[104th Congress Public Law 8] [From the U.S. Government Printing Office] <DOC> [DOCID: f:publ8.104] [[Page 109 STAT. 97]] Public Law 104-8 104th Congress An Act To eliminate budget deficits and management inefficiencies in the government of the District of Columbia through the establishment of the District of Columbia Financial Responsibility and Management Assistance Authority, and for other purposes. <<NOTE: Apr. 17, 1995 - [H.R. 1345]>> Be it enacted by the Senate and House of Representatives of the United States <<NOTE: District of Columbia Financial Responsibility and Management Assistance Act of 1995.>> of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``District of Columbia Financial Responsibility and Management Assistance Act of 1995''. (b) Table of Contents.--The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Findings; purpose. TITLE I--ESTABLISHMENT AND ORGANIZATION OF AUTHORITY Sec. 101. District of Columbia Financial Responsibility and Management Assistance Authority. Sec. 102. Executive director and staff of Authority. Sec. 103. Powers of Authority. Sec. 104. Exemption from liability for claims. Sec. 105. Treatment of actions arising from act. Sec. 106. Funding for operation of Authority. Sec. 107. Suspension of activities. Sec. 108. Application of laws of District of Columbia to Authority. TITLE II--RESPONSIBILITIES OF AUTHORITY Subtitle A--Establishment and Enforcement of Financial Plan and Budget for District Government Sec. 201. Development of financial plan and budget for District of Columbia. Sec. 202. Process for submission and approval of financial plan and annual District budget. Sec. 203. Review of activities of District government to ensure compliance with approved financial plan and budget. Sec. 204. Restrictions on borrowing by District during control year. ``Sec. 601. Transitional provision for short-term advances. ``Sec. 602. Short-term advances for seasonal cash-flow management. ``Sec. 603. Security for advances. ``Sec. 604. Reimbursement to the Treasury. ``Sec. 605. Definitions. Sec. 205. Deposit of annual Federal payment with Authority. Sec. 206. Effect of finding of non-compliance with financial plan and budget. Sec. 207. Recommendations on financial stability and management responsibility. Sec. 208. Special rules for fiscal year 1996. Sec. 209. Control periods described. Subtitle B--Issuance of Bonds Sec. 211. Authority to issue bonds. Sec. 212. Pledge of security interest in revenues of District government. [[Page 109 STAT. 98]] Sec. 213. Establishment of debt service reserve fund. Sec. 214. Other requirements for issuance of bonds. Sec. 215. No full faith and credit of the United States. Subtitle C--Other Duties of Authority Sec. 221. Duties of Authority during year other than control year. Sec. 222. General assistance in achieving financial stability and management efficiency. Sec. 223. Obtaining reports. Sec. 224. Reports and comments. TITLE III--MISCELLANEOUS PROVISIONS Sec. 301. Other District budget reforms. Sec. 302. Establishment of Chief Financial Officer of District of Columbia. Sec. 303. Revisions to powers and duties of Inspector General of District of Columbia. Sec. 304. Council approval of certain contracts. Sec. 305. Definitions. SEC. 2. FINDINGS; PURPOSE. (a) Findings.--Congress finds the following: (1) A combination of accumulated operating deficits, cash shortages, management inefficiencies, and deficit spending in the current fiscal year have created a fiscal emergency in the District of Columbia. (2) As a result of its current financial problems and management inefficiencies, the District of Columbia government fails to provide its citizens with effective and efficient services in areas such as education, health care, crime prevention, trash collection, drug abuse treatment and prevention, human services delivery, and the supervision and training of government personnel. (3) The current financial and management problems of the District government have already adversely affected the long- term economic health of the District of Columbia by causing the migration of residents and businesses out of the District of Columbia and the failure of new residents and businesses to move to the District of Columbia. (4) The fiscal and management problems in the District of Columbia government are pervasive across all segments of the government. (5) A comprehensive approach to fiscal, management, and structural problems must be undertaken which exempts no part of the District government and which preserves home rule for the citizens of the District of Columbia. (6) The current deficit of the District of Columbia must be resolved over a multi-year period, since it cannot be effectively addressed in a single year. (7) The ability of the District government to obtain funds from capital markets in the future will be severely diminished without Congressional action to restore its financial stability. (8) The failure to improve the financial situation of the District government will adversely affect the long-term economic health of the entire National Capital region. (9) The efficient operation of the Federal Government may be adversely affected by the current problems of the District of Columbia not only through the services the District government provides directly to the Federal Government but through services provided indirectly such as street and traffic flow maintenance, public safety, and services affecting tourism. (b) Purpose.--The purposes of this Act are as follows: [[Page 109 STAT. 99]] (1) To eliminate budget deficits and cash shortages of the District of Columbia through visionary financial planning, sound budgeting, accurate revenue forecasts, and careful spending. (2) To ensure the most efficient and effective delivery of services, including public safety services, by the District government during a period of fiscal emergency. (3) To conduct necessary investigations and studies to determine the fiscal status and operational efficiency of the District government. (4) To assist the District government in-- (A) restructuring its organization and workforce to ensure that the residents of the District of Columbia are served by a local government that is efficient and effective; (B) achieving an appropriate relationship with the Federal Government; (C) ensuring the appropriate and efficient delivery of services; and (D) modernizing its budget, accounting, personnel, procurement, information technology, and management systems to ensure the maximum financial and performance accountability of the District government and its officers and employees. (5) To enhance the District government's access to the capital markets and to ensure the continued orderly payment of its debt service obligations. (6) To ensure the long-term financial, fiscal, and economic vitality and operational efficiency of the District of Columbia. (7) To examine the programmatic and structural relationship between the District government and the Federal Government. (8) To provide for the review of the financial impact of activities of the District government before such activities are implemented or submitted for Congressional review. (c) Rules of Construction.--Nothing in this Act may be construed-- (1) to relieve any obligations existing as of the date of the enactment of this Act of the District government to repay any individual or entity from whom the District has borrowed funds, whether through the issuance of bonds or otherwise; (2) to limit the authority of Congress to exercise ultimate legislative authority over the District of Columbia pursuant to Article I, section 8, clause 17 of the Constitution of the United States; (3) to amend, supersede, or alter the provisions of title 11 of the District of Columbia Code, or sections 431 through 434, 445, and 602(a)(4) of the District of Columbia Self-Government and Governmental Reorganization Act (pertaining to the organization, powers, and jurisdiction of the District of Columbia courts); or (4) to authorize the application of section 103(e) or 303(b)(3) of this Act (relating to issuance of subpoenas) to judicial officers or employees of the District of Columbia courts. [[Page 109 STAT. 100]] TITLE I--ESTABLISHMENT AND ORGANIZATION OF AUTHORITY SEC. 101. DISTRICT OF COLUMBIA FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE AUTHORITY. (a) Establishment.--Pursuant to Article I, section 8, clause 17 of the Constitution of the United States, there is hereby established the District of Columbia Financial Responsibility and Management Assistance Authority, consisting of members appointed by the President in accordance with subsection (b). Subject to the conditions described in section 108 and except as otherwise provided in this Act, the Authority is established as an entity within the government of the District of Columbia, and is not established as a department, agency, establishment, or instrumentality of the United States Government. (b) Membership.-- (1) In general.--The Authority shall consist of 5 members appointed by the President who meet the qualifications described in subsection (c), except that the Authority may take any action under this Act (or any amendments made by this Act) at any time after the President has appointed 3 of its members. (2) Consultation with congress.--The President shall appoint the members of the Authority after consulting with the Chair of the Committee on Appropriations and the Chair of the Committee on Government Reform and Oversight of the House of Representatives, the Chair of the Committee on Appropriations and the Chair of the Committee on Governmental Affairs of the Senate, and the Delegate to the House of Representatives from the District of Columbia. (3) Chair.--The President shall designate one of the members of the Authority as the Chair of the Authority. (4) Sense of congress regarding deadline for appointment.-- It is the sense of Congress that the President should appoint the members of the Authority as soon as practicable after the date of the enactment of this Act, but in no event later than 25 days after the date of the enactment of this Act. (5) Term of service.-- (A) In general.--Except as provided in subparagraph (B), each member of the Authority shall be appointed for a term of 3 years. (B) Appointment for term following initial term.--As designated by the President at the time of appointment for the term immediately following the initial term, of the members appointed for the term immediately following the initial term-- (i) 1 member shall be appointed for a term of 1 year; (ii) 2 members shall be appointed for a term of 2 years; and (iii) 2 members shall be appointed for a term of 3 years. (C) Removal.--The President may remove any member of the Authority only for cause. [[Page 109 STAT. 101]] (c) Qualifications for Membership.--An individual meets the qualifications for membership on the Authority if the individual-- (1) has knowledge and expertise in finance, management, and the organization or operation of business or government; (2) does not provide goods or services to the District government (and is not the spouse, parent, child, or sibling of an individual who provides goods and services to the District government); (3) is not an officer or employee of the District government; and (4) maintains a primary residence in the District of Columbia or has a primary place of business in the District of Columbia. (d) No Compensation for Service.--Members of the Authority shall serve without pay, but may receive reimbursement for any reasonable and necessary expenses incurred by reason of service on the Authority. (e) Adoption of By-Laws for Conducting Business of Authority.-- (1) In general.--As soon as practicable after the appointment of its members, the Authority shall adopt by-laws, rules, and procedures governing its activities under this Act, including procedures for hiring experts and consultants. Such <<NOTE: Records. Public information.>> by-laws, rules, and procedures shall be public documents, and shall be submitted by the Authority upon adoption to the Mayor, the Council, the President, and Congress. (2) Certain activities requiring approval of majority of members.--Under the by-laws adopted pursuant to paragraph (1), the Authority may conduct its operations under such procedures as it considers appropriate, except that an affirmative vote of a majority of the members of the Authority shall be required in order for the Authority to-- (A) approve or disapprove a financial plan and budget under subtitle A of title II; (B) implement recommendations on financial stability and management responsibility under section 207; (C) give consent to the appointment of the Chief Financial Officer of the District of Columbia under section 424 of the District of Columbia Self-Government and Governmental Reorganization Act (as added by section 302); and (D) give consent to the appointment of the Inspector General of the District of Columbia under section 208(a) of the District of Columbia Procurement Practices Act of 1985 (as amended by section 303(a)). (3) Adoption of rules and regulations of district of columbia.--The Authority may incorporate in its by-laws, rules, and procedures under this subsection such rules and regulations of the District government as it considers appropriate to enable it to carry out its activities under this Act with the greatest degree of independence practicable. SEC. 102. EXECUTIVE DIRECTOR AND STAFF OF AUTHORITY. (a) Executive Director.--The Authority shall have an Executive Director who shall be appointed by the Chair with the consent of the Authority. The Executive Director shall be paid at a rate determined by the Authority, except that such rate may not exceed the rate of basic pay payable for level IV of the Executive Schedule. [[Page 109 STAT. 102]] (b) Staff.--With the approval of the Chair, the Executive Director may appoint and fix the pay of additional personnel as the Executive Director considers appropriate, except that no individual appointed by the Executive Director may be paid at a rate greater than the rate of pay for the Executive Director. (c) Inapplicability of Certain Employment and Procurement Laws.-- (1) Civil service laws.-- The Executive Director and staff of the Authority may be appointed without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of that title relating to classification and General Schedule pay rates. (2) District employment and procurement laws.--The Executive Director and staff of the Authority may be appointed and paid without regard to the provisions of the District of Columbia Code governing appointments and salaries. The provisions of the District of Columbia Code governing procurement shall not apply to the Authority. (d) Staff of Federal Agencies.--Upon request of the Chair, the head of any Federal department or agency may detail, on a reimbursable or non-reimbursable basis, any of the personnel of that department or agency to the Authority to assist it in carrying out its duties under this Act. (e) Preservation of Retirement and Certain Other Rights of Federal Employees Who Become Employed by the Authority.-- (1) In general.--A Federal employee who, within 2 months after separating from the Federal Government, becomes employed by the Authority-- (A) may elect, for purposes of the retirement system in which that individual last participated before so separating, to have such individual's period of service with the Authority treated in the same way as if performed in the position within the Federal Government from which separated, subject to the requisite employee deductions and agency contributions being currently deposited in the appropriate fund; and (B) if, after serving with the Authority, such employee becomes reemployed by the Federal Government, shall be entitled to credit, for the full period of such individual's service with the Authority, for purposes of determining the applicable leave accrual rate. (2) Retirement.-- (A) Contributions.--For purposes of subparagraph (A) of paragraph (1)-- (i) the employee deductions referred to in such paragraph shall be made from basic pay for service with the Authority, and shall be computed using the same percentage as would then apply if the individual were instead serving in the position within the Federal Government from which separated; and (ii) the agency contributions referred to in such paragraph shall be made by the Authority. (B) Double Coverage Not Permitted.--An individual who makes an election under paragraph (1)(A) shall [[Page 109 STAT. 103]] be ineligible, while such election remains in effect, to participate in any retirement system for employees of the government of the District of Columbia. (3) Regulations.--The Office of Personnel Management shall prescribe such regulations as may be necessary to carry out this subsection. Regulations to carry out paragraph (1)(A) shall be prescribed in consultation with the office or agency of the government of the District of Columbia having jurisdiction over any retirement system referred to in paragraph (2)(B). SEC. 103. POWERS OF AUTHORITY. (a) Hearings and Sessions.--The Authority may, for the purpose of carrying out this Act, hold hearings, sit and act at times and places, take testimony, and receive evidence as the Authority considers appropriate. The Authority may administer oaths or affirmations to witnesses appearing before it. (b) Powers of Members and Agents.--Any member or agent of the Authority may, if authorized by the Authority, take any action which the Authority is authorized to take by this section. (c) Obtaining Official Data.-- (1) From federal government.--Notwithstanding sections 552 (commonly known as the Freedom of Information Act) and 552b (the Government in the Sunshine Act) of title 5, United States Code, the Authority may secure directly from any department or agency of the United States information necessary to enable it to carry out this Act, with the approval of the head of that department or agency. (2) From district government.--Notwithstanding any other provision of law, the Authority shall have the right to secure copies of such records, documents, information, or data from any entity of the District government necessary to enable the Authority to carry out its responsibilities under this Act. At the request of the Authority, the Authority shall be granted direct access to such information systems, records, documents or information or data as will enable the Authority to carry out its responsibilities under this Act. The head of the entity of the District government responsible shall provide the Authority with such information and assistance (including granting the Authority direct access to automated or other information systems) as the Authority requires under this paragraph. (d) Gifts, Bequests, and Devises.--The Authority may accept, use, and dispose of gifts, bequests, or devises of services or property, both real and personal, for the purpose of aiding or facilitating the work of the Authority. Gifts, bequests, or devises of money and proceeds from sales of other property received as gifts, bequests, or devises shall be deposited in such account as the Authority may establish and shall be available for disbursement upon order of the Chair. (e) Subpoena Power.-- (1) In general.--The Authority may issue subpoenas requiring the attendance and testimony of witnesses and the production of any evidence relating to any matter under investigation by the Authority. The attendance of witnesses and the production of evidence may be required from any place within the United States at any designated place of hearing within the United States. [[Page 109 STAT. 104]] (2) Failure to obey a subpoena.