Chapter 3. Budget and Financial Management; Borrowing; Deposit of Funds.

Subchapter I. Budget and Financial Management.

§ 47–301. [Reserved].

§ 47–301.01. Submission of annual expense estimates by court-appointed receivers.

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.

§ 47–302. Reserved

§ 47–303. Reserved

§ 47–304. Reserved

§ 47–305. Reserved

§ 47–305.01. Revenue from public rights-of-way included in budget submission.

All of the revenue derived from the collection of charges imposed for rental and utilization of public rights-of-way authorized by [subchapter III of Chapter 11 of Title 10], shall be dedicated annually pursuant to § 9-111.01a.

(Oct. 19, 2000, D.C. Law 13-172, § 505, 47 DCR 6308; Apr. 8, 2011, D.C. Law 18-370, § 625(a), 58 DCR 1008; Oct. 22, 2015, D.C. Law 21-36, § 7252, 62 DCR 10905; Dec. 13, 2017, D.C. Law 22-33, § 8064, 64 DCR 7652.)

Effect of Amendments

D.C. Law 18-370 rewrote the section, which formerly read:

“(a) The Mayor’s submission of proposed budgets to the Council beginning with the budget for fiscal year 2002 shall provide for all of the revenue derived from the collection of public rights-of-way occupancy fees to be dedicated to the District of Columbia Highway Trust fund and shall provide for any necessary adjustments to keep in balance the financial plan.

“(b) Subsection (a) of this section shall not be applicable to the extent that FY 2002 General Fund revenues are inadequate and revenues do not exceed projections as certified in conjunction with the Fiscal Year 2001 Budget Request Act. In this event, the Mayor shall include a detailed explanation with his submission of the FY 2002 budget to the Council.”

The 2015 amendment by D.C. Law 21-36 substituted “public rights-of-way authorized by Title VI of the Fiscal Year 1997 Budget Support Act of 1996, effective April 9, 1997 (D.C. Law 11-198; D.C. Official Code § 10-1141.01 et seq.)” for “public space authorized by the District of Columbia Public Space Rental Act, approved October 17, 1968 (82 Stat. 1156; D.C. Official Code § 10-1101 et seq.)” in (a); and substituted “public rights-of-way authorized by Title VI of the Fiscal Year 1997 Budget Support Act of 1996, effective April 9, 1997 (D.C. Law 11-198; D.C. Official Code § 10-1141.01 et seq.)” for “public space authorized by the District of Columbia Public Space Rental Act, approved October 17, 1968 (82 Stat. 1156; D.C. Official Code § 10-1101 et seq.)” in (b).

Emergency Legislation

For temporary (90 days) amendment of this section, see § 8064 of Fiscal Year 2018 Budget Support Congressional Review Emergency Act of 2017 (D.C. Act 22-167, Oct. 24, 2017, 64 DCR 10802).

For temporary (90 days) amendment of this section, see § 8064 of Fiscal Year 2018 Budget Support Emergency Act of 2017 (D.C. Act 22-104, July 20, 2017, 64 DCR 7032).

For temporary (90 day) amendment of section, see § 625(a) of Fiscal Year 2011 Supplemental Budget Support Emergency Act of 2010 (D.C. Act 18-694, January 19, 2011, 58 DCR 662).

For temporary (90 day) repeal of section, see § 2 of District Department of Transportation Omnibus Emergency Amendment Act of 2011 (D.C. Act 19-254, December 21, 2011, 58 DCR 11215).

For temporary (90 days) amendment of this section, see § 7222 of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).

Temporary Legislation

Section 2 of D.C. Law 19-97 repealed this section.

Section 6(b) of D.C. Law 19-97 provided that the act shall expire after 225 days of its having taken effect.

Editor's Notes

Section 629 of D.C. Law 18-370 provided: “Sec. 629. Applicability. This subtitle shall apply as of October 1, 2011; except, that sections 622 and 623(a)(2) shall apply as of the effective date of this act.”

§ 47–305.02. Minimum funding for Office of Public Education Facilities Modernization’s capital budgets to be included in budget and financial plan. [Repealed]

Repealed.

