H.R. 2607 (105th): District of Columbia Appropriations, Medical Liability Reform, and Education Reform Act of 1998

105th Congress, 1997–1998. Text as of Oct 09, 1997 (Placed on Calendar in the Senate).

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HR 2607 PCS

Calendar No. 213

105th CONGRESS

1st Session

H. R. 2607

IN THE SENATE OF THE UNITED STATES

October 9, 1997

Received; read twice and placed on the calendar


AN ACT

Making appropriations for the government of the District of Columbia and other activities chargeable in whole or in part against the revenues of said District for the fiscal year ending September 30, 1998, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the District of Columbia for the fiscal year ending September 30, 1998, and for other purposes, namely:

TITLE I--FISCAL YEAR 1998 APPROPRIATIONS

FEDERAL FUNDS

Federal Contribution to the Operations of the Nation’s Capital

    For a Federal contribution to the District of Columbia towards the costs of the operation of the government of the District of Columbia, $180,000,000; as authorized by section 11601 of the National Capital Revitalization and Self-Government Improvement Act of 1997, Public Law 105-33.

Office of the Inspector General

    For the Office of the Inspector General, $2,000,000, to prevent and detect fraud, waste, and abuse in the programs and operations of all functions, activities, and entities within the government of the District of Columbia.

Metropolitan Police Department

    For the Metropolitan Police Department, $5,400,000, for a 5 percent pay increase for sworn officers who perform primarily nonadministrative public safety services and are certified by the Chief of Police as having met certain minimum standards referred to in section 148 of this Act.

Fire and Emergency Medical Services Department

    For the Fire and Emergency Medical Services Department, $2,600,000, for a 5 percent pay increase for uniformed fire fighters.

Federal Contribution to Public Schools

    For the public schools of the District of Columbia, $1,000,000, which shall be paid to the District Education and Learning Technologies Advancement (DELTA) Council established by section 2604 of the District of Columbia School Reform Act of 1995, Public Law 104-134, within 10 days of the effective date of the appointment of a majority of the Council’s members.

Federal Payment to the District of Columbia Corrections Trustee Operations

    For payment to the District of Columbia Corrections Trustee for the administration and operation of correctional facilities, $169,000,000, as authorized by the National Capital Revitalization and Self-Government Improvement Act of 1997, Public Law 105-33.

Payment to the District of Columbia Corrections Trustee for Correctional Facilities, Construction and Repair

    For payment to the District of Columbia Corrections Trustee for Correctional Facilities, $302,000,000, to remain available until expended, of which not less than $294,900,000 is available for transfer to the Federal Prison System, as authorized by section 11202 of the National Capital Revitalization and Self-Government Improvement Act of 1997; and $7,100,000 shall be for security improvements and repairs at the Lorton Correctional Complex.

Executive Office of the President

FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA

CRIMINAL JUSTICE SYSTEM

(INCLUDING TRANSFER OF FUNDS)

    Pursuant to the National Capital Revitalization and Self-Government Improvement Act of 1997 (Public Law 105-33) $146,000,000 for the Office of Management and Budget, of which: (1) not to exceed $121,000,000 shall be transferred to the Joint Committee on Judicial Administration in the District of Columbia for operation of the District of Columbia Courts; (2) not to exceed $2,000,000 shall be transferred to the District of Columbia Truth in Sentencing Commission to implement section 11211 of the National Capital Revitalization and Self-Government Improvement Act of 1997; (3) not to exceed $22,200,000 shall be transferred to the Pretrial Services, Defense Services, Parole, Adult Probation, and Offender Supervision Trustee for expenses relating to pretrial services, defense services, parole, adult probation and offender supervision in the District of Columbia, and for operating expenses of the Trustee; and (4) not to exceed $800,000 shall be transferred to the United States Parole Commission to implement section 11231 of the National Capital Revitalization and Self-Government Improvement Act of 1997.

United States Park Police

    For payment to the United States Park Police for policing services performed within the District of Columbia, $12,500,000.

Federal Contribution to the District of

Columbia Scholarship Fund

    For the District of Columbia Scholarship Fund, $7,000,000, as authorized by section 342 of this Act for scholarships to students of low-income families in the District of Columbia to enable them to have educational choice.

Division of Expenses

    The following amounts are appropriated for the District of Columbia for the current fiscal year out of the general fund of the District of Columbia, except as otherwise specifically provided.

District of Columbia Taxpayers Relief Fund

    For the District of Columbia Taxpayers Relief Fund, an amount equal to the difference between the amount of District of Columbia local revenues provided under this Act and the actual amount of District of Columbia local revenues generated during fiscal year 1998 (as determined and certified by the Chief Financial Officer of the District of Columbia): Provided, That such amount shall be deposited into an escrow account held by the District of Columbia Financial Responsibility and Management Assistance Authority, which shall allocate the funds to the Mayor, or such other District official as the Authority may deem appropriate, in amounts and in a manner consistent with the requirements of this Act: Provided further, That these funds shall only be used to offset reductions in District of Columbia local revenues as a result of reductions in District of Columbia taxes or fees enacted by the Council of the District of Columbia (based upon the recommendations of the District of Columbia Tax Revision Commission and the Business Regulatory Reform Commission) and effective no later than October 1, 1998.

District of Columbia Deficit Reduction Fund

    For the District of Columbia Deficit Reduction Fund, $200,000,000, to be deposited into an escrow account held by the District of Columbia Financial Responsibility and Management Assistance Authority, which shall allocate the funds to the Mayor, or such other District official as the Authority may deem appropriate, at such intervals and in accordance with such terms and conditions as the Authority considers appropriate: Provided, That an additional amount shall be deposited into the Fund each month equal to the amount saved by the District of Columbia during the previous month as a result of cost-saving initiatives of the Mayor of the District of Columbia (described in the fiscal year 1998 budget submission of June 1997), as determined and certified by the Chief Financial Officer of the District of Columbia: Provided further, That the District government shall make every effort to implement such cost-saving initiatives so that the total amount saved by the District of Columbia during all months of fiscal year 1998 as a result of such initiatives is equal to or greater than $100,000,000: Provided further, That the Chief Financial Officer shall submit a report to Congress not later than January 1, 1998, on a timetable for the implementation of such initiatives under which all such initiatives shall be implemented by not later than September 30, 1998: Provided further, That amounts in the Fund shall only be used for reduction of the accumulated general fund deficit existing as of September 30, 1997.

Governmental Direction and Support

    Governmental direction and support, $119,177,000 and 1,479 full-time equivalent positions (including $98,316,000, and 1,400 full-time equivalent positions from local funds, $14,013,000 and 9 full-time equivalent positions from Federal funds, and $6,848,000 and 70 full-time equivalent positions from other funds): Provided, That not to exceed $2,500 for the Mayor, $2,500 for the Chairman of the Council of the District of Columbia, and $2,500 for the City Administrator shall be available from this appropriation for official purposes: Provided further, That any program fees collected from the issuance of debt shall be available for the payment of expenses of the debt management program of the District of Columbia: Provided further, That no revenues from Federal sources shall be used to support the operations or activities of the Statehood Commission and Statehood Compact Commission: Provided further, That the District of Columbia shall identify the sources of funding for Admission to Statehood from its own locally-generated revenues: Provided further, That $240,000 shall be available for citywide special elections: Provided further, That all employees permanently assigned to work in the Office of the Mayor shall be paid from funds allocated to the Office of the Mayor.

Economic Development and Regulation

    Economic development and regulation, $120,072,000 and 1,283 full-time equivalent positions (including $40,377,000 and 561 full-time equivalent positions from local funds, $42,065,000 and 526 full-time equivalent positions from Federal funds, and $25,630,000 and 196 full-time equivalent positions from other funds and $12,000,000 collected in the form of Business Improvement Districts tax revenue collected by the District of Columbia on behalf of business improvement districts pursuant to the Business Improvement Districts Act of 1996, effective May 29, 1996 (D.C. Law 11-134; D.C. Code, sec. 1-2271 et seq.) and the Business Improvement Districts Temporary Amendment Act of 1997 (Bill 12-230).

Public Safety and Justice

    Public safety and justice, including purchase of 135 passenger-carrying vehicles for replacement only, including 130 for police-type use and five for fire-type use, without regard to the general purchase price limitation for the current fiscal year, $502,970,000 and 9,719 full-time equivalent positions (including $483,557,000 and 9,642 full-time equivalent positions from local funds, $13,519,000 and 73 full-time equivalent positions from Federal funds, and $5,894,000 and 4 full-time equivalent positions from other funds): Provided, That the Metropolitan Police Department is authorized to replace not to exceed 25 passenger-carrying vehicles and the Department of Fire and Emergency Medical Services of the District of Columbia is authorized to replace not to exceed five passenger-carrying vehicles annually whenever the cost of repair to any damaged vehicle exceeds three-fourths of the cost of the replacement: Provided further, That not to exceed $500,000 shall be available from this appropriation for the Chief of Police for the prevention and detection of crime: Provided further, That the Metropolitan Police Department shall provide quarterly reports to the Committees on Appropriations of the House and Senate on efforts to increase efficiency and improve the professionalism in the department: Provided further, That notwithstanding any other provision of law, or Mayor’s Order 86-45, issued March 18, 1986, the Metropolitan Police Department’s delegated small purchase authority shall be $500,000: Provided further, That the District of Columbia government may not require the Metropolitan Police Department to submit to any other procurement review process, or to obtain the approval of or be restricted in any manner by any official or employee of the District of Columbia government, for purchases that do not exceed $500,000: Provided further, That the District of Columbia Fire Department shall provide quarterly reports to the Committees on Appropriations of the House and Senate on efforts to increase efficiency and improve the professionalism in the department: Provided further, That notwithstanding any other provision of law, or Mayor’s Order 86-45, issued March 18, 1986, the District of Columbia Fire Department’s delegated small purchase authority shall be $500,000: Provided further, That the District of Columbia government may not require the District of Columbia Fire Department to submit to any other procurement review or contract approval process, or to obtain the approval of or be restricted in any manner by any official or employee of the District of Columbia government, for purchases that do not exceed $500,000: Provided further, That the Mayor shall reimburse the District of Columbia National Guard for expenses incurred in connection with services that are performed in emergencies by the National Guard in a militia status and are requested by the Mayor, in amounts that shall be jointly determined and certified as due and payable for these services by the Mayor and the Commanding General of the District of Columbia National Guard: Provided further, That such sums as may be necessary for reimbursement to the District of Columbia National Guard under the preceding proviso shall be available from this appropriation, and the availability of the sums shall be deemed as constituting payment in advance for emergency services involved: Provided further, That the Metropolitan Police Department is authorized to maintain 3,800 sworn officers, with leave for a 50 officer attrition: Provided further, That no more than 15 members of the Metropolitan Police Department shall be detailed or assigned to the Executive Protection Unit, until the Chief of Police submits a recommendation to the Council for its review: Provided further, That $100,000 shall be available for inmates released on medical and geriatric parole: Provided further, That not less than $2,254,754 shall be available to support a pay raise for uniformed firefighters, when authorized by the District of Columbia Council and the District of Columbia Financial Responsibility and Management Assistance Authority, which funding will be made available as savings are achieved through actions within the appropriated budget: Provided further, That funds appropriated for expenses under the District of Columbia Criminal Justice Act, approved September 3, 1974 (88 Stat. 1090; Public Law 93-412; D.C. Code, sec. 11-2601 et seq.), for the fiscal year ending September 30, 1998, shall be available for obligations incurred under the Act in each fiscal year since inception in fiscal year 1975: Provided further, That funds appropriated for expenses under the District of Columbia Neglect Representation Equity Act of 1984, effective March 13, 1985 (D.C. Law 5-129; D.C. Code, Sec. 16-2304), for the fiscal year ending September 30, 1998, shall be available for obligations incurred under the Act in each fiscal year since inception in fiscal year 1985: Provided further, That funds appropriated for expenses under the District of Columbia Guardianship, Protective Proceedings, and Durable Power of Attorney Act of 1986, effective February 27, 1987 (D.C. Law 6-204; D.C. Code, sec. 21-2060), for the fiscal year ending September 30, 1998, shall be available for obligations incurred under the Act in each fiscal year since inception in fiscal year 1989: Provided further, That not to exceed $1,500 for the Chief Judge of the District of Columbia Court of Appeals, $1,500 for the Chief Judge of the Superior Court of the District of Columbia, and $1,500 for the Executive Officer of the District of Columbia Courts shall be available from this appropriation for official purposes.

Public Education System

    Public education system, including the development of national defense education programs, $673,444,000 and 11,314 full-time equivalent positions (including $531,197,000 and 9,595 full-time equivalent positions from local funds, $112,806,000 and 1,424 full-time equivalent positions from Federal funds, and $29,441,000 and 295 full-time equivalent positions from other funds), to be allocated as follows: $560,114,000 and 9,979 full-time equivalent positions (including $456,128,000 and 8,623 full-time equivalent positions from local funds, $98,491,000 and 1,251 full-time equivalent positions from Federal funds, and $5,495,000 and 105 full-time equivalent positions from other funds), for the public schools of the District of Columbia; $5,250,000 (including $300,000 for the Public Charter School Board) from local funds for public charter schools: Provided, That if the entirety of this allocation has not been provided as payments to one or more public charter schools by May 15, 1998, and remains unallocated, the funds will revert to the general fund of the District of Columbia in accordance with section 2403(a)(2)(D) of the District of Columbia School Reform Act of 1995 (Public Law 104-134); $8,900,000 from local funds for the District of Columbia Teachers’ Retirement Fund; $1,000,000 from local funds for the District Education and Learning Technologies Advancement (DELTA) Council to be paid to the Council within 10 days of the effective date of the appointment of a majority of the Council’s members; $70,687,000 and 872 full-time equivalent positions (including $37,126,000 and 562 full-time equivalent positions from local funds, $12,804,000 and 156 full-time equivalent positions from Federal funds, and $20,757,000 and 154 full-time equivalent positions from other funds) for the University of the District of Columbia (excluding the U.D.C. School of Law); $3,400,000 and 45 full-time equivalent positions (including $665,000 and 10 full-time equivalent positions from local funds and $2,735,000 and 35 full-time equivalent positions from other funds) for the U.D.C. School of Law; $22,036,000 and 409 full-time equivalent positions (including $20,424,000 and 398 full-time equivalent positions from local funds, $1,158,000 and 10 full-time equivalent positions from Federal funds, and $454,000 and 1 full-time equivalent position from other funds) for the Public Library; $2,057,000 and 9 full-time equivalent positions (including $1,704,000 and 2 full-time equivalent positions from local funds and $353,000 and 7 full-time equivalent positions from Federal funds) for the Commission on the Arts and Humanities: Provided, That the public schools of the District of Columbia are authorized to accept not to exceed 31 motor vehicles for exclusive use in the driver education program: Provided further, That not to exceed $2,500 for the Superintendent of Schools, $2,500 for the President of the University of the District of Columbia, and $2,000 for the Public Librarian shall be available from this appropriation for official purposes: Provided further, That not less than $1,200,000 shall be available for local school allotments in a restricted line item: Provided further, That not less than $4,500,000 shall be available to support kindergarten aides in a restricted line item: Provided further, That not less than $2,800,000 shall be available to support substitute teachers in a restricted line item: Provided further, That not less than $1,788,000 shall be available in a restricted line item for school counselors: Provided further, That this appropriation shall not be available to subsidize the education of nonresidents of the District of Columbia at the University of the District of Columbia, unless the Board of Trustees of the University of the District of Columbia adopts, for the fiscal year ending September 30, 1998, a tuition rate schedule that will establish the tuition rate for nonresident students at a level no lower than the nonresident tuition rate charged at comparable public institutions of higher education in the metropolitan area: Provided further, That not less than $584,000 shall be available to support high school dropout prevention programs: Provided further, That not less than $295,000 shall be available for youth leadership and conflict resolution programs: Provided further, That not less than $10,000,000 shall be available to support a pay raise for principals and assistant principals of the District of Columbia Public Schools, and for teachers of the Schools with valid teaching credentials who are primarily engaged in classroom instruction during the SY 1997-1998: Provided further, That not less than $250,000 shall be available to support Truancy Prevention Programs: Provided further, That by the end of fiscal year 1998, the District of Columbia Schools shall designate at least 2 or more District of Columbia Public School buildings as ‘Community Hubs’ which, in addition to serving as educational facilities, shall serve as multi-purpose centers that provide opportunities to integrate support services and enable inter-generational users to meet the lifelong learning needs of community residents, and may support the following activities: before and after school care; counseling; tutoring; vocational and career training; art and sports programs; housing assistance; family literacy; health and nutrition programs; parent education; employment assistance; adult education; and access to state-of-the art technology.

Human Support Services

    Human support services, $1,718,939,000 and 6,096 full-time equivalent positions (including $789,350,000 and 3,583 full-time equivalent positions from local funds, $886,702,000 and 2,444 full-time equivalent positions from Federal funds, and $42,887,000 and 69 full-time equivalent positions from other funds): Provided, That $21,089,000 of this appropriation, to remain available until expended, shall be available solely for District of Columbia employees’ disability compensation: Provided further, That a Peer Review Committee shall be established to review medical payments and the type of service received by a disability compensation claimant: Provided further, That the District of Columbia shall not provide free government services such as water, sewer, solid waste disposal or collection, utilities, maintenance, repairs, or similar services to any legally constituted private nonprofit organization (as defined in section 411(5) of Public Law 100-77, approved July 22, 1987) providing emergency shelter services in the District, if the District would not be qualified to receive reimbursement pursuant to the Stewart B. McKinney Homeless Assistance Act, approved July 22, 1987 (101 Stat. 485; Public Law 100-77; 42 U.S.C. 11301 et seq.).

Public Works

    Public works, including rental of one passenger-carrying vehicle for use by the Mayor and three passenger-carrying vehicles for use by the Council of the District of Columbia and leasing of passenger-carrying vehicles $241,934,000 and 1,292 full-time equivalent positions (including $227,983,000 and 1,162 full-time equivalent positions from local funds, $3,350,000 and 51 full-time equivalent positions from Federal funds, and $10,601,000 and 79 full-time equivalent positions from other funds): Provided, That this appropriation shall not be available for collecting ashes or miscellaneous refuse from hotels and places of business: Provided further, That $3,000,000 shall be available for the lease financing, operation, and maintenance of two mechanical street sweepings, one flusher truck, 5 packer trucks, one front-end loader, and various public litter containers: Provided further, That $2,400,000 shall be available for recycling activities.

Washington Convention Center Fund Transfer Payment

    For payment to the Washington Convention Center Enterprise Fund, $5,400,000 from local funds.

Repayment of Loans and Interest

    For reimbursement to the United States of funds loaned in compliance with An Act to provide for the establishment of a modern, adequate, and efficient hospital center in the District of Columbia, approved August 7, 1946 (60 Stat. 896; Public Law 79-648); section 1 of An Act to authorize the Commissioners of the District of Columbia to borrow funds for capital improvement programs and to amend provisions of law relating to Federal Government participation in meeting costs of maintaining the Nation’s Capital City, approved June 6, 1958 (72 Stat. 183; Public Law 85-451; D.C. Code, sec. 9-219); section 4 of An Act to authorize the Commissioners of the District of Columbia to plan, construct, operate, and maintain a sanitary sewer to connect the Dulles International Airport with the District of Columbia system, approved June 12, 1960 (74 Stat. 211; Public Law 86-515); sections 723 and 743(f) of the District of Columbia Home Rule Act of 1973, approved December 24, 1973, as amended (87 Stat. 821; Public Law 93-198; D.C. Code, sec. 47-321, note; 91 Stat. 1156; Public Law 95-131; D.C. Code, sec. 9-219, note), including interest as required thereby, $366,976,000 from local funds.

Repayment of General Fund Recovery Debt

    For the purpose of eliminating the $331,589,000 general fund accumulated deficit as of September 30, 1990, $39,020,000 from local funds, as authorized by section 461(a) of the District of Columbia Home Rule Act, approved December 24, 1973, as amended (105 Stat. 540; Public Law 102-106; D.C. Code, sec. 47-321(a)(1)).

Payment of Interest on Short-Term Borrowing

    For payment of interest on short-term borrowing, $12,000,000 from local funds.

Certificates of Participation

    For lease payments in accordance with the Certificates of Participation involving the land site underlying the building located at One Judiciary Square, $7,923,000.

Human Resources Development

    For Human resources development, including costs of increased employee training, administrative reforms, and an executive compensation system, $6,000,000.

Management Reform and Productivity Fund

    For the Management Reform and Productivity Fund, $5,000,000, to improve management and service delivery in the District of Columbia.

Critical Improvements and Repairs to School Facilities and Streets

    For expenditures for immediate, one-time critical improvements and repairs to school facilities (including roof, boiler, and chiller renovation or replacement) and for neighborhood and other street repairs, to be completed not later than August 1, 1998, $30,000,000, to be derived from current local general fund operating revenues, to be expended on a pay-as-you-go basis.

District of Columbia Financial Responsibility and Management Assistance Authority

    For the District of Columbia Financial Responsibility and Management Assistance Authority, established by section 101(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995 (109 Stat. 97; Public Law 104-8), $3,220,000.