--If a person refuses to obey a subpoena issued under paragraph (1), the Authority may apply to a United States district court for an order requiring that person to appear before the Authority to give testimony, produce evidence, or both, relating to the matter under investigation. The application may be made within the judicial district where the hearing is conducted or where that person is found, resides, or transacts business. Any failure to obey the order of the court may be punished by the court as civil contempt. (3) Service of subpoenas.--The subpoenas of the Authority shall be served in the manner provided for subpoenas issued by United States district court under the Federal Rules of Civil Procedure for the United States district courts. (4) Service of process.--All process of any court to which application is made under paragraph (2) may be served in the judicial district in which the person required to be served resides or may be found. (f) Administrative Support Services.--Upon the request of the Authority, the Administrator of General Services may provide to the Authority, on a reimbursable basis, the administrative support services necessary for the Authority to carry out its responsibilities under this Act. (g) Authority To Enter Into Contracts.--The Executive Director may enter into such contracts as the Executive Director considers appropriate (subject to the approval of the Chair) to carry out the Authority's responsibilities under this Act. (h) Civil Actions To Enforce Powers.--The Authority may seek judicial enforcement of its authority to carry out its responsibilities under this Act. (i) Penalties.-- (1) Acts prohibited.--Any officer or employee of the District government who-- (A) takes any action in violation of any valid order of the Authority or fails or refuses to take any action required by any such order; or (B) prepares, presents, or certifies any information (including any projections or estimates) or report for the Board or any of its agents that is false or misleading, or, upon learning that any such information is false or misleading, fails to immediately advise the Board or its agents thereof in writing, shall be guilty of a misdemeanor. (2) Administrative discipline.--In addition to any other applicable penalty, any officer or employee of the District government who knowingly and willfully violates paragraph (1) shall be subject to appropriate administrative discipline, including (when appropriate) suspension from duty without pay or removal from office by order of either the Mayor or Authority. (3) Report by mayor on disciplinary actions taken.--In the case of a violation of paragraph (1) by an officer or employee of the District government, the Mayor shall immediately report to the Board all pertinent facts together with a statement of the action taken thereon. [[Page 109 STAT. 105]] SEC. 104. EXEMPTION FROM LIABILITY FOR CLAIMS. The Authority and its members may not be liable for any obligation of or claim against the District of Columbia resulting from actions taken to carry out this Act. SEC. 105. TREATMENT OF ACTIONS ARISING FROM ACT. (a) Jurisdiction Established in District Court for District of Columbia.--Except as provided in section 103(e)(2) (relating to the issuance of an order enforcing a subpoena), any action against the Authority or any action otherwise arising out of this Act, in whole or in part, shall be brought in the United States District Court for the District of Columbia. (b) Prompt Appeal.-- (1) Court of appeals.--Notwithstanding any other provision of law, any order of the United States District Court for the District of Columbia which is issued pursuant to an action brought under subsection (a) shall be reviewable only pursuant to a notice of appeal to the United States Court of Appeals for the District of Columbia Circuit. (2) Supreme court.--Notwithstanding any other provision of law, review by the Supreme Court of the United States of a decision of the Court of Appeals which is issued pursuant to paragraph (1) may be had only if the petition for such review is filed within 10 days after the entry of such decision. (c) Timing of Relief.--No order of any court granting declaratory or injunctive relief against the Authority, including relief permitting or requiring the obligation, borrowing, or expenditure of funds, shall take effect during the pendency of the action before such court, during the time appeal may be taken, or (if appeal is taken) during the period before the court has entered its final order disposing of such action. (d) Expedited Consideration.--It shall be the duty of the United States District Court for the District of Columbia, the United States Court of Appeals for the District of Columbia Circuit, and the Supreme Court of the United States to advance on the docket and to expedite to the greatest possible extent the disposition of any matter brought under subsection (a). SEC. 106. FUNDING FOR OPERATION OF AUTHORITY. (a) Annual Budgeting Process.-- (1) Submission of budget.--The Authority shall submit a proposed budget for each fiscal year to the President for inclusion in the annual budget for the District of Columbia under part D of title IV of the District of Columbia Self- Government and Governmental Reorganization Act not later than the May 1 prior to the first day of the fiscal year. In the case of the budget for fiscal year 1996, the Authority shall submit its proposed budget not later than July 15, 1995. (2) Contents of budget.--The budget shall describe-- (A) expenditures of the Authority by each object class, including expenditures for staff of the Authority; (B) services of personnel and other services provided by or on behalf of the Authority for which the Authority made no reimbursement; and (C) any gifts or bequests made to the authority during the previous fiscal year. [[Page 109 STAT. 106]] (3) Appropriations required.--No amount may be obligated or expended by the Authority for a fiscal year (beginning with fiscal year 1996) unless such amount has been approved by Act of Congress, and then only according to such Act. (4) Conforming amendment.--Section 453(c) of the District of Columbia Self-Government and Governmental Reorganization Act <<NOTE: 105 Stat. 539.>> (sec. 47-304.1(c), D.C. Code) is amended by striking the period at the end and inserting the following: ``, or to the District of Columbia Financial Responsibility and Management Assistance Authority established under section 101(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995.''. (b) Special Rule for Funding of Operations During Fiscal Year 1995.--As soon as practicable after the appointment of its members, the Authority shall submit to the Mayor and the President-- (1) a request for reprogramming of funds under subsection (c)(1); and (2) a description of anticipated expenditures of the Authority for fiscal year 1995 (which shall be transmitted to Congress). (c) Sources of Funds.-- (1) Use of previously appropriated funds in district budget.--The Mayor shall transfer funds previously appropriated to the District government for a fiscal year for auditing and consulting services to the Authority (in such amounts as are provided in the budget request of the Authority under subsection (a) or, with respect to fiscal year 1995, the request submitted under subsection (b)(1)) for the purpose of carrying out the Authority's activities during the fiscal year. (2) Other sources of funds.--For provisions describing the sources of funds available for the operations of the Authority during a fiscal year (in addition to any interest earned on accounts of the Authority during the year), see section 204(b)(1)(A) (relating to the set-aside of amounts requisitioned from the Treasury by the Mayor) and section 213(b)(3) (relating to the use of interest accrued from amounts in a debt service reserve fund of the Authority). SEC. 107. SUSPENSION OF ACTIVITIES. (a) Suspension Upon Payment of Authority Obligations.-- (1) In general.--Upon the expiration of the 12-month period which begins on the date that the Authority certifies that all obligations arising from the issuance by the Authority of bonds, notes, or other obligations pursuant to subtitle B of title II have been discharged, and that all borrowings by or on behalf of the District of Columbia pursuant to title VI of the District of Columbia Revenue Act of 1939 (sec. 47-3401, D.C. Code) have been repaid, the Authority shall suspend any activities carried out under this Act and the terms of the members of the Authority shall expire. (2) No suspension during control year.--The Authority may not suspend its activities pursuant to paragraph (1) at any time during a control year. (b) Reactivation Upon Initiation of Control Period.--Upon receiving notice from the Chairs of the Appropriations Committees of the House of Representatives and the Senate that a control period has been initiated (as described in section 209) at any time [[Page 109 STAT. 107]] after the Authority suspends its activities under subsection (a), the President shall appoint members of the Authority, and the Authority shall carry out activities under this Act, in the same manner as the President appointed members and the Authority carried out activities prior to such suspension. SEC. 108. APPLICATION OF LAWS OF DISTRICT OF COLUMBIA TO AUTHORITY. (a) In General.--The following laws of the District of Columbia (as in effect on the date of the enactment of this Act) shall apply to the members and activities of the Authority: (1) Section 742 of the District of Columbia Self-Government and Governmental Reorganization Act (sec. 1-1504, D.C. Code). (2) Sections 201 through 206 of the District of Columbia Freedom of Information Act (secs. 1-1521 through 1-1526, D.C. Code). (3) Section 601 of the District of Columbia Campaign Finance Reform and Conflict of Interest Act (sec. 1-1461, D.C. Code). (b) No Control, Supervision, Oversight, or Review by Mayor or Council.-- (1) In general.--Neither the Mayor nor the Council may exercise any control, supervision, oversight, or review over the Authority or its activities. (2) Prohibition against legislation affecting authority.-- Section 602(a) of the District of Columbia Self-Government and Governmental Reorganization Act <<NOTE: 87 Stat. 813.>> (sec. 1-233(a), D.C. Code) is amended-- (A) by striking ``or'' at the end of paragraph (8); (B) by striking the period at the end of paragraph (9) and inserting ``; or''; and (C) by adding at the end the following new paragraph: ``(10) enact any act, resolution, or rule with respect to the District of Columbia Financial Responsibility and Management Assistance Authority established under section 101(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995.''. (c) Authority Not Subject to Representation by Corporation Counsel.--In any action brought by or on behalf of the Authority, and in any action brought against the Authority, the Authority shall be represented by such counsel as it may select, but in no instance may the Authority be represented by the Corporation Counsel of the District of Columbia. [[Page 109 STAT. 108]] TITLE II--RESPONSIBILITIES OF AUTHORITY Subtitle A--Establishment and Enforcement of Financial Plan and Budget for District Government SEC. 201. DEVELOPMENT OF FINANCIAL PLAN AND BUDGET FOR DISTRICT OF COLUMBIA. (a) Development of Financial Plan and Budget.--For each fiscal year for which the District government is in a control period, the Mayor shall develop and submit to the Authority a financial plan and budget for the District of Columbia in accordance with this section. (b) Contents of Financial Plan and Budget.--A financial plan and budget for the District of Columbia for a fiscal year shall specify the budgets for the District government under part D of title IV of the District of Columbia Self-Government and Governmental Reorganization Act for the applicable fiscal year and the next 3 fiscal years (including the projected revenues and expenditures of each fund of the District government for such years), in accordance with the following requirements: (1) The financial plan and budget shall meet the standards described in subsection (c) to promote the financial stability of the District government. (2) The financial plan and budget shall provide for estimates of revenues and expenditures on a modified accrual basis. (3) The financial plan and budget shall-- (A) describe lump sum expenditures by department by object class; (B) describe capital expenditures (together with a schedule of projected capital commitments of the District government and proposed sources of funding); (C) contain estimates of short-term and long-term debt (both outstanding and anticipated to be issued); and (D) contain cash flow forecasts for each fund of the District government at such intervals as the Authority may require. (4) The financial plan and budget shall include a statement describing methods of estimations and significant assumptions. (5) The financial plan and budget shall include any other provisions and shall meet such other criteria as the Authority considers appropriate to meet the purposes of this Act, including provisions for changes in personnel policies and levels for each department or agency of the District government, changes in the structure and organization of the District government, and management initiatives to promote productivity, improvement in the delivery of services, or cost savings. (c) Standards To Promote Financial Stability Described.-- (1) In general.--The standards to promote the financial stability of the District government applicable to the financial plan and budget for a fiscal year are as follows: [[Page 109 STAT. 109]] (A) In the case of the financial plan and budget for fiscal year 1996, the expenditures of the District government for each fiscal year (beginning with fiscal year 1999) may not exceed the revenues of the District government for each such fiscal year. (B) During fiscal years 1996, 1997, and 1998, the District government shall make continuous, substantial progress towards equalizing the expenditures and revenues of the District government for such fiscal years (in equal annual installments to the greatest extent possible). (C) The District government shall provide for the orderly liquidation of the cumulative fund balance deficit of the District government, as evidenced by financial statements prepared in accordance with generally accepted accounting principles. (D) If funds in accounts of the District government which are dedicated for specific purposes have been withdrawn from such accounts for other purposes, the District government shall fully restore the funds to such accounts. (E) The financial plan and budget shall assure the continuing long-term financial stability of the District government, as indicated by factors including access to short-term and long-term capital markets, the efficient management of the District government's workforce, and the effective provision of services by the District government. (2) Application of sound budgetary practices.--In meeting the standards described in paragraph (1) with respect to a financial plan and budget for a fiscal year, the District government shall apply sound budgetary practices, including reducing costs and other expenditures, improving productivity, increasing revenues, or combinations of such practices. (3) Assumptions based on current law.--In meeting the standards described in paragraph (1) with respect to a financial plan and budget for a fiscal year, the District government shall base estimates of revenues and expenditures on Federal law as in effect at the time of the preparation of the financial plan and budget. (d) Repeal of Offsets Against Federal Payment and Other District Revenues.--Section 138 of the District of Columbia Appropriations Act, 1995, <<NOTE: 108 Stat. 2590.>> is amended-- (1) by striking subsection (c); and (2) by redesignating subsections (d) and (e) as subsections (c) and (d). SEC. 202. PROCESS FOR SUBMISSION AND APPROVAL OF FINANCIAL PLAN AND ANNUAL DISTRICT BUDGET. (a) Submission of Preliminary Financial Plan and Budget by Mayor.-- Not later than the February 1 preceding a fiscal year for which the District government is in a control period, the Mayor shall submit to the Authority and the Council a financial plan and budget for the fiscal year which meets the requirements of section 201. (b) Review by Authority.--Upon receipt of the financial plan and budget for a fiscal year from the Mayor under subsection (a), the Authority shall promptly review the financial plan and budget. In conducting the review, the Authority may request any [[Page 109 STAT. 110]] additional information it considers necessary and appropriate to carry out its duties under this subtitle. (c) Action Upon Approval of Mayor's Preliminary Financial Plan and Budget.-- (1) Certification to mayor.-- (A) In general.--If the Authority determines that the financial plan and budget for the fiscal year submitted by the Mayor under subsection (a) meets the requirements applicable under section 201-- (i) the Authority shall approve the financial plan and budget and shall provide the Mayor, the Council, the President, and Congress with a notice certifying its approval; and (ii) the Mayor shall promptly submit the financial plan and budget to the Council pursuant to section 442 of the District of Columbia Self- Government and Governmental Reorganization Act. (B) Deemed approval after 30 days.-- (i) In general.--If the Authority has not provided the Mayor, the Council, and Congress with a notice certifying approval under subparagraph (A)(i) or a statement of disapproval under subsection (d)(1) upon the expiration of the 30- day period which begins on the date the Authority receives the financial plan and budget from the Mayor under subsection (a), the Authority shall be deemed to have approved the financial plan and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (A)(i). (ii) Explanation of failure to respond.--If clause (i) applies with respect to a financial plan and budget, the Authority shall provide the Mayor, the Council, the President and Congress with an explanation for its failure to provide the notice certifying approval or the statement of disapproval during the 30-day period described in such clause. (2) Adoption of financial plan and budget by council after receipt of approved financial plan and budget.--Notwithstanding the first sentence of section 446 of the District of Columbia Self-Government and Governmental Reorganization Act, not later than 30 days after receiving the financial plan and budget for the fiscal year from the Mayor under paragraph (1)(A)(ii), the Council shall by Act adopt a financial plan and budget for the fiscal year which shall serve as the adoption of the budgets of the District government for the fiscal year under such section, and shall submit such financial plan and budget to the Mayor and the Authority. (3) Review of council financial plan and budget by authority.--Upon receipt of the financial plan and budget for a fiscal year from the Council under paragraph (2) (taking into account any items or provisions disapproved by the Mayor or disapproved by the Mayor and reenacted by the Council under section 404(f) of the District of Columbia Self-Government and Governmental Reorganization Act, as amended by subsection (f)(2)), the Authority shall promptly review the financial plan and budget. In conducting the review, the Authority [[Page 109 STAT. 111]] may request any additional information it considers necessary and appropriate to carry out its duties under this subtitle. (4) Results of authority review of council's initial financial plan and budget.