[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.

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