Water and Sewer Authority and the Washington Aqueduct

    For the Water and Sewer Authority and the Washington Aqueduct, $297,310,000 from other funds (including $263,425,000 for the Water and Sewer Authority and $33,885,000 for the Washington Aqueduct) of which $41,423,000 shall be apportioned and payable to the District’s debt service fund for repayment of loans and interest incurred for capital improvement projects.

Lottery and Charitable Games Enterprise Fund

    For the Lottery and Charitable Games Enterprise Fund, established by the District of Columbia Appropriation Act for the fiscal year ending September 30, 1982, approved December 4, 1981 (95 Stat. 1174, 1175; Public Law 97-91), as amended, for the purpose of implementing the Law to Legalize Lotteries, Daily Numbers Games, and Bingo and Raffles for Charitable Purposes in the District of Columbia, effective March 10, 1981 (D.C. Law 3-172; D.C. Code, secs. 2-2501 et seq. and 22-1516 et seq.), $213,500,000 and 100 full-time equivalent positions (including $7,850,000 and 100 full-time equivalent positions for administrative expenses and $205,650,000 for non-administrative expenses from revenue generated by the Lottery Board), to be derived from non-Federal District of Columbia revenues: Provided, That the District of Columbia shall identify the source of funding for this appropriation title from the District’s own locally-generated revenues: Provided further, That no revenues from Federal sources shall be used to support the operations or activities of the Lottery and Charitable Games Control Board.

Cable Television Enterprise Fund

    For the Cable Television Enterprise Fund, established by the Cable Television Communications Act of 1981, effective October 22, 1983 (D.C. Law 5-36; D.C. Code, sec. 43-1801 et seq.), $2,467,000 and 8 full-time equivalent positions (including $2,135,000 and 8 full-time equivalent positions from local funds and $332,000 from other funds).

Public Service Commission

    For the Public Service Commission, $4,547,000 (including $4,250,000 from local funds, $117,000 from Federal funds, and $180,000 from other funds).

Office of the People’s Counsel

    For the Office of the People’s Counsel, $2,428,000 from local funds.

Department of Insurance and Securities Regulation

    For the Department of Insurance and Securities Regulation, $5,683,000 and 89 full-time equivalent positions from other funds.

Office of Banking and Financial Institutions

    For the Office of Banking and Financial Institutions, $600,000 (including $100,000 from local funds and $500,000 from other funds).

Starplex Fund

    For the Starplex Fund, $5,936,000 from other funds for expenses incurred by the Armory Board in the exercise of its powers granted by An Act To Establish A District of Columbia Armory Board, and for other purposes, approved June 4, 1948 (62 Stat. 339; D.C. Code, sec. 2-301 et seq.) and the District of Columbia Stadium Act of 1957, approved September 7, 1957 (71 Stat. 619; Public Law 85-300; D.C. Code, sec. 2-321 et seq.): Provided, That the Mayor shall submit a budget for the Armory Board for the forthcoming fiscal year as required by section 442(b) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 824; Public Law 93-198; D.C. Code, sec. 47-301(b)).

D.C. General Hospital

    For the District of Columbia General Hospital, established by Reorganization Order No. 57 of the Board of Commissioners, effective August 15, 1953, $103,934,000 of which $44,335,000 shall be derived by transfer from the general fund and $59,599,000 shall be derived from other funds.

D.C. Retirement Board

    For the D.C. Retirement Board, established by section 121 of the District of Columbia Retirement Reform Act of 1979, approved November 17, 1979 (93 Stat. 866; D.C. Code, sec. 1-711), $4,898,000 and 8 full-time equivalent positions from the earnings of the applicable retirement funds to pay legal, management, investment, and other fees and administrative expenses of the District of Columbia Retirement Board: Provided, That the District of Columbia Retirement Board shall provide to the Congress and to the Council of the District of Columbia a quarterly report of the allocations of charges by fund and of expenditures of all funds: Provided further, That the District of Columbia Retirement Board shall provide the Mayor, for transmittal to the Council of the District of Columbia, an itemized accounting of the planned use of appropriated funds in time for each annual budget submission and the actual use of such funds in time for each annual audited financial report.

Correctional Industries Fund

    For the Correctional Industries Fund, established by the District of Columbia Correctional Industries Establishment Act, approved October 3, 1964 (78 Stat. 1000; Public Law 88-622), $3,332,000 and 50 full-time equivalent positions from other funds.

Washington Convention Center Enterprise Fund

    For the Washington Convention Center Enterprise Fund, $46,400,000 of which $5,400,000 shall be derived by transfer from the general fund.

Capital Outlay

    For construction projects, $269,330,000 (including $105,485,000 from local funds, $31,100,000 from the highway trust fund, and $132,745,000 in Federal funds), as authorized by An Act authorizing the laying of water mains and service sewers in the District of Columbia, the levying of assessments therefor, and for other purposes, approved April 22, 1904 (33 Stat. 244; Public Law 58-140; D.C. Code, secs. 43-1512 through 43-1519); the District of Columbia Public Works Act of 1954, approved May 18, 1954 (68 Stat. 101; Public Law 83-364); An Act to authorize the Commissioners of the District of Columbia to borrow funds for capital improvement programs and to amend provisions of law relating to Federal Government participation in meeting costs of maintaining the Nation’s Capital City, approved June 6, 1958 (72 Stat. 183; Public Law 85-451); including acquisition of sites, preparation of plans and specifications, conducting preliminary surveys, erection of structures, including building improvement and alteration and treatment of grounds, to remain available until expended: Provided, That funds for use of each capital project implementing agency shall be managed and controlled in accordance with all procedures and limitations established under the Financial Management System: Provided further, That all funds provided by this appropriation title shall be available only for the specific projects and purposes intended: Provided further, That notwithstanding the foregoing, all authorizations for capital outlay projects, except those projects covered by the first sentence of section 23(a) of the Federal-Aid Highway Act of 1968, approved August 23, 1968 (82 Stat. 827; Public Law 90-495; D.C. Code, sec. 7-134, note), for which funds are provided by this appropriation title, shall expire on September 30, 1999, except authorizations for projects as to which funds have been obligated in whole or in part prior to September 30, 1999: Provided further, That upon expiration of any such project authorization the funds provided herein for the project shall lapse: Provided further, That the District has approved projects to finance capital related items, such as vehicles and heavy equipment, through a master lease purchase program. The District will finance $13,052,000 of its equipment needs up to a 5 year-period. The fiscal year 1998 operating budget includes a total of $3,741,000 for the debt associated with the lease purchase.

General Provisions

    SEC. 101. The expenditure of any appropriation under this Act for any consulting service through procurement contract, pursuant to 5 U.S.C. 3109, shall be limited to those contracts where such expenditures are a matter of public record and available for public inspection, except where otherwise provided under existing law, or under existing Executive order issued pursuant to existing law.

    SEC. 102. Except as otherwise provided in this Act, all vouchers covering expenditures of appropriations contained in this Act shall be audited before payment by the designated certifying official and the vouchers as approved shall be paid by checks issued by the designated disbursing official.

    SEC. 103. Whenever in this Act, an amount is specified within an appropriation for particular purposes or objects of expenditure, such amount, unless otherwise specified, shall be considered as the maximum amount that may be expended for said purpose or object rather than an amount set apart exclusively therefor.

    SEC. 104. Appropriations in this Act shall be available, when authorized by the Mayor, for allowances for privately-owned automobiles and motorcycles used for the performance of official duties at rates established by the Mayor: Provided, That such rates shall not exceed the maximum prevailing rates for such vehicles as prescribed in the Federal Property Management Regulations 101-7 (Federal Travel Regulations).

    SEC. 105. Appropriations in this Act shall be available for expenses of travel and for the payment of dues of organizations concerned with the work of the District of Columbia government, when authorized by the Mayor: Provided, That the Council of the District of Columbia and the District of Columbia Courts may expend such funds without authorization by the Mayor.

    SEC. 106. There are appropriated from the applicable funds of the District of Columbia such sums as may be necessary for making refunds and for the payment of judgments that have been entered against the District of Columbia government: Provided, That nothing contained in this section shall be construed as modifying or affecting the provision of section 11(c)(3) of title XII of the District of Columbia Income and Franchise Tax Act of 1947, approved March 31, 1956 (70 Stat. 78; Public Law 84-460; D.C. Code, sec. 47-1812.11(c)(3)).

    SEC. 107. Appropriations in this Act shall be available for the payment of public assistance without reference to the requirement of section 544 of the District of Columbia Public Assistance Act of 1982, effective April 6, 1982 (D.C. Law 4-101; D.C. Code, sec. 3-205.44), and for the non-Federal share of funds necessary to qualify for Federal assistance under the Juvenile Delinquency Prevention and Control Act of 1968, approved July 31, 1968 (82 Stat. 462; Public Law 90-445; 42 U.S.C. 3801 et seq.).

    SEC. 108. No part of any appropriation contained in this Act shall remain available for obligation beyond the current fiscal year unless expressly so provided herein.

    SEC. 109. No funds appropriated in this Act for the District of Columbia government for the operation of educational institutions, the compensation of personnel, or for other educational purposes may be used to permit, encourage, facilitate, or further partisan political activities. Nothing herein is intended to prohibit the availability of school buildings for the use of any community or partisan political group during non-school hours.

    SEC. 110. None of the funds appropriated in this Act shall be made available to pay the salary of any employee of the District of Columbia government whose name, title, grade, salary, past work experience, and salary history are not available for inspection by the House and Senate Committees on Appropriations, the Subcommittee on the District of Columbia of the House Committee on Government Reform and Oversight, the Subcommittee on Oversight of Government Management and the District of Columbia of the Senate Committee on Governmental Affairs, and the Council of the District of Columbia, or their duly authorized representative.

    SEC. 111. There are appropriated from the applicable funds of the District of Columbia such sums as may be necessary for making payments authorized by the District of Columbia Revenue Recovery Act of 1977, effective September 23, 1977 (D.C. Law 2-20; D.C. Code, sec. 47-421 et seq.).

    SEC. 112. No part of this appropriation shall be used for publicity or propaganda purposes or implementation of any policy including boycott designed to support or defeat legislation pending before Congress or any State legislature.

    SEC. 113. At the start of the fiscal year, the Mayor shall develop an annual plan, by quarter and by project, for capital outlay borrowings: Provided, That within a reasonable time after the close of each quarter, the Mayor shall report to the Council of the District of Columbia and the Congress the actual borrowings and spending progress compared with projections.

    SEC. 114. The Mayor shall not borrow any funds for capital projects unless the Mayor has obtained prior approval from the Council of the District of Columbia, by resolution, identifying the projects and amounts to be financed with such borrowings.

    SEC. 115. The Mayor shall not expend any moneys borrowed for capital projects for the operating expenses of the District of Columbia government.

    SEC. 116. None of the funds appropriated by this Act may be obligated or expended by reprogramming except pursuant to advance approval of the reprogramming granted according to the procedure set forth in the Joint Explanatory Statement of the Committee of Conference (House Report No. 96-443), which accompanied the District of Columbia Appropriation Act, 1980, approved October 30, 1979 (93 Stat. 713; Public Law 96-93), as modified in House Report No. 98-265, and in accordance with the Reprogramming Policy Act of 1980, effective September 16, 1980 (D.C. Law 3-100; D.C. Code, sec. 47-361 et seq.): Provided, That for the fiscal year ending September 30, 1998 the above shall apply except as modified by Public Law 104-8.

    SEC. 117. None of the Federal funds provided in this Act shall be obligated or expended to provide a personal cook, chauffeur, or other personal servants to any officer or employee of the District of Columbia.

    SEC. 118. None of the Federal funds provided in this Act shall be obligated or expended to procure passenger automobiles as defined in the Automobile Fuel Efficiency Act of 1980, approved October 10, 1980 (94 Stat. 1824; Public Law 96-425; 15 U.S.C. 2001(2)), with an Environmental Protection Agency estimated miles per gallon average of less than 22 miles per gallon: Provided, That this section shall not apply to security, emergency rescue, or armored vehicles.

    SEC. 119. (a) Notwithstanding section 422(7) of the District of Columbia Home Rule Act of 1973, approved December 24, 1973 (87 Stat. 790; Public Law 93-198; D.C. Code, sec. 1-242(7)), the City Administrator shall be paid, during any fiscal year, a salary at a rate established by the Mayor, not to exceed the rate established for Level IV of the Executive Schedule under 5 U.S.C. 5315.

    (b) For purposes of applying any provision of law limiting the availability of funds for payment of salary or pay in any fiscal year, the highest rate of pay established by the Mayor under subsection (a) of this section for any position for any period during the last quarter of calendar year 1997 shall be deemed to be the rate of pay payable for that position for September 30, 1997.

    (c) Notwithstanding section 4(a) of the District of Columbia Redevelopment Act of 1945, approved August 2, 1946 (60 Stat. 793; Public Law 79-592; D.C. Code, sec. 5-803(a)), the Board of Directors of the District of Columbia Redevelopment Land Agency shall be paid, during any fiscal year, per diem compensation at a rate established by the Mayor.

    SEC. 120. Notwithstanding any other provisions of law, the provisions of the District of Columbia Government Comprehensive Merit Personnel Act of 1978, effective March 3, 1979 (D.C. Law 2-139; D.C. Code, sec. 1-601.1 et seq.), enacted pursuant to section 422(3) of the District of Columbia Home Rule Act of 1973, approved December 24, 1973 (87 Stat. 790; Public Law 93-198; D.C. Code, sec. 1-242(3)), shall apply with respect to the compensation of District of Columbia employees: Provided, That for pay purposes, employees of the District of Columbia government shall not be subject to the provisions of title 5, United States Code.

    SEC. 121. The Director of the Department of Administrative Services may pay rentals and repair, alter, and improve rented premises, without regard to the provisions of section 322 of the Economy Act of 1932 (Public Law 72-212; 40 U.S.C. 278a), based upon a determination by the Director, that by reason of circumstances set forth in such determination, the payment of these rents and the execution of this work, without reference to the limitations of section 322, is advantageous to the District in terms of economy, efficiency, and the District’s best interest.

    SEC. 122. No later than 30 days after the end of the first quarter of the fiscal year ending September 30, 1998, the Mayor of the District of Columbia shall submit to the Council of the District of Columbia the new fiscal year 1998 revenue estimates as of the end of the first quarter of fiscal year 1998. These estimates shall be used in the budget request for the fiscal year ending September 30, 1999. The officially revised estimates at midyear shall be used for the midyear report.

    SEC. 123. No sole source contract with the District of Columbia government or any agency thereof may be renewed or extended without opening that contract to the competitive bidding process as set forth in section 303 of the District of Columbia Procurement Practices Act of 1985, effective February 21, 1986 (D.C. Law 6-85; D.C. Code, sec. 1-1183.3), except that the District of Columbia Public Schools may renew or extend sole source contracts for which competition is not feasible or practical, provided that the determination as to whether to invoke the competitive bidding process has been made in accordance with duly promulgated Emergency Transitional Education Board of Trustees rules and procedures.

    SEC. 124. For purposes of the Balanced Budget and Emergency Deficit Control Act of 1985, approved December 12, 1985 (99 Stat. 1037; Public Law 99-177), as amended, the term ‘program, project, and activity’ shall be synonymous with and refer specifically to each account appropriating Federal funds in this Act, and any sequestration order shall be applied to each of the accounts rather than to the aggregate total of those accounts: Provided, That sequestration orders shall not be applied to any account that is specifically exempted from sequestration by the Balanced Budget and Emergency Deficit Control Act of 1985, approved December 12, 1985 (99 Stat. 1037; Public Law 99-177), as amended.

    SEC. 125. In the event a sequestration order is issued pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985, approved December 12, 1985 (99 Stat. 1037; Public Law 99-177), as amended, after the amounts appropriated to the District of Columbia for the fiscal year involved have been paid to the District of Columbia, the Mayor of the District of Columbia shall pay to the Secretary of the Treasury, within 15 days after receipt of a request therefor from the Secretary of the Treasury, such amounts as are sequestered by the order: Provided, That the sequestration percentage specified in the order shall be applied proportionately to each of the Federal appropriation accounts in this Act that are not specifically exempted from sequestration by the Balanced Budget and Emergency Deficit Control Act of 1985, approved December 12, 1985 (99 Stat. 1037; Public Law 99-177), as amended.

    SEC. 126. Nothing in this Act shall be construed to authorize any office, agency or entity to expend funds for programs or functions for which a reorganization plan is required but has not been approved by the Council pursuant to section 422(12) of the District of Columbia Home Rule Act of 1973, approved December 24, 1973 (87 Stat. 790; Public Law 93-198; D.C. Code, sec. 1-242(12)) and the Governmental Reorganization Procedures Act of 1981, effective October 17, 1981 (D.C. Law 4-42; D.C. Code, secs. 1-299.1 to 1-299.7). Appropriations made by this Act for such programs or functions are conditioned on the approval by the Council of the required reorganization plans.

    SEC. 127. (a) An entity of the District of Columbia government may accept and use a gift or donation during fiscal year 1998 if--

      (1) the Mayor approves the acceptance and use of the gift or donation: Provided, That the Council of the District of Columbia may accept and use gifts without prior approval by the Mayor; and

      (2) the entity uses the gift or donation to carry out its authorized functions or duties.

    (b) Each entity of the District of Columbia government shall keep accurate and detailed records of the acceptance and use of any gift or donation under subsection (a) of this section, and shall make such records available for audit and public inspection.

    (c) For the purposes of this section, the term ‘entity of the District of Columbia government’ includes an independent agency of the District of Columbia.

    (d) This section shall not apply to the District of Columbia Board of Education, which may, pursuant to the laws and regulations of the District of Columbia, accept and use gifts to the public schools without prior approval by the Mayor.

    SEC. 128. None of the Federal funds provided in this Act may be used by the District of Columbia to provide for salaries, expenses, or other costs associated with the offices of United States Senator or United States Representative under section 4(d) of the District of Columbia Statehood Constitutional Convention Initiatives of 1979, effective March 10, 1981 (D.C. Law 3-171; D.C. Code, sec. 1-113(d)).

PROHIBITION AGAINST USE OF FUNDS FOR ABORTIONS

    SEC. 129. None of the funds appropriated under this Act shall be expended for any abortion except where the life of the mother would be endangered if the fetus were carried to term or where the pregnancy is the result of an act of rape or incest.

PROHIBITION ON DOMESTIC PARTNERS ACT

    SEC. 130. None of the funds made available in this Act may be used to implement or enforce the Health Care Benefits Expansion Act of 1992 (D.C. Law 9-114; D.C. Code, sec. 36-1401 et seq.) or to otherwise implement or enforce any system of registration of unmarried, cohabiting couples (whether homosexual, heterosexual, or lesbian), including but not limited to registration for the purpose of extending employment, health, or governmental benefits to such couples on the same basis as such benefits are extended to legally married couples.

MONTHLY REPORTING REQUIREMENTS--PUBLIC SCHOOLS

    SEC. 131. The Emergency Transitional Education Board of Trustees shall submit to the Congress, the Mayor, the District of Columbia Financial Responsibility and Management Assistance Authority, and the Council of the District of Columbia no later than fifteen (15) calendar days after the end of each month a report that sets forth--

      (1) current month expenditures and obligations, year-to-date expenditures and obligations, and total fiscal year expenditure projections vs. budget broken out on the basis of control center, responsibility center, agency reporting code, and object class, and for all funds, including capital financing;

      (2) a list of each account for which spending is frozen and the amount of funds frozen, broken out by control center, responsibility center, detailed object, and agency reporting code, and for all funding sources;

      (3) a list of all active contracts in excess of $10,000 annually, which contains the name of each contractor; the budget to which the contract is charged broken out on the basis of control center, responsibility center, and agency reporting code; and contract identifying codes used by the D.C. Public Schools; payments made in the last month and year-to-date, the total amount of the contract and total payments made for the contract and any modifications, extensions, renewals; and specific modifications made to each contract in the last month;

      (4) all reprogramming requests and reports that are required to be, and have been, submitted to the Board of Education; and

      (5) changes made in the last month to the organizational structure of the D.C. Public Schools, displaying previous and current control centers and responsibility centers, the names of the organizational entities that have been changed, the name of the staff member supervising each entity affected, and the reasons for the structural change.

MONTHLY REPORTING REQUIREMENTS

UNIVERSITY OF THE DISTRICT OF COLUMBIA

    SEC. 132. The University of the District of Columbia shall submit to the Congress, the Mayor, the District of Columbia Financial Responsibility and Management Assistance Authority, and the Council of the District of Columbia no later than fifteen (15) calendar days after the end of each month a report that sets forth--

      (1) current month expenditures and obligations, year-to-date expenditures and obligations, and total fiscal year expenditure projections versus budget broken out on the basis of control center, responsibility center, and object class, and for all funds, non-appropriated funds, and capital financing;

      (2) a list of each account for which spending is frozen and the amount of funds frozen, broken out by control center, responsibility center, detailed object, and for all funding sources;

      (3) a list of all active contracts in excess of $10,000 annually, which contains the name of each contractor; the budget to which the contract is charged broken out on the basis of control center and responsibility center, and contract identifying codes used by the University of the District of Columbia; payments made in the last month and year-to-date, the total amount of the contract and total payments made for the contract and any modifications, extensions, renewals; and specific modifications made to each contract in the last month;

      (4) all reprogramming requests and reports that have been made by the University of the District of Columbia within the last month in compliance with applicable law; and

      (5) changes made in the last month to the organizational structure of the University of the District of Columbia, displaying previous and current control centers and responsibility centers, the names of the organizational entities that have been changed, the name of the staff member supervising each entity affected, and the reasons for the structural change.