-- (A) Approval of council's initial financial plan and budget.--If the Authority determines that the financial plan and budget for the fiscal year submitted by the Council under paragraph (2) meets the requirements applicable under section 201-- (i) the Authority shall approve the financial plan and budget and shall provide the Mayor, the Council, the President, and Congress with a notice certifying its approval; and (ii) the Council shall promptly submit the financial plan and budget to the Mayor for transmission to the President and Congress under section 446 of the District of Columbia Self- Government and Governmental Reorganization Act. (B) Disapproval of council's initial budget.--If the Authority determines that the financial plan and budget for the fiscal year submitted by the Council under paragraph (2) does not meet the requirements applicable under section 201, the Authority shall disapprove the financial plan and budget, and shall provide the Mayor, the Council, the President, and Congress with a statement containing-- (i) the reasons for such disapproval; (ii) the amount of any shortfall in the budget or financial plan; and (iii) any recommendations for revisions to the budget the Authority considers appropriate to ensure that the budget is consistent with the financial plan and budget. (C) Deemed approval after 15 days.-- (i) In general.--If the Authority has not provided the Mayor, the Council, the President, and Congress with a notice certifying approval under subparagraph (A)(i) or a statement of disapproval under subparagraph (B) upon the expiration of the 15-day period which begins on the date the Authority receives the financial plan and budget from the Council under paragraph (2), the Authority shall be deemed to have approved the financial plan and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (A)(i). (ii) Explanation of failure to respond.--If clause (i) applies with respect to a financial plan and budget, the Authority shall provide the Mayor, the Council, the President and Congress with an explanation for its failure to provide the notice certifying approval or the statement of disapproval during the 15-day period described in such clause. (5) Authority review of council's revised financial plan and budget.-- (A) Submission of council's revised financial plan and budget.--Not later than 15 days after receiving the statement from the Authority under paragraph (4)(B), the [[Page 109 STAT. 112]] Council shall promptly by Act adopt a revised financial plan and budget for the fiscal year which addresses the reasons for the Authority's disapproval cited in the statement, and shall submit such financial plan and budget to the Mayor and the Authority. (B) Approval of council's revised financial plan and budget.--If, after reviewing the revised financial plan and budget for a fiscal year submitted by the Council under subparagraph (A) in accordance with the procedures described in this subsection, the Authority determines that the revised financial plan and budget meets the requirements applicable under section 201-- (i) the Authority shall approve the financial plan and budget and shall provide the Mayor, the Council, the President, and Congress with a notice certifying its approval; and (ii) the Council shall promptly submit the financial plan and budget to the Mayor for transmission to the President and Congress under section 446 of the District of Columbia Self- Government and Governmental Reorganization Act. (C) Disapproval of council's revised financial plan and budget.-- (i) In general.--If, after reviewing the revised financial plan and budget for a fiscal year submitted by the Council under subparagraph (A) in accordance with the procedures described in this subsection, the Authority determines that the revised financial plan and budget does not meet the applicable requirements under section 201, the Authority shall-- (I) disapprove the financial plan and budget; (II) provide the Mayor, the Council, the President, and Congress with a statement containing the reasons for such disapproval and describing the amount of any shortfall in the financial plan and budget; and (III) approve and recommend a financial plan and budget for the District government which meets the applicable requirements under section 201, and submit such financial plan and budget to the Mayor, the Council, the President, and Congress. (ii) Transmission of rejected financial plan and budget.--The Council shall promptly submit the revised financial plan and budget disapproved by the Authority under this subparagraph to the Mayor for transmission to the President and Congress under section 446 of the District of Columbia Self-Government and Governmental Reorganization Act. (D) Deemed approval after 15 days.-- (i) In general.--If the Authority has not provided the Mayor, the Council, the President, and Congress with a notice certifying approval under subparagraph (B)(i) or a statement of disapproval under subparagraph (C) upon the expiration of the 15-day period which begins on the date the Authority receives the revised financial plan and budget submitted by the [[Page 109 STAT. 113]] Council under subparagraph (A), the Authority shall be deemed to have approved the revised financial plan and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (B)(i). (ii) Explanation of failure to respond.--If clause (i) applies with respect to a financial plan and budget, the Authority shall provide the Mayor, the Council, the President and Congress with an explanation for its failure to provide the notice certifying approval or the statement of disapproval during the 15-day period described in such clause. (6) Deadline for transmission of financial plan and budget by authority.--Notwithstanding any other provision of this section, not later than the June 15 preceding each fiscal year which is a control year, the Authority shall-- (A) provide Congress with a notice certifying its approval of the Council's initial financial plan and budget for the fiscal year under paragraph (4)(A); (B) provide Congress with a notice certifying its approval of the Council's revised financial plan and budget for the fiscal year under paragraph (5)(B); or (C) submit to Congress an approved and recommended financial plan and budget of the Authority for the District government for the fiscal year under paragraph (5)(C). (d) Action Upon Disapproval of Mayor's Preliminary Financial Plan and Budget.-- (1) Statement of disapproval.--If the Authority determines that the financial plan and budget for the fiscal year submitted by the Mayor under subsection (a) does not meet the requirements applicable under section 201, the Authority shall disapprove the financial plan and budget, and shall provide the Mayor and the Council with a statement containing-- (A) the reasons for such disapproval; (B) the amount of any shortfall in the financial plan and budget; and (C) any recommendations for revisions to the financial plan and budget the Authority considers appropriate to ensure that the financial plan and budget meets the requirements applicable under section 201. (2) Authority review of mayor's revised financial plan and budget.-- (A) Submission of mayor's revised financial plan and budget.--Not later than 15 days after receiving the statement from the Authority under paragraph (1), the Mayor shall promptly submit to the Authority and the Council a revised financial plan and budget for the fiscal year which addresses the reasons for the Authority's disapproval cited in the statement. (B) Approval of mayor's revised financial plan and budget.--If the Authority determines that the revised financial plan and budget for the fiscal year submitted by the Mayor under subparagraph (A) meets the requirements applicable under section 201-- (i) the Authority shall approve the financial plan and budget and shall provide the Mayor, the Council, [[Page 109 STAT. 114]] the President, and Congress with a notice certifying its approval; and (ii) the Mayor shall promptly submit the financial plan and budget to the Council pursuant to section 442 of the District of Columbia Self-Government and Governmental Reorganization Act. (C) Disapproval of mayor's revised financial plan and budget.-- (i) In general.--If the Authority determines that the revised financial plan and budget for the fiscal year submitted by the Mayor under subparagraph (A) does not meet the requirements applicable under section 201, the Authority shall-- (I) disapprove the financial plan and budget; (II) shall provide the Mayor, the Council, the President, and Congress with a statement containing the reasons for such disapproval; and (III) recommend a financial plan and budget for the District government which meets the requirements applicable under section 201 and submit such financial plan and budget to the Mayor and the Council. (ii) Submission of rejected financial plan and budget.--The Mayor shall promptly submit the revised financial plan and budget disapproved by the Authority under this subparagraph to the Council pursuant to section 442 of the District of Columbia Self-Government and Governmental Reorganization Act. (D) Deemed approval after 15 days.-- (i) In general.--If the Authority has not provided the Mayor, the Council, the President, and Congress with a notice certifying approval under subparagraph (B)(i) or a statement of disapproval under subparagraph (C) upon the expiration of the 15-day period which begins on the date the Authority receives the revised financial plan and budget submitted by the Mayor under subparagraph (A), the Authority shall be deemed to have approved the revised financial plan and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (B)(i). (ii) Explanation of failure to respond.--If clause (i) applies with respect to a financial plan and budget, the Authority shall provide the Mayor, the Council, the President and Congress with an explanation for its failure to provide the notice certifying approval or the statement of disapproval during the 15-day period described in such clause. (3) Action by council.-- (A) Adoption of financial plan and budget.-- Notwithstanding the first sentence of section 446 of the District of Columbia Self-Government and Governmental Reorganization Act, not later than 30 days after receiving the Mayor's approved revised financial plan and budget for the fiscal year under paragraph (2)(B) or (in the case of a financial plan and budget disapproved by the Authority) [[Page 109 STAT. 115]] the financial plan and budget recommended by the Authority under paragraph (2)(C)(i)(III), the Council shall by Act adopt a financial plan and budget for the fiscal year which shall serve as the adoption of the budgets of the District government for the fiscal year under such section, and shall submit the financial plan and budget to the Mayor and the Authority. (B) Review by authority.--The financial plan and budget submitted by the Council under subparagraph (A) shall be subject to review by the Authority and revision by the Council in the same manner as the financial plan and budget submitted by the Council after an approved preliminary financial plan and budget of the Mayor under paragraphs (3), (4), (5), and (6) of subsection (c). (e) Revisions to Financial Plan and Budget.-- (1) Permitting mayor to submit revisions.--The Mayor may submit proposed revisions to the financial plan and budget for a control year to the Authority at any time during the year. (2) Process for review, approval, disapproval, and council action.--Except as provided in paragraph (3), the procedures described in subsections (b), (c), and (d) shall apply with respect to a proposed revision to a financial plan and budget in the same manner as such procedures apply with respect to the original financial plan and budget, except that subparagraph (B) of subsection (c)(1) (relating to deemed approval by the Authority of a preliminary financial plan and budget of the Mayor) shall be applied as if the reference to the term ``30-day period'' were a reference to ``20-day period''. (3) Exception for revisions not affecting appropriations.-- To the extent that a proposed revision to a financial plan and budget adopted by the Council pursuant to this subsection does not increase the amount of spending with respect to any account of the District government, the revision shall become effective upon the Authority's approval of such revision (subject to review by Congress under section 602(c) of the District of Columbia Self-Government and Governmental Reorganization Act). (f) Conforming Amendment to Budget Process Requirements Under Home Rule Act.-- (1) Submission of unbalanced budgets.--Section 603 of the District of Columbia Self-Government and Governmental Reorganization Act <<NOTE: 87 Stat. 814.>> (sec. 47-313, D.C. Code) is amended-- (A) in subsection (c), by striking ``The Council'' the first place it appears and inserting ``Except as provided in subsection (f), the Council''; (B) in subsection (d), by striking ``The Mayor'' and inserting ``Except as provided in subsection (f), the Mayor''; and (C) by adding at the end the following new subsection: ``(f) In the case of a fiscal year which is a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995)-- ``(1) subsection (c) (other than the fourth sentence) and subsection (d) shall not apply; and ``(2) the Council may not approve, and the Mayor may not forward to the President, any budget which is not consistent [[Page 109 STAT. 116]] with the financial plan and budget established for the fiscal year under subtitle A of title II of such Act.''. (2) Expedited procedures for disapproval of items and provisions of council budget by mayor.--Section 404(f) of the District of Columbia Self-Government and Governmental Reorganization Act <<NOTE: 87 Stat. 788.>> (sec. 1-227(f), D.C. Code) is amended by adding at the end the following new sentence: ``In the case of any budget act for a fiscal year which is a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995), this subsection shall apply as if the reference in the second sentence to `ten-day period' were a reference to `five-day period' and the reference in the third sentence to `thirty calendar days' were a reference to `5 calendar days'.''. (g) Permitting Mayor and Council To Specify Expenditures Under School Board Budget During Control Year.-- (1) Mayor's estimate included in annual financial plan and budget.--Section 2(h) of the Act entitled ``An Act to fix and regulate the salaries of teachers, school officers, and other employees of the board of education of the District of Columbia'', approved June 20, 1906 (sec. 31-103, D.C. Code) is amended by striking the period at the end and inserting the following: ``, except that in the case of a year which is a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995), the Mayor shall transmit the same together with the Mayor's own request for the amount of money required for the public schools for the year.''. (2) Specification of expenditures.--Section 452 of the District of Columbia Self-Government and Governmental Reorganization Act <<NOTE: 87 Stat. 803.>> (sec. 31-104, D.C. Code) is amended by adding at the end the following new sentence: ``This section shall not apply with respect to the annual budget for any fiscal year which is a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995).''. (h) Permitting Separation of Employees in Accordance With Financial Plan and Budget.--The fourth sentence of section 422(3) of the District of Columbia Self-Government and Governmental Reorganization Act <<NOTE: 105 Stat. 540.>> (sec. 1-242(3), D.C. Code) is amended by striking ``pursuant to procedures'' and all that follows through ``Act of 1991'' and inserting the following: ``in the implementation of a financial plan and budget for the District government approved under subtitle A of title II of the District of Columbia Financial Responsibility and Management Assistance Act of 1995''. SEC. 203. REVIEW OF ACTIVITIES OF DISTRICT GOVERNMENT TO ENSURE COMPLIANCE WITH APPROVED FINANCIAL PLAN AND BUDGET. (a) Review of Council Acts.-- (1) Submission of acts to authority.--The Council shall submit to the Authority each Act passed by the Council and signed by the Mayor during a control year or vetoed by the Mayor and repassed by two-thirds of the Council present and voting during a control year, and each Act passed by the Council and allowed to become effective without the Mayor's signature during a control year, together with the estimate of costs accom [[Page 109 STAT. 117]] panying such Act required under section 602(c)(3) of the District of Columbia Self-Government and Governmental Reorganization Act (as added by section 301(d)). (2) Prompt review by authority.--Upon receipt of an Act from the Council under paragraph (1), the Authority shall promptly review the Act to determine whether it is consistent with the applicable financial plan and budget approved under this subtitle and with the estimate of costs accompanying the Act (described in paragraph (1)). (3) Actions by authority.-- (A) Approval.--Except as provided in subparagraph (C), if the Authority determines that an Act is consistent with the applicable financial plan and budget, the Authority shall notify the Council that it approves the Act, and the Council shall submit the Act to Congress for review in accordance with section 602(c) of the District of Columbia Self-Government and Governmental Reorganization Act. (B) Finding of inconsistency.--Except as provided in subparagraph (C), if the Authority determines that an Act is significantly inconsistent with the applicable financial plan and budget, the Authority shall-- (i) notify the Council of its finding; (ii) provide the Council with an explanation of the reasons for its finding; and (iii) to the extent the Authority considers appropriate, provide the Council with recommendations for modifications to the Act. (C) Exception for emergency acts.--Subparagraphs (A) and (B) shall not apply with respect to any act which the Council determines according to section 412(a) of the District of Columbia Self-Government and Governmental Reorganization Act should take effect immediately because of emergency circumstances. (4) Effect of finding.--If the Authority makes a finding with respect to an Act under paragraph (3)(B), the Council may not submit the Act to Congress for review in accordance with section 602(c) of the District of Columbia Self-Government and Governmental Reorganization Act. (5) Deemed approval.--If the Authority does not notify the Council that it approves or disapproves an Act submitted under this subsection during the 7-day period which begins on the date the Council submits the Act to the Authority, the Authority shall be deemed to have approved the Act in accordance with paragraph (3)(A). At the option of the Authority, the previous sentence shall be applied as if the reference to ``7-day period'' were a reference to ``14-day period'' if during such 7- day period the Authority so notifies the Council and the Mayor. (6) Preliminary review of proposed acts.--At the request of the Council, the Authority may conduct a preliminary review of proposed legislation before the Council to determine whether the legislation as proposed would be consistent with the applicable financial plan and budget approved under this subtitle, except that any such preliminary review shall not be binding on the Authority in reviewing any Act subsequently submitted under this subsection. [[Page 109 STAT. 118]] (b) Effect of Approved Financial Plan and Budget on Contracts and Leases.