys employed 
        by the District of Columbia Board of Education as part 
        of the new Legal Service only as long as there is no 
        Congressional statutory requirement that attorneys 
        employed by the District of Columbia public schools be 
        classified as Educational Service employees.
          [(2) The provisions of this subchapter shall apply to 
        attorneys employed by the Office of the Chief Financial 
        Officer when the District of Columbia is no longer in a 
        control period, as defined in Sec. 47-393(3).]

           *       *       *       *       *       *       *


                   TITLE 2--GOVERNMENT ADMINISTRATION

                         Chapter 3--Procurement


Sec. 2-301.04. Application of chapter

    (a) Except as provided in Sec. 2-303.20, this chapter shall 
apply to all departments, agencies, instrumentalities, and 
employees of the District government, including agencies which 
are subordinate to the Mayor, independent agencies, boards, and 
commissions, but excluding the Council of the District of 
Columbia, District of Columbia courts, the District of Columbia 
Financial Responsibility and Management Assistance Authority, 
and District of Columbia Advisory Neighborhood Commissions.
    (b) This chapter shall apply to any contract for 
procurement of goods and services, including construction and 
legal services, but shall not apply to a contract or agreement 
receiving or making grants-in-aid or for federal financial 
assistance.
    (c) The Council of the District of Columbia, the 
Corporation Counsel, Inspector General, Auditor, and Chief 
Financial Officer may contract for the services of accountants, 
lawyers, and other experts when they determine and state in 
writing that good reason exists why such services should be 
procured independently of the CPO. [During a control year, as 
defined by Sec. 47-393(4), the Office of the Chief Financial 
Officer of the District of Columbia shall be exempt from the 
provisions of this chapter, and shall adopt, within 30 days of 
April 12, 1997, the procurement rules and regulations adopted 
by the District of Columbia Financial Responsibility and 
Management Assistance Authority. During years other than 
control years, the Office of the Chief Financial Officer shall 
be bound by the provisions contained in this chapter.]

           *       *       *       *       *       *       *


                TITLE 24--PRISONERS AND THEIR TREATMENT

       CHAPTER 1--TRANSFER OF PRISON SYSTEM TO FEDERAL AUTHORITY


                       Subchapter I--Corrections


Sec. 24-106. Permitting expenditure of funds to carry out certain sewer 
                    agreement

    Notwithstanding the [fourth sentence of Sec. 1-204.46] 
section 446(c), the District of Columbia is authorized to 
obligate or expend such funds as may be necessary during a 
fiscal year (beginning with fiscal year 1997) to carry out the 
Sewage Delivery System and Capacity Purchase Agreement between 
Fairfax County and the District of Columbia with respect to 
Project Number K00301, without regard to the amount 
appropriated for such purpose in the budget of the District of 
Columbia for the fiscal year.

           *       *       *       *       *       *       *


     TITLE 47--TAXATION, LICENSING, PERMITS, ASSESSMENTS, AND FEES

CHAPTER 3--BUDGET AND FINANCIAL MANAGEMENT; BORROWING; DEPOSIT OF FUNDS


   Subchapter VII--Financial Responsibility and Management Assistance


Sec. 47-392.02. Process for submission and approval of financial plan 
                    and annual District budget

           *       *       *       *       *       *       *


    (c) Action upon approval of Mayor's preliminary financial 
plan and budget.

           *       *       *       *       *       *       *

          (2) Adoption of financial plan and budget by Council 
        after receipt of approved financial plan and budget.--
        Notwithstanding [the first sentence of Sec. 1-204.46] 
        section 446(a), not later than 30 days after receiving 
        the financial plan and budget for the fiscal year from 
        the Mayor under paragraph (1)(A)(ii) of this 
        subsection, 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.

           *       *       *       *       *       *       *

    (d) Action upon disapproval of Mayor's preliminary 
financial plan and budget.

           *       *       *       *       *       *       *

          (3) Action by council.
                  (A) Adoption of financial plan and budget.--
                Notwithstanding [the first sentence of Sec. 1-
                204.46] section 446(a), not later than 30 days 
                after receiving the Mayor's approved revised 
                financial plan and budget for the fiscal year 
                under paragraph (2)(B) of this subsection 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) of this 
                subsection, 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.

                                
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