ANNUAL REPORTING REQUIREMENTS

    SEC. 133. (a) IN GENERAL- The Emergency Transitional Education Board of Trustees of the District of Columbia and the University of the District of Columbia shall annually compile an accurate and verifiable report on the positions and employees in the public school system and the university, respectively. The annual report shall set forth--

      (1) the number of validated schedule A positions in the District of Columbia Public Schools and the University of the District of Columbia for fiscal year 1996, fiscal year 1997, and thereafter on a full-time equivalent basis, including a compilation of all positions by control center, responsibility center, funding source, position type, position title, pay plan, grade, and annual salary; and

      (2) a compilation of all employees in the District of Columbia Public Schools and the University of the District of Columbia as of the preceding December 31, verified as to its accuracy in accordance with the functions that each employee actually performs, by control center, responsibility center, agency reporting code, program (including funding source), activity, location for accounting purposes, job title, grade and classification, annual salary, and position control number.

    (b) SUBMISSION- The annual report required by subsection (a) of this section shall be submitted to the Congress, the Mayor, the District of Columbia Council, the Consensus Commission, and the Authority, not later than February 15 of each year.

ANNUAL BUDGETS AND BUDGET REVISIONS

    SEC. 134. (a) No later than October 1, 1997, or within 15 calendar days after the date of the enactment of the District of Columbia Appropriations Act, 1998, whichever occurs later, and each succeeding year, the Emergency Transitional Education Board of Trustees and the University of the District of Columbia shall submit to the appropriate congressional committees, the Mayor, the District of Columbia Council, the Consensus Commission, and the District of Columbia Financial Responsibility and Management Assistance Authority, a revised appropriated funds operating budget for the public school system and the University of the District of Columbia for such fiscal year that is in the total amount of the approved appropriation and that realigns budgeted data for personal services and other-than-personal services, respectively, with anticipated actual expenditures.

    (b) The revised budget required by subsection (a) of this section shall be submitted in the format of the budget that the Emergency Transitional Education Board of Trustees and the University of the District of Columbia submit to the Mayor of the District of Columbia for inclusion in the Mayor’s budget submission to the Council of the District of Columbia pursuant to section 442 of the District of Columbia Home Rule Act, Public Law 93-198, as amended (D.C. Code, sec. 47-301).

EDUCATIONAL BUDGET APPROVAL

    SEC. 135. The Emergency Transitional Education Board of Trustees, the Board of Trustees of the University of the District of Columbia, the Board of Library Trustees, and the Board of Governors of the D.C. School of Law shall vote on and approve their respective annual or revised budgets before submission to the Mayor of the District of Columbia for inclusion in the Mayor’s budget submission to the Council of the District of Columbia in accordance with section 442 of the District of Columbia Home Rule Act, Public Law 93-198, as amended (D.C. Code, sec. 47-301), or before submitting their respective budgets directly to the Council.

PUBLIC SCHOOL EMPLOYEE EVALUATIONS

    SEC. 136. Notwithstanding any other provision of law, rule, or regulation, the evaluation process and instruments for evaluating District of Columbia Public Schools employees shall be a non-negotiable item for collective bargaining purposes.

    SEC. 137. (a) Notwithstanding any other provision of law, rule, or regulation, an employee of the District of Columbia Public Schools shall be--

      (1) classified as an Educational Service employee;

      (2) placed under the personnel authority of the Board of Education; and

      (3) subject to all Board of Education rules.

    (b) School-based personnel shall constitute a separate competitive area from nonschool-based personnel who shall not compete with school-based personnel for retention purposes.

MISCELLANEOUS PROVISIONS RELATING TO DISTRICT OF COLUMBIA EMPLOYEES

    SEC. 138. (a) RESTRICTIONS ON USE OF OFFICIAL VEHICLES- (1) None of the funds made available by this Act or by any other Act may be used to provide any officer or employee of the District of Columbia with an official vehicle unless the officer or employee uses the vehicle only in the performance of the officer’s or employee’s official duties. For purposes of this paragraph, the term ‘official duties’ does not include travel between the officer’s or employee’s residence and workplace (except in the case of a police officer who resides in the District of Columbia).

    (2) The Chief Financial Officer of the District of Columbia shall submit, by December 15, 1997, an inventory, as of September 30, 1997, of all vehicles owned, leased or operated by the District of Columbia government. The inventory shall include, but not be limited to, the department to which the vehicle is assigned; the year and make of the vehicle; the acquisition date and cost; the general condition of the vehicle; annual operating and maintenance costs; current mileage; and whether the vehicle is allowed to be taken home by a District officer or employee and if so, the officer or employee’s title and resident location.

    (b) SOURCE OF PAYMENT FOR EMPLOYEES DETAILED WITHIN GOVERNMENT- For purposes of determining the amount of funds expended by any entity within the District of Columbia government during fiscal year 1998 and each succeeding fiscal year, any expenditures of the District government attributable to any officer or employee of the District government who provides services which are within the authority and jurisdiction of the entity (including any portion of the compensation paid to the officer or employee attributable to the time spent in providing such services) shall be treated as expenditures made from the entity’s budget, without regard to whether the officer or employee is assigned to the entity or otherwise treated as an officer or employee of the entity.

    (c) MODIFICATION OF REDUCTION IN FORCE PROCEDURES- The District of Columbia Government Comprehensive Merit Personnel Act of 1978 (D.C. Code, sec. 1-601.1 et seq.), as amended by section 140(b) of the District of Columbia Appropriations Act, 1997 (Public Law 104-194), is amended by adding at the end the following new section:

‘SEC. 2408. ABOLISHMENT OF POSITIONS FOR FISCAL YEAR 1998.

    ‘(a) Notwithstanding any other provision of law, regulation, or collective bargaining agreement either in effect or to be negotiated while this legislation is in effect for the fiscal year ending September 30, 1998, each agency head is authorized, within the agency head’s discretion, to identify positions for abolishment.

    ‘(b) Prior to February 1, 1998, each personnel authority (other than a personnel authority of an agency which is subject to a management reform plan under subtitle B of title XI of the Balanced Budget Act of 1997) shall make a final determination that a position within the personnel authority is to be abolished.

    ‘(c) Notwithstanding any rights or procedures established by any other provision of this title, any District government employee, regardless of date of hire, who encumbers a position identified for abolishment shall be separated without competition or assignment rights, except as provided in this section.

    ‘(d) An employee affected by the abolishment of a position pursuant to this section who, but for this section would be entitled to compete for retention, shall be entitled to one round of lateral competition pursuant to Chapter 24 of the District of Columbia Personnel Manual, which shall be limited to positions in the employee’s competitive level.

    ‘(e) Each employee who is a bona fide resident of the District of Columbia shall have added 5 years to his or her creditable service for reduction-in-force purposes. For purposes of this subsection only, a nonresident District employee who was hired by the District government prior to January 1, 1980, and has not had a break in service since that date, or a former employee of the United States Department of Health and Human Services at Saint Elizabeths Hospital who accepted employment with the District government on October 1, 1987, and has not had a break in service since that date, shall be considered a District resident.

    ‘(f) Each employee selected for separation pursuant to this section shall be given written notice of at least 30 days before the effective date of his or her separation.

    ‘(g) Neither the establishment of a competitive area smaller than an agency, nor the determination that a specific position is to be abolished, nor separation pursuant to this section shall be subject to review except that--

      ‘(1) an employee may file a complaint contesting a determination or a separation pursuant to title XV of this Act or section 303 of the Human Rights Act of 1977 (D.C. Code, sec. 1-2543); and

      ‘(2) an employee may file with the Office of Employee Appeals an appeal contesting that the separation procedures of subsections (d) and (f) were not properly applied.

    ‘(h) An employee separated pursuant to this section shall be entitled to severance pay in accordance with title XI of this Act, except that the following shall be included in computing creditable service for severance pay for employees separated pursuant to this section--

      ‘(1) four years for an employee who qualified for veterans preference under this Act, and

      ‘(2) three years for an employee who qualified for residency preference under this Act.

    ‘(i) Separation pursuant to this section shall not affect an employee’s rights under either the Agency Reemployment Priority Program or the Displaced Employee Program established pursuant to Chapter 24 of the District Personnel Manual.

    ‘(j) With respect to agencies which are not subject to a management reform plan under subtitle B of title XI of the Balanced Budget Act of 1997, the Mayor shall submit to the Council a listing of all positions to be abolished by agency and responsibility center by March 1, 1998 or upon the delivery of termination notices to individual employees.

    ‘(k) Notwithstanding the provisions of section 1708 or section 2402(d), the provisions of this Act shall not be deemed negotiable.

    ‘(l) A personnel authority shall cause a 30-day termination notice to be served, no later than September 1, 1998, on any incumbent employee remaining in any position identified to be abolished pursuant to subsection (b) of this section.

    ‘(m) In the case of an agency which is subject to a management reform plan under subtitle B of title XI of the Balanced Budget Act of 1997, the authority provided by this section shall be exercised to carry out the agency’s management reform plan, and this section shall otherwise be implemented solely in a manner consistent with such plan.’.

    (d) RESTRICTING PROVIDERS FROM WHOM EMPLOYEES MAY RECEIVE DISABILITY COMPENSATION SERVICES-

      (1) IN GENERAL- Section 2303(a) of the District of Columbia Comprehensive Merit Personnel Act of 1978 (D.C. Code, sec. 1-624.3(a)) is amended by striking paragraph (3) and all that follows and inserting the following:

      ‘(3) By or on the order of the District of Columbia government medical officers and hospitals, or by or on the order of a physician or managed care organization designated or approved by the Mayor.’.

      (2) SERVICES FURNISHED- Section 2303 of such Act (D.C. Code, sec. 1-624.3) is amended by adding at the end the following new subsection:

    ‘(c)(1) An employee to whom services, appliances, or supplies are furnished pursuant to subsection (a) shall be provided with such services, appliances, and supplies (including reasonable transportation incident thereto) by a managed care organization or other health care provider designated by the Mayor, in accordance with such rules, regulations, and instructions as the Mayor considers appropriate.

    ‘(2) Any expenses incurred as a result of furnishing services, appliances, or supplies which are authorized by the Mayor under paragraph (1) shall be paid from the Employees’ Compensation Fund.

    ‘(3) Any medical service provided pursuant to this subsection shall be subject to utilization review under section 2323.’.

      (3) REPEAL PENALTY FOR DELAYED PAYMENT OF COMPENSATION- Section 2324 of such Act (D.C. Code, sec. 1-624.24) is amended by striking subsection (c).

      (4) DEFINITIONS- Section 2301 of such Act (D.C. Code, sec. 1-624.1) is amended--

        (A) in the first sentence of subsection (c), by inserting ‘and as designated by the Mayor to provide services to injured employees’ after ‘State law’; and

        (B) by adding at the end the following new subsection:

    ‘(r)(1) The term ‘managed care organization’ means an organization of physicians and allied health professionals organized to and capable of providing systematic and comprehensive medical care and treatment of injured employees which is designated by the Mayor to provide such care and treatment under this title.

    ‘(2) The term ‘allied health professional’ means a medical care provider (including a nurse, physical therapist, laboratory technician, X-ray technician, social worker, or other provider who provides such care within the scope of practice under applicable law) who is employed by or affiliated with a managed care organization.’.

      (5) EFFECTIVE DATE- The amendments made by this subsection shall apply with respect to services, supplies, or appliances furnished under title XXIII of the District of Columbia Merit Personnel Act of 1978 on or after the date of the enactment of this Act.

    (e) APPLICATION OF BINDING ARBITRATION PROCEDURES UNDER NEW PERSONNEL RULES-

      (1) IN GENERAL- Section 11105(b)(3) of the Balanced Budget Act of 1997 is amended in the matter preceding subparagraph (A) by striking ‘pursuant’ and inserting ‘in accordance with binding arbitration procedures in effect under a collective bargaining agreement, or pursuant’.

      (2) EFFECTIVE DATE- The amendment made by paragraph (1) shall take effect as if included in the enactment of the Balanced Budget Act of 1997.

CEILING ON OPERATING EXPENSES AND DEFICIT

    SEC. 139. (a) CEILING ON TOTAL OPERATING EXPENSES-

      (1) IN GENERAL- Notwithstanding any other provision of law, the total amount appropriated in this Act for operating expenses for the District of Columbia for fiscal year 1998 under the caption ‘DIVISION OF EXPENSES’ may not exceed the lesser of--

        (A) the sum of the total revenues of the District of Columbia for such fiscal year less $192,741,000; or

        (B) $4,493,375,000 (excluding intra-District funds of $118,269,000) of which $2,655,232,000 is from local funds; $1,072,572,000 is from Federal grants; and $765,571,000 in private and other funds.

      (2) ENFORCEMENT- The Chief Financial Officer of the District of Columbia and the District of Columbia Financial Responsibility and Management Assistance Authority (hereafter in this section referred to as the ‘Authority’) shall take such steps as are necessary to assure that the District of Columbia meets the requirements of this section, including the apportioning or reprogramming by the Chief Financial Officer of the appropriations and funds made available to the District during fiscal year 1998, except that the Chief Financial Officer may not reprogram for operating expenses any funds derived from bonds, notes, or other obligations issued for capital projects.

    (b) ACCEPTANCE AND USE OF GRANTS NOT INCLUDED IN CEILING-

      (1) IN GENERAL- Notwithstanding subsection (a), the Mayor of the District of Columbia may accept, obligate, and expend Federal, private, and other grants received by the District government that are not reflected in the amounts appropriated in this Act.

      (2) REQUIREMENT OF CHIEF FINANCIAL OFFICER REPORT AND AUTHORITY APPROVAL- No such Federal, private, or other grant may be accepted, obligated, or expended pursuant to paragraph (1) until--

        (A) the Chief Financial Officer of the District submits to the Authority a report setting forth detailed information regarding such grant; and

        (B) the Authority has reviewed and approved the acceptance, obligation, and expenditure of such grant in accordance with review and approval procedures consistent with the provisions of the District of Columbia Financial Responsibility and Management Assistance Act of 1995.

      (3) PROHIBITION ON SPENDING IN ANTICIPATION OF APPROVAL OR RECEIPT- No amount may be obligated or expended from the general fund or other funds of the District government in anticipation of the approval or receipt of a grant under paragraph (2)(B) or in anticipation of the approval or receipt of a Federal, private, or other grant not subject to such paragraph.

      (4) MONTHLY REPORTS- The Chief Financial Officer of the District of Columbia shall prepare a monthly report setting forth detailed information regarding all Federal, private, and other grants subject to this subsection. Each such report shall be submitted to the Council of the District of Columbia, and to the Committees on Appropriations of the House of Representatives and the Senate, not later than 15 days after the end of the month covered by the report.

    (c) PROHIBITING USE OF NON-APPROPRIATED FUNDS BY CERTAIN ENTITIES-

      (1) IN GENERAL- Notwithstanding any other provision of law, the District of Columbia Financial Responsibility and Management Assistance Authority and the District of Columbia Water and Sewer Authority may not obligate or expend any funds during fiscal year 1998 or any succeeding fiscal year without approval by Act of Congress.

      (2) REPORT ON EXPENDITURES BY FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE AUTHORITY- Not later than November 15, 1997, the District of Columbia Financial Responsibility and Management Assistance Authority shall submit a report to the Committees on Appropriations of the House of Representatives and the Senate, the Committee on Government Reform and Oversight of the House, and the Committee on Governmental Affairs of the Senate providing an itemized accounting of all non-appropriated funds obligated or expended by the Authority at any time prior to October 1, 1997. The report shall include information on the date, amount, purpose, and vendor name, and a description of the services or goods provided with respect to the expenditures of such funds.

      (3) EFFECT OF EXPENDITURE OF NON-APPROPRIATED FUNDS- Any obligation of funds by any officer or employee of the District of Columbia government (including any member, officer or employee of the District of Columbia Financial Responsibility and Management Assistance Authority) in violation of the fourth sentence of section 446 of the District of Columbia Home Rule Act shall have no legal effect, and the officer or employee involved shall be removed from office and personally liable for any amounts owed as a result of such obligation.

POWERS AND DUTIES OF CHIEF FINANCIAL OFFICER

    SEC. 140. (a) CLARIFICATION OF AUTHORITY OVER FINANCIAL PERSONNEL-

      (1) IN GENERAL- Section 424(a) of the District of Columbia Home Rule Act (D.C. Code, sec. 47-317.1) is amended--

        (A) in paragraph (2), by striking ‘, who shall be appointed’ and all that follows through ‘direction and control’; and

        (B) by striking paragraph (4) and inserting the following:

      ‘(4) AUTHORITY OVER FINANCIAL PERSONNEL-

        ‘(A) IN GENERAL- Notwithstanding any other provision of law or regulation (including any law or regulation providing for collective bargaining or the enforcement of any collective bargaining agreement), the heads and all personnel of the offices described in subparagraph (B), together with all other District of Columbia accounting, budget, and financial management personnel (including personnel of independent agencies but not including personnel of the legislative or judicial branches of the District government) shall be appointed by, shall serve at the pleasure of, and shall act under the direction and control of the Chief Financial Officer, and shall be considered at-will employees not covered by the District of Columbia Government Comprehensive Merit Personnel Act of 1978.

        ‘(B) OFFICES DESCRIBED- The offices referred to in this subparagraph are as follows:

          ‘(i) The Office of the Treasurer (or any successor office).

          ‘(ii) The Controller of the District of Columbia (or any successor office).

          ‘(iii) The Office of the Budget (or any successor office).

          ‘(iv) The Office of Financial Information Services (or any successor office).

          ‘(v) The Department of Finance and Revenue (or any successor office).

          ‘(vi) During a control year, the District of Columbia Lottery and Charitable Games Control Board (or any successor office).

        ‘(C) REMOVAL OF PERSONNEL BY AUTHORITY- In addition to the power of the Chief Financial Officer to remove any of the personnel covered under this paragraph, the Authority may remove any such personnel for cause, after written consultation with the Mayor and the Chief Financial Officer.’.

      (2) CONFORMING AMENDMENTS- (A) Section 152(a) of the District of Columbia Appropriations Act, 1996 (Public Law 104-134; 110 Stat. 1321-102) is hereby repealed.

      (B) Section 142(a) of the District of Columbia Appropriations Act, 1997 (Public Law 104-194; 110 Stat. 2375) is hereby repealed.

      (3) EFFECTIVE DATE- The amendments made by this subsection shall take effect as if included in the enactment of the District of Columbia Appropriations Act, 1996, except that the amendment made by paragraph (2)(B) shall take effect as if included in the enactment of the District of Columbia Appropriations Act, 1997.

    (b) PERSONNEL AUTHORITY UNDER MANAGEMENT REFORM PLANS-

      (1) IN GENERAL- Section 11105(b) of the Balanced Budget Act of 1997 is amended--

        (A) in paragraph (1), by striking ‘paragraph (3)’ and inserting ‘paragraphs (3) and (4)’; and

        (B) by adding at the end the following new paragraph:

      ‘(4) EXCEPTION FOR PERSONNEL UNDER DIRECTION AND CONTROL OF CHIEF FINANCIAL OFFICER- This subsection shall not apply with respect to any personnel who are appointed by, serve at the pleasure of, and act under the direction and control of the Chief Financial Officer of the District of Columbia pursuant to section 424(a)(4) of the District of Columbia Home Rule Act.’.

      (2) EFFECTIVE DATE- The amendments made by paragraph (1) shall take effect as if included in the enactment of section 11105(b) of the Balanced Budget Act of 1997.

    (c) MONTHLY REPORTS ON REVENUES AND EXPENDITURES; INCLUSION OF INFORMATION ON ALL ENTITIES OF DISTRICT GOVERNMENT- Section 424(d) of the District of Columbia Home Rule Act (D.C. Code, sec. 47-317.4) is amended by adding at the end the following new paragraphs:

      ‘(8) Preparing monthly reports containing the following information (and submitting such reports to Congress, the Council, the Mayor, and the Authority not later than the 21st day of the month following the month covered by the report):

        ‘(A) The cash flow of the District government, including a statement of funds received and disbursed for all standard categories of revenues and expenses.

        ‘(B) The revenues and expenditures of the District government, including a comparison of the amounts projected for such revenues and expenditures in the annual budget for the fiscal year involved with actual revenues and expenditures during the month.

        ‘(C) The obligations of funds made by or on behalf of the District government, together with a statement of accounts payable and the disbursements paid towards such accounts during the month and during the fiscal year involved.

      ‘(9) Ensuring that any regular report on the status of the funds of the District government prepared by the Chief Financial Officer includes information on the funds of all entities within the District government (including funds in any accounts of the Authority and interest earned on such accounts).’.

