Pub.L. 104-80 To designate the United States courthouse located at 800 Market Street in Knoxville, Tennessee, as the ``Howard H. Baker, Jr. United States Courthouse''. <> ...

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[[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 

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