-- (1) Mandatory prior approval for certain contracts and leases.-- (A) In general.--In the case of a contract or lease described in subparagraph (B) which is proposed to be entered into by the District government during a control year, the Mayor (or the appropriate officer or agent of the District government) shall submit the proposed contract or lease to the Authority. The Authority shall review each contract or lease submitted under this subparagraph, and the Mayor (or the appropriate officer or agent of the District government) may not enter into the contract or lease unless the Authority determines that the proposed contract or lease is consistent with the financial plan and budget for the fiscal year. (B) Contracts and leases described.--A contract or lease described in this subparagraph is-- (i) a labor contract entered into through collective bargaining; or (ii) such other type of contract or lease as the Authority may specify for purposes of this subparagraph. (2) Authority to review other contracts and leases after execution.-- (A) In general.--In addition to the prior approval of certain contracts and leases under paragraph (1), the Authority may require the Mayor (or the appropriate officer or agent of the District government) to submit to the Authority any other contract (including a contract to carry out a grant) or lease entered into by the District government during a control year which is executed after the Authority has approved the financial plan and budget for the year under section 202(c) or 202(d), or any proposal of the District government to renew, extend, or modify a contract or lease during a control year which is made after the Authority has approved such financial plan and budget. (B) Review by authority.--The Authority shall review each contract or lease submitted under subparagraph (A) to determine if the contract or lease is consistent with the financial plan and budget for the fiscal year. If the Authority determines that the contract or lease is not consistent with the financial plan and budget, the Mayor shall take such actions as are within the Mayor's powers to revise the contract or lease, or shall submit a proposed revision to the financial plan and budget in accordance with section 202(e), so that the contract or lease will be consistent with the financial plan and budget. (3) Special rule for fiscal year 1995.--The Authority may require the Mayor to submit to the Authority any proposal to renew, extend, or modify a contract or lease in effect during fiscal year 1995 to determine if the renewal, extension, or modification is consistent with the budget for the District of Columbia under the District of Columbia Appropriations Act, 1995. [[Page 109 STAT. 119]] (4) Special rule for contracts subject to council approval.--In the case of a contract or lease which is required to be submitted to the Authority under this subsection and which is subject to approval by the Council under the laws of the District of Columbia, the Mayor shall submit such contract or lease to the Authority only after the Council has approved the contract or lease. (c) Restrictions on Reprogramming of Amounts in Budget During Control Years.-- (1) Submissions of requests to authority.--If the Mayor submits a request to the Council for the reprogramming of any amounts provided in a budget for a fiscal year which is a control year after the budget is adopted by the Council, the Mayor shall submit such request to the Authority, which shall analyze the effect of the proposed reprogramming on the financial plan and budget for the fiscal year and submit its analysis to the Council not later than 15 days after receiving the request. (2) No action permitted until analysis received.--The Council may not adopt a reprogramming during a fiscal year which is a control year, and no officer or employee of the District government may carry out any reprogramming during such a year, until the Authority has provided the Council with an analysis of a request for the reprogramming in accordance with paragraph (1). SEC. 204. RESTRICTIONS ON BORROWING BY DISTRICT DURING CONTROL YEAR. (a) Prior Approval Required.-- (1) In general.--The District government may not borrow money during a control year unless the Authority provides prior certification that both the receipt of funds through such borrowing and the repayment of obligations incurred through such borrowing are consistent with the financial plan and budget for the year. (2) Revisions to financial plan and budget permitted.--If the Authority determines that the borrowing proposed to be undertaken by the District government is not consistent with the financial plan and budget, the Mayor may submit to the Authority a proposed revision to the financial plan and budget in accordance with section 202(e) so that the borrowing will be consistent with the financial plan and budget as so revised. (3) Borrowing described.--This subsection shall apply with respect to any borrowing undertaken by the District government, including borrowing through the issuance of bonds under part E of title IV of the District of Columbia Self-Government and Governmental Reorganization Act, the exercise of authority to obtain funds from the United States Treasury under title VI of the District of Columbia Revenue Act of 1939 (sec. 47-3401, D.C. Code), or any other means. (4) Special rules for treasury borrowing during fiscal year 1995.-- (A) No prior approval required during initial period following appointment.--The District government may requisition advances from the United States Treasury under title VI of the District of Columbia Revenue [[Page 109 STAT. 120]] Act of 1939 (sec. 47-3401, D.C. Code) without the prior approval of the Authority during the 45-day period which begins on the date of the appointment of the members of the Authority (subject to the restrictions described in such title, as amended by subsection (c)). (B) Criteria for approval during remainder of fiscal year.--The District government may requisition advances described in subparagraph (A) during the portion of fiscal year 1995 occurring after the expiration of the 45-day period described in such subparagraph if the Authority finds that-- (i) such borrowing is appropriate to meet the needs of the District government to reduce deficits and discharge payment obligations; and (ii) the District government is making appropriate progress toward meeting its responsibilities under this Act (and the amendments made by this Act). (b) Deposit of Funds Obtained Through Treasury With Authority.-- (1) Automatic deposit during control year.--If the Mayor requisitions funds from the Secretary of the Treasury pursuant to title VI of the District of Columbia Revenue Act of 1939 (sec. 47-3401, D.C. Code) during a control year (beginning with fiscal year 1996), such funds shall be deposited by the Secretary into an escrow account held by the Authority, to be used as follows: (A) The Authority shall expend a portion of the funds for its operations during the fiscal year in which the funds are requisitioned, in such amount and under such conditions as are established under the budget of the Authority for the fiscal year under section 106(a). (B) The Authority shall allocate the remainder of such funds to the Mayor at such intervals and in accordance with such terms and conditions as it considers appropriate, consistent with the financial plan and budget for the year and with any other withholding of funds by the Authority pursuant to this Act. (2) Optional deposit during fiscal year 1995.-- (A) During initial period following appointment.--If the Mayor requisitions funds described in paragraph (1) during the 45-day period which begins on the date of the appointment of the members of the Authority, the Secretary of the Treasury shall notify the Authority, and at the request of the Authority shall deposit such funds into an escrow account held by the Authority in accordance with paragraph (1). (B) During remainder of fiscal year.--If the Mayor requisitions funds described in paragraph (1) during the portion of fiscal year 1995 occurring after the expiration of the 45-day period described in subparagraph (A), the Secretary of the Treasury shall deposit such funds into an escrow account held by the Authority in accordance with paragraph (1) at the request of the Authority. (c) Conditions on Requisitions From Treasury.--Title VI of the District of Columbia Revenue Act of 1939 (sec. 47-3401, D.C. Code) is amended by striking all after the heading and inserting the following: [[Page 109 STAT. 121]] ``SEC. 601. TRANSITIONAL PROVISION FOR SHORT-TERM ADVANCES. ``(a) Transitional Short-Term Advances Made Before October 1, 1995.-- ``(1) In general.--If the conditions in paragraph (2) are satisfied, the Secretary shall make an advance of funds from time to time, out of any money in the Treasury not otherwise appropriated, for the purpose of assisting the District government in meeting its general expenditures, as authorized by Congress. ``(2) Conditions to making any transitional short-term advance before october 1, 1995.--The Secretary shall make an advance under this subsection if the following conditions are satisfied: ``(A) the Mayor delivers to the Secretary a requisition for an advance under this section; ``(B) as of the date on which the requisitioned advance is to be made, the Authority has not approved a financial plan and budget for the District government as meeting the requirements of the District of Columbia Financial Responsibility and Management Assistance Act of 1995; ``(C) the date on which the requisitioned advance is to be made is not later than September 30, 1995; ``(D) the District government has delivered to the Secretary-- ``(i) a schedule setting forth the anticipated timing and amounts of requisitions for advances under this subsection; and ``(ii) evidence demonstrating to the satisfaction of the Secretary that the District government is effectively unable to obtain credit in the public credit markets or elsewhere in sufficient amounts and on sufficiently reasonable terms to meet the District government's financing needs; ``(E) the Secretary determines that there is reasonable assurance of reimbursement for the advance from the amount authorized to be appropriated as the annual Federal payment to the District of Columbia under title V of the District of Columbia Self-Government and Governmental Reorganization Act for the fiscal year ending September 30, 1996; and ``(F) except during the 45-day period beginning on the date of the appointment of the members of the Authority, the Authority makes the findings described in section 204(a)(4)(B) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995. ``(3) Amount of any transitional short-term advance made before october 1, 1995.-- ``(A) In general.--Except as provided in subparagraph (C), if the conditions described in subparagraph (B) are satisfied, each advance made under this subsection shall be in the amount designated by the Mayor in the Mayor's requisition for such advance, except that-- ``(i) the total amount requisitioned under this subsection during the 30-day period which begins on the date of the first requisition made under this subsection may not exceed 33\1/3\ percent of the fiscal year 1995 limit; [[Page 109 STAT. 122]] ``(ii) the total amount requisitioned under this subsection during the 60-day period which begins on the date of the first requisition made under this subsection may not exceed 66\2/3\ percent of the fiscal year 1995 limit; and ``(iii) the total amount requisitioned under this subsection after the expiration of the 60-day period which begins on the date of the first requisition made under this subsection may not exceed 100 percent of the fiscal year 1995 limit. ``(B) Conditions applicable to designated amount.-- Subparagraph (A) applies if the Mayor determines that the amount designated in the Mayor's requisition for such advance is needed to accomplish the purpose described in paragraph (1), and (except during the 45- day period beginning on the date of the appointment of the members of the Authority) the Authority approves such amount. ``(C) Aggregate maximum amount outstanding.--The sum of the anticipated principal and interest requirements of all advances made under this subsection may not be greater than the fiscal year 1995 limit. ``(D) Fiscal year 1995 limit described.--In this paragraph, the `fiscal year 1995 limit' means the amount authorized to be appropriated to the District of Columbia as the annual Federal payment to the District of Columbia under title V of the District of Columbia Self-Government and Governmental Reorganization Act for the fiscal year ending September 30, 1995. ``(4) Maturity of any transitional short-term advance made before october 1, 1995.-- ``(A) In general.--Except as provided in subparagraph (B), each advance made under this subsection shall mature on the date designated by the Mayor in the Mayor's requisition for such advance. ``(B) Latest permissible maturity date.-- Notwithstanding subparagraph (A), the maturity date for any advance made under this subsection shall not be later than October 1, 1995. ``(5) Interest rate.--Each advance made under this subsection shall bear interest at an annual rate equal to the rate determined by the Secretary at the time that the Secretary makes such advance taking into consideration the prevailing yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the maturity of such advance, plus \1/8\ of 1 percent. ``(6) Deposit of advances.-- ``(A) In general.--Except as provided in subparagraph (B), each advance made under this subsection for the account of the District government shall be deposited by the Secretary into such account as is designated by the Mayor in the Mayor's requisition for such advance. ``(B) Exception.--Notwithstanding subparagraph (A), if (in accordance with section 204(b)(2) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995) the Authority delivers a letter requesting the Secretary to deposit all advances made under this [[Page 109 STAT. 123]] subsection for the account of the District government in an escrow account held by the Authority, each advance made under this subsection for the account of the District government after the date of such letter shall be deposited by the Secretary into the escrow account specified by the Authority in such letter. ``(b) Transitional Short-Term Advances Made On or After October 1, 1995 and Before February 1, 1996.-- ``(1) In general.--If the conditions in paragraph (2) are satisfied, the Secretary shall make an advance of funds from time to time, out of any money in the Treasury not otherwise appropriated, for the same purpose as advances are made under subsection (a). ``(2) Terms and conditions.-- ``(A) In general.--Except as provided in subparagraph (B), paragraphs (2), (4), and (5) of subsection (a) (other than subparagraph (F) of paragraph (2)) shall apply to any advance made under this subsection. ``(B) Exceptions.-- ``(i) New conditions precedent to making advances.--The conditions described in subsection (a)(2) shall apply with respect to making advances on or after October 1, 1995, in the same manner as such conditions apply with respect to making advances before October 1, 1995, except that-- ``(I) subparagraph (C) (relating to the last day on which advances may be made) shall be applied as if the reference to `September 30, 1995' were a reference to `January 31, 1996'; ``(II) subparagraph (E) (relating to the Secretary's determination of reasonable assurance of reimbursement from the annual Federal payment appropriated to the District of Columbia) shall be applied as if the reference to `September 30, 1996' were a reference to `September 30, 1997'; ``(III) the Secretary may not make an advance under this subsection unless all advances made under subsection (a) are fully reimbursed by withholding from the annual Federal payment appropriated to the District of Columbia for the fiscal year ending September 30, 1996, under title V of the District of Columbia Self-Government and Governmental Reorganization Act, and applying toward reimbursement for such advances an amount equal to the amount needed to fully reimburse the Treasury for such advances; and ``(IV) the Secretary may not make an advance under this subsection unless the Authority has provided the Secretary with the prior certification described in section 204(a)(1) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995. ``(ii) New latest permissible maturity date.-- The provisions of subsection (a)(4) shall apply with respect to the maturity of advances made after October 1, 1995, in the same manner as such provisions apply with respect to the maturity of advances made before [[Page 109 STAT. 124]] October 1, 1995, except that subparagraph (B) of such subsection (relating to the latest permissible maturity date) shall apply as if the reference to `October 1, 1995' were a reference to `October 1, 1996'. ``(C) New maximum amount outstanding.-- ``(i) In general.--Except as provided in clause (iii), if the conditions described in clause (ii) are satisfied, each advance made under this subsection shall be in the amount designated by the Mayor in the Mayor's requisition for such advance. ``(ii) Conditions applicable to designated amount.--Clause (i) applies if the Mayor determines that the amount designated in the Mayor's requisition for such advance is needed to accomplish the purpose described in paragraph (1), and the Authority approves such amount. ``(iii) Aggregate maximum amount outstanding.--The sum of the anticipated principal and interest requirements of all advances made under this paragraph may not be greater than 60 percent of the fiscal year 1996 limit. ``(D) Deposit of advances.--As provided in section 204(b) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, each advance made under this subsection for the account of the District shall be deposited by the Secretary into an escrow account held by the Authority. ``(E) Fiscal year 1996 limit described.--In this paragraph, the `fiscal year 1996 limit' means the amount authorized to be appropriated to the District of Columbia as the annual Federal payment to the District of Columbia under title V of the District of Columbia Self-Government and Governmental Reorganization Act for the fiscal year ending September 30, 1996. ``(c) Transitional Short-Term Advances Made On or After February 1, 1996, and Before October 1, 1996.-- ``(1) In general.--If the conditions in paragraph (2) are satisfied, the Secretary shall make an advance of funds from time to time, out of any money in the Treasury not otherwise appropriated, for the same purpose as advances are made under subsection (a). ``(2) Terms and conditions.-- ``(A) In general.--Except as provided in subparagraph (B), subsection (b)(2) shall apply to any advance made under this subsection. ``(B) Exceptions.--The conditions applicable under subsection (b)(2) (other than paragraph (2)(B) of subsection (a)) shall apply with respect to making advances on or after February 1, 1996, and before October 1, 1996, in the same manner as such conditions apply to making advances under such subsection, except that-- ``(i) in applying subparagraph (C) of subsection (a)(2) (as described in subsection (b)(2)(B)(i)(I)), the reference to `October 1, 1995' shall be deemed to be a reference to `September 30, 1996'; [[Page 109 STAT. 125]] ``(ii) subparagraph (C)(iii) of subsection (b)(2) shall apply as if the reference to `60 percent' were a reference to `40 percent'; and ``(iii) no advance may be made unless the Secretary has been provided the certifications and information described in paragraphs (3) through (6) of section 602(b). ``(d) Transitional Short-Term Advances Made On or After October 1, 1996, and Before October 1, 1997.