    (d) CLARIFICATION OF GROUNDS FOR REMOVAL FROM OFFICE- Section 424(b)(2) of the District of Columbia Home Rule Act (D.C. Code, sec. 47-317.2(2)) is amended by adding at the end the following new subparagraph:

        ‘(C) CONSULTATION WITH CONGRESS- The Authority or the Mayor (whichever is applicable) may not remove the Chief Financial Officer under this paragraph unless the Authority or the Mayor (as the case may be) has consulted with Congress prior to the removal. Such consultation shall include at a minimum the submission of a written statement to the Committees on Appropriations of the Senate and the House of Representatives, the Committee on Government Reform and Oversight of the House of Representatives, and the Committee on Governmental Affairs of the Senate, explaining the factual circumstances involved.’.

POLICE AND FIRE FIGHTER DISABILITY RETIREMENTS

    SEC. 141. (a) DETERMINATIONS OF DISABILITY STATUS- Notwithstanding any other provisions of the District of Columbia Retirement Reform Act or any other law, rule, or regulation, for purposes of any retirement program of the District of Columbia for teachers, members of the Metropolitan Police Department, or members of the Fire Department, no individual may have disability status unless the determination of the individual’s disability status is made by a single entity designated by the District to make such determinations (or, if the determination is made by any other person, if such entity approves the determination).

    (b) ANALYSIS BY ENROLLED ACTUARY OF IMPACT OF DISABILITY RETIREMENTS- Not later than January 1, 1998, and every 6 months thereafter, the Mayor of the District of Columbia shall engage an enrolled actuary (to be paid by the District of Columbia Retirement Board) to provide an analysis of the actuarial impact of disability retirements occurring during the previous 6-month period on the police and fire fighter retirement programs of the District of Columbia.

    SEC. 142. (a) COMPLIANCE WITH BUY AMERICAN ACT- None of the funds made available in this Act may be expended by an entity unless the entity agrees that in expending the funds the entity will comply with the Buy American Act (41 U.S.C. 10a-10c).

    (b) Sense of Congress; Requirement Regarding Notice-

      (1) PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS- In the case of any equipment or product that may be authorized to be purchased with financial assistance provided using funds made available in this Act, it is the sense of the Congress that entities receiving the assistance should, in expending the assistance, purchase only American-made equipment and products to the greatest extent practicable.

      (2) NOTICE TO RECIPIENTS OF ASSISTANCE- In providing financial assistance using funds made available in this Act, the head of each agency of the Federal or District of Columbia government shall provide to each recipient of the assistance a notice describing the statement made in paragraph (1) by the Congress.

    (c) PROHIBITION OF CONTRACTS WITH PERSONS FALSELY LABELING PRODUCTS AS MADE IN AMERICA- If it has been finally determined by a court or Federal agency that any person intentionally affixed a label bearing a ‘Made in America’ inscription, or any inscription with the same meaning, to any product sold in or shipped to the United States that is not made in the United States, the person shall be ineligible to receive any contract or subcontract made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections 9.400 through 9.409 of title 48, Code of Federal Regulations.

BUDGETS OF DEPARTMENTS OR AGENCIES SUBJECT TO COURT-APPOINTED ADMINISTRATOR

    SEC. 143. If a department or agency of the government of the District of Columbia is under the administration of a court-appointed receiver or other court-appointed official during fiscal year 1998 or any succeeding fiscal year, the receiver or official shall prepare and submit to the Mayor, for inclusion in the annual budget of the District of Columbia for the year, annual estimates of the expenditures and appropriations necessary for the maintenance and operation of the department or agency. All such estimates shall be forwarded by the Mayor to the Council, for its action pursuant to sections 446 and 603(c) of the District of Columbia Home Rule Act, without revision but subject to the Mayor’s recommendations. Notwithstanding any provision of the District of Columbia Home Rule Act, the Council may comment or make recommendations concerning such annual estimates but shall have no authority under such Act to revise such estimates.

COMMENCING OF ADVERSE ACTIONS FOR POLICE

    SEC. 144. Section 1601(b-1) of the District of Columbia Government Comprehensive Merit Personnel Act of 1978, effective March 3, 1979 (D.C. Law 2-139; D.C. Code, sec. 1-617.1(b-1)), is amended as follows:

    (a) Paragraph (1) is amended by striking the phrase ‘Except as provided in paragraph (2)’ and inserting the phrase ‘Except as provided in paragraphs (2) and (3)’ in its place.

    (b) A new paragraph (3) is added to read as follows:

    ‘(3) Except as provided in paragraph (2) of this subsection, for members of the Metropolitan Police Department, no corrective or adverse action shall be commenced pursuant to this section more than 120 days, not including Saturdays, Sundays, or legal holidays, after the date that the agency knew or should have known of the act or occurrence allegedly constituting cause, as that term is defined in subsection (d) of this section.’.

NOTICE TO POLICE OFFICERS FOR OUT-OF-SERVICE

ASSIGNMENTS

    SEC. 145. (a) Notwithstanding any other provision of law or collective bargaining agreement, the Metropolitan Police Department shall change the advance notice that is required to be given to officers for out-of-schedule assignments from 28 days to 14 days.

    (b) No officer shall be entitled to overtime for out-of-regular schedule assignments if the Metropolitan Police Department provides the officer with notice of the change in assignment at least 14 days in advance.

    SEC. 146. Except as provided in this Act under the heading ‘DISTRICT OF COLUMBIA TAXPAYERS RELIEF FUND’, any unused surplus as of the end of the fiscal year shall be used to reduce the District’s outstanding accumulated deficit.

RETIREMENT PROGRAMS

    SEC. 147. (a) CAP ON STIPENDS OF RETIREMENT BOARD MEMBERS- Section 121(c)(1) of the District of Columbia Retirement Reform Act (D.C. Code, sec. 1-711(c)(1)) is amended by striking the period at the end and inserting the following: ‘, and the total amount to which a member may be entitled under this subsection during a year (beginning with 1998) may not exceed $5,000.’.

    (b) RESUMPTION OF CERTAIN TERMINATED ANNUITIES PAID TO CHILD SURVIVORS OF DISTRICT OF COLUMBIA POLICE AND FIREFIGHTERS-

      (1) IN GENERAL- Subsection (k)(5) of the Policemen and Firemen’s Retirement and Disability Act (D.C. Code, sec. 4-622(e)) is amended by adding at the end the following new subparagraph:

    ‘(D) If the annuity of a child under subparagraph (A) or subparagraph (B) terminates because of marriage and such marriage ends, the annuity shall resume on the first day of the month in which it ends, but only if the individual is not otherwise ineligible for the annuity.’.

      (2) EFFECTIVE DATE- The amendment made by paragraph (1) shall apply with respect to any termination of marriage taking effect on or after November 1, 1993, except that benefits shall be payable only with respect to amounts accruing for periods beginning on the first day of the month beginning after the later of such termination of marriage or such date of enactment.

PREMIUM PAY FOR CERTAIN POLICE OFFICERS

    SEC. 148. Effective for the first full pay period following the date of the enactment of this Act, the salary of any sworn officer of the Metropolitan Police Department shall be increased by 5 percent if--

      (1) the officer performs primarily nonadministrative public safety services; and

      (2) the officer is certified by the Chief of the Department as having met the minimum ‘Basic Certificate’ standards transmitted by the District of Columbia Financial Responsibility and Management Assistance Authority to Congress by letter dated May 19, 1997, or (if applicable) the minimum standards under any physical fitness and performance standards developed by the Department in consultation with the Authority.

PROHIBITING INCREASE IN WELFARE PAYMENTS

    SEC. 149. (a) IN GENERAL- The Council of the District of Columbia shall have no authority to enact any act, resolution, or rule during a fiscal year which increases the amount of payment which may be for any individual under the Temporary Assistance for Needy Families Program to an amount greater than the amount provided under such program under the District of Columbia Public Assistance Act of 1982, as in effect on the day after the effective date of the Public Assistance Temporary Amendment Act of 1997.

    (b) EFFECTIVE DATE- Subsection shall apply with respect to fiscal year 1998 and each succeeding fiscal year.

    SEC. 150. Effective as if included in the enactment of the Omnibus Consolidated Rescissions and Appropriations Act of 1996, section 517 of such Act (110 Stat. 1321-248) is amended by striking ‘October 1, 1991’ and inserting ‘the date of the enactment of this Act’.

LIENS OF WATER AND SEWER AUTHORITY

    SEC. 151. (a) REQUIRING IMPOSITION OF LIEN FOR UNPAID BILLS- The District of Columbia Water and Sewer Authority shall take action to impose a lien against each commercial property with respect to which any payment owed to the Authority is past due in an aggregate amount equal to or greater than $3,000, but only if the payment is past due for 120 or more consecutive days.

    (b) DISPOSITION OF LIENS THROUGH PRIVATE SOURCES- Beginning January 31, 1998, the District of Columbia Water and Sewer Authority shall dispose of all pending liens described in subsection (a) by assigning the right to collect under such liens to a private entity in exchange for a cash payment, or by issuing securities secured by such liens.

DEEMED APPROVAL OF CONTRACTS BY AUTHORITY

    SEC. 152. Section 203(b) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995 (D.C. Code, sec. 47-392.3(b)), as amended by section 5203(d) of the Omnibus Consolidated Appropriations Act, 1997 (Public Law 104-208; 110 Stat. 3009-1456), is amended--

      (1) by redesignating paragraph (5) as paragraph (6); and

      (2) by inserting after paragraph (4) the following new paragraph:

      ‘(5) DEEMED APPROVAL-

        ‘(A) IN GENERAL- If the Authority does not notify the Mayor (or the appropriate officer or agent of the District government) that it has determined that a contract or lease submitted under this subsection is consistent with the financial plan and budget or is not consistent with the financial plan and budget during the 30-day period (or, if the Authority meets the requirements of subparagraph (B), such alternative period as the Authority may elect, not to exceed 60 days) which begins on the first day after the Authority receives the contract or lease, the Authority shall be deemed to have determined that the contract or lease is consistent with the financial plan and budget.

        ‘(B) ELECTION OF LONGER PERIOD BY AUTHORITY- The Authority meets the requirements of this subparagraph if, prior to the expiration of the 30-day period described in subparagraph (A), the Authority provides a notice to the Mayor (or the appropriate officer or agent of the District government) and Congress which describes the period elected by the Authority, together with an explanation of the Authority’s decision to elect an alternative period.’.

FINANCIAL MANAGEMENT SYSTEM

    SEC. 153. (a) IN GENERAL- The Chief Financial Officer of the District of Columbia shall enter into a contract with a private entity under which the entity shall carry out the following activities (by contract or otherwise) on behalf of the District of Columbia:

      (1) In accordance with the requirements of subsection (b), the establishment and operation of an update of the present financial management system for the government of the District of Columbia by not later than June 30, 1998, to provide for the complete, accurate, and timely input and processing of financial data and the generation of reliable output reports for financial management purposes.

      (2) To execute a process in accordance with ‘best practice’ procedures of the information technology industry to determine the need, if any, of further improving the updated financial management system in subsection (a).

    (b) SPECIFICATIONS FOR SHORT-TERM FINANCIAL MANAGEMENT SYSTEM IMPROVEMENTS- For purposes of subsection (a)(1), the requirements of this subsection are as follows:

      (1) A qualified vendor, in accordance with Office of Management and Budget standards, shall update the District of Columbia government’s financial management system in use as of October 1, 1996.

      (2) An information technology vendor shall operate the financial data center environment of the District government to ensure that its equipment and operations are compatible with the updated financial management system.

      (3) A financial consulting vendor shall carry out an assessment of the District government employees who work with the financial management system, provide training in the operation of the updated system for those who are capable of effectively using the system, and provide recommendations to the Chief Financial Officer regarding those who are not capable of effectively using the system, including recommendations for reassignment or for separation from District government employment.

    (c) CERTIFICATION OF POLICIES AND PROCEDURES FOR ACQUISITION OF LONG-TERM FINANCIAL MANAGEMENT SYSTEM IMPROVEMENTS-

      (1) IN GENERAL- The Chief Financial Officer of the District of Columbia shall enter into a contract with a private entity under which the entity shall conduct an independent assessment to certify whether the District government (including the District of Columbia Financial Responsibility and Management Assistance Authority) has established and implemented policies and procedures that will result in a disciplined approach to the acquisition of a financial management system for the District government, including policies and procedures with respect to such items as--

        (A) software acquisition planning,

        (B) solicitation,

        (C) requirements, development, and management,

        (D) project office management,

        (E) contract tracking and oversight,

        (F) evaluation of products and services provided by the contractor, and

        (G) the method that will be used to carry out a successful transition to the delivered system by its users.

      (2) MODEL FOR ASSESSMENT- The independent assessment shall be performed based on the Software Acquisition Capability Maturity Model developed by the Software Engineering Institute or a comparable methodology.

      (3) REVIEW OF ASSESSMENT- A copy of the independent assessment shall be provided to the Comptroller General, the Director of the Office of Management and Budget, and the Inspector General of the District of Columbia, who shall review and prepare a report on the assessment.

    (d) RESTRICTIONS ON SPENDING FOR OTHER FINANCIAL MANAGEMENT SYSTEM PROCUREMENT AND DEVELOPMENT-

      (1) IN GENERAL- None of the funds made available under this or any other Act may be used to improve or replace the financial management system of the government of the District of Columbia (including the procuring of hardware and installation of new software, conversion, testing, and training) until the expiration of the 30-day period which begins on the date the Comptroller General, Director of the Office of Management and Budget, and Inspector General of the District of Columbia submit a report under subsection (c)(3) to the Committees on Appropriations of the House of Representatives and the Senate, the Committee on Governmental Reform and Oversight of the House of Representatives, and the Committee on Governmental Affairs of the Senate, which certifies that the District government has established and implemented the policies and procedures described in subsection (c)(1).

      (2) EXCEPTIONS- Paragraph (1) shall not apply to funds used to carry out subsection (a) or to carry out the contract described in subsection (c).

POWERS AND DUTIES OF INSPECTOR GENERAL

    SEC. 154. (a) CLARIFICATION OF AUTHORITY TO CONDUCT AUDITS-

      (1) EXCLUSIVE AUTHORITY TO CONTRACT FOR INDEPENDENT ANNUAL AUDIT- None of the funds made available under this Act or any other Act may be used to carry out any contract to conduct the annual audit of the complete financial statement and report of the activities of the District government for fiscal year 1997 or any succeeding fiscal year unless the contract is entered into by the Inspector General of the District of Columbia.

      (2) SCOPE OF AUDITS- Section 208(a) the District of Columbia Procurement Practices Act of 1985 (sec. 1-1182.8(a), D.C. Code) is amended by adding at the end the following new paragraph:

    ‘(5) The Inspector General may include in any audits conducted pursuant to this subsection (by contract or otherwise) of the activities of the District government such audits of the activities of the Authority as the Inspector General considers appropriate.’.

    (b) CLARIFICATION OF GROUNDS FOR REMOVAL FROM OFFICE- Section 208(a)(1) of such Act (sec. 1-1182.8(a)(1), D.C. Code), as amended by subsection (b), is further amended by adding at the end the following new subparagraph:

    ‘(G) The Authority or the Mayor (whichever is applicable) may not remove the Inspector General under this paragraph unless the Authority or the Mayor (as the case may be) has consulted with Congress prior to the removal. Such consultation shall include at a minimum the submission of a written statement to the Committees on Appropriations of the Senate and the House of Representatives, the Committee on Government Reform and Oversight of the House of Representatives, and the Committee on Governmental Affairs of the Senate, explaining the factual circumstances involved.’.

    (c) REQUIRING PLACEMENT OF INSPECTOR GENERAL HOTLINE ON PERMIT AND LICENSE APPLICATION FORMS-

      (1) IN GENERAL- Each District of Columbia permit or license application form printed after the expiration of the 30-day period which begins on the date of the enactment of this Act shall include the telephone number established by the Inspector General of the District of Columbia for reporting instances of waste, fraud, and abuse, together with a brief description of the uses and purposes of such number.

      (2) QUARTERLY REPORTS ON USE OF NUMBER- Not later than 10 days after the end of such calendar quarter of each fiscal year (beginning with fiscal year 1998), the Inspector General of the District of Columbia shall submit a report to Congress on the number and nature of the calls received through the telephone number described in paragraph (1) during the quarter and on the waste, fraud, and abuse detected as a result of such calls.

REQUIRING USE OF DIRECT DEPOSIT OR MAIL FOR ALL PAYMENTS

    SEC. 155. (a) IN GENERAL- Notwithstanding any other provision of law (including any law or regulation providing for collective bargaining or the enforcement of any collective bargaining agreement) or collective bargaining agreement, any payment made by the District of Columbia after the expiration of the 45-day period which begins on the date of the enactment of this Act to any person shall be made by--

      (1) direct deposit through electronic funds transfer to a checking, savings, or other account designated by the person; or

      (2) a check delivered through the United States Postal Service to the person’s place of residence or business.

    (b) REGULATIONS- The Chief Financial Officer of the District of Columbia is authorized to issue rules to carry out this section.

REVISION OF CERTAIN AUDITING REQUIREMENTS

    SEC. 156. (a) INFORMATION INCLUDED IN INDEPENDENT ANNUAL AUDIT- Effective with respect to fiscal year 1997 and each succeeding fiscal year, the independent annual audit of the government of the District of Columbia conducted for a fiscal year pursuant to section 4(a) of Public Law 94-399 (D.C. Code, sec. 47-119(a)) shall include the following information in the Comprehensive Annual Financial Report:

      (1) An audited budgetary statement comparing actual revenues and expenditures during the fiscal year with the amounts appropriated in the annual appropriations act for the entire District government and for each fund of the District government (and each appropriation account with each such fund as a supplemental schedule) for the fiscal year, together with the revenue projections on which the appropriations are based, to determine the surplus or deficit thereof.

      (2) An unaudited statement of monthly cash flows (on a fund-by-fund basis) showing projected and actual receipts and disbursements (with variances) by category.

      (3) A discussion and analysis of the financial condition and results of operations of the District government prepared by the independent auditor.

    (b) AUDIT OF FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE AUTHORITY-

      (1) IN GENERAL- Section 106 of the District of Columbia Financial Responsibility and Management Assistance Act of 1995 (D.C. Code, sec. 47-304.1), as amended by section 11711(a) of the Balanced Budget Act of 1997, is amended by adding at the end the following new subsection:

    ‘(e) ANNUAL FINANCIAL AUDIT-

      ‘(1) IN GENERAL- For each fiscal year (beginning with fiscal year 1997), the Authority shall enter into a contract, using annual appropriations to the Authority, with an auditor who is a certified public accountant licensed in the District of Columbia to conduct an audit of the Authority’s financial statements for the fiscal year, in accordance with generally accepted government auditing standards, and the financial statements shall be prepared in accordance with generally accepted accounting principles.

      ‘(2) CONTENTS- The auditor shall include in the audit conducted under this subsection the following information:

        ‘(A) An audited budgetary statement comparing gross actual revenues and expenditures of the Authority during the fiscal year with amounts appropriated, together with the revenue projections on which the appropriations are based, to determine the surplus or deficit thereof.

        ‘(B) An unaudited statement of monthly cash flows, showing projected and actual receipts and disbursements by category (with variances).

        ‘(C) A discussion and analysis of the financial condition and results of operations of the Authority prepared by the independent auditor.

      ‘(3) SUBMISSION- The Authority shall submit the audit reports and financial statements conducted under this subsection to Congress, the President, the Comptroller General, the Council, and the Mayor.’.

      (2) RESPONSIBILITIES OF AUTHORITY- The District of Columbia Financial Responsibility and Management Assistance Authority shall--

        (A) with respect to the annual budget of the Authority for fiscal year 1999 and each succeeding fiscal year, provide the Mayor of the District of Columbia (prior to the transmission of the budget by the Mayor to the President and Congress under section 446 of the District of Columbia Home Rule Act) with an item-by-item accounting of the planned uses of appropriated and non-appropriated funds (including all projected revenues) of the Authority under the budget for such fiscal year; and

        (B) with respect to the annual budget of the Authority for fiscal year 1997 and each succeeding fiscal year, provide the person conducting the independent annual audit of the government of the District of Columbia pursuant to section 4(a) of Public Law 94-399 (D.C. Code, sec. 47-119(a)) (prior to the completion of the audit) with the actual uses of all appropriated and non-appropriated funds of the Authority under the budget for such fiscal year.

      (3) INCLUSION IN INDEPENDENT ANNUAL AUDIT- For purposes of the independent annual audit of the government of the District of Columbia conducted pursuant to section 4(a) of Public Law 94-399 (D.C. Code, sec. 47-119(a)) for fiscal year 1997 and each succeeding fiscal year, the District of Columbia Financial Responsibility and Management Assistance Authority shall be considered to be an entity within the government of the District of Columbia accountable for appropriated funds in the District of Columbia annual budget, and included as such in the District of Columbia government’s Comprehensive Annual Financial Report.