(June 8, 2006, D.C. Law 16-123, § 301(b), 53 DCR 2843; Sept. 18, 2007, D.C. Law 17-20, § 4042(b)(2), 54 DCR 7052; Mar. 3, 2010, D.C. Law 18-111, § 7061, 57 DCR 181; Sept. 14, 2011, D.C. Law 19-21, § 7012(a)(2), 58 DCR 6226.)

Emergency Legislation

For temporary (90 day) amendment of section, see § 4042(b)(2) of Fiscal Year 2008 Budget Support Emergency Act of 2007 (D.C. Act 17-74, July 25, 2007, 54 DCR 7549).

For temporary (90 day) amendment of section, see § 7011 of Fiscal Year 2010 Budget Support Emergency Act of 2009 (D.C. Act 18-187, August 26, 2009, 56 DCR 7374).

For temporary (90 day) amendment of section, see § 7061 of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) amendment of section, see § 7061 of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

For temporary (90 day) repeal of section, see § 7012(a)(2) of Fiscal Year 2012 Budget Support Emergency Act of 2011 (D.C. Act 19-93, June 29, 2011, 58 DCR 5599).

Short Title

Short title: Section 7060 of D.C. Law 18-111 provided that subtitle D of title VII of the act may be cited as the “School Modernization Financing Amendment Act of 2009”.

Short title: Section 7011 of D.C. Law 19-21 provided that subtitle B of title VII of the act may be cited as “Prior Fiscal Year Conforming Budget Amendments Act of 2011”.

§ 47–306. Submission and approval of gross planning budget.

Pursuant to §§ 1-204.48(a)(3) and 1-206.03(c) and (d), the Mayor shall annually, and prior to transmittal of the budget of the District to the President of the United States, submit to the Council a gross planning budget for the District, which shall include, but not be limited to, the amount of estimated revenue by source, including all sources, and the planned obligation of all revenue presented at responsibility center detail. The gross planning budget shall be approved by resolution of the Council.

§ 47–307. Submission of control budget.

(a) Within 14 days of Congressional approval of the appropriated budget of the District, the Mayor shall submit to the Council an act to establish the control budget of the District, including all revenue sources, which shall be presented in responsibility center detail; provided, that nothing in this section may be construed as giving the Council the power to modify any action taken by the Congress in the appropriations act for the District.

(b) Prior to the obligation during the fiscal year of any grant funds awarded subsequent to the start of the fiscal year, the Mayor shall submit to the Council an act to establish such grant award as part of the control budget of the District, and such grant award shall be submitted in responsibility center detail.

§ 47–308. Establishment of budget structure.

(a) Within 30 days of the Mayor’s first call with respect to the preparation of the budget for fiscal year 1982, and any subsequent fiscal year, the Mayor shall submit to the Council a resolution to establish the budget structure, including but not limited to designating control centers and responsibility centers, and a designation of all those entities as they are proposed for financial management purposes within the gross planning budget.

(b) The Council shall consider such resolution according to its rules. Should no written notice of disapproval of such resolution be filed by any member of the Council with the Secretary to the Council within 14 days of the receipt of such resolution from the Mayor, the resolution shall be deemed to be approved. Should notice of disapproval be filed during such initial 14 day period, the Council shall dispose of such notice of disapproval within 30 days of the initial receipt of the resolution from the Mayor, or the resolution to establish the budget structure shall be deemed to be approved.

(c) No such resolution may be submitted to the Council during such time as the Council is on recess, according to its rules, nor shall any time period provided in this section continue to run during such time as the Council is on recess.

(d) If the Council disapproves such resolution, the Mayor may, on a clear showing of changed circumstance, new information, or additional administrative hardship, ask for a reconsideration of the previous action of the Council. The Council may in its discretion reconsider its previous action.

§ 47–308.01. Performance-based budget.

(a) For purposes of this section, the term:

(1) “Activity” means a component part of the District’s program structure comprised of a set of services grouped around a common purpose.

(2) “Operating agency” means any agency that receives budget authority through the District of Columbia’s annual appropriation.