-- ``(1) In general.--If the conditions in paragraph (2) are satisfied, the Secretary shall make an advance of funds from time to time, out of any money in the Treasury not otherwise appropriated, for the same purpose as advances are made under subsection (a). ``(2) Terms and conditions.-- ``(A) In general.--Except as provided in subparagraph (B), paragraphs (2), (4), and (5) of subsection (a) (other than subparagraphs (B) and (F) of paragraph (2)) shall apply to any advance made under this subsection. ``(B) Exceptions.-- ``(i) New conditions precedent to making advances.--The conditions described in subsection (a)(2) shall apply with respect to making advances on or after October 1, 1996, and before October 1, 1997, in the same manner as such conditions apply with respect to making advances before October 1, 1995, except that-- ``(I) subparagraph (C) (relating to the last day on which advances may be made) shall be applied as if the reference to `September 30, 1995' were a reference to `September 30, 1997'; ``(II) subparagraph (E) (relating to the Secretary's determination of reasonable assurance of reimbursement from the annual Federal payment appropriated to the District of Columbia) shall be applied as if the reference to `September 30, 1996' were a reference to `September 30, 1997'; ``(III) the Secretary may not make an advance under this subsection unless all advances made under subsections (b) and (c) are fully reimbursed by withholding from the annual Federal payment appropriated to the District of Columbia for the fiscal year ending September 30, 1997, under title V of the District of Columbia Self-Government and Governmental Reorganization Act, and applying toward reimbursement for such advances an amount equal to the amount needed to fully reimburse the Treasury for such advances; and ``(IV) the Secretary may not make an advance under this subsection unless the Secretary has been provided the certifications and information described in paragraphs (3) through (6) of section 602(b). ``(ii) New latest permissible maturity date.-- The provisions of subsection (a)(4) shall apply with respect to the maturity of advances made under this subsection, in the same manner as such provisions [[Page 109 STAT. 126]] apply with respect to the maturity of advances made before October 1, 1995, except that subparagraph (B) of such subsection (relating to the latest permissible maturity date) shall apply as if the reference to `September 30, 1995' were a reference to `September 30, 1997'. ``(C) New maximum amount outstanding.-- ``(i) In general.--Except as provided in clause (iii), if the conditions described in clause (ii) are satisfied, each advance made under this subsection shall be in the amount designated by the Mayor in the Mayor's requisition for such advance. ``(ii) Conditions applicable to designated amount.-- Clause (i) applies if the Mayor determines that the amount designated in the Mayor's requisition for such advance is needed to accomplish the purpose described in paragraph (1), and the Authority approves such amount. ``(iii) Aggregate maximum amount outstanding.--The sum of the anticipated principal and interest requirements of all advances made under this paragraph may not be greater than 100 percent of the fiscal year 1997 limit. ``(iv) Fiscal year 1997 limit described.--In this subparagraph, the `fiscal year 1997 limit' means the amount authorized to be appropriated to the District of Columbia as the annual Federal payment to the District of Columbia under title V of the District of Columbia Self-Government and Governmental Reorganization Act for the fiscal year ending September 30, 1997. ``(D) Deposit of advances.--As provided in section 204(b) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, each advance made under this subsection for the account of the District shall be deposited by the Secretary into an escrow account held by the Authority. ``SEC. 602. SHORT-TERM ADVANCES FOR SEASONAL CASH-FLOW MANAGEMENT. ``(a) In General.--If the conditions in subsection (b) are satisfied, the Secretary shall make an advance of funds from time to time, out of any money in the Treasury not otherwise appropriated, for the purpose of assisting the District government in meeting its general expenditures, as authorized by Congress, at times of seasonal cash-flow deficiencies. ``(b) Conditions to Making any Short-Term Advance.--The Secretary shall make an advance under this section if-- ``(1) the Mayor delivers to the Secretary a requisition for an advance under this section; ``(2) the date on which the requisitioned advance is to be made is in a control period; ``(3) the Authority certifies to the Secretary that-- ``(A) the District government has prepared and submitted a financial plan and budget for the District government; ``(B) there is an approved financial plan and budget in effect under the District of Columbia Financial Respon [[Page 109 STAT. 127]] sibility and Management Assistance Act of 1995 for the fiscal year for which the requisition is to be made; ``(C) at the time of the Mayor's requisition for an advance, the District government is in compliance with the financial plan and budget; ``(D) both the receipt of funds from such advance and the reimbursement of the Treasury for such advance are consistent with the financial plan and budget for the year; and ``(E) such advance will not adversely affect the financial stability of the District government; ``(4) the Authority certifies to the Secretary, at the time of the Mayor's requisition for an advance, that the District government is effectively unable to obtain credit in the public credit markets or elsewhere in sufficient amounts and on sufficiently reasonable terms to meet the District government's financing needs; ``(5) the Inspector General of the District of Columbia certifies to the Secretary the information described in paragraph (3) by providing the Secretary with a certification conducted by an outside auditor under a contract entered into pursuant to section 208(a)(4) of the District of Columbia Procurement Practices Act of 1985; ``(6) the Secretary receives such additional certifications and opinions relating to the financial position of the District government as the Secretary determines to be appropriate from such other Federal agencies and instrumentalities as the Secretary determines to be appropriate; and ``(7) the Secretary determines that there is reasonable assurance of reimbursement for the advance from the amount authorized to be appropriated as the annual Federal payment to the District of Columbia under title V of the District of Columbia Self-Government and Governmental Reorganization Act for the fiscal year following the fiscal year in which such advance is made. ``(c) Amount of any Short-Term Advance.-- ``(1) In general.--Except as provided in paragraph (3), if the conditions in paragraph (2) are satisfied, each advance made under this section shall be in the amount designated by the Mayor in the Mayor's requisition for such advance. ``(2) Conditions applicable to designated amount.--Paragraph (1) applies if-- ``(A) the Mayor determines that the amount designated in the Mayor's requisition for such advance is needed to accomplish the purpose described in subsection (a); and ``(B) the Authority-- ``(i) concurs in the Mayor's determination under subparagraph (A); and ``(ii) determines that the reimbursement obligation of the District government for an advance made under this section in the amount designated in the Mayor's requisition is consistent with the financial plan for the year. ``(3) Maximum amount outstanding.-- ``(A) In general.--Notwithstanding paragraph (1), the unpaid principal balance of all advances made under this section in any fiscal year of the District government shall [[Page 109 STAT. 128]] not at any time be greater than 100 percent of applicable limit. ``(B) Special rule for fiscal year 1997.--The unpaid principal balance of all advances made under this section in fiscal year 1997 of the District government shall not at any time be greater than the difference between-- ``(i) 150 percent of the applicable limit for such fiscal year; and ``(ii) the unpaid principal balance of any advances made under section 601(d). ``(C) Applicable limit defined.--In this paragraph, the `applicable limit' for a fiscal year is the amount authorized under title V of the District of Columbia Self-Government and Governmental Reorganization Act for appropriation as the Federal payment to the District of Columbia for the fiscal year following the fiscal year in which the advance is made. ``(d) Maturity of any Short-Term Advance.-- ``(1) In general.--Except as provided in paragraph (3), if the condition in paragraph (2) is satisfied, each advance made under this section shall mature on the date designated by the Mayor in the Mayor's requisition for such advance. ``(2) Condition applicable to designated maturity.-- Paragraph (1) applies if the Authority determines that the reimbursement obligation of the District government for an advance made under this section having the maturity date designated in the Mayor's requisition is consistent with the financial plan for the year. ``(3) Latest permissible maturity date.--Notwithstanding paragraph (1), the maturity date for any advance made under this section shall not be later than 11 months after the date on which such advance is made. ``(e) Interest Rate.--Each advance made under this section shall bear interest at an annual rate equal to a rate determined by the Secretary at the time that the Secretary makes such advance taking into consideration the prevailing yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the maturity of such advance, plus \1/8\ of 1 percent. ``(f) 10-Business-Day Zero Balance Requirement.--After the expiration of the 12-month period beginning on the date on which the first advance is made under this section, the Secretary shall not make any new advance under this section unless the District government has-- ``(1) reduced to zero at the same time the principal balance of all advances made under this section at least once during the previous 12-month period; and ``(2) not requisitioned any advance to be made under this section in any of the 10 business days following such reduction. ``(g) Deposit of Advances.--As provided in section 204(b) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, advances made under this section for the account of the District government shall be deposited by the Secretary into an escrow account held by the Authority. [[Page 109 STAT. 129]] ``SEC. 603. SECURITY FOR ADVANCES. ``(a) In General.--The Secretary shall require the District government to provide such security for any advance made under this title as the Secretary determines to be appropriate. ``(b) Authority To Require Specific Security.--As security for any advance made under this title, the Secretary may require the District government to-- ``(1) pledge to the Secretary specific taxes and revenue of the District government, if such pledging does not cause the District government to violate existing laws or contracts; and ``(2) establish a debt service reserve fund pledged to the Secretary. ``SEC. 604. REIMBURSEMENT TO THE TREASURY. ``(a) Reimbursement Amount.-- ``(1) In general.--Except as provided in paragraph (2), on any date on which a reimbursement payment is due to the Treasury under the terms of any advance made under this title, the District shall pay to the Treasury the amount of such reimbursement payment out of taxes and revenue collected for the support of the District government. ``(2) Exceptions for transitional advances.-- ``(A) Advances made before october 1, 1995.-- ``(i) Financial plan and budget approved.--If the Authority approves a financial plan for the District government before October 1, 1995, the District government may use the proceeds of any advance made under section 602 to discharge its obligation to reimburse the Treasury for any advance made under section 601(a). ``(ii) Financial plan and budget not approved.--If the Authority has not approved a financial plan and budget for the District government by October 1, 1995, the annual Federal payment appropriated to the District government for the fiscal year ending September 30, 1996, shall be withheld and applied to discharge the District government's obligation to reimburse the Treasury for any advance made under section 601(a). ``(B) Advances made on or after october 1, 1995.-- ``(i) Financial plan and budget approved.--If the Authority approves a financial plan and budget for the District government during fiscal year 1996, the District may use the proceeds of any advance made under section 602 to discharge its obligation to reimburse the Treasury for any advance made under section 601(b). ``(ii) Financial plan and budget not approved.--If the Authority has not approved a financial plan and budget for the District government by October 1, 1996, the annual Federal payment appropriated to the District government for the fiscal year ending September 30, 1997, shall be withheld and applied to discharge the District government's obligation to reimburse the Treasury for any advance made under section 601(b). [[Page 109 STAT. 130]] ``(b) Remedies for Failure To Reimburse.--If, on any date on which a reimbursement payment is due to the Treasury under the terms of any advance made under this title, the District government does not make such reimbursement payment, the Secretary shall take the actions listed in this subsection. ``(1) Withhold annual federal payment.--Notwithstanding any other law, before turning over to the Authority (on behalf of the District government under section 205 of the District of Columbia Financial Responsibility and Management Assistance Act of 1995) any annual Federal payment appropriated to the District government for any fiscal year under title V of the District of Columbia Self-Government and Governmental Reorganization Act (if any), the Secretary shall withhold from such annual Federal payment, and apply toward reimbursement for the payment not made, an amount equal to the amount needed to fully reimburse the Treasury for the payment not made. ``(2) Withhold other federal payments.--If, after the Secretary takes the action described in paragraph (1), the Treasury is not fully reimbursed, the Secretary shall withhold from each grant, entitlement, loan, or other payment to the District government by the Federal Government not dedicated to making entitlement or benefit payments to individuals, and apply toward reimbursement for the payment not made, an amount that, when added to the amount withheld from each other such grant, entitlement, loan, or other payment, will be equal to the amount needed to fully reimburse the Treasury for the payment not made. ``(3) Attach available district revenues.--If, after the Secretary takes the actions described in paragraphs (1) and (2), the Treasury is not fully reimbursed, the Secretary shall attach any and all revenues of the District government which the Secretary may lawfully attach, and apply toward reimbursement for the payment not made, an amount equal to the amount needed to fully reimburse the Treasury for the payment not made. ``(4) Take other actions.--If, after the Secretary takes the actions described in paragraphs (1) through (3), the Treasury is not fully reimbursed, the Secretary shall take any and all other actions permitted by law to recover from the District government the amount needed to fully reimburse the Treasury for the payment not made. ``SEC. 605. DEFINITIONS. ``For purposes of this title-- ``(1) the term `Authority' means the District of Columbia Financial Responsibility and Management Assistance Authority established under section 101(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995; ``(2) the term `control period' has the meaning given such term under section 305(4) of such Act; ``(3) the term `District government' has the meaning given such term under section 305(5) of such Act; ``(4) the term `financial plan and budget' has the meaning given such term under section 305(6) of such Act; and [[Page 109 STAT. 131]] ``(5) the term `Secretary' means the Secretary of the Treasury.''. (d) Expenditure of Funds From Account in Accordance With Authority Instructions.--Any funds allocated by the Authority to the Mayor from the escrow account described in subsection (b)(1) may be expended by the Mayor only in accordance with the terms and conditions established by the Authority at the time the funds are allocated. (e) Prohibition Against Borrowing While Suit Pending.--The Mayor may not requisition advances from the Treasury pursuant to title VI of the District of Columbia Revenue Act of 1939 if there is an action filed by the Mayor or the Council which is pending against the Authority challenging the establishment of or any action taken by the Authority. SEC. 205. DEPOSIT OF ANNUAL FEDERAL PAYMENT WITH AUTHORITY. (a) In General.-- (1) Deposit into escrow account.--In the case of a fiscal year which is a control year, the Secretary of the Treasury shall deposit the annual Federal payment to the District of Columbia for the year authorized under title V of the District of Columbia Self-Government and Governmental Reorganization Act into an escrow account held by the Authority, which shall allocate the funds to the Mayor at such intervals and in accordance with such terms and conditions as it considers appropriate to implement the financial plan for the year. In establishing such terms and conditions, the Authority shall give priority to using the Federal payment for cash flow management and the payment of outstanding bills owed by the District government. (2) Exception for amounts withheld for advances.--Paragraph (1) shall not apply with respect to any portion of the Federal payment which is withheld by the Secretary of the Treasury in accordance with section 604 of title VI of the District of Columbia Revenue Act of 1939 (as added by section 204(c)) to reimburse the Secretary for advances made under title VI of such Act. (b) Expenditure of Funds from Account in Accordance With Authority Instructions.--Any funds allocated by the Authority to the Mayor from the escrow account described in paragraph (1) may be expended by the Mayor only in accordance with the terms and conditions established by the Authority at the time the funds are allocated. SEC. 206. EFFECT OF FINDING OF NON-COMPLIANCE WITH FINANCIAL PLAN AND BUDGET. (a) Submission of Reports.--Not later than 30 days after the expiration of each quarter of each fiscal year (beginning with fiscal year 1996), the Mayor shall submit reports to the Authority describing the actual revenues obtained and expenditures made by the District government during the quarter with its cash flows during the quarter, and comparing such actual revenues, expenditures, and cash flows with the most recent projections for these items. (b) Demand for Additional Information.--If the Authority determines, based on reports submitted by the Mayor under subsection (a), independent audits, or such other information as the Authority may obtain, that the revenues or expenditures of the [[Page 109 STAT. 132]] District government during a control year are not consistent with the financial plan and budget for the year, the Authority shall require the Mayor to provide such additional information as the Authority determines to be necessary to explain the inconsistency. (c) Certification of Variance.