TREATMENT OF UNCLAIMED PROPERTY

    SEC. 157. (a) DEFINITIONS OF CERTAIN TERMS- Section 102 of the Uniform Disposition of Unclaimed Property Act of 1980 (D.C. Code, sec. 42-202) is amended--

      (1) by amending paragraph (4) to read as follows:

      ‘(4) ‘Business association’ means a corporation, joint stock company, investment company, partnership, unincorporated association, joint venture, limited liability, business trust, trust company, financial organization, insurance company, mutual fund, utility, or other business entity consisting of one or more persons, whether or not for profit.’; and

      (2) by adding at the end the following new paragraphs:

      ‘(18) ‘Record’ means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.

      ‘(19) ‘Property’ means a fixed and certain interest in or right in property that is held, issued, or owed in the course of a holder’s business, or by a government or governmental entity, and all income or increments therefrom, including an interest referred to as or evidenced by any of the following:

        ‘(A) Money, check, draft, deposit, interest, dividend, and income.

        ‘(B) Credit balance, customer overpayment, gift certificate, security deposit, refund, credit memorandum, unpaid wage, unused airline ticket, unused ticket, mineral proceed, and unidentified remittance and electronic fund transfer.

        ‘(C) Stock or other evidence of ownership of an interest in a business association.

        ‘(D) Bond, debenture, note, or other evidence of indebtedness.

        ‘(E) Money deposited to redeem stocks, bonds, coupons, or other securities or to make distributions.

        ‘(F) An amount due and payable under the terms of an insurance policy, including policies providing life insurance, property and casualty insurance, workers compensation insurance, or health and disability benefits insurance.

        ‘(G) An amount distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employee savings, supplemental unemployment insurance, or similar benefits.’.

    (b) SHORTENING PERIOD FOR PRESUMPTION OF ABANDONMENT-

      (1) IN GENERAL- Section 103(a) of such Act (D.C. Code, sec. 42-203(a)) is amended by striking ‘5 years’ and inserting ‘3 years’.

      (2) BANK DEPOSITS AND FUNDS IN FINANCIAL ORGANIZATIONS- Section 106 of such Act (D.C. Code, sec. 42-206) is amended by striking ‘5 years’ each place it appears in subsections (a) and (d) and inserting ‘3 years’.

      (3) FUNDS HELD BY LIFE INSURANCE COMPANIES- Section 107 of such Act (D.C. Code, sec. 42-207) is amended by striking ‘5 years’ each place it appears in subsections (a) and (c)(2)(C) and inserting ‘3 years’.

      (4) DEPOSITS AND REFUNDS HELD BY UTILITIES- Section 108 of such Act (D.C. Code, sec. 42-208) is amended by striking ‘5 years’ each place it appears and inserting ‘1 year’.

      (5) STOCK AND OTHER INTANGIBLE INTERESTS IN BUSINESS ASSOCIATIONS- Section 109 of such Act (D.C. Code, sec. 42-209) is amended--

        (A) by striking ‘5 years’ each place it appears in subsections (a) and (b)(1) and inserting ‘3 years’; and

        (B) in subsection (b)(2), by striking ‘5-year’ and inserting ‘3-year’.

      (6) PROPERTY HELD BY FIDUCIARIES- Section 111(a) of such Act (D.C. Code, sec. 42-211(a)) is amended by striking ‘5 years’ and inserting ‘3 years’.

      (7) PROPERTY HELD BY PUBLIC OFFICERS AND AGENCIES- Section 112 of such Act (D.C. Code, sec. 42-212) is amended by striking ‘2 years’ and inserting ‘1 year’.

      (8) EMPLOYEE BENEFIT TRUST DISTRIBUTIONS- Section 113 of such Act (D.C. Code, sec. 42-213) is amended by striking ‘5 years’ and inserting ‘3 years’.

      (9) CONTENTS OF SAFE DEPOSIT BOX- Section 115 of such Act (D.C. Code, sec. 42-215) is amended by striking ‘5 years’ and inserting ‘3 years’.

    (c) CRITERIA FOR PRESUMPTION OF ABANDONMENT-

      (1) IN GENERAL- Section 103 of such Act (D.C. Code, sec. 42-203) is amended by adding at the end the following new subsection:

    ‘(d) A record of the issuance of a check, draft, or similar instrument by a holder is prima facie evidence of property held or owed to a person other than the holder. In claiming property from a holder who is also the issuer, the Mayor’s burden of proof as to the existence and amount of the property and its abandonment is satisfied by showing issuance of the instrument and passage of the requisite period of abandonment. Defenses of payment, satisfaction, discharge, and want of consideration are affirmative defenses that may be established by the holder.’.

      (2) SPECIAL RULES REGARDING STOCK AND OTHER INTANGIBLE INTERESTS IN BUSINESS ASSOCIATIONS- Section 109 of such Act (D.C. Code, sec. 42-209) is amended by adding at the end the following new subsections:

    ‘(d) For purposes of subsection (b), the return of official shareholder notifications or communications by the postal service as undeliverable shall be evidence that the association does not know the location of the owner.

    ‘(e) In the case of property consisting of stock or other intangible ownership interest enrolled in a plan that provides for the automatic reinvestment of dividends, distribution, or other sums payable as a result of the interest, the property may not be presumed to be abandoned under this section unless either of the following applies:

      ‘(1) The records available to the administrator of the plan show, with respect to any intangible ownership interest not enrolled in the reinvestment plan, that the owner has not within 3 years communicated in any manner described in subsection (a).

      ‘(2) 3 years have elapsed since the location of the owner became unknown to the association, as evidenced by the return of official shareholder notifications or by the postal service as undeliverable, and the owner has not within those 3 years communicated in any manner described in subsection (a). The 3-year period from the return of official shareholder notifications or communications shall commence from the earlier of the return of the second such mailing or the time the holder discontinues mailings to the shareholder.’.

      (3) SPECIAL RULE REGARDING PROPERTY DISTRIBUTED THROUGH LITIGATION OR SETTLEMENT OF DISPUTE- Section 110 of such Act (D.C. Code, sec. 42-210) is amended--

        (A) by striking ‘All intangible’ and inserting ‘(a) All intangible’; and

        (B) by adding at the end the following new subsection:

    ‘(b) All intangible property payable or distributable to a member or participant in a class action suit, either one allowed by the court to be maintained as such or one essentially handled as a class action suit and remaining for more than one year after the time for the final payment or distribution is presumed abandoned, unless within the preceding one year, there has been a communication between the member or participant and the holder concerning the property. Intangible property payable or distributable as the result of litigation or settlement of a dispute before a judicial or administrative body and remaining unclaimed for more than one year after the time for the final distribution is presumed abandoned.’.

    (d) REQUIREMENTS FOR PERSONS HOLDING PROPERTY PRESUMED ABANDONED-

      (1) DEADLINE FOR FILING REPORT WITH MAYOR- Section 117(d) of such Act (D.C. Code, sec. 42-217(d)) is amended to read as follows:

    ‘(d)(1) The report as of the prior June 30th must be filed before November 1st of each year, but a report with respect to a life insurance company must be filed before May 1st of each year as of the prior December 31. The Mayor may postpone the reporting date upon written request by any person required to file a report.

    ‘(2) In calendar year 1998, a report concerning all property presumed to be abandoned as of October 31, 1997, must be filed no later than January 2, 1998.’.

      (2) NOTIFICATION OF OWNER- Section 117(e) of such Act (D.C. Code, sec. 42-217(e)) is amended to read as follows:

    ‘(e) Not earlier than 120 days prior to filing the report required under this section (and not later than 60 days prior to filing such report), the holder of property presumed abandoned shall send written notice to the apparent owner of the property stating that the holder is in possession of property subject to this Act, but only if--

      ‘(1) the holder has in its records an address for the apparent owner, unless the holder’s records indicate that such address is not accurate; and

      ‘(2) the value of the property is at least $50.’.

      (3) PAYMENT OR DELIVERY OF PROPERTY TO MAYOR- Section 119 of such Act (D.C. Code, sec. 42-219) is amended by striking subsections (a), (b), and (c) and inserting the following:

    ‘(a) Upon the filing of the report required under section 117 with respect to property presumed abandoned, the holder of the property shall pay or deliver (or cause to be paid or delivered) to the Mayor the property described in the report as abandoned, except that--

      ‘(1) in the case of property consisting of an automatically renewable deposit for which a penalty or forfeiture in the payment of interest would result if payment were made to the Mayor at such time, the holder may delay the payment or delivery of the property to the Mayor until such time as the penalty or forfeiture will not occur; and

      ‘(2) in the case of tangible property held in a safe deposit box or other safekeeping depository, the holder shall pay or deliver (or cause to be paid or delivered) the property to the Mayor upon the expiration of the 120-day period which begins on the date the holder files the report required under section 117.

    ‘(b) If the Mayor postpones the reporting date with respect to the property under section 117(d), the holder, upon receipt of the extension, may make an interim payment under this section on the amount the holder estimates will ultimately be due.’.

      (4) CLARIFICATION OF USE OF ESTIMATED PAYMENTS AND REPORTS- Section 130(d) of such Act (D.C. Code, sec. 42-230(d)) is amended to read as follows:

    ‘(d) If a holder fails to maintain the records required by section 132 and the records of the holder available for the periods for which this Act applies to the property involved are insufficient to permit the preparation of a report and delivery of the property, the holder shall be required to report and pay such amounts as may reasonably be estimated from any available records.’.

      (5) RETENTION OF RECORDS- Section 132(a) of such Act (D.C. Code, sec. 42-232(a)) is amended to read as follows:

    ‘(a) Except as provided in subsection (b) and unless the Mayor provides otherwise by rule, every holder required to file a report under section 117 shall retain all books, records, and documents necessary to establish the accuracy of such report and the compliance of the report with the requirements of this Act for 10 years after the property becomes reportable, together with a record of the name and address of the owner of the property in the case of any property for which the holder has obtained the last known address of the owner.’.

    (e) DUTIES AND POWERS OF MAYOR-

      (1) INFORMATION INCLUDED IN PUBLISHED NOTICE OF ABANDONED PROPERTY- Section 118(b)(3) of such Act (D.C. Code, sec. 42-218(b)(3)) is amended to read as follows:

      ‘(3) A statement that property of the owner is presumed to be abandoned and has been taken into the protective custody of the Mayor, except in the case of property described in section 119(a)(1) which is not paid or delivered to the Mayor pursuant to such section.’.

      (2) INFORMATION INCLUDED IN MAILED NOTICE- Section 118(e)(3) of such Act (D.C. Code, sec. 42-218(e)(3)) is amended to read as follows:

      ‘(3) A statement explaining that property of the owner is presumed to be abandoned, the property has been taken into the protective custody of the Mayor (other than property described in section 119(a)(1) which is not paid or delivered to the Mayor pursuant to such section), and information about the property and its return to the owner is available to a person having a legal or beneficial interest in the property, upon request to the Mayor.’.

      (3) TRANSITION RULE FOR 1997- Section 118(g) of such Act (D.C. Code, sec. 42-218(g)) is amended to read as follows:

    ‘(g) With respect to property reported and delivered on or before January 2, 1998, pursuant to section 117(d)(2), the Mayor shall cause the newspaper notice required by subsection (a) and the notice mailed under subsection (d) to be completed no later than May 1, 1998.’.

      (4) IMPOSITION OF ONE-YEAR WAITING PERIOD FOR SALE OF PROPERTY- The first sentence of section 122(a) of such Act (D.C. Code, sec. 42-222(a)) is amended by striking ‘may be sold’ and inserting the following: ‘which remains unclaimed one year after the delivery to the Mayor may be sold’.

      (5) SPECIAL RULE FOR SALE OF PROPERTY CONSISTING OF SECURITIES- Section 122 of such Act (D.C. Code, sec. 42-222) is amended by adding at the end the following new subsection:

    ‘(d)(1) Notwithstanding subsection (a), abandoned property consisting of securities delivered to the Mayor under this Act may not be sold under this section until the expiration of the 3-year period which begins on the date the property is delivered to the Mayor, except that the Mayor may sell the property prior to the expiration of such period if the Mayor finds that sale at such time is in the best interests of the District of Columbia.

    ‘(2) If the Mayor sells any property described in paragraph (1) prior to the expiration of the 3-year period described in such paragraph, any person making a claim with respect to the property pursuant to this Act prior to the expiration of such period is entitled to either the proceeds of the sale of the securities or the market value of the securities at the time the claim is made, whichever is greater, less any deduction for fees pursuant section 123(c). If the Mayor does not sell any such property prior to the expiration of such 3-year period, a person may make a claim with respect to the property in accordance with section 124 and other applicable provisions of this Act.’.

      (6) STATUTE OF LIMITATIONS- Section 129(b) of such Act (D.C. Code, sec. 42-229(b)) is amended to read as follows:

    ‘(b) No action or proceeding may be commenced by the Mayor to enforce any provision of this Act with respect to the reporting, delivery, or payment of property more than 10 years after the holder specifically identified the property in a report filed with the Mayor or gave express notice to the Mayor of a dispute regarding the property. The period of limitation shall be tolled in the absence of such a report or other express notice, or by the filing of a report that is fraudulent.’.

    (f) INTEREST AND PENALTIES-

      (1) IN GENERAL- Section 135 of such Act (D.C. Code, sec. 42-235) is amended by striking subsections (b), (c), and (d) and inserting the following:

    ‘(b) Except as otherwise provided in subsection (c), a person who fails to report, pay, or deliver property within the time prescribed under this Act, or fails to perform other duties imposed by this Act, shall pay (in addition to the interest required under subsection (a)) a civil penalty of $200 for each day the report, payment, or delivery is withheld or the duty is not performed, up to a maximum of $10,000.

    ‘(c) A person who willfully fails to report, pay, or deliver property within the time prescribed under this Act, or fails to perform other duties imposed by this Act, shall pay (in addition to the interest required under subsection (a)) a civil penalty of $1,000 for each day the report, payment, or delivery is withheld or the duty is not performed, up to a maximum of $25,000, plus 25 percent of the value of any property that should have been paid or delivered.

    ‘(d) The Mayor may waive the imposition of any interest or penalty (or any part thereof) against any person under subsection (b) or (c) if the person’s failure to pay or deliver property is satisfactorily explained to the Mayor and if the failure has resulted from a mistake by the person in understanding or applying the law or the facts involved.’.

      (2) FAILURE OF HOLDER TO EXERCISE DUE DILIGENCE WITH RESPECT TO ITEMS SUBJECT TO REPORTING- Section 135 of such Act (D.C. Code, sec. 42-235) is amended by adding at the end the following new subsection:

    ‘(f) A holder who fails to exercise due diligence with respect to information required to be reported under section 117 shall pay (in addition to any other interest or penalty which may be imposed under this section) a penalty of $10 with respect to each item involved.’.

    (g) MISCELLANEOUS REVISIONS-

      (1) RESTRICTION ON AMOUNT CHARGED FOR HOLDING CERTAIN BANK DEPOSITS AND FUNDS- (A) Section 106(e) of such Act (D.C. Code, sec. 42-206(e)) is amended by adding at the end the following new paragraph:

    ‘(4) The amount of the deduction is limited to an amount that is not unconscionable.’.

      (B) Section 106(f) of such Act (D.C. Code, sec. 42-206(f)) is amended by adding at the end the following new paragraph:

    ‘(3) The amount of the deduction is limited to an amount that is not unconscionable.’.

      (2) CLARIFICATION OF APPLICATION OF LAW TO WAGES AND OTHER COMPENSATION- Section 116 of such Act (D.C. Code, sec. 42-216) is amended by striking ‘Unpaid wages or outstanding payroll checks’ and inserting ‘Wages or other compensation for personal services’.

    (h) EFFECTIVE DATE-

      (1) IN GENERAL- The amendments made by this section shall take effect on the date of the enactment of this Act.

      (2) TRANSITION RULE- In the case of any property which is presumed to be abandoned under the Uniform Disposition of Unclaimed Property Act of 1980 (as amended by this Act) during the 6-month period which begins on the date of the enactment of this Act and which would not be presumed to be abandoned under such Act during such period but for the amendments made by this Act, the property may not be presumed to be abandoned under such Act prior to the expiration of such period.

RESTRICTIONS ON BORROWING

    SEC. 158. (a) PROHIBITING USE OF BORROWING TO FINANCE OR REFUND ACCUMULATED GENERAL FUND DEFICIT- None of the funds made available in this Act or in any other Act may be used by the District of Columbia (including the District of Columbia Financial Responsibility and Management Assistance Authority) at any time before, on, or after the date of the enactment of this Act to obtain borrowing to finance or refund the accumulated general fund deficit of the District of Columbia existing as of September 30, 1997.

    (b) RESTRICTIONS ON USE OF FUNDS FOR DEBT RESTRUCTURING- None of the funds made available in this Act or in any other Act may be used by the District of Columbia (including the District of Columbia Financial Responsibility and Management Assistance Authority) during fiscal year 1998 or any succeeding fiscal year to obtain borrowing (including borrowing through the issuance of any bonds, notes, or other obligations) to repay any other borrowing of funds or issuance of bonds, notes, or other obligations unless--

      (1) the aggregate cost to the District of the new borrowing or issuance does not exceed the aggregate cost of the original borrowing or issuance; and

      (2) the date provided for the final repayment of the new borrowing or issuance is not later than the date provided for the final repayment of the original borrowing or issuance.

    (c) PROHIBITING USE OF FUNDS FOR PRIVATE BOND SALES- None of the funds made available in this Act or in any other Act may be used by the District of Columbia (including the District of Columbia Financial Responsibility and Management Assistance Authority) during fiscal year 1998 or any succeeding fiscal year to sell any bonds at a private sale.

REOPENING OF PENNSYLVANIA AVENUE

    SEC. 159. Notwithstanding any other provision of law or any other rule or regulation, beginning January 1, 1998, the portion of Pennsylvania Avenue in front of the White House shall be reopened to regular vehicular traffic.

INDEPENDENCE IN CONTRACTING FOR CHIEF FINANCIAL OFFICER AND INSPECTOR GENERAL

    SEC. 160. (a) IN GENERAL- Notwithstanding any other provision of law, neither the Mayor of the District of Columbia or the District of Columbia Financial Responsibility and Management Assistance Authority may enter into any contract with respect to any authority or activity under the jurisdiction of the Chief Financial Officer or Inspector General of the District of Columbia without the consent and approval of the Chief Financial Officer or Inspector General (as the case may be).

    (b) EFFECT ON OTHER POWERS AND DUTIES OF AUTHORITY- Nothing in this section may be construed--

      (1) to affect the ability of the District of Columbia Financial Responsibility and Management Assistance Authority to remove the Chief Financial Officer or Inspector General of the District of Columbia from office during a control year (as defined in section 305(4) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995); or

      (2) to exempt any contracts entered into by the Chief Financial Officer or Inspector General from review by the Authority under section 203(b) of such Act.

MISCELLANEOUS PROVISIONS

    SEC. 161. (a) DEPOSIT OF ANNUAL FEDERAL CONTRIBUTION WITH AUTHORITY-

      (1) IN GENERAL- The District of Columbia Financial Responsibility and Management Assistance Act of 1995, as amended by section 11601(b)(2) of the Balanced Budget Act of 1997, is amended by inserting after section 204 the following new section:

‘SEC. 205. DEPOSIT OF ANNUAL FEDERAL CONTRIBUTION 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 any Federal contribution to the District of Columbia for the year authorized under section 11601(c)(2) of the Balanced Budget Act of 1997 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 contribution 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 contribution which is withheld by the Secretary of the Treasury in accordance with section 605(b)(2) of title VI of the District of Columbia Revenue Act of 1939 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.’.

      (2) CLERICAL AMENDMENT- The table of contents for such Act is amended by inserting after the item relating to section 204 the following new item:

‘Sec. 205. Deposit of annual Federal contribution with Authority.’.

      (3) EFFECTIVE DATE- The amendments made by this subsection shall take effect as if included in the enactment of the Balanced Budget Act of 1997.

    (b) DISHONORED CHECK COLLECTION- The Act entitled ‘An Act to authorize the Commissioners of the District of Columbia to prescribe penalties for the handling and collection of dishonored checks’, approved September 28, 1965 (D.C. Code, sec. 1-357) is amended--

      (1) in subsection (a) by inserting after the third sentence the following: ‘The Mayor may enter into a contract to collect the amount of the original obligation.’; and

      (2) by adding at the end the following new subsections:

    ‘(c) In a case in which the amount of a dishonored or unpaid check is collected as a result of a contract, the Mayor shall collect any costs or expenses incurred to collect such amount from such person who gives or causes to be given, in payment of any obligation or liability due the government of the District of Columbia, a check which is subsequently dishonored or not duly paid. In a case in which the amount of a dishonored or unpaid check is collected as a result of an action at law or in equity, such costs and expenses shall include litigation expenses and attorney’s fees.

    ‘(d) An action at law or in equity for the recovery of any amount owed to the District as a result of subsection (c), including any litigation expenses or attorney’s fees may be initiated--

      ‘(1) by the Corporation Counsel of the District of Columbia; or

      ‘(2) in a case in which the Corporation Counsel does not exercise his or her authority, by the person who provides collection services as a result of a contract with the Mayor.

    ‘(e) Nothing in this section may be construed to eliminate the Mayor’s exclusive authority with respect to any obligations and liabilities of the District of Columbia.’.