(3) “Performance-based budget” means a budget presentation consisting of agency programs, estimated total program and activity costs, as well as full-time equivalents for the current and next fiscal year; agency strategic result goals; an overview describing the activities within each program; estimated program costs; and program performance measures.

(3A) "Racial Equity" means the elimination of racial disparities such that race no longer predicts opportunities, outcomes, or the distribution of resources for residents of the District, particularly for persons of color and Black residents.

(3B) “Relevant cost drivers” are the basic causes behind service delivery that can be utilized to reasonably predict the cost of a service based on its level of activity, which for 2008 shall be reported at the program level and for 2009 and beyond shall be reported at the activity level.

(3C) “Relevant performance measures” means metrics established by the Mayor, after consultation with Stakeholders before the beginning of each fiscal year, that establish expectations about:

(A) The results an agency will produce;

(B) The outputs or services the agency will produce;

(D) The efficiency with which the agency produces results, outputs, and services and meets the demands for activity by the agency.

(4) “Service” means the deliverables or products that the customer receives. The lowest level in the District’s program structure, services are discrete units of governmental functions that together make up an activity.

(5) “Service-level budgets” means a budget by fund and object class for a service provided by the District listed at organizational level 4 in the financial system and at the service level in agency strategic business plans.

[(6)] “Stakeholders” are the customers of an agency that use the agency’s services or products and may include both government customers and persons or corporations that are resident in the District.

(b) Beginning with the District of Columbia’s Fiscal Year 2004 budget and financial plan, any agency that has converted to a performance-based budget shall continue presenting its budget in such format, unless the Chief Financial Officer considers it appropriate to present an agency’s budget in a different format.

(c) Beginning in Fiscal Year 2004 and continuing in subsequent fiscal years until all applicable agencies funded by the General Fund within the District of Columbia’s budget and financial plan are submitting performance-based budgets, the Mayor shall identify by executive order, no later than July 10, at least 15 additional agencies to submit performance-based budgets the following fiscal year. For the Fiscal Year 2006 budget and financial plan, the Mayor shall submit to the Council a performance-based budget for every operating agency in the District of Columbia, unless the Chief Financial Officer considers it inappropriate to do so.

(d) Beginning in fiscal year 2006 and phasing in through fiscal year 2009 by appropriation title beginning with Public Safety and Justice and Public Works in fiscal year 2006, Governmental Direction and Support in fiscal year 2007, Public Education Systems and Economic Development and Regulation in fiscal year 2008, and Human Support Services and all other remaining agencies in fiscal year 2009, the Chief Financial Officer shall provide service level budgets for any operating agency where services are a part of an activity that has a minimum threshold of $5 million from the prior fiscal year’s appropriation or provides services determined by the Mayor or the Council to be a priority for the District of Columbia. By no later than August 15 of each year, beginning in fiscal year 2006 and continuing in subsequent fiscal years, the Chief Financial Officer shall provide to the Mayor and the Council a list of service costs for activities that have a minimum threshold of $10 million from the prior fiscal year’s appropriation.

(e) Beginning in Fiscal Year 2005 and continuing in subsequent fiscal years, the Office of Budget and Planning, in consultation with the Office of the City Administrator, shall identify 25 critical programs to benchmark with comparable jurisdictions and shall include those benchmarks in the budget and financial plan.

(f) The Office of Budget and Planning shall review all agency program expenditures, including program definitions, estimated program costs, program performance measures, and agency benchmarks, which expenditures shall be included in the District of Columbia’s budget and financial plan. For the Fiscal Year 2006 budget, no operating agency budget shall be forwarded to the Mayor for approval without the Office of Budget and Planning’s determination that it is a performance-based budget, except those agencies for which the Chief Financial Officer considers such a budget to be inappropriate.

(g)(1) Each agency that has transitioned to the performance-based budget format shall submit a copy of its strategic business plan to the Council prior to January 31 of each year.

(2) The Office of the City Administrator, in conjunction with the Office of the Chief Financial Officer, shall make available, in electronic format, copies of agency strategic business plans to the public and shall display the strategic business plans on the District government’s internet site.