-- (1) In general.--After requiring the Mayor to provide additional information under subsection (b), the Authority shall certify to the Council, the President, the Secretary of the Treasury, and Congress that the District government is at variance with the financial plan and budget unless-- (A)(i) the additional information provides an explanation for the inconsistency which the Authority finds reasonable and appropriate, or (ii) the District government adopts or implements remedial action (including revising the financial plan and budget pursuant to section 202(e)) to correct the inconsistency which the Authority finds reasonable and appropriate, taking into account the terms of the financial plan and budget; and (B) the Mayor agrees to submit the reports described in subsection (a) on a monthly basis for such period as the Authority may require. (2) Special rule for inconsistencies attributable to acts of congress.-- (A) Determination by authority.--If the Authority determines that the revenues or expenditures of the District government during a control year are not consistent with the financial plan and budget for the year as approved by the Authority under section 202 as a result of the terms and conditions of the budget of the District government for the year as enacted by Congress or as a result of any other law enacted by Congress which affects the District of Columbia, the Authority shall so notify the Mayor. (B) Certification.--In the case of an inconsistency described in subparagraph (A), the Authority shall certify to the Council, the President, the Secretary of the Treasury, and Congress that the District government is at variance with the financial plan and budget unless the District government adopts or implements remedial action (including revising the financial plan and budget pursuant to section 202(e)) to correct the inconsistency which the Authority finds reasonable and appropriate, taking into account the terms of the financial plan and budget. (d) Effect of Certification.--If the Authority certifies to the Secretary of the Treasury that a variance exists-- (1) the Authority may withhold any funds deposited with the Authority under section 204(b) or section 205(a) which would otherwise be expended on behalf of the District government; and (2) the Secretary shall withhold funds otherwise payable to the District of Columbia under such Federal programs as the Authority may specify (other than funds dedicated to making entitlement or benefit payments to individuals), in such amounts and under such other conditions as the Authority may specify. [[Page 109 STAT. 133]] SEC. 207. RECOMMENDATIONS ON FINANCIAL STABILITY AND MANAGEMENT RESPONSIBILITY. (a) In General.--The Authority may at any time submit recommendations to the Mayor, the Council, the President, and Congress on actions the District government or the Federal Government may take to ensure compliance by the District government with a financial plan and budget or to otherwise promote the financial stability, management responsibility, and service delivery efficiency of the District government, including recommendations relating to-- (1) the management of the District government's financial affairs, including cash forecasting, information technology, placing controls on expenditures for personnel, reducing benefit costs, reforming procurement practices, and placing other controls on expenditures; (2) the relationship between the District government and the Federal Government; (3) the structural relationship of departments, agencies, and independent agencies within the District government; (4) the modification of existing revenue structures, or the establishment of additional revenue structures; (5) the establishment of alternatives for meeting obligations to pay for the pensions of former District government employees; (6) modifications or transfers of the types of services which are the responsibility of and are delivered by the District government; (7) modifications of the types of services which are delivered by entities other than the District government under alternative service delivery mechanisms (including privatization and commercialization); (8) the effects of District of Columbia laws and court orders on the operations of the District government; (9) the establishment of a personnel system for employees of the District government which is based upon employee performance standards; and (10) the improvement of personnel training and proficiency, the adjustment of staffing levels, and the improvement of training and performance of management and supervisory personnel. (b) Response to Recommendations for Actions Within Authority of District Government.-- (1) In general.--In the case of any recommendations submitted under subsection (a) during a control year which are within the authority of the District government to adopt, not later than 90 days after receiving the recommendations, the Mayor or the Council (whichever has the authority to adopt the recommendation) shall submit a statement to the Authority, the President, and Congress which provides notice as to whether the District government will adopt the recommendations. (2) Implementation plan required for adopted recommendations.--If the Mayor or the Council (whichever is applicable) notifies the Authority and Congress under paragraph (1) that the District government will adopt any of the recommendations submitted under subsection (a), the Mayor or the Council (whichever is applicable) shall include in the [[Page 109 STAT. 134]] statement a written plan to implement the recommendation which includes-- (A) specific performance measures to determine the extent to which the District government has adopted the recommendation; and (B) a schedule for auditing the District government's compliance with the plan. (3) Explanations required for recommendations not adopted.-- If the Mayor or the Council (whichever is applicable) notifies the Authority, the President, and Congress under paragraph (1) that the District government will not adopt any recommendation submitted under subsection (a) which the District government has authority to adopt, the Mayor or the Council shall include in the statement explanations for the rejection of the recommendations. (c) Implementation of Rejected Recommendations by Authority.-- (1) In general.--If the Mayor or the Council (whichever is applicable) notifies the Authority, the President, and Congress under subsection (b)(1) that the District government will not adopt any recommendation submitted under subsection (a) which the District government has authority to adopt, the Authority may by a majority vote of its members take such action concerning the recommendation as it deems appropriate, after consulting with the Committee on Government Reform and Oversight of the House of Representatives and the Committee on Governmental Affairs of the Senate. (2) Effective date.--This subsection shall apply with respect to recommendations of the Authority made after the expiration of the 6-month period which begins on the date of the enactment of this Act. SEC. 208. SPECIAL RULES FOR FISCAL YEAR 1996. (a) Adoption of Transition Budget.--Notwithstanding any provision of section 202 to the contrary, in the case of fiscal year 1996, the following rules shall apply: (1) Not later than 45 days after the appointment of its members, the Authority shall review the proposed budget for the District of Columbia for such fiscal year submitted to Congress under section 446 of the District of Columbia Self-Government and Governmental Reorganization Act (taking into account any items or provisions disapproved by the Mayor or disapproved by the Mayor and reenacted by the Council under section 404(f) of the District of Columbia Self-Government and Governmental Reorganization Act, as amended by section 202(f)(2)) and the multiyear plan for the District of Columbia prepared pursuant to section 443 of the District of Columbia Self-Government and Governmental Reorganization Act, and shall submit any recommendations for modifications to such financial plan and budget to promote the financial stability of the District government to the Mayor, the Council, the President, and Congress. (2) Not later than 15 days after receiving the recommendations of the Authority submitted under paragraph (1), the Council (in consultation with the Mayor) shall promptly adopt a revised budget for the fiscal year (in this section referred to [[Page 109 STAT. 135]] as the ``transition budget''), and shall submit the transition budget to the Authority, the President, and Congress. (3) Not later than 15 days after receiving the transition budget from the Council under paragraph (2), the Authority shall submit a report to the Mayor, the Council, the President, and Congress analyzing the budget (taking into account any items or provisions disapproved by the Mayor or disapproved by the Mayor and reenacted by the Council under section 404(f) of the District of Columbia Self-Government and Governmental Reorganization Act, as amended by section 202(f)(2)), and shall include in the report such recommendations for revisions to the transition budget as the Authority considers appropriate to promote the financial stability of the District government during the fiscal year. (b) Financial Plan and Budget.-- (1) Deadline for submission.--For purposes of section 202, the Mayor shall submit the financial plan and budget for fiscal year 1996 as soon as practicable after the date of the enactment of this Act (in accordance with guidelines established by the Authority). (2) Adoption by council.--In accordance with the procedures applicable under section 202 (including procedures providing for review by the Authority)-- (A) the Council shall adopt the financial plan and budget for the fiscal year (including the supplemental budget incorporated in the financial plan and budget) prior to the submission by the Mayor of the financial plan and budget for fiscal year 1997 under section 202(a); and (B) the financial plan and budget adopted by the Council (and, in the case of a financial plan and budget disapproved by the Authority, together with the financial plan and budget approved and recommended by the Authority) shall be submitted to Congress (in accordance with the procedures applicable under such section) as a supplemental budget request for fiscal year 1996 (in accordance with section 446 of the District of Columbia Self-Government and Governmental Reorganization Act). (3) Transition budget as temporary financial plan and budget.--Until the approval of the financial plan and budget for fiscal year 1996 by the Authority under this subsection, the transition budget established under subsection (a) (as enacted by Congress) shall serve as the financial plan and budget adopted under this subtitle for purposes of this Act (and any provision of law amended by this Act) for fiscal year 1996. (c) Restrictions on Advances From Treasury.-- (1) Monthly determination of progress toward financial plan and budget.--During each month of fiscal year 1996 prior to the adoption of the financial plan and budget, the Authority shall determine whether the District government is making appropriate progress in preparing and adopting a financial plan and budget for the fiscal year under this subtitle. (2) Certification.--The Authority shall provide the President and Congress with a certification if the Authority finds that the District government is not making appropriate progress in developing the financial plan and budget for a month, and shall notify the President and Congress that the [[Page 109 STAT. 136]] certification is no longer in effect if the Authority finds that the District government is making such progress after the certification is provided. (3) Prohibition against allocation of advances if certification in effect.--At any time during which a certification under paragraph (2) is in effect, the Authority may not allocate any funds obtained through advances to the Mayor under title VI of the District of Columbia Revenue Act of 1939 from the escrow account in which the funds are held. SEC. 209. CONTROL PERIODS DESCRIBED. (a) Initiation.--For purposes of this Act, a ``control period'' is initiated upon the occurrence of any of the following events (as determined by the Authority based upon information obtained through the Mayor, the Inspector General of the District of Columbia, or such other sources as the Authority considers appropriate): (1) The requisitioning by the Mayor of advances from the Treasury of the United States under title VI of the District of Columbia Revenue Act of 1939 (sec. 47-3401, D.C. Code), or the existence of any unreimbursed amounts obtained pursuant to such authority. (2) The failure of the District government to provide sufficient revenue to a debt service reserve fund of the Authority under subtitle B. (3) The default by the District government with respect to any loans, bonds, notes, or other form of borrowing. (4) The failure of the District government to meet its payroll for any pay period. (5) The existence of a cash deficit of the District government at the end of any quarter of the fiscal year in excess of the difference between the estimated revenues of the District government and the estimated expenditures of the District government (including repayments of temporary borrowings) during the remainder of the fiscal year or the remainder of the fiscal year together with the first 6 months of the succeeding fiscal year (as determined by the Authority in consultation with the Chief Financial Officer of the District of Columbia). (6) The failure of the District government to make required payments relating to pensions and benefits for current and former employees of the District government. (7) The failure of the District government to make required payments to any entity established under an interstate compact to which the District of Columbia is a signatory. (b) Termination.-- (1) In general.--A control period terminates upon the certification by the Authority that-- (A) the District government has adequate access to both short-term and long-term credit markets at reasonable interest rates to meet its borrowing needs; and (B) for 4 consecutive fiscal years (occurring after the date of the enactment of this Act) the expenditures made by the District government during each of the years did not exceed the revenues of the District government during such years (as determined in accordance with generally accepted accounting principles, as contained in the comprehensive annual financial report for the District of Co [[Page 109 STAT. 137]] lumbia under section 448(a)(4) of the District of Columbia Self- Government and Governmental Reorganization Act). (2) Consultation with inspector general.--In making the determination under this subsection, the Authority shall consult with the Inspector General of the District of Columbia. (c) Control Period Deemed To Exist Upon Enactment.--For purposes of this subtitle, a control period is deemed to exist upon the enactment of this Act. Subtitle B--Issuance of Bonds SEC. 211. AUTHORITY TO ISSUE BONDS. (a) In General.-- (1) Request of mayor.--Subject to the requirements of this subtitle, the Authority may at the request of the Mayor pursuant to an Act of the Council issue bonds, notes, or other obligations to borrow funds to obtain funds for the use of the District government, in such amounts and in such manner as the Authority considers appropriate. (2) Special rule for instrumentalities with independent borrowing authority.--In the case of an agency or instrumentality of the District government which under law has the authority to issue bonds, notes, or obligations to borrow funds without the enactment of an Act of the Council, the Authority may issue bonds, notes, or other obligations to borrow funds for the use or functions of such agency or instrumentality at the request of the head of the agency or instrumentality. (b) Deposit of Funds Obtained Through Borrowing With Authority.--Any funds obtained by the District government through borrowing by the Authority pursuant to this subtitle shall be deposited into an escrow account held by the Authority, which shall allocate such funds to the District government in such amounts and at such times as the Authority considers appropriate, consistent with the specified purposes of such funds and the applicable financial plan and budget under subtitle A. (c) Uses of Funds Obtained Through Bonds.--Any funds obtained through the issuance of bonds, notes, or other obligations pursuant to this subtitle may be used for any purpose (consistent with the applicable financial plan and budget) under subtitle A for which the District government may use borrowed funds under the District of Columbia Self-Government and Governmental Reorganization Act and for any other purpose which the Authority considers appropriate. SEC. 212. PLEDGE OF SECURITY INTEREST IN REVENUES OF DISTRICT GOVERNMENT. (a) In General.--The Authority may pledge or grant a security interest in revenues to individuals or entities purchasing bonds, notes, or other obligations issued pursuant to this subtitle. (b) Dedication of Revenue Stream From District Government.--The Authority shall require the Mayor-- (1) to pledge or direct taxes or other revenues otherwise payable to the District government (which are not otherwise pledged or committed), including payments from the Federal Government, to the Authority for purposes of securing repay [[Page 109 STAT. 138]] ment of bonds, notes, or other obligations issued pursuant to this subtitle; and (2) to transfer the proceeds of any tax levied for purposes of securing such bonds, notes, or other obligations to the Authority immediately upon collection. SEC. 213. ESTABLISHMENT OF DEBT SERVICE RESERVE FUND. (a) In General.--As a condition for the issuance of bonds, notes, or other obligations pursuant to this subtitle, the Authority shall establish a debt service reserve fund in accordance with this section. (b) Requirements for Fund.-- (1) Fund described.--A debt service reserve fund established by the Authority pursuant to this subsection shall consist of such funds as the Authority may make available, and shall be a trust fund held for the benefit and security of the obligees of the Authority whose bonds, notes, or other obligations are secured by such fund. (2) Uses of funds.--Amounts in a debt service reserve fund may be used solely for the payment of the principal of bonds secured in whole or in part by such fund, the purchase or redemption of such bonds, the payment of interest on such bonds, or the payment of any redemption premium required to be paid when such bonds and notes are redeemed prior to maturity. (3) Restrictions on withdrawals.-- (A) In general.--Amounts in a debt service reserve fund may not be withdrawn from the fund at any time in an amount that would reduce the amount of the fund to less than the minimum reserve fund requirement established for such fund in the resolution of the Authority creating such fund, except for withdrawals for the purpose of making payments when due of principal, interest, redemption premiums and sinking fund payments, if any, with respect to such bonds for the payment of which other moneys of the Authority are not available, and for the purpose of funding the operations of the Authority for a fiscal year (in such amounts and under such conditions as are established under the budget of the Authority for the fiscal year under section 106(a)). (B) Use of excess funds.