    (c) REQUIRING DISTRICT GOVERNMENT OFFICIALS TO PROVIDE INFORMATION UPON REQUEST TO CONGRESSIONAL COMMITTEES- Notwithstanding any provision of law or any other rule or regulation, during fiscal year 1998 and each succeeding fiscal year, at the request of the Committee on Appropriations of the House of Representatives, the Committee on Appropriations of the Senate, the Committee on Government Reform and Oversight of the House of Representatives, or the Committee on Governmental Affairs of the Senate, any officer or employee of the District of Columbia government (including any officer or employee of the District of Columbia Financial Responsibility and Management Assistance Authority) shall provide the Committee with such information and materials as the Committee may require, within such deadline as the Committee may require.

    (d) PROHIBITING CERTAIN HELICOPTER FLIGHTS OVER DISTRICT- None of the funds made available in this Act or in any other Act may be used by the District of Columbia to grant a permit or license to any person for purposes of any business in which the person provides tours of any portion of the District of Columbia by helicopter.

    (e) CONFORMING REFERENCES TO INTERNAL REVENUE CODE OF 1986- Section 4(28A) of the District of Columbia Income and Franchise Act of 1947 (D.C. Code, sec. 47-1801.4(28A)) is amended to read as follows:

      ‘(28A) The term ‘Internal Revenue Code of 1986’ means the Internal Revenue Code of 1986 (100 Stat. 2085; 26 U.S.C. 1 et seq.), as amended through August 20, 1996. The provisions of the Internal Revenue Code of 1986 shall be effective on the same dates that they are effective for Federal tax purposes.’.

    (f) STANDARD FOR REVIEW OF RECOMMENDATIONS OF BUSINESS REGULATORY REFORM COMMISSION IN REVIEW OF REGULATIONS BY AUTHORITY- Section 11701(a)(1) of the Balanced Budget Act of 1997 is amended by striking the second sentence and inserting the following: ‘In carrying out such review, the Authority shall include an explicit reference to each recommendation made by the Business Regulatory Reform Commission pursuant to the Business Regulatory Reform Commission Act of 1994 (D.C. Code, sec. 2-4101 et seq.), together with specific findings and conclusions with respect to each such recommendation.’.

    (g) TECHNICAL CORRECTIONS RELATING TO BALANCED BUDGET ACT OF 1997- (1) Effective as if included in the enactment of the Balanced Budget Act of 1997, section 453(c) of the District of Columbia Home Rule Act (D.C. Code, sec. 47-304.1(c)), as amended by section 11243(d) of the Balanced Budget Act of 1997, is amended to read as follows:

    ‘(c) Subsection (a) shall not apply to amounts appropriated or otherwise made available to the Council, 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, or the District of Columbia Water and Sewer Authority established pursuant to the Water and Sewer Authority Establishment and Department of Public Works Reorganization Act of 1996.’.

    (2) Section 11201(g)(2)(A)(ii) of the Balanced Budget Act of 1997 is amended--

      (A) in the heading, by striking ‘DEPARTMENT OF PARKS AND RECREATION’ and inserting ‘PARKS AUTHORITY’; and

      (B) by striking ‘Department of Parks and Recreation’ and inserting ‘Parks Authority’.

    (h) REPEAL OF PRIOR NOTICE REQUIREMENT FOR FEDERAL ACTIVITIES AFFECTING REAL PROPERTY IN DISTRICT OF COLUMBIA- Effective October 1, 1997, the Balanced Budget Act of 1997 (Public Law 105-33) is amended by striking section 11715.

    This title may be cited as the ‘District of Columbia Appropriations Act, 1998’.

TITLE II--DISTRICT OF COLUMBIA MEDICAL LIABILITY REFORM

Subtitle A--Standards for Health Care Liability Actions and Claims in the District of Columbia

SEC. 201. SHORT TITLE.

    This title may be cited as the ‘District of Columbia Medical Liability Reform Act of 1997’.

SEC. 202. STATUTE OF LIMITATIONS.

    A District of Columbia health care liability action may not be brought after the expiration of the 2-year period that begins on the date on which the alleged injury that is the subject of the action was discovered or should reasonably have been discovered, but in no case after the expiration of the 5-year period that begins on the date the alleged injury occurred.

SEC. 203. TREATMENT OF NONECONOMIC DAMAGES.

    (a) LIMITATION ON NONECONOMIC DAMAGES- The total amount of noneconomic damages that may be awarded to a claimant for losses resulting from the injury which is the subject of a District of Columbia health care liability action may not exceed $250,000, regardless of the number of parties against whom the action is brought or the number of actions brought with respect to the injury.

    (b) JOINT AND SEVERAL LIABILITY- In any District of Columbia health care liability action, a defendant shall be liable only for the amount of noneconomic damages attributable to such defendant in direct proportion to such defendant’s share of fault or responsibility for the claimant’s actual damages, as determined by the trier of fact. In all such cases, the liability of a defendant for noneconomic damages shall be several and not joint.

SEC. 204. CRITERIA FOR AWARDING OF PUNITIVE DAMAGES; LIMITATION ON AMOUNT AWARDED.

    (a) IN GENERAL- Punitive damages may, to the extent permitted by applicable District of Columbia law, be awarded in any District of Columbia health care liability action if the claimant establishes by clear and convincing evidence that the harm suffered was the result of--

      (1) conduct specifically intended to cause harm, or

      (2) conduct manifesting a conscious, flagrant indifference to the rights or safety of others.

    (b) PROPORTIONAL AWARDS- The amount of punitive damages that may be awarded in any District of Columbia health care liability action may not exceed 3 times the amount of damages awarded to the claimant for economic loss, or $250,000, whichever is greater. This subsection shall be applied by the court and shall not be disclosed to the jury.

    (c) APPLICABILITY- This subsection shall apply to any District of Columbia health care liability action brought on any theory under which punitive damages are sought. This subsection does not create a cause of action for punitive damages. This subsection does not preempt or supersede any law to the extent that such law would further limit the award of punitive damages.

    (d) BIFURCATION- At the request of any party, the trier of fact shall consider in a separate proceeding whether punitive damages are to be awarded and the amount of such award. If a separate proceeding is requested, evidence relevant only to the claim of punitive damages, as determined by applicable District of Columbia law, shall be inadmissible in any proceeding to determine whether actual damages are to be awarded.

SEC. 205. TREATMENT OF PUNITIVE DAMAGES IN ACTIONS RELATING TO DRUGS OR MEDICAL DEVICES.

    (a) PROHIBITING AWARD OF PUNITIVE DAMAGES WITH RESPECT TO CERTAIN APPROVED DRUGS AND DEVICES-

      (1) IN GENERAL- In any District of Columbia health care liability action, punitive damages may not be awarded against a manufacturer or product seller of a drug or medical device which caused the claimant’s harm if--

        (A) such drug or device was subject to premarket approval by the Food and Drug Administration with respect to the safety of the formulation or performance of the aspect of such drug or device which caused the claimant’s harm, or the adequacy of the packaging or labeling of such drug or device which caused the harm, and such drug, device, packaging, or labeling was approved by the Food and Drug Administration; or

        (B) the drug is generally recognized as safe and effective pursuant to conditions established by the Food and Drug Administration and applicable regulations, including packaging and labeling regulations.

      (2) EXCEPTION- Paragraph (1) shall not apply in any case in which the defendant, before or after premarket approval of a drug or device--

        (A) intentionally and wrongfully withheld from or misrepresented to the Food and Drug Administration information concerning such drug or device required to be submitted under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.) or section 351 of the Public Health Service Act (42 U.S.C. 262) that is material and relevant to the harm suffered by the claimant, or

        (C) made an illegal payment to an official or employee of the Food and Drug Administration for the purpose of securing or maintaining approval of such drug or device.

    (b) SPECIAL RULE REGARDING CLAIMS RELATING TO PACKAGING- In a District of Columbia health care liability action relating to the adequacy of the packaging or labeling of a drug which is required to have tamper-resistant packaging under regulations of the Secretary of Health and Human Services (including labeling regulations related to such packaging), the manufacturer or product seller of the drug shall not be held liable for punitive damages unless such packaging or labeling is found by the court by clear and convincing evidence to be substantially out of compliance with such regulations.

    (c) DEFINITIONS- In this section, the following definitions apply:

      (1) DRUG- The term ‘drug’ has the meaning given such term in section 201(g)(1) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321(g)(1)).

      (2) MEDICAL DEVICE- The term ‘medical device’ has the meaning given such term in section 201(h) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321(h)).

      (3) PRODUCT SELLER-

        (A) IN GENERAL- Subject to subparagraph (B), the term ‘product seller’ means a person who, in the course of a business conducted for that purpose--

          (i) sells, distributes, rents, leases, prepares, blends, packages, labels, or is otherwise involved in placing, a product in the stream of commerce, or

          (ii) installs, repairs, or maintains the harm-causing aspect of a product.

        (B) EXCLUSION- Such term does not include--

          (i) a seller or lessor of real property;

          (ii) a provider of professional services in any case in which the sale or use of a product is incidental to the transaction and the essence of the transaction is the furnishing of judgment, skill, or services; or

          (iii) any person who--

            (I) acts in only a financial capacity with respect to the sale of a product; or

            (II) leases a product under a lease arrangement in which the selection, possession, maintenance, and operation of the product are controlled by a person other than the lessor.

SEC. 206. PERIODIC PAYMENTS FOR FUTURE LOSSES.

    (a) IN GENERAL- In any District of Columbia health care liability action in which the damages awarded for future economic and noneconomic loss exceeds $50,000, a person shall not be required to pay such damages in a single, lump-sum payment, but shall be permitted to make such payments periodically based on when the damages are found likely to occur, as such payments are determined by the court.

    (b) FINALITY OF JUDGMENT- The judgment of the court awarding periodic payments under this section may not, in the absence of fraud, be reopened at any time to contest, amend, or modify the schedule or amount of the payments.

    (c) LUMP-SUM SETTLEMENTS- This section may not be construed to preclude a settlement providing for a single, lump-sum payment.

SEC. 207. TREATMENT OF COLLATERAL SOURCE PAYMENTS.

    (a) INTRODUCTION INTO EVIDENCE- In any District of Columbia health care liability action, any defendant may introduce evidence of collateral source payments. If any defendant elects to introduce such evidence, the claimant may introduce evidence of any amount paid or contributed or reasonably likely to be paid or contributed in the future by or on behalf of the claimant to secure the right to such collateral source payments.

    (b) NO SUBROGATION- No provider of collateral source payments may recover any amount against the claimant or receive any lien or credit against the claimant’s recovery or be equitably or legally subrogated the right of the claimant in a District of Columbia health care liability action.

    (c) APPLICATION TO SETTLEMENTS- This section shall apply to an action that is settled as well as an action that is resolved by a fact finder.

    (d) COLLATERAL SOURCE PAYMENTS DEFINED- In this section, the term ‘collateral source payments’ means any amount paid or reasonably likely to be paid in the future to or on behalf of a claimant, or any service, product, or other benefit provided or reasonably likely to be provided in the future to or on behalf of a claimant, as a result of an injury or wrongful death, pursuant to--

      (1) any State or Federal health, sickness, income-disability, accident or workers’ compensation Act;

      (2) any health, sickness, income-disability, or accident insurance that provides health benefits or income-disability coverage;

      (3) any contract or agreement of any group, organization, partnership, or corporation to provide, pay for, or reimburse the cost of medical, hospital, dental, or income disability benefits; and

      (4) any other publicly or privately funded program.

SEC. 208. APPLICATION OF STANDARDS TO CLAIMS RESOLVED THROUGH ALTERNATIVE DISPUTE RESOLUTION.

    (a) IN GENERAL- Any alternative dispute resolution system used to resolve a District of Columbia health care liability action or claim shall contain provisions relating to statute of limitations, non-economic damages, joint and several liability, punitive damages, collateral source rule, and periodic payments which are identical to the provisions relating to such matters in this title.

    (b) ALTERNATIVE DISPUTE RESOLUTION SYSTEM DEFINED- In this title, the term ‘alternative dispute resolution system’ means a system that provides for the resolution of District of Columbia health care liability claims in a manner other than through District of Columbia health care liability actions.

Subtitle B--General Provisions

SEC. 211. GENERAL DEFINITIONS.

    (a) DISTRICT OF COLUMBIA HEALTH CARE LIABILITY ACTION-

      (1) IN GENERAL- In this title, the term ‘District of Columbia health care liability action’ means a civil action brought against a health care provider, an entity which is obligated to provide or pay for health benefits under any health benefit plan (including any person or entity acting under a contract or arrangement to provide or administer any health benefit), or the manufacturer, distributor, supplier, marketer, promoter, or seller of a medical product, in which the claimant alleges a claim (including third party claims, cross claims, counter claims, or distribution claims) based upon the provision of (or the failure to provide or pay for) health care services or the use of a medical product within the District of Columbia, regardless of the theory of liability on which the claim is based or the number of plaintiffs, defendants, or causes of action.

      (2) HEALTH BENEFIT PLAN- The term ‘health benefit plan’ means--

        (A) a hospital or medical expense incurred policy or certificate,

        (B) a hospital or medical service plan contract,

        (C) a health maintenance subscriber contract, or

        (D) a Medicare+Choice plan (as described in section 1859(b)(1) of the Social Security Act),

      that provides benefits with respect to health care services.

      (3) HEALTH CARE PROVIDER- The term ‘health care provider’ means any person that is engaged in the delivery of health care services in the District of Columbia and that is required by the laws or regulations of the District of Columbia to be licensed or certified to engage in the delivery of such services in the District of Columbia, and includes an employee of the government of the District of Columbia (including an independent agency of the District of Columbia).

    (b) DISTRICT OF COLUMBIA HEALTH CARE LIABILITY CLAIM- The term ‘District of Columbia health care liability claim’ means a claim in which the claimant alleges that injury was caused by the provision of (or the failure to provide) health care services within the District of Columbia.

    (c) OTHER DEFINITIONS- As used in this title:

      (1) ACTUAL DAMAGES- The term ‘actual damages’ means damages awarded to pay for economic loss.

      (2) CLAIMANT- The term ‘claimant’ means any person who brings a District of Columbia health care liability action and any person on whose behalf such an action is brought. If such action is brought through or on behalf of an estate, the term includes the claimant’s decedent. If such action is brought through or on behalf of a minor or incompetent, the term includes the claimant’s legal guardian.

      (3) CLEAR AND CONVINCING EVIDENCE- The term ‘clear and convincing evidence’ is that measure or degree of proof that will produce in the mind of the trier of fact a firm belief or conviction as to the truth of the allegations sought to be established. Such measure or degree of proof is more than that required under preponderance of the evidence but less than that required for proof beyond a reasonable doubt.

      (4) ECONOMIC LOSS- The term ‘economic loss’ means any pecuniary loss resulting from injury (including the loss of earnings or other benefits related to employment, medical expense loss, replacement services loss, loss due to death, burial costs, and loss of business or employment opportunities), to the extent recovery for such loss is allowed under applicable District of Columbia law.

      (5) HARM- The term ‘harm’ means any legally cognizable wrong or injury for which punitive damages may be imposed.

      (6) HEALTH CARE SERVICE- The term ‘health care service’ means any service for which payment may be made under a health benefit plan including services related to the delivery or administration of such service.

      (7) NONECONOMIC DAMAGES- The term ‘noneconomic damages’ means damages paid to an individual for pain and suffering, inconvenience, emotional distress, mental anguish, loss of consortium, injury to reputation, humiliation, and other nonpecuniary losses.

      (8) PERSON- The term ‘person’ means any individual, corporation, company, association, firm, partnership, society, joint stock company, or any other entity, including any governmental entity.

      (9) PUNITIVE DAMAGES- The term ‘punitive damages’ means damages awarded against any person not to compensate for actual injury suffered, but to punish or deter such person or others from engaging in similar behavior in the future.

SEC. 212. NONAPPLICATION TO CERTAIN ACTIONS; PREEMPTION.

    (a) APPLICABILITY- This title shall not apply to--

      (1) an action for damages arising from a vaccine-related injury or death to the extent that title XXI of the Public Health Service Act applies to the action, or

      (2) an action under the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.).

    (b) PREEMPTION- This title shall preempt any District of Columbia law to the extent such law is inconsistent with the limitations contained in this title. This title shall not preempt any District of Columbia law that provides for defenses or places limitations on a person’s liability in addition to those contained in this title or otherwise imposes greater restrictions than those provided in this title.

    (c) EFFECT ON SOVEREIGN IMMUNITY AND CHOICE OF LAW OR VENUE- Nothing in this title may be construed to--

      (1) waive or affect any defense of sovereign immunity asserted by the District of Columbia under any provision of law;

      (2) waive or affect any defense of sovereign immunity asserted by the United States;

      (3) affect the applicability of any provision of the Foreign Sovereign Immunities Act of 1976;

      (4) preempt any choice-of-law rules with respect to claims brought by a foreign nation or a citizen of a foreign nation; or

      (5) affect the right of any court to transfer venue or to apply the law of a foreign nation or to dismiss a claim of a foreign nation or of a citizen of a foreign nation on the ground of inconvenient forum.

SEC. 213. RULES OF CONSTRUCTION REGARDING JURISDICTION OF FEDERAL COURTS.

    (a) AMOUNT IN CONTROVERSY- In an action to which this title applies and which is brought under section 1332 of title 28, United States Code, the amount of noneconomic damages or punitive damages, and attorneys’ fees or costs, shall not be included in determining whether the matter in controversy exceeds the sum or value of $50,000.

    (b) FEDERAL COURT JURISDICTION NOT ESTABLISHED ON FEDERAL QUESTION GROUNDS- Nothing in this title shall be construed to establish any jurisdiction in the district courts of the United States over District of Columbia health care liability actions on the basis of section 1331 or 1337 of title 28, United States Code.

Subtitle C--Effective Date

SEC. 221. EFFECTIVE DATE.

    This title shall apply to any District of Columbia health care liability action and to any District of Columbia health care liability claim subject to an alternative dispute resolution system, that is initiated on or after the date of the enactment of this title, except that any such action or claim arising from an injury occurring prior to such date shall be governed by the applicable statute of limitations provisions in effect at the time the injury occurred.

TITLE III--DISTRICT OF COLUMBIA EDUCATION REFORM ACT OF 1997

Subtitle A--Amendments to District of Columbia School Reform Act of 1995

SEC. 301. SHORT TITLE.

    This title may be cited as the ‘District of Columbia Education Reform Amendments Act of 1997’.

SEC. 302. GENERAL EFFECTIVE DATE.

    Section 2003 of the District of Columbia School Reform Act of 1995 (Public Law 104-134; 110 Stat. 1321-112; D.C. Code Sec. 31-2851) is amended by striking ‘shall be effective’ and all that follows through the period at the end and inserting ‘shall take effect on the date of the enactment of this Act.’.

SEC. 303. TIMETABLE FOR APPROVAL OF PUBLIC CHARTER SCHOOL PETITIONS.

    Section 2203(i)(2)(A) of the District of Columbia School Reform Act of 1995 (Public Law 104-134; 110 Stat. 3009-504; D.C. Code Sec. 31-2853.13(i)(2)(A)) is amended to read as follows:

        ‘(A) IN GENERAL-

          ‘(i) ANNUAL LIMIT- Subject to subparagraph (B) and clause (ii), during calendar year 1997, and during each subsequent calendar year, each eligible chartering authority shall not approve more than 10 petitions to establish a public charter school under this subtitle.

          ‘(ii) TIMETABLE- Any petition approved under clause (i) shall be approved during an application approval period that terminates on April 1 of each year. Such an approval period may commence before or after January 1 of the calendar year in which it terminates, except that any petition approved at any time during such an approval period shall count, for purposes of clause (i), against the total number of petitions approved during the calendar year in which the approval period terminates.’.

SEC. 304. INCREASE IN PERMITTED NUMBER OF TRUSTEES OF PUBLIC CHARTER SCHOOL.

    Section 2205(a) of the District of Columbia School Reform Act of 1995 (Public Law 104-134; 110 Stat. 1321-122; D.C. Code Sec. 31-2853.15(a)) is amended by striking ‘7,’ and inserting ‘15,’.

SEC. 305. LEASE TERMS FOR PERSONS OPERATING CHARTER SCHOOLS.

    (a) LEASING FORMER OR UNUSED PUBLIC SCHOOL PROPERTIES-

      (1) IN GENERAL- Section 2209(b)(1)(A) of the District of Columbia School Reform Act of 1995 (Public Law 104-134; 110 Stat. 3009-505; D.C. Code Sec. 31-2853.19(b)(1)(A)) is amended to read as follows:

        ‘(A) IN GENERAL- Notwithstanding any other provision of law relating to the disposition of a facility or property described in subparagraph (C), the Mayor and the District of Columbia Government--

          ‘(i) subject to clause (ii), shall give preference to an eligible applicant whose petition to establish a public charter school has been conditionally approved under section 2203(d)(2), or a Board of Trustees, with respect to the purchase of a facility or property described in subparagraph (C), if doing so will not result in a significant loss of revenue that might be obtained from other dispositions or uses of the facility or property; and

          ‘(ii) shall lease a facility or property described in subparagraph (C), at an annual rate of $1, to an eligible applicant whose petition to establish a public charter school has been conditionally approved under section 2203(d)(2), or a Board of Trustees, if--

            ‘(I) the eligible applicant or Board of Trustees requests a lease pursuant to this paragraph for the purpose of operating the facility or property as a public charter school under this subtitle; and

            ‘(II) the facility or property is not yet otherwise disposed of (by sale, lease, or otherwise).’.

