H.R. 1345 (104th): District of Columbia Financial Responsibility and Management Assistance Act of 1995

104th Congress, 1995–1996. Text as of Mar 29, 1995 (Introduced).

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HR 1345 IH

104th CONGRESS

1st Session

H. R. 1345

To eliminate budget deficits and management inefficiencies in the government of the District of Columbia through the establishment of the District of Columbia Financial Responsibility and Management Assistance Authority, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

March 29, 1995

Mr. DAVIS (for himself, Ms. NORTON, Mr. WALSH, Mr. DIXON, Mr. CLINGER, Mrs. COLLINS of Illinois, Mr. MCHUGH, Mr. GUTKNECHT, Mr. LATOURETTE, Mr. FLANAGAN, Mr. FATTAH, Miss COLLINS of Michigan, Mr. WOLF, Mr. MORAN, Mrs. MORELLA, and Mr. WYNN) introduced the following bill; which was referred to the Committee on Government Reform and Oversight


A BILL

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.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) SHORT TITLE- This Act may be cited as the ‘District of Columbia Financial Responsibility and Management Assistance Act of 1995’.

    (b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

      Sec. 1. Short title; table of contents.

      Sec. 2. Findings; purpose.

TITLE I--ESTABLISHMENT AND ORGANIZATION OF AUTHORITY

      Sec. 101. District of Columbia Financial Responsibility and Management Assistance Authority.

      Sec. 102. Executive director and staff of Authority.

      Sec. 103. Powers of Authority.

      Sec. 104. Exemption from liability for claims.

      Sec. 105. Treatment of actions arising from act.

      Sec. 106. Funding for operation of Authority.

      Sec. 107. Suspension of activities.

      Sec. 108. Application of laws of District of Columbia to Authority.

TITLE II--RESPONSIBILITIES OF AUTHORITY

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

      Sec. 201. Development of financial plan and budget for District of Columbia.

      Sec. 202. Process for submission and approval of financial plan and annual District budget.

      Sec. 203. Review of activities of District government to ensure compliance with approved financial plan and budget.

      Sec. 204. Restrictions on borrowing by District during control year.

‘Sec. 601. Transitional provision for short-term advances.

‘Sec. 602. Short-term advances for seasonal cash-flow management.

‘Sec. 603. Security for advances.

‘Sec. 604. Reimbursement to the Treasury.

‘Sec. 605. Definitions.

      Sec. 205. Deposit of annual Federal payment with Authority.

      Sec. 206. Effect of finding of non-compliance with financial plan and budget.

      Sec. 207. Recommendations on financial stability and management responsibility.

      Sec. 208. Special rules for fiscal year 1996.

      Sec. 209. Control periods described.

Subtitle B--Issuance of Bonds

      Sec. 211. Authority to issue bonds.

      Sec. 212. Pledge of security interest in revenues of district government.

      Sec. 213. Establishment of debt service reserve fund.

      Sec. 214. Other requirements for issuance of bonds.

      Sec. 215. No full faith and credit of the United States.

Subtitle C--Other Duties of Authority

      Sec. 221. Duties of Authority during year other than control year.

      Sec. 222. General assistance in achieving financial stability and management efficiency.

      Sec. 223. Obtaining reports.

      Sec. 224. Reports and comments.

TITLE III--MISCELLANEOUS PROVISIONS

      Sec. 301. Other District budget reforms.

      Sec. 302. Establishment of Chief Financial Officer of District of Columbia.

      Sec. 303. Revisions to powers and duties of Inspector General of District of Columbia.

      Sec. 304. Council approval of certain contracts.

      Sec. 305. Definitions.

SEC. 2. FINDINGS; PURPOSE.

    (a) FINDINGS- Congress finds the following:

      (1) A combination of accumulated operating deficits, cash shortages, management inefficiencies, and deficit spending in the current fiscal year have created a fiscal emergency in the District of Columbia.

      (2) As a result of its current financial problems and management inefficiencies, the District of Columbia government fails to provide its citizens with effective and efficient services in areas such as education, health care, crime prevention, trash collection, drug abuse treatment and prevention, human services delivery, and the supervision and training of government personnel.

      (3) The current financial and management problems of the District government have already adversely affected the long-term economic health of the District of Columbia by causing the migration of residents and business out of the District of Columbia and the failure of new residents and businesses to move to the District of Columbia.

      (4) The fiscal and management problems in the District of Columbia government are pervasive across all segments of the government.

      (5) A comprehensive approach to fiscal, management, and structural problems must be undertaken which exempts no part of the District government and which preserves home rule for the citizens of the District of Columbia.

      (6) The current deficit of the District of Columbia must be resolved over a multi-year period, since it cannot be effectively addressed in a single year.

      (7) The ability of the District government to obtain funds from capital markets in the future will be severely diminished without Congressional action to restore its financial stability.

      (8) The failure to improve the financial situation of the District government will adversely affect the long-term economic health of the entire National Capital region.

      (9) The efficient operation of the Federal Government may be adversely affected by the current problems of the District of Columbia not only through the services the District government provides directly to the Federal Government but through services provided indirectly such as street and traffic flow maintenance, public safety, and services affecting tourism.

    (b) PURPOSE- The purposes of this Act are as follows:

      (1) To eliminate budget deficits and cash shortages of the District of Columbia through visionary financial planning, sound budgeting, accurate revenue forecasts, and careful spending.

      (2) To ensure the most efficient and effective delivery of services, including public safety services, by the District government during a period of fiscal emergency.

      (3) To conduct necessary investigations and studies to determine the fiscal status and operational efficiency of the District government.

      (4) To assist the District government in--

        (A) restructuring its organization and workforce to ensure that the residents of the District of Columbia are served by a local government that is efficient and effective;

        (B) achieving an appropriate relationship with the Federal Government;

        (C) ensuring the appropriate and efficient delivery of services; and

        (D) modernizing its budget, accounting, personnel, procurement, information technology, and management systems to ensure the maximum financial and performance accountability of the District government and its officers and employees.

      (5) To enhance the District government’s access to the capital markets and to ensure the continued orderly payment of its debt service obligations.

      (6) To ensure the long-term financial, fiscal, and economic vitality and operational efficiency of the District of Columbia.

      (7) To examine the programmatic and structural relationship between the District government and the Federal Government.

      (8) To provide for the review of the financial impact of activities of the District government before such activities are implemented or submitted for Congressional review.

    (c) RULES OF CONSTRUCTION- Nothing in this Act may be construed--

      (1) to relieve any obligations existing as of the date of the enactment of this Act of the District government to repay any individual or entity from whom the District has borrowed funds, whether through the issuance of bonds or otherwise; or

      (2) to limit the authority of Congress to exercise ultimate legislative authority over the District of Columbia pursuant to Article I, section 8, clause 17 of the Constitution of the United States.

TITLE I--ESTABLISHMENT AND ORGANIZATION OF AUTHORITY