--Nothing in subparagraph (A) may be construed to prohibit the Authority from transferring any income or interest earned by, or increments to, any debt service reserve fund due to the investment thereof to other funds or accounts of the Authority (to the extent such transfer does not reduce the amount of the debt service reserve fund below the minimum reserve fund requirement established for such fund) for such purposes as the Authority considers appropriate to promote the financial stability and management efficiency of the District government. SEC. 214. OTHER REQUIREMENTS FOR ISSUANCE OF BONDS. (a) Minimum Debt Service Reserve Fund Requirement.--The Authority may not at any time issue bonds, notes, or other obligations pursuant to this subtitle which are secured in whole or in part by a debt service reserve fund under section 213 if issuance of such bonds would cause the amount in the debt reserve [[Page 109 STAT. 139]] fund to fall below the minimum reserve requirement for such fund, unless the Authority at the time of issuance of such bonds shall deposit in the fund an amount (from the proceeds of the bonds to be issued or from other sources) which when added to the amount already in such fund will cause the total amount on deposit in such fund to equal or exceed the minimum reserve fund requirement established by the Authority at the time of the establishment of the fund. (b) Amounts Included in Aggregate Limit on District Borrowing.--Any amounts provided to the District government through the issuance of bonds, notes, or other obligations to borrow funds pursuant to this subtitle shall be taken into account in determining whether the amount of funds borrowed by the District of Columbia during a fiscal year exceeds the limitation on such amount provided under section 603(b) of the District of Columbia Self-Government and Governmental Reorganization Act. SEC. 215. NO FULL FAITH AND CREDIT OF THE UNITED STATES. The full faith and credit of the United States is not pledged for the payment of any principal of or interest on any bond, note, or other obligation issued by the Authority pursuant to this subtitle. The United States is not responsible or liable for the payment of any principal of or interest on any bond, note, or other obligation issued by the Authority pursuant to this subtitle. Subtitle C--Other Duties of Authority SEC. 221. DUTIES OF AUTHORITY DURING YEAR OTHER THAN CONTROL YEAR. (a) In General.--During the period beginning upon the termination of a control period pursuant to section 209(b) and ending with the suspension of its activities pursuant to section 107(a), the Authority shall conduct the following activities: (1) The Authority shall review the budgets of the District government adopted by the Council under section 446 of the District of Columbia Self-Government and Governmental Reorganization Act for each fiscal year occurring during such period. (2) At such time prior to the enactment of such budget by Congress as the Authority considers appropriate, the Authority shall prepare a report analyzing the budget and submit the report to the Mayor, the Council, the President, and Congress. (3) The Authority shall monitor the financial status of the District government and shall submit reports to the Mayor, the Council, the President, and Congress if the Authority determines that a risk exists that a control period may be initiated pursuant to section 209(a). (4) The Authority shall carry out activities under subtitle B with respect to bonds, notes, or other obligations of the Authority outstanding during such period. (b) Requiring Mayor To Submit Budgets to Authority.--With respect to the budget for each fiscal year occurring during the period described in subsection (a), at the time the Mayor submits the budget of the District government adopted by the Council to the President under section 446 of the District of Columbia Self- [[Page 109 STAT. 140]] Government and Governmental Reorganization Act, the Mayor shall submit such budget to the Authority. SEC. 222. GENERAL ASSISTANCE IN ACHIEVING FINANCIAL STABILITY AND MANAGEMENT EFFICIENCY. In addition to any other actions described in this title, the Authority may undertake cooperative efforts to assist the District government in achieving financial stability and management efficiency, including-- (1) assisting the District government in avoiding defaults, eliminating and liquidating deficits, maintaining sound budgetary practices, and avoiding interruptions in the delivery of services; (2) assisting the District government in improving the delivery of municipal services, the training and effectiveness of personnel of the District government, and the efficiency of management and supervision; and (3) making recommendations to the President for transmission to Congress on changes to this Act or other Federal laws, or other actions of the Federal Government, which would assist the District government in complying with an approved financial plan and budget under subtitle A. SEC. 223. OBTAINING REPORTS. The Authority may require the Mayor, the Chair of the Council, the Chief Financial Officer of the District of Columbia, and the Inspector General of the District of Columbia, to prepare and submit such reports as the Authority considers appropriate to assist it in carrying out its responsibilities under this Act, including submitting copies of any reports regarding revenues, expenditures, budgets, costs, plans, operations, estimates, and other financial or budgetary matters of the District government. SEC. 224. REPORTS AND COMMENTS. (a) Annual Reports to Congress.--Not later than 30 days after the last day of each fiscal year which is a control year, the Authority shall submit a report to Congress describing-- (1) the progress made by the District government in meeting the objectives of this Act during the fiscal year; (2) the assistance provided by the Authority to the District government in meeting the purposes of this Act for the fiscal year; and (3) any other activities of the Authority during the fiscal year. (b) Review and Analysis of Performance and Financial Accountability Reports.-- (1) In general.--The Authority shall review each report prepared and submitted by the Mayor under section 456 of the District of Columbia Self-Government and Governmental Reorganization Act (as added by section 3(a) of the Federal Payment Reauthorization Act of 1994), and shall submit a report to Congress analyzing the completeness and accuracy of such reports. (2) Submission of reports by mayor.--Section 456 of the District of Columbia Self-Government and Governmental Reorganization Act, as added by section 3(a) of the Federal Payment Reauthorization Act of 1994, <<NOTE: 108 Stat. 3488.>> is amended by adding at the end the following new subsection: [[Page 109 STAT. 141]] ``(e) Submission of Reports to District of Columbia Financial Responsibility and Management Assistance Authority.--In the case of any report submitted by the Mayor under this section for a fiscal year (or any quarter of a fiscal year) which is a control year under the District of Columbia Financial Responsibility and Management Assistance Act of 1995, the Mayor shall submit the report to the District of Columbia Financial Responsibility and Management Assistance Authority established under section 101(a) of such Act in addition to any other individual to whom the Mayor is required to submit the report under this section.''. (c) Comments Regarding Activities of District Government.--At any time during a control year, the Authority may submit a report to Congress describing any action taken by the District government (or any failure to act by the District government) which the Authority determines will adversely affect the District government's ability to comply with an approved financial plan and budget under subtitle A or will otherwise have a significant adverse impact on the best interests of the District of Columbia. (d) Reports on Effect of Federal Laws on District Government.--At any time during any year, the Authority may submit a report to the Mayor, the Council, the President, and Congress on the effect of laws enacted by Congress on the financial plan and budget for the year and on the financial stability and management efficiency of the District government in general. (e) Making Reports Publicly Available.--The Authority shall make any report submitted under this section available to the public, except to the extent that the Authority determines that the report contains confidential material. TITLE III--MISCELLANEOUS PROVISIONS SEC. 301. OTHER DISTRICT BUDGET REFORMS. (a) Inclusion of All Funds of District in Budget of District Government.-- (1) In general.--Section 103 of the District of Columbia Self-Government and Governmental Reorganization Act <<NOTE: 87 Stat. 777.>> (sec. 1-202, D.C. Code) is amended-- (A) by amending paragraph (10) to read as follows: ``(10) The term `District revenues' means all funds derived from taxes, fees, charges, miscellaneous receipts, the annual Federal payment to the District authorized under title V, grants and other forms of financial assistance, or the sale of bonds, notes, or other obligations, and any funds administered by the District government under cost sharing arrangements.''; (B) by amending paragraph (14) to read as follows: ``(14) The term `resources' means revenues, balances, enterprise or other revolving funds, and funds realized from borrowing.''; and (C) by amending paragraph (15) to read as follows: ``(15) The term `budget' means the entire request for appropriations or loan or spending authority for all activities of all departments or agencies of the District of Columbia financed from all existing, proposed or anticipated resources, and shall include both operating and capital expenditures.''. [[Page 109 STAT. 142]] (2) Effective date.--The amendments made by paragraph (1) shall apply with respect to revenues, resources, and budgets of the District of Columbia for fiscal years beginning with fiscal year 1996. (b) Restrictions on Reprogramming of Funds.-- (1) In general.--Section 446 of such Act (sec. 47-304, D.C. Code) <<NOTE: 87 Stat. 801.>> is amended by adding at the end the following: ``After the adoption of the annual budget for a fiscal year (beginning with the annual budget for fiscal year 1995), no reprogramming of amounts in the budget may occur unless the Mayor submits to the Council a request for such reprogramming and the Council approves the request, but only if any additional expenditures provided under such request for an activity are offset by reductions in expenditures for another activity.''. (2) Conforming amendment.--Section 5 of D.C. Law 3-100 (sec. 47-364, D.C. Code) is hereby repealed. (c) Permitting Council To Request Budget Adjustments From Mayor.-- Section 442 of the District of Columbia Self-Government and Governmental Reorganization Act <<NOTE: 87 Stat. 798.>> (sec. 47-301, D.C. Code) is amended by adding at the end the following new subsection: ``(d) The Mayor shall prepare and submit to the Council a proposed supplemental or deficiency budget recommendation under subsection (c) if the Council by resolution requests the Mayor to submit such a recommendation.''. (d) Requiring Budgetary Impact Statements To Accompany Acts of Council.-- (1) In general.--Section 602(c) of the District of Columbia Self-Government and Governmental Reorganization Act <<NOTE: 87 Stat. 814.>> (sec. 1-233(c), D.C. Code) is amended by adding at the end the following new paragraph: ``(3) The Council shall submit with each Act transmitted under this subsection an estimate of the costs which will be incurred by the District of Columbia as a result of the enactment of the Act in each of the first 4 fiscal years for which the Act is in effect, together with a statement of the basis for such estimate.''. (2) Effective date.--The amendment made by paragraph (1) shall apply to Acts of the Council transmitted on or after October 1, 1995. (e) Extension of Authorization of Annual Federal Payment.--Section 503(c) of the District of Columbia Self-Government and Governmental Reorganization Act (sec. 47-3406.1(c), D.C. Code), as added by section 2 of the Federal Payment Reauthorization Act of 1994, <<NOTE: 108 Stat. 3488.>> is amended by striking ``fiscal year 1996'' and inserting ``each of the fiscal years 1996, 1997, 1998, and 1999''. SEC. 302. ESTABLISHMENT OF CHIEF FINANCIAL OFFICER OF DISTRICT OF COLUMBIA. (a) In General.--Part B of title IV of the District of Columbia Self-Government and Governmental Reorganization Act <<NOTE: 87 Stat. 789.>> is amended by adding at the end the following new section: ``chief financial officer of the district of columbia ``Sec. 424. (a) Establishment of Office.-- ``(1) In general.--There is hereby established within the executive branch of the government of the District of Columbia an Office of the Chief Financial Officer of the District of Colum [[Page 109 STAT. 143]] bia (hereafter referred to as the `Office'), which shall be headed by the Chief Financial Officer of the District of Columbia (hereafter referred to as the `Chief Financial Officer'). ``(2) Office of the treasurer.--The Office shall include the Office of the Treasurer, which shall be headed by the Treasurer of the District of Columbia, who shall be appointed by the Chief Financial Officer and subject to the Chief Financial Officer's direction and control. ``(3) Transfer of other offices.--Effective with the appointment of the first Chief Financial Officer under subsection (b), the functions and personnel of the following offices are transferred to the Office: ``(A) The Controller of the District of Columbia. ``(B) The Office of the Budget. ``(C) The Office of Financial Information Services. ``(D) The Department of Finance and Revenue. ``(4) Service of heads of other offices.-- ``(A) Office heads appointed by mayor.--With respect to the head of the Office of the Budget and the head of the Department of Finance and Revenue-- ``(i) the Mayor shall appoint such individuals with the advice and consent of the Council, subject to the approval of the Authority during a control year; and ``(ii) during a control year, the Authority may remove such individuals from office for cause, after consultation with the Mayor. ``(B) Office heads appointed by chief financial officer.--With respect to the Controller of the District of Columbia and the head of the Office of Financial Information Services-- ``(i) the Chief Financial Officer shall appoint such individuals subject to the approval of the Mayor; and ``(ii) the Chief Financial Officer may remove such individuals from office for cause, after consultation with the Mayor. ``(b) Appointment.-- ``(1) In general.-- ``(A) Control year.--During a control year, the Chief Financial Officer shall be appointed by the Mayor as follows: ``(i) Prior to the appointment of the Chief Financial Officer, the Authority may submit recommendations for the appointment to the Mayor. ``(ii) In consultation with the Authority and the Council, the Mayor shall nominate an individual for appointment and notify the Council of the nomination. ``(iii) After the expiration of the 7-day period which begins on the date the Mayor notifies the Council of the nomination under clause (ii), the Mayor shall notify the Authority of the nomination. ``(iv) The nomination shall be effective subject to approval by a majority vote of the Authority. ``(B) Other years.--During a year other than a control year, the Chief Financial Officer shall be appointed by the Mayor with the advice and consent of the Council. Prior to appointment, the Authority may submit recommendations for the appointment. [[Page 109 STAT. 144]] ``(2) Removal.-- ``(A) Control year.--During a control year, the Chief Financial Officer may be removed for cause by the Authority or by the Mayor with the approval of the Authority. ``(B) Other years.--During a year other than a control year, the Chief Financial Officer shall serve at the pleasure of the Mayor, except that the Chief Financial Officer may only be removed for cause. ``(3) Salary.--The Chief Financial Officer shall be paid at an annual rate determined by the Mayor, except that such rate may not exceed the rate of basic pay payable for level IV of the Executive Schedule. ``(c) Functions During Control Year.--During a control year, the Chief Financial Officer shall have the following duties: ``(1) Preparing the financial plan and budget for the use of the Mayor for purposes of subtitle A of title II of the District of Columbia Financial Responsibility and Management Assistance Act of 1995. ``(2) Preparing the budgets of the District of Columbia for the year for the use of the Mayor for purposes of part D. ``(3) Assuring that all financial information presented by the Mayor is presented in a manner, and is otherwise consistent with, the requirements of the District of Columbia Financial Responsibility and Management Assistance Act of 1995. ``(4) Implementing appropriate procedures and instituting such programs, systems, and personnel policies within the Officer's authority, to ensure that budget, accounting and personnel control systems and structures are synchronized for budgeting and control purposes on a continuing basis. ``(5) With the approval of the Authority, preparing and submitting to the Mayor and the Council-- ``(A) annual estimates of all revenues of the District of Columbia (without regard to the source of such revenues), including proposed revenues, which shall be binding on the Mayor and the Council for purposes of preparing and submitting the budget of the District government for the year under part D, except that the Mayor and the Council may prepare the budget based on estimates of revenues which are lower than those prepared by the Chief Financial Officer; and ``(B) quarterly re-estimates of the revenues of the District of Columbia during the year. ``(6) Supervising and assuming responsibility for financial transactions to ensure adequate control of revenues and resources, and to ensure that appropriations are not exceeded. ``(7) Maintaining systems of accounting and internal control designed to provide-- ``(A) full disclosure of the financial impact of the activities of the District government; ``(B) adequate financial information needed by the District government for management purposes; ``(C) effective control over, and accountability for, all funds, property, and other assets of the District of Columbia; and [[Page 109 STAT. 145]] ``(D) reliable accounting results to serve as the basis for preparing and supporting agency budget requests and controlling the execution of the budget. ``(8) Submitting to the Council a financial statement of the District government, containing such details and at such times as the Council may specify. ``(9) Supervising and assuming responsibility for the assessment of all property subject to assessment and special assessments within the corporate limits of the District of Columbia for taxation, preparing tax maps, and providing such notice of taxes and special assessments (as may be required by law). ``(10) Supervising and assuming responsibility for the levying and collection of all taxes, special assessments, licensing fees, and other revenues of the District of Columbia (as may be required by law), and receiving all amounts paid to the District of Columbia from any source (including the Authority). ``(11) Maintaining custody of all public funds belonging to or under the control of the District government (or any department or agency of the District government), and depositing all amounts paid in such depositories and under such terms and conditions as may be designated by the Council or the Authority. ``(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. [[Page 109 STAT. 146]] ``(d) Functions During All Years.