      (2) TERMINATION OF LEASE- Section 2209(b)(1) of the District of Columbia School Reform Act of 1995 (Public Law 104-134; 110 Stat. 3009-505; D.C. Code Sec. 31-2853.19(b)(1)) is amended--

        (A) by redesignating subparagraph (B) as subparagraph (C); and

        (B) by inserting after subparagraph (A) the following:

        ‘(B) TERMINATION OF LEASE- Any lease entered into pursuant to this paragraph with respect to a public charter school shall be deemed to terminate--

          ‘(i) upon the denial of an application to renew the charter granted to the school under section 2212, or, in a case where judicial review of the denial is sought under section 2212(d)(6), upon the entry of an order, not subject to further review, upholding a decision to deny such an application, whichever occurs later;

          ‘(ii) upon the revocation of the charter granted to the school under section 2213, or, in a case where judicial review of the revocation is sought under section 2213(c)(6), upon the entry of an order, not subject to further review, upholding the revocation, whichever occurs later; or

          ‘(iii) in the case of a lease to an eligible applicant whose petition to establish a public charter school has been conditionally approved under section 2203(d)(2), upon the termination of such conditional approval by reason of the applicant’s failure timely to submit the identification and information described in section 2202(6)(B)(i).’.

      (3) CONFORMING AMENDMENT- Section 225(d) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995 (Public Law 104-8; 110 Stat. 3009-508; D.C. Code Sec. 47-392.25(d)) is amended by striking ‘section 2209(b)(1)(B) of the District of Columbia School Reform Act of 1995’ and inserting ‘section 2209(b)(1)(C) of the District of Columbia School Reform Act of 1995, other than a facility or real property that is subject to a lease under section 2209(b)(1)(A)(ii) of such Act,’.

    (b) CONVERSIONS OF PUBLIC SCHOOLS- Section 2209(b) of the District of Columbia School Reform Act of 1995 (Public Law 104-134; 110 Stat. 3009-505; D.C. Code Sec. 31-2853.19(b)) is amended by adding at the end the following:

      ‘(3) SPECIAL RULE FOR PERSONS CONVERTING PUBLIC SCHOOL INTO CHARTER SCHOOL-

        ‘(A) IN GENERAL- Notwithstanding any other provision of law relating to the disposition of a facility or property described in this paragraph, the Mayor and the District of Columbia Government shall lease a facility or property, at an annual rate of $1, to an eligible applicant whose petition to establish a public charter school has been conditionally approved under section 2203(d)(2), or a Board of Trustees, if--

          ‘(i) the facility or property is under the jurisdiction of the Board of Education;

          ‘(ii) the eligible applicant or Board of Trustees requests a lease pursuant to this paragraph for the purpose of operating the facility or property as a public charter school under this subtitle; and

          ‘(iii) immediately prior to the date of such request, the facility or property--

            ‘(I) was operated as a District of Columbia public school, and the requirements of section 2202(a) were met; or

            ‘(II) was operated as a public charter school under this subtitle.

        ‘(B) TERMINATION OF LEASE- Any lease entered into pursuant to this paragraph with respect to a public charter school shall be deemed to terminate--

          ‘(i) upon the denial of an application to renew the charter granted to the school under section 2212, or, in a case where judicial review of the denial is sought under section 2212(d)(6), upon the entry of an order, not subject to further review, upholding a decision to deny such an application, whichever occurs later;

          ‘(ii) upon the revocation of the charter granted to the school under section 2213, or, in a case where judicial review of the revocation is sought under section 2213(c)(6), upon the entry of an order, not subject to further review, upholding the revocation, whichever occurs later; or

          ‘(iii) in the case of a lease to an eligible applicant whose petition to establish a public charter school has been conditionally approved under section 2203(d)(2), upon the termination of such conditional approval by reason of the applicant’s failure timely to submit the identification and information described in section 2202(6)(B)(i).’.

    (c) LEASING CURRENT PUBLIC SCHOOL PROPERTIES-

      (1) IN GENERAL- Section 2209(b)(2)(A) of the District of Columbia School Reform Act of 1995 (Public Law 104-134; 110 Stat. 3009-506; D.C. Code Sec. 31-2853.19(b)(2)(A)) is amended to read as follows:

        ‘(A) IN GENERAL- Notwithstanding any other provision of law relating to the disposition of a facility or property described in subparagraph (C), but subject to paragraph (3), the Mayor and the District of Columbia Government shall lease a facility or property described in subparagraph (C), at an annual rate of $1, to an eligible applicant whose petition to establish a public charter school has been conditionally approved under section 2203(d)(2), or a Board of Trustees, if the eligible applicant or Board of Trustees requests a lease pursuant to this paragraph for the purpose of--

          ‘(i) operating the facility or property as a public charter school under this subtitle; or

          ‘(ii) using the facility or property for a purpose directly related to the operation of a public charter school under this subtitle.’.

      (2) TERMINATION OF LEASE- Section 2209(b)(2) of the District of Columbia School Reform Act of 1995 (Public Law 104-134; 110 Stat. 3009-506; D.C. Code Sec. 31-2853.19(b)(2)) is amended--

        (A) by redesignating subparagraph (B) as subparagraph (C); and

        (B) by inserting after subparagraph (A) the following:

        ‘(B) TERMINATION OF LEASE- Any lease entered into pursuant to this paragraph with respect to a public charter school shall be deemed to terminate--

          ‘(i) upon the denial of an application to renew the charter granted to the school under section 2212, or, in a case where judicial review of the denial is sought under section 2212(d)(6), upon the entry of an order, not subject to further review, upholding a decision to deny such an application, whichever occurs later;

          ‘(ii) upon the revocation of the charter granted to the school under section 2213, or, in a case where judicial review of the revocation is sought under section 2213(c)(6), upon the entry of an order, not subject to further review, upholding the revocation, whichever occurs later; or

          ‘(iii) in the case of a lease to an eligible applicant whose petition to establish a public charter school has been conditionally approved under section 2203(d)(2), upon the termination of such conditional approval by reason of the applicant’s failure timely to submit the identification and information described in section 2202(6)(B)(i).’.

SEC. 306. AUTHORIZATION OF APPROPRIATIONS FOR PUBLIC CHARTER SCHOOL BOARD.

    Section 2214(g) of the District of Columbia School Reform Act of 1995 (Public Law 104-134; 110 Stat. 1321-133; D.C. Code Sec. 31-2853.24(g)) is amended by inserting ‘to the Board’ after ‘appropriated’.

SEC. 307. ADJUSTMENT OF ANNUAL PAYMENT FOR RESIDENTIAL SCHOOLS.

    Section 2401(b)(3)(B) of the District of Columbia School Reform Act of 1995 (Public Law 104-134; 110 Stat. 1321-137; D.C. Code Sec. 31-2853.41(b)(3)(B)) is amended--

      (1) in clause (i), by striking ‘or’;

      (2) in clause (ii), by striking the period at the end and inserting ‘; or’; and

      (3) by adding at the end the following:

          ‘(iii) to whom the school provides room and board in a residential setting.’.

SEC. 308. ADJUSTMENT OF ANNUAL PAYMENT FOR FACILITIES COSTS.

    Section 2401(b)(3) of the District of Columbia School Reform Act of 1995 (Public Law 104-134; 110 Stat. 1321-137; D.C. Code Sec. 31-2853.41(b)(3)) is amended by adding at the end the following:

        ‘(C) ADJUSTMENT FOR FACILITIES COSTS- Notwithstanding paragraph (2), the Mayor and the District of Columbia Council, in consultation with the Board of Education and the Superintendent, shall adjust the amount of the annual payment under paragraph (1) to increase the amount of such payment for a public charter school to take into account leases or purchases of, or improvements to, real property, if the school, not later than April 1 of the fiscal year preceding the payment, requests such an adjustment.’.

SEC. 309. PAYMENTS TO NEW CHARTER SCHOOLS.

    (a) IN GENERAL- Section 2403(b) of the District of Columbia School Reform Act of 1995 (Public Law 104-134; 110 Stat. 1321-140; D.C. Code Sec. 31-2853.43(b)) is amended to read as follows:

    ‘(b) PAYMENTS TO NEW SCHOOLS-

      ‘(1) ESTABLISHMENT OF FUND- There is established in the general fund of the District of Columbia a fund to be known as the ‘New Charter School Fund’.

      ‘(2) CONTENTS OF FUND- The New Charter School Fund shall consist of--

        ‘(A) unexpended and unobligated amounts appropriated from local funds for public charter schools for fiscal year 1997 that reverted to the general fund of the District of Columbia;

        ‘(B) amounts credited to the fund in accordance with this subsection upon the receipt by a public charter school described in paragraph (5) of its first initial payment under subsection (a)(2)(A) or its first final payment under subsection (a)(2)(B); and

        ‘(C) any interest earned on such amounts.

      ‘(3) EXPENDITURES FROM FUND-

        ‘(A) IN GENERAL- Not later than June 1, 1998, and not later than June 1 of each year thereafter, the Chief Financial Officer of the District of Columbia shall pay, from the New Charter School Fund, to each public charter school described in paragraph (5), an amount equal to 25 percent of the amount yielded by multiplying the uniform dollar amount used in the formula established under section 2401(b) by the total anticipated enrollment as set forth in the petition to establish the public charter school.

        ‘(B) PRO RATA REDUCTION- If the amounts in the New Charter School Fund for any year are insufficient to pay the full amount that each public charter school described in paragraph (5) is eligible to receive under this subsection for such year, the Chief Financial Officer of the District of Columbia shall ratably reduce such amounts for such year on the basis of the formula described in section 2401(b).

        ‘(C) FORM OF PAYMENT- Payments under this subsection shall be made by electronic funds transfer from the New Charter School Fund to a bank designated by a public charter school.

      ‘(4) CREDITS TO FUND- Upon the receipt by a public charter school described in paragraph (5) of--

        ‘(A) its first initial payment under subsection (a)(2)(A), the Chief Financial Officer of the District of Columbia shall credit the New Charter School Fund with 75 percent of the amount paid to the school under paragraph (3); and

        ‘(B) its first final payment under subsection (a)(2)(B), the Chief Financial Officer of the District of Columbia shall credit the New Charter School Fund with 25 percent of the amount paid to the school under paragraph (3).

      ‘(5) SCHOOLS DESCRIBED- A public charter school described in this paragraph is a public charter school that--

        ‘(A) did not enroll any students during any portion of the fiscal year preceding the most recent fiscal year for which funds are appropriated to carry out this subsection; and

        ‘(B) operated as a public charter school during the most recent fiscal year for which funds are appropriated to carry out this subsection.

      ‘(6) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Chief Financial Officer of the District of Columbia such sums as may be necessary to carry out this subsection for each fiscal year.’.

    (b) REDUCTION OF ANNUAL PAYMENT-

      (1) INITIAL PAYMENT- Section 2403(a)(2)(A) of the District of Columbia School Reform Act (Public Law 104-134; 110 Stat. 1321-139; D.C. Code Sec. 31-2853.43(a)(2)(A)) is amended to read as follows:

        ‘(A) INITIAL PAYMENT-

          ‘(i) IN GENERAL- Except as provided in clause (ii), not later than October 15, 1996, and not later than October 15 of each year thereafter, the Mayor shall transfer, by electronic funds transfer, an amount equal to 75 percent of the amount of the annual payment for each public charter school determined by using the formula established pursuant to section 2401(b) to a bank designated by such school.

          ‘(ii) REDUCTION IN CASE OF NEW SCHOOL- In the case of a public charter school that has received a payment under subsection (b) in the fiscal year immediately preceding the fiscal year in which a transfer under clause (i) is made, the amount transferred to the school under clause (i) shall be reduced by an amount equal to 75 percent of the amount of the payment under subsection (b).’.

      (2) FINAL PAYMENT- Section 2403(a)(2)(B) of the District of Columbia School Reform Act (Public Law 104-134; 110 Stat. 1321-139; D.C. Code Sec. 31-2853.43(a)(2)(B)) is amended--

        (A) in clause (i)--

          (i) by inserting ‘IN GENERAL- ’ before ‘Except’; and

          (ii) by striking ‘clause (ii),’ and inserting ‘clauses (ii) and (iii),’;

        (B) in clause (ii), by inserting ‘ADJUSTMENT FOR ENROLLMENT- ’ before ‘Not later than March 15, 1997,’; and

        (C) by adding at the end the following:

          ‘(iii) REDUCTION IN CASE OF NEW SCHOOL- In the case of a public charter school that has received a payment under subsection (b) in the fiscal year immediately preceding the fiscal year in which a transfer under clause (i) is made, the amount transferred to the school under clause (i) shall be reduced by an amount equal to 25 percent of the amount of the payment under subsection (b).’.

SEC. 310. ELIGIBILITY CRITERIA FOR PRIVATE, NONPROFIT CORPORATION.

    Section 2603 of the District of Columbia School Reform Act (Public Law 104-134; 110 Stat. 1321-144; D.C. Code Sec. 31-2853.63) is amended to read as follows:

‘SEC. 2603. ELIGIBILITY CRITERIA FOR PRIVATE, NONPROFIT CORPORATION.

    ‘A private, nonprofit corporation shall be eligible to receive a grant under section 2602 if the corporation is a business organization incorporated in the District of Columbia, that--

      ‘(1) has a board of directors which includes members who are also executives of technology-related corporations involved in education and workforce development issues;

      ‘(2) has extensive practical experience with initiatives that link business resources and expertise with education and training systems;

      ‘(3) has experience in working with State and local educational agencies with respect to the integration of academic studies with workforce preparation programs; and

      ‘(4) has a structure through which additional resources can be leveraged and innovative practices disseminated.’.

Subtitle B--Student Opportunity Scholarships

SEC. 341. DEFINITIONS.

    As used in this subtitle--

      (1) the term ‘Board’ means the Board of Directors of the Corporation established under section 342(b)(1);

      (2) the term ‘Corporation’ means the District of Columbia Scholarship Corporation established under section 342(a);

      (3) the term ‘eligible institution’--

        (A) in the case of an eligible institution serving a student who receives a tuition scholarship under section 343(d)(1), means a public, private, or independent elementary or secondary school; and

        (B) in the case of an eligible institution serving a student who receives an enhanced achievement scholarship under section 343(d)(2), means an elementary or secondary school, or an entity that provides services to a student enrolled in an elementary or secondary school to enhance such student’s achievement through activities described in section 343(d)(2);

      (4) the term ‘parent’ includes a legal guardian or other person standing in loco parentis; and

      (5) the term ‘poverty line’ means the income official poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)) applicable to a family of the size involved.

SEC. 342. DISTRICT OF COLUMBIA SCHOLARSHIP CORPORATION.

    (a) GENERAL REQUIREMENTS-

      (1) IN GENERAL- There is authorized to be established a private, nonprofit corporation, to be known as the ‘District of Columbia Scholarship Corporation’, which is neither an agency nor establishment of the United States Government or the District of Columbia Government.

      (2) DUTIES- The Corporation shall have the responsibility and authority to administer, publicize, and evaluate the scholarship program in accordance with this subtitle, and to determine student and school eligibility for participation in such program.

      (3) CONSULTATION- The Corporation shall exercise its authority--

        (A) in a manner consistent with maximizing educational opportunities for the maximum number of interested families; and

        (B) in consultation with the District of Columbia Board of Education or entity exercising administrative jurisdiction over the District of Columbia Public Schools, the Superintendent of the District of Columbia Public Schools, and other school scholarship programs in the District of Columbia.

      (4) APPLICATION OF PROVISIONS- The Corporation shall be subject to the provisions of this subtitle, and, to the extent consistent with this subtitle, to the District of Columbia Nonprofit Corporation Act (D.C. Code, sec. 29-501 et seq.).

      (5) RESIDENCE- The Corporation shall have its place of business in the District of Columbia and shall be considered, for purposes of venue in civil actions, to be a resident of the District of Columbia.

      (6) FUND- There is established in the Treasury a fund that shall be known as the District of Columbia Scholarship Fund, to be administered by the Secretary of the Treasury.

      (7) DISBURSEMENT- The Secretary of the Treasury shall make available and disburse to the Corporation, before October 15 of each fiscal year or not later than 15 days after the date of enactment of an Act making appropriations for the District of Columbia for such year, whichever occurs later, such funds as have been appropriated to the District of Columbia Scholarship Fund for the fiscal year in which such disbursement is made.

      (8) AVAILABILITY- Funds authorized to be appropriated under this subtitle shall remain available until expended.

      (9) USES- Funds authorized to be appropriated under this subtitle shall be used by the Corporation in a prudent and financially responsible manner, solely for scholarships, contracts, and administrative costs.

      (10) AUTHORIZATION-

        (A) IN GENERAL- There are authorized to be appropriated to the District of Columbia Scholarship Fund--

          (i) $7,000,000 for fiscal year 1998;

          (ii) $8,000,000 for fiscal year 1999; and

          (iii) $10,000,000 for each of fiscal years 2000 through 2002.

        (B) LIMITATION- Not more than 7.5 percent of the amount appropriated to carry out this subtitle for any fiscal year may be used by the Corporation for salaries and administrative costs.

    (b) ORGANIZATION AND MANAGEMENT; BOARD OF DIRECTORS-

      (1) BOARD OF DIRECTORS; MEMBERSHIP-

        (A) IN GENERAL- The Corporation shall have a Board of Directors (referred to in this subtitle as the ‘Board’), comprised of 7 members with 6 members of the Board appointed by the President not later than 30 days after receipt of nominations from the Speaker of the House of Representatives and the majority leader of the Senate.

        (B) HOUSE NOMINATIONS- The President shall appoint 3 of the members from a list of 9 individuals nominated by the Speaker of the House of Representatives in consultation with the minority leader of the House of Representatives.

        (C) SENATE NOMINATIONS- The President shall appoint 3 members from a list of 9 individuals nominated by the majority leader of the Senate in consultation with the minority leader of the Senate.

        (D) DEADLINE- The Speaker of the House of Representatives and majority leader of the Senate shall submit their nominations to the President not later than 30 days after the date of the enactment of this Act.

        (E) APPOINTEE OF MAYOR- The Mayor shall appoint 1 member of the Board not later than 60 days after the date of the enactment of this Act.

        (F) POSSIBLE INTERIM MEMBERS- If the President does not appoint the 6 members of the Board in the 30-day period described in subparagraph (A), then the Speaker of the House of Representatives and the Majority Leader of the Senate shall each appoint 2 members of the Board, and the Minority Leader of the House of Representatives and the Minority Leader of the Senate shall each appoint 1 of the Board, from among the individuals nominated pursuant to subparagraphs (A) and (B), as the case may be. The appointees under the preceding sentence together with the appointee of the Mayor, shall serve as an interim Board with all the powers and other duties of the Board described in this subtitle, until the President makes the appointments as described in this paragraph.

      (2) POWERS- All powers of the Corporation shall vest in and be exercised under the authority of the Board.

      (3) ELECTIONS- Members of the Board annually shall elect 1 of the members of the Board to be chairperson of the Board.

      (4) RESIDENCY- All members appointed to the Board shall be residents of the District of Columbia at the time of appointment and while serving on the Board.

      (5) NONEMPLOYEE- No member of the Board may be an employee of the United States Government or the District of Columbia Government when appointed to or during tenure on the Board, unless the individual is on a leave of absence from such a position while serving on the Board.

      (6) INCORPORATION- The members of the initial Board shall serve as incorporators and shall take whatever steps are necessary to establish the Corporation under the District of Columbia Nonprofit Corporation Act (D.C. Code, sec. 29-501 et seq.).

      (7) GENERAL TERM- The term of office of each member of the Board shall be 5 years, except that any member appointed to fill a vacancy occurring prior to the expiration of the term for which the predecessor was appointed shall be appointed for the remainder of such term.

      (8) CONSECUTIVE TERM- No member of the Board shall be eligible to serve in excess of 2 consecutive terms of 5 years each. A partial term shall be considered as 1 full term. Any vacancy on the Board shall not affect the Board’s power, but shall be filled in a manner consistent with this subtitle.

      (9) NO BENEFIT- No part of the income or assets of the Corporation shall inure to the benefit of any Director, officer, or employee of the Corporation, except as salary or reasonable compensation for services.

      (10) POLITICAL ACTIVITY- The Corporation may not contribute to or otherwise support any political party or candidate for elective public office.

      (11) NO OFFICERS OR EMPLOYEES- The members of the Board shall not, by reason of such membership, be considered to be officers or employees of the United States Government or of the District of Columbia Government.

      (12) STIPENDS- The members of the Board, while attending meetings of the Board or while engaged in duties related to such meetings or other activities of the Board pursuant to this subtitle, shall be provided a stipend. Such stipend shall be at the rate of $150 per day for which the member of the Board is officially recorded as having worked, except that no member may be paid a total stipend amount in any calendar year in excess of $5,000.