--At all times, the Chief Financial Officer shall have the following duties: ``(1) Exercising responsibility for the administration and supervision of the District of Columbia Treasurer (except that the Chief Financial Officer may delegate any portion of such responsibility as the Chief Financial Officer considers appropriate and consistent with efficiency). ``(2) Administering all borrowing programs of the District government for the issuance of long-term and short-term indebtedness. ``(3) Administering the cash management program of the District government, including the investment of surplus funds in governmental and non-governmental interest-bearing securities and accounts. ``(4) Administering the centralized District government payroll and retirement systems. ``(5) Governing the accounting policies and systems applicable to the District government. ``(6) Preparing appropriate annual, quarterly, and monthly financial reports of the accounting and financial operations of the District government. ``(7) <<NOTE: Reports.>> Not later than 120 days after the end of each fiscal year (beginning with fiscal year 1995), preparing the complete financial statement and report on the activities of the District government for such fiscal year, for the use of the Mayor under section 448(a)(4) of the District of Columbia Self-Government and Governmental Reorganization Act. ``(e) Functions of Treasurer.--At all times, the Treasurer shall have the following duties: ``(1) <<NOTE: Reports.>> 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) <<NOTE: Reports.>> Monthly reports reflecting a detailed summary analysis of all District of Columbia government investments, including, but not limited to-- [[Page 109 STAT. 147]] ``(i) the total of long-term and short-term investments; ``(ii) a detailed summary analysis of investments by type and amount, including purchases, sales (maturities), and interest; ``(iii) an analysis of investment portfolio mix by type and amount, including liquidity, quality/risk of each security, and similar information; ``(iv) an analysis of investment strategy, including near-term strategic plans and projects of investment activity, as well as forecasts of future investment strategies based on anticipated market conditions, and similar information; ``(v) an analysis of cash utilization, including-- ``(I) comparisons of budgeted percentages of total cash to be invested with actual percentages of cash invested and the dollar amounts; ``(II) comparisons of the next return on invested cash expressed in percentages (yield) with comparable market indicators and established District of Columbia government yield objectives; and ``(III) comparisons of estimated dollar return against actual dollar yield. ``(E) <<NOTE: Reports.>> Monthly reports reflecting a detailed summary analysis of long-term and short-term borrowings inclusive of debt as authorized by section 603, in the current fiscal year and the amount of debt for each succeeding fiscal year not to exceed 5 years. All such reports shall reflect-- ``(i) the amount of debt outstanding by type of instrument; ``(ii) the amount of authorized and unissued debt, including availability of short-term lines of credit, United States Treasury borrowings, and similar information; ``(iii) a maturity schedule of the debt; ``(iv) the rate of interest payable upon the debt; and ``(v) the amount of debt service requirements and related debt service reserves. ``(2) Such other functions assigned to the Chief Financial Officer under subsection (c) or subsection (d) as the Chief Financial Officer may delegate. ``(f) Definitions.--In this section-- ``(1) the term `Authority' means the District of Columbia Financial Responsibility and Management Assistance Authority established under section 101(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995; ``(2) the term `control year' has the meaning given such term under section 305(4) of such Act; and ``(3) the term `District government' has the meaning given such term under section 305(5) of such Act.''. (b) Prohibiting Delegation of Chief Financial Officer's Authority.-- Section 422(6) of the District of Columbia Self-Government and Governmental Reorganization Act <<NOTE: 87 Stat. 791.>> (sec. 1-242(6), D.C. Code) is amended by adding at the end the following: ``Nothing in the previous sentence may be construed to permit the Mayor [[Page 109 STAT. 148]] to delegate any functions assigned to the Chief Financial Officer of the District of Columbia under section 424, without regard to whether such functions are assigned to the Chief Financial Officer under such section during a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995) or during any other year.''. (c) <<NOTE: Repeal.>> Conforming Amendment.--Effective upon the appointment of the Chief Financial Officer of the District of Columbia under section 424(b) of the District of Columbia Self-Government and Governmental Reorganization Act (as added by subsection (a)), D.C. Law 3-138 (sec. 47-314 et seq., D.C. Code) is repealed. (d) Clerical Amendment.--The table of contents of part B of title IV of the District of Columbia Self-Government and Governmental Reorganization Act is amended by adding at the end the following new item: ``Sec. 424. Chief Financial Officer of the District of Columbia.''. SEC. 303. REVISIONS TO POWERS AND DUTIES OF INSPECTOR GENERAL OF DISTRICT OF COLUMBIA. (a) Appointment and Term of Service; Independence of Budget.-- Section 208(a) of the District of Columbia Procurement Practices Act of 1985 (sec. 1-1182.8(a), D.C. Code) is amended by striking paragraphs (1) and (2) and inserting the following: ``(1)(A) <<NOTE: Establishment.>> There is created within the executive branch of the government of the District of Columbia the Office of the Inspector General. The Office shall be headed by an Inspector General appointed pursuant to subparagraph (B), who shall serve for a term of 6 years and shall be subject to removal only for cause by the Mayor (with the approval of the District of Columbia Financial Responsibility and Management Assistance Authority in a control year) or (in the case of a control year) by the Authority. The Inspector General may be reappointed for additional terms. ``(B) During a control year, the Inspector General shall be appointed by the Mayor as follows: ``(i) Prior to the appointment of the Inspector General, the Authority may submit recommendations for the appointment to the Mayor. ``(ii) In consultation with the Authority and the Council, the Mayor shall nominate an individual for appointment and notify the Council of the nomination. ``(iii) After the expiration of the 7-day period which begins on the date the Mayor notifies the Council of the nomination under clause (ii), the Mayor shall notify the Authority of the nomination. ``(iv) The nomination shall be effective subject to approval by a majority vote of the Authority. ``(C) During a year which is not a control year, the Inspector General shall be appointed by the Mayor with the advice and consent of the Council. Prior to appointment, the Authority may submit recommendations for the appointment. ``(D) The Inspector General shall be appointed without regard to party affiliation and solely on the basis of integrity and demonstrated ability in accounting, auditing, financial management analysis, public administration, or investigations. ``(E) The Inspector General shall be paid at an annual rate determined by the Mayor, except that such rate may not exceed the rate of basic pay payable for level IV of the Executive Schedule. [[Page 109 STAT. 149]] ``(2) The annual budget for the Office shall be adopted as follows: ``(A) The Inspector General shall prepare and submit to the Mayor, for inclusion in the annual budget of the District of Columbia under part D of title IV of the District of Columbia Self-Government and Governmental Reorganization Act for the year, annual estimates of the expenditures and appropriations necessary for the operation of the Office for the year. All such estimates shall be forwarded by the Mayor to the Council of the District of Columbia for its action pursuant to sections 446 and 603(c) of such Act, without revision but subject to recommendations. Notwithstanding any other provision of such Act, the Council may comment or make recommendations concerning such estimates, but shall have no authority to revise such estimates. ``(B) Upon receipt of the annual Federal payment for the District of Columbia authorized under title V of the District of Columbia Self-Government and Governmental Reorganization Act, the Mayor shall deposit a portion of the payment (equal to the estimate of necessary appropriations described in subparagraph (A)) into a dedicated fund within the government of the District of Columbia. ``(C) Amounts deposited in the dedicated fund described in subparagraph (B) shall be available solely for the operation of the Office, and shall be paid to the Inspector General by the Mayor (acting through the Chief Financial Officer of the District of Columbia) in such installments and at such times as the Inspector General requires.''. (b) Additional Powers and Duties.-- (1) In general.--Section 208(a)(3) of the District of Columbia Procurement Practices Act of 1985 (sec. 1-1182.8(a)(3), D.C. Code) is amended-- (A) by striking ``and'' at the end of subparagraph (E); (B) by striking the period at the end of subparagraph (F) and inserting a semicolon; and (C) by adding at the end the following new subparagraphs: ``(G) Pursuant to a contract described in paragraph (4), provide certifications under section 602(b)(5) of title VI of the District of Columbia Revenue Act of 1939; ``(H) Pursuant to a contract described in paragraph (4), audit the complete financial statement and report on the activities of the District government for such fiscal year, for the use of the Mayor under section 448(a)(4) of the District of Columbia Self-Government and Governmental Reorganization Act; and ``(I) <<NOTE: Audits.>> Not later than 30 days before the beginning of each fiscal year (beginning with fiscal year 1996) and in consultation with the Mayor, the Council, and the Authority, establish an annual plan for audits to be conducted under this paragraph during the fiscal year under which the Inspector General shall report only those variances which are in an amount equal to or greater than $1,000,000 or 1 percent of the applicable annual budget for the program in which the variance is found (whichever is lesser).''. [[Page 109 STAT. 150]] (2) Limitation on contract with outside auditor.--Section 208(a) of such Act (sec. 1-1182.8(a), D.C. Code) is amended by adding at the end the following new paragraph: ``(4) The Inspector General shall enter into a contract with an auditor who is not an officer or employee of the Office to-- ``(A) audit the financial statement and report described in paragraph (3)(H) for a fiscal year, except that the financial statement and report may not be audited by the same auditor (or an auditor employed by or affiliated with the same auditor) for more than 3 consecutive fiscal years; and ``(B) audit the certification described in paragraph (3)(G).''. (3) Subpoena power.--Section 208(c) of such Act (sec. 1- 1182.8(c), D.C. Code) is amended-- (A) by striking ``(c)'' and inserting ``(c)(1)''; and (B) by adding at the end the following new paragraph: ``(2)(A) The Inspector General may issue subpoenas requiring the attendance and testimony of witnesses and the production of any evidence relating to any matter under investigation by the Inspector General. ``(B) If a person refuses to obey a subpoena issued under subparagraph (A), the Inspector General may apply to the Superior Court of the District of Columbia for an order requiring that person to appear before the Inspector General to give testimony, produce evidence, or both, relating to the matter under investigation. Any failure to obey the order of the court may be punished by the Superior Court as civil contempt.''. (4) Referral of findings of criminal activity to attorney general.--Section 208 of such Act (sec. 1-1182.8, D.C. Code) is amended by adding at the end the following new subsection: ``(f) <<NOTE: Reports.>> In carrying out the duties and responsibilities established under this section, the Inspector General shall report expeditiously to the Attorney General whenever the Inspector General has reasonable grounds to believe there has been a violation of Federal or District criminal law.''. (c) Revision of Current Powers and Duties.-- (1) Liaison representative for all external audits of district government.--Section 208(a)(3)(B) of such Act (sec. 1- 1182.8(a)(3)(B), D.C. Code) is amended by striking ``executive branch''. (2) Application of generally accepted accounting principles.--Section 208(b) of such Act (sec. 1-1182.8(b), D.C. Code) is amended by inserting ``accounting and'' after ``accepted''. (3) Access to all necessary records.--Section 208(c)(1) of such Act (sec. 1-1182.8(c), D.C. Code), as amended by subsection (b)(3), is amended by striking ``relating to contracts and procurement''. (4) Submission of reports to authority during control year.--Section 208(d) of such Act (sec. 1-1182.8(d), D.C. Code) is amended-- (A) in paragraph (1), by striking ``the Mayor and the Council'' and inserting ``the Authority (or, with respect to a fiscal year which is not a control year, the Mayor and the Council)''; and (B) in paragraph (2), by striking ``the Mayor'' and inserting ``the Authority, the Mayor,''. [[Page 109 STAT. 151]] (5) Making reports publicly available.--Section 208(d) of such Act (sec. 1-1182.8(d), D.C. Code) is amended by adding at the end the following new paragraph: ``(4) The Inspector General shall make each report submitted under this subsection available to the public, except to the extent that the report contains information determined by the Inspector General to be privileged.''. (6) Responding to requests of authority.--Section 208(e) of such Act (sec. 1-1182.8(e), D.C. Code) is amended by striking ``the Director'' and inserting ``the Authority''. (d) Definitions.--Section 208 of such Act (sec. 1-1182.8, D.C. Code), as amended by subsection (b)(4), is amended by adding at the end the following new subsection: ``(g) In this section-- ``(1) the term `Authority' means the District of Columbia Financial Responsibility and Management Assistance Authority established under section 101(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995; ``(2) the term `control year' has the meaning given such term under section 305(4) of such Act; and ``(3) the term `District government' has the meaning given such term under section 305(5) of such Act.''. (e) Deadline for Appointment.-- (1) In general.--Not later than 30 days after its members are appointed, the Authority shall appoint the Inspector General of the District of Columbia pursuant to section 208(a)(1) of the District of Columbia Procurement Practices Act of 1985 (as amended by subsection (a)). (2) Transition rule.--The term of service of the individual serving as the Inspector General under section 208(a) of the District of Columbia Procurement Practices Act of 1985 prior to the appointment of the Inspector General by the Authority under section 208(a)(1) of such Act (as amended by subsection (a)) shall expire upon the appointment of the Inspector General by the Authority. SEC. 304. COUNCIL APPROVAL OF CERTAIN CONTRACTS. (a) In General.--Section 451 of the District of Columbia Self- Government and Governmental Reorganization Act <<NOTE: 87 Stat. 803.>> (sec. 1-1130, D.C. Code) is amended-- (1) by amending the heading to read as follows: ``special rules regarding certain contracts''; (2) by striking ``No contract'' and inserting ``(a) Contracts Extending Beyond One Year.--No contract''; and (3) by adding at the end the following new subsection: ``(b) Contracts Exceeding Certain Amount.-- ``(1) In general.--No contract involving expenditures in excess of $1,000,000 during a 12-month period may be made unless the Mayor submits the contract to the Council for its approval and the Council approves the contract (in accordance with criteria established by act of the Council). ``(2) Deemed approval.--For purposes of paragraph (1), the Council shall be deemed to approve a contract if-- ``(A) during the 10-day period beginning on the date the Mayor submits the contract to the Council, no member [[Page 109 STAT. 152]] of the Council introduces a resolution approving or disapproving the contract; or ``(B) during the 45-calendar day period beginning on the date the Mayor submits the contract to the Council, the Council does not disapprove the contract.''. (b) Clerical Amendment.--The table of contents of the District of Columbia Self-Government and Governmental Reorganization Act <<NOTE: 87 Stat. 775.>> is amended by amending the item relating to section 451 to read as follows: ``Sec. 451. Special rules regarding certain contracts.''. (c) Effective Date.--The amendments made by this section shall apply to contracts made on or after the date of the enactment of this Act. SEC. 305. DEFINITIONS. In this Act, the following definitions apply: (1) The term ``Authority'' means the District of Columbia Financial Responsibility and Management Assistance Authority established under section 101(a). (2) The term ``Council'' means the Council of the District of Columbia. (3) The term ``control period'' has the meaning given such term in section 209. (4) The term ``control year'' means any fiscal year for which a financial plan and budget approved by the Authority under section 202(b) is in effect, and includes fiscal year 1996. (5) The term ``District government'' means the government of the District of Columbia, including any department, agency or instrumentality of the government of the District of Columbia; any independent agency of the District of Columbia established under part F of title IV of the District of Columbia Self- Government and Governmental Reorganization Act or any other agency, board, or commission established by the Mayor or the Council; the courts of the District of Columbia; the Council of the District of Columbia; and any other agency, public authority, or public benefit corporation which has the authority to receive monies directly or indirectly from the District of Columbia (other than monies received from the sale of goods, the provision of services, or the loaning of funds to the District of Columbia), except that such term does not include the Authority. [[Page 109 STAT. 153]] (6) The term ``financial plan and budget'' means a financial plan and budget described in subtitle A of title II, and includes the budgets of the District government for the fiscal years which are subject to the financial plan and budget (as described in section 201(b)). (7) The term ``Mayor'' means the Mayor of the District of Columbia. Approved April 17, 1995. LEGISLATIVE HISTORY--H.R. 1345: --------------------------------------------------------------------------- HOUSE REPORTS: No. 104-96 (Comm. on Government Reform and Oversight). CONGRESSIONAL RECORD, Vol. 141 (1995): Apr. 3, considered and passed House. Apr. 6, considered and passed Senate, amended. Apr. 7, House concurred in Senate amendments. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 31 (1995): Apr. 17, Presidential remarks. <all>