    (c) OFFICERS AND STAFF-

      (1) EXECUTIVE DIRECTOR- The Corporation shall have an Executive Director, and such other staff, as may be appointed by the Board for terms and at rates of compensation, not to exceed level EG-16 of the Educational Service of the District of Columbia, to be fixed by the Board.

      (2) STAFF- With the approval of the Board, the Executive Director may appoint and fix the salary of such additional personnel as the Executive Director considers appropriate.

      (3) ANNUAL RATE- No staff of the Corporation may be compensated by the Corporation at an annual rate of pay greater than the annual rate of pay of the Executive Director.

      (4) SERVICE- All officers and employees of the Corporation shall serve at the pleasure of the Board.

      (5) QUALIFICATION- No political test or qualification may be used in selecting, appointing, promoting, or taking other personnel actions with respect to officers, agents, or employees of the Corporation.

    (d) POWERS OF THE CORPORATION-

      (1) GENERALLY- The Corporation is authorized to obtain grants from, and make contracts with, individuals and with private, State, and Federal agencies, organizations, and institutions.

      (2) HIRING AUTHORITY- The Corporation may hire, or accept the voluntary services of, consultants, experts, advisory boards, and panels to aid the Corporation in carrying out this subtitle.

    (e) FINANCIAL MANAGEMENT AND RECORDS-

      (1) AUDITS- The financial statements of the Corporation shall be--

        (A) maintained in accordance with generally accepted accounting principles for nonprofit corporations; and

        (B) audited annually by independent certified public accountants.

      (2) REPORT- The report for each such audit shall be included in the annual report to Congress required by section 350(c).

    (f) RESPONSIBILITIES OF THE CORPORATION-

      (1) APPLICATION SCHEDULE AND PROCEDURES FOR CERTIFICATION- Not later than 60 days after the Board has been appointed, the Corporation shall implement a schedule and procedures for processing applications for awarding student scholarships under this subtitle that includes a list of certified eligible institutions, distribution of information to parents and the general public (including through a newspaper of general circulation), and deadlines for steps in the scholarship application and award process.

      (2) APPLICATION- An eligible institution that desires to participate in the scholarship program under this subtitle shall file an application with the Corporation for certification for participation in the scholarship program under this subtitle which shall--

        (A) demonstrate that the eligible institution has operated with not less than 25 students during the 3 years preceding the year for which the determination is made unless the eligible institution is applying for certification as a new eligible institution under subsection (c);

        (B) contain an assurance that the eligible institution will comply with all applicable requirements of this subtitle;

        (C) contain an annual statement of the eligible institution’s budget; and

        (D) describe the eligible institution’s proposed program, including personnel qualifications and fees.

      (3) CERTIFICATION-

        (A) IN GENERAL- Not later than 60 days after receipt of an application in accordance with paragraph (2), the Corporation shall certify an eligible institution to participate in the scholarship program under this subtitle.

        (B) CONTINUATION- An eligible institution’s certification to participate in the scholarship program shall continue unless such eligible institution’s certification is revoked in accordance with paragraph (5).

      (4) NEW ELIGIBLE INSTITUTION-

        (A) IN GENERAL- An eligible institution that did not operate with at least 25 students in the 3 years preceding the year for which the determination is made may apply for a 1-year provisional certification to participate in the scholarship program under this subtitle for a single year by providing to the Corporation not later than July 1 of the year preceding the year for which the determination is made--

          (i) a list of the eligible institution’s board of directors;

          (ii) letters of support from not less than 10 members of the community served by such eligible institution;

          (iii) a business plan;

          (iv) an intended course of study;

          (v) assurances that the eligible institution will begin operations with not less than 25 students;

          (vi) assurances that the eligible institution will comply with all applicable requirements of this subtitle; and

          (vii) a statement that satisfies the requirements of paragraphs (2) and (4) of subsection (a).

        (B) CERTIFICATION- Not later than 60 days after the date of receipt of an application described in paragraph (2), the Corporation shall certify in writing the eligible institution’s provisional certification to participate in the scholarship program under this subtitle unless the Corporation determines that good cause exists to deny certification.

        (C) RENEWAL OF PROVISIONAL CERTIFICATION- After receipt of an application under subparagraph (A) from an eligible institution that includes a statement of the eligible institution’s budget completed not earlier than 12 months before the date such application is filed, the Corporation shall renew an eligible institution’s provisional certification for the second and third years of the school’s participation in the scholarship program under this subtitle unless the Corporation finds--

          (i) good cause to deny the renewal, including a finding of a pattern of violation of requirements described in paragraph (6)(A); or

          (ii) consistent failure of 25 percent or more of the students receiving scholarships under this subtitle and attending such school to make appropriate progress (as determined by the Corporation) in academic achievement.

        (D) DENIAL OF CERTIFICATION- If provisional certification or renewal of provisional certification under this paragraph is denied, then the Corporation shall provide a written explanation to the eligible institution of the reasons for such denial.

      (5) REVOCATION OF ELIGIBILITY-

        (A) IN GENERAL- The Corporation, after notice and hearing, may revoke an eligible institution’s certification to participate in the scholarship program under this subtitle for a year succeeding the year for which the determination is made for--

          (i) good cause, including a finding of a pattern of violation of program requirements described in paragraph (6)(A); or

          (ii) consistent failure of 25 percent or more of the students receiving scholarships under this subtitle and attending such school to make appropriate progress (as determined by the Corporation) in academic achievement.

        (B) EXPLANATION- If the certification of an eligible institution is revoked, the Corporation shall provide a written explanation of its decision to such eligible institution and require a pro rata refund of the payments received under this subtitle.

      (6) PARTICIPATION REQUIREMENTS FOR ELIGIBLE INSTITUTIONS-

        (A) REQUIREMENTS- Each eligible institution participating in the scholarship program under this subtitle shall--

          (i) provide to the Corporation not later than June 30 of each year the most recent annual statement of the eligible institution’s budget; and

          (ii) charge a student that receives a scholarship under this subtitle not more than the cost of tuition and mandatory fees for, and transportation to attend, such eligible institution as other students who are residents of the District of Columbia and enrolled in such eligible institution.

        (B) COMPLIANCE- The Corporation may require documentation of compliance with the requirements of subsection (a), but neither the Corporation nor any governmental entity may impose additional requirements upon an eligible institution as a condition of participation in the scholarship program under this subtitle.

SEC. 343. SCHOLARSHIPS AUTHORIZED.

    (a) ELIGIBLE STUDENTS- The Corporation is authorized to award tuition scholarships under subsection (d)(1) and enhanced achievement scholarships under subsection (d)(2) to students in kindergarten through grade 12--

      (1) who are residents of the District of Columbia; and

      (2) whose family income does not exceed 185 percent of the poverty line.

    (b) SCHOLARSHIP PRIORITY-

      (1) FIRST- The Corporation shall first award scholarships to students described in subsection (a) who--

        (A) are enrolled in a District of Columbia public school or preparing to enter a District of Columbia kindergarten, except that this subparagraph shall apply only for academic years 1997, 1998, and 1999; or

        (B) have received a scholarship from the Corporation in the year preceding the year for which the scholarship is awarded.

      (2) SECOND- If funds remain for a fiscal year for awarding scholarships after awarding scholarships under paragraph (1), the Corporation shall award scholarships to students described in subsection (a) who are not described in paragraph (1).

    (c) RANDOM SELECTION- Except as provided in subsections (a) and (b), if there are more applications to participate in the scholarship program than there are spaces available, a student shall be admitted using a random selection process.

    (d) USE OF SCHOLARSHIP-

      (1) TUITION SCHOLARSHIPS- A tuition scholarship may be used for the payment of the cost of the tuition and mandatory fees at a public, private, or independent school located within the geographic boundaries of the District of Columbia or the cost of the tuition and mandatory fees at a public, private, or independent school located within Montgomery County, Maryland; Prince Georges County, Maryland; Arlington County, Virginia; Alexandria City, Virginia; Falls Church City, Virginia; Fairfax City, Virginia; or Fairfax County, Virginia.

      (2) ENHANCED ACHIEVEMENT SCHOLARSHIP- An enhanced achievement scholarship may be used only for the payment of the costs of tuition and mandatory fees for, or transportation to attend, a program of instruction provided by an eligible institution which enhances student achievement of the core curriculum and is operated outside of regular school hours to supplement the regular school program.

    (e) NOT SCHOOL AID- A scholarship under this subtitle shall be considered assistance to the student and shall not be considered assistance to an eligible institution.

SEC. 344. SCHOLARSHIP AWARDS.

    (a) AWARDS- From the funds made available under this subtitle, the Corporation shall award a scholarship to a student and make payments in accordance with section 345 on behalf of such student to a participating eligible institution chosen by the parent of the student.

    (b) NOTIFICATION- Each eligible institution that accepts a student who has received a scholarship under this subtitle shall notify the Corporation not later than 10 days after--

      (1) the date that a student receiving a scholarship under this subtitle is enrolled, of the name, address, and grade level of such student;

      (2) the date of the withdrawal or expulsion of any student receiving a scholarship under this subtitle, of the withdrawal or expulsion; and

      (3) the date that a student receiving a scholarship under this subtitle is refused admission, of the reasons for such a refusal.

    (c) TUITION SCHOLARSHIP-

      (1) EQUAL TO OR BELOW POVERTY LINE- For a student whose family income is equal to or below the poverty line, a tuition scholarship may not exceed the lesser of--

        (A) the cost of tuition and mandatory fees for, and transportation to attend, an eligible institution; or

        (B) $3,200 for fiscal year 1998, with such amount adjusted in proportion to changes in the Consumer Price Index for all urban consumers published by the Department of Labor for each of fiscal years 1999 through 2002.

      (2) ABOVE POVERTY LINE- For a student whose family income is greater than the poverty line, but not more than 185 percent of the poverty line, a tuition scholarship may not exceed the lesser of--

        (A) 75 percent of the cost of tuition and mandatory fees for, and transportation to attend, an eligible institution; or

        (B) $2,400 for fiscal year 1998, with such amount adjusted in proportion to changes in the Consumer Price Index for all urban consumers published by the Department of Labor for each of fiscal years 1999 through 2002.

    (d) ENHANCED ACHIEVEMENT SCHOLARSHIP- An enhanced achievement scholarship may not exceed the lesser of--

      (1) the costs of tuition and mandatory fees for, or transportation to attend, a program of instruction at an eligible institution; or

      (2) $500 for 1998, with such amount adjusted in proportion to changes in the Consumer Price Index for all urban consumers published by the Department of Labor for each of fiscal years 1999 through 2002.

SEC. 345. SCHOLARSHIP PAYMENTS.

    (a) DISBURSEMENT OF SCHOLARSHIPS- The funds may be distributed by check or another form of disbursement which is issued by the Corporation and made payable directly to a parent of a student participating in the scholarship program under this subtitle. The parent may use such funds only as payment for tuition, mandatory fees, and transportation costs associated with attending or obtaining services from a participating eligible institution.

    (b) PRO RATA AMOUNTS FOR STUDENT WITHDRAWAL-

      (1) BEFORE PAYMENT- If a student receiving a scholarship withdraws or is expelled from an eligible institution before a scholarship payment is made, the eligible institution shall receive a pro rata payment based on the amount of the scholarship and the number of days the student was enrolled in the eligible institution.

      (2) AFTER PAYMENT- If a student receiving a scholarship withdraws or is expelled after a scholarship payment is made, the eligible institution shall refund to the Corporation on a pro rata basis the proportion of any scholarship payment received for the remaining days of the school year. Such refund shall occur not later than 30 days after the date of the withdrawal or expulsion of the student.

SEC. 346. CIVIL RIGHTS.

    (a) IN GENERAL- An eligible institution participating in the scholarship program under this subtitle shall not engage in any practice that discriminates on the basis of race, color, national origin, or sex.

    (b) EXCEPTION- Nothing in this Act shall be construed to prevent a parent from choosing or an eligible institution from offering, a single-sex school, class, or activity.

    (c) REVOCATION- Notwithstanding section 342(f), if the Corporation determines that an eligible institution participating in the scholarship program under this title is in violation of any of the laws listed in subsection (a), then the Corporation shall revoke such eligible institution’s certification to participate in the program.

SEC. 347. CHILDREN WITH DISABILITIES.

    Nothing in this subtitle shall affect the rights of students, or the obligations of the District of Columbia public schools, under the Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.).

SEC. 348. RULE OF CONSTRUCTION.

    (a) IN GENERAL- Nothing in this Act shall be construed to bar any eligible institution which is operated, supervised, or controlled by, or in connection with, a religious organization from limiting employment, or admission to, or giving preference to persons of the same religion as is determined by such institution to promote the religious purpose for which it is established or maintained.

    (b) SECTARIAN PURPOSES- Nothing in this Act shall preclude the use of funds authorized under this Act for sectarian educational purposes or to require an eligible institution to remove religious art, icons, scripture, or other symbols.

SEC. 349. REPORTING REQUIREMENTS.

    (a) IN GENERAL- An eligible institution participating in the scholarship program under this subtitle shall report not later than July 30 of each year in a manner prescribed by the Corporation, the following data:

      (1) Student achievement in the eligible institution’s programs.

      (2) Grade advancement for scholarship students.

      (3) Disciplinary actions taken with respect to scholarship students.

      (4) Graduation, college admission test scores, and college admission rates, if applicable for scholarship students.

      (5) Types and amounts of parental involvement required for all families of scholarship students.

      (6) Student attendance for scholarship and nonscholarship students.

      (7) General information on curriculum, programs, facilities, credentials of personnel, and disciplinary rules at the eligible institution.

      (8) Number of scholarship students enrolled.

      (9) Such other information as may be required by the Corporation for program appraisal.

    (b) CONFIDENTIALITY- No personal identifiers may be used in such report, except that the Corporation may request such personal identifiers solely for the purpose of verification.

SEC. 350. PROGRAM APPRAISAL.

    (a) STUDY- Not later than 4 years after the date of enactment of this Act, the Comptroller General shall enter into a contract, with an evaluating agency that has demonstrated experience in conducting evaluations, for an independent evaluation of the scholarship program under this subtitle, including--

      (1) a comparison of test scores between scholarship students and District of Columbia public school students of similar backgrounds, taking into account the students’ academic achievement at the time of the award of their scholarships and the students’ family income level;

      (2) a comparison of graduation rates between scholarship students and District of Columbia public school students of similar backgrounds, taking into account the students’ academic achievement at the time of the award of their scholarships and the students’ family income level;

      (3) the satisfaction of parents of scholarship students with the scholarship program; and

      (4) the impact of the scholarship program on the District of Columbia public schools, including changes in the public school enrollment, and any improvement in the academic performance of the public schools.

    (b) PUBLIC REVIEW OF DATA- All data gathered in the course of the study described in subsection (a) shall be made available to the public upon request except that no personal identifiers shall be made public.

    (c) REPORT TO CONGRESS- Not later than September 1 of each year, the Corporation shall submit a progress report on the scholarship program to the appropriate committees of Congress. Such report shall include a review of how scholarship funds were expended, including the initial academic achievement levels of students who have participated in the scholarship program.

    (d) AUTHORIZATION- There are authorized to be appropriated for the study described in subsection (a), $250,000, which shall remain available until expended.

SEC. 351. JUDICIAL REVIEW.

    (a) IN GENERAL- The United States District Court for the District of Columbia shall have jurisdiction in any action challenging the scholarship program under this subtitle and shall provide expedited review.

    (b) APPEAL TO SUPREME COURT- 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 by appeal directly to the Supreme Court of the United States.

SEC. 352. EFFECTIVE DATE.

    This subtitle shall be effective for each of the fiscal years 1998 through 2002.

Subtitle C--Other Education Reforms

SEC. 361. REDUCTION IN ADMINISTRATIVE STAFF.

    At any time after June 30, 1998, the total number of full-time-equivalent employees of the District of Columbia Public Schools whose principal duty is not classroom instruction may not exceed the number of such full-time-equivalent employees as of September 30, 1997, reduced by 200.

SEC. 362. DEVELOPMENT OF PERFORMANCE CRITERIA FOR TEACHERS.

    The District of Columbia Public Schools shall develop and implement performance benchmarks for teachers, based on the ability of students to improve by at least one grade level each year in performance on standardized tests, and shall establish incentives to encourage teachers to meet such benchmarks.

SEC. 363. REPEAL OF TAX EXEMPTION FOR LABOR ORGANIZATIONS.

    (a) IN GENERAL- Notwithstanding any provision of any Federally-granted charter or any other provision of law, the real property of any labor organization located in the District of Columbia shall be subject to taxation by the District of Columbia in the same manner as any similar organization.

    (b) LABOR ORGANIZATION DEFINED- In subsection (a), the term ‘labor organization’ means any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work.

SEC. 364. TREATMENT OF SUPERVISORY PERSONNEL AS AT-WILL EMPLOYEES.

    Notwithstanding any other provision of law or regulation (including any law or regulation providing for collective bargaining or the enforcement of any collective bargaining agreement), all supervisory personnel of the District of Columbia Public Schools shall be appointed by, shall serve at the pleasure of, and shall act under the direction and control of the Emergency Transitional Education Board of Trustees, and shall be considered at-will employees not covered by the District of Columbia Government Comprehensive Merit Personnel Act of 1978.

SEC. 365. DETERMINATION OF NUMBER OF STUDENTS ENROLLED.

    Not later than 30 days after the date of the enactment of this Act, and not later than 30 days after the beginning of each semester which begins after such date, the District of Columbia Auditor shall submit a report to Congress, the Mayor, the Council, the Chief Financial Officer of the District of Columbia, and the District of Columbia Financial Responsibility and Management Assistance Authority providing the most recent information available on the number of students enrolled in the District of Columbia Public Schools and the average daily attendance of such students.

SEC. 366. BUDGETING ON SCHOOL-BY-SCHOOL BASIS.

    (a) PREPARATION OF INITIAL BUDGETS- Not later than 30 days after the date of the enactment of this Act, the District of Columbia Public Schools shall prepare and submit to Congress a budget for each public elementary and secondary school for fiscal year 1998 which describes the amount expected to be expended with respect to the school for salaries, capital, and other appropriate categories of expenditures.

    (b) USE OF BUDGETS FOR FUTURE AGGREGATE BUDGET- The District of Columbia Public Schools shall use the budgets prepared for individual schools under subsection (a) to prepare the overall budget for the Schools for fiscal year 1999.

SEC. 367. REQUIRING PROOF OF RESIDENCY FOR INDIVIDUALS ATTENDING SCHOOLS AND SCHOOL CHILD CARE PROGRAMS.

    None of the funds made available in this Act or any other Act may be used by the District of Columbia Public Schools in fiscal year 1998 or any succeeding fiscal year to provide classroom instruction or child care services to any minor whose parent or guardian does not supply the Schools with proof of the State of the minor’s residence.

SEC. 368. DISTRICT OF COLUMBIA SCHOOL OF LAW.

    (a) REQUIRING FULL ACCREDITATION-

      (1) IN GENERAL- If the District of Columbia School of Law is not fully, unconditionally accredited by the American Bar Association at its midyear meeting in February 1998, none of the funds made available in this Act or any other Act may be expended for or on behalf of the School except for purposes of providing assistance to assist students enrolled at the School as of such date who are residents of the District of Columbia in paying the tuition for enrollment at other law schools in the Washington Metropolitan Area, in accordance with a plan submitted to Congress.

      (2) RESTRICTIONS ON USE OF FUNDS PRIOR TO ACCREDITATION- None of the funds made available in this Act or any other Act may be used by or on behalf of the District of Columbia School of Law for recruiting or capital projects until the School is fully, unconditionally accredited by the American Bar Association.

    (b) NO OTHER SOURCE OF FUNDING PERMITTED- None of the funds made available in this Act or any other Act for the use of any entity (including the University of the District of Columbia) other than the District of Columbia School of Law may be transferred to, made available for, or expended for or on behalf of the District of Columbia School of Law.

SEC. 369. WAIVER OF LIABILITY IN PRO BONO ARRANGEMENTS.

    (a) IN GENERAL- Notwithstanding any other provision of law or any rule or regulation--

      (1) any person who voluntarily provides goods or services to or on behalf of the District of Columbia Public Schools without the expectation of receiving or intending to receive compensation shall be immune from civil liability, both personally and professionally, for any act or omission occurring in the course of providing such goods or services (except as provided in subsection (b)); and

      (2) the District of Columbia (including the District of Columbia Public Schools) shall be immune from civil liability for any act or omission of any person voluntarily providing goods or services to or on behalf of the District of Columbia Public Schools.

    (b) EXCEPTION FOR INTENTIONAL ACTS OR ACTS OF GROSS NEGLIGENCE- Subsection (a)(1) shall not apply with respect to any person if the act or omission involved--

      (1) constitutes gross negligence;

      (2) constitutes an intentional tort; or

      (3) is criminal in nature.

    (c) EFFECTIVE DATE- This section shall apply with respect to the provision of goods and services occurring during fiscal year 1998 or any succeeding fiscal year.

    This Act may be cited as the ‘District of Columbia Appropriations, Medical Liability Reform, and Education Reform Act of 1998’.

Passed the House of Representatives October 9, 1997.

Attest:

ROBIN H. CARLE,

Clerk.