(h)(1) By March 1, 2021, in coordination with the Office of the City Administrator, the Office of Racial Equity, established by [§ 2-1471.02], shall design and implement racial equity tools to enable District agencies to incorporate racial equity into their operations, performance-based budgets, programs, policies, rules, and regulations, and to ensure alignment between departmental and District-wide programs and initiatives.

(2) At a minimum, the Mayor shall use the racial equity tools to:

(A) Identify clear strategic initiatives, objectives, and measurable outcomes;

(B) Develop metrics to measure progress in redressing disparate social and economic outcomes in the District based on race, sex, and ethnicity;

(C) Track and measure how programmatic and policy decisions benefit or burden individuals based on race, sex, or ethnicity;

(D) Examine potential unintended consequences of a policy or programmatic decision and develop a strategy to advance racial equity and mitigate unintended negative consequences; and

(E) Evaluate the efficacy of District agencies' strategic initiatives and programs aimed at reducing disparate outcomes.

(3) Beginning in 2021 for Fiscal Year 2022, and every year thereafter, the Mayor's budget submission package to the Council shall include a summary of how the proposed budget advances racial equity in the District, reduces disparate outcomes, and allocates resources to support equitable outcomes.

(Oct. 3, 2001, D.C. Law 14-28, § 4502(b), 48 DCR 6981; Oct. 1, 2002, D.C. Law 14-190, § 202, 49 DCR 6968; Nov. 13, 2003, D.C. Law 15-39, § 1002, 50 DCR 5668; Dec. 7, 2004, D.C. Law 15-205, § 1032, 51 DCR 8441; Oct. 20, 2005, D.C. Law 16-33, § 1006(b), 52 DCR 7503; Mar. 16, 2021, D.C. Law 23-181, § 202(a), 67 DCR 14390.)

Effect of Amendments

D.C. Law 14-190 rewrote the section.

D.C. Law 15-39 rewrote the section.

D.C. Law 15-205 rewrote subsecs. (a) and (d).

D.C. Law 16-33, in subsec. (a), added pars. (3B), (3A), and (3C).

Emergency Legislation

For temporary (90 days) amendment of this section, see § 202(a) of Racial Equity Achieves Results (REACH) Congressional Review Emergency Amendment Act of 2021 (D.C. Act 24-44, Mar. 24, 2021, 68 DCR 003448).

For temporary (90 days) amendment of this section, see § 202(a)(2) of Racial Equity Achieves Results (REACH) Emergency Amendment Act of 2020 (D.C. Act 23-521, Dec. 7, 2020, 67 DCR 14433).

For temporary (90 day) addition of section, see § 4102(b) of Fiscal Year 2002 Budget Support Emergency Act of 2001 (D.C. Act 14-124, August 3, 2001, 48 DCR 7861).

For temporary (90 day) amendment of section, see § 202 of Fiscal Year 2003 Budget Support Emergency Act of 2002 (D.C. Act 14-453, July 23, 2002, 49 DCR 8026).

For temporary (90 day) amendment of section, see § 1002 of Fiscal Year 2004 Budget Support Emergency Act of 2003 (D.C. Act 15-105, June 20, 2003, 50 DCR 5613).

For temporary (90 day) amendment of section, see § 1002 of Fiscal Year 2004 Budget Support Congressional Review Emergency Act of 2003 (D.C. Act 15-149, September 22, 2003, 50 DCR 8360).

For temporary (90 day) amendment of section, see § 1032 of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).

For temporary (90 day) human support services fiscal year 2005 program performance provisions, see §§ 5902, 5903 of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).

For temporary (90 day) amendment of section, see § 1032 of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR 11725).

For temporary (90 day) human support services fiscal year 2005 program performance provisions, see §§ 5902, 5903 of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR 11725).

For temporary (90 day) amendment of section, see § 1006(b) of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).

Temporary Legislation

Section 2 of D.C. Law 15-344, amending section 5903 of D.C. Law 15-205, substituted “operation” for “renovation”.

Section 4(b) of D.C. Law 15-344 provides that the act shall expire after 225 days of its having taken effect.

Short Title

Short title of title II of Law 14-190: Section 201 of D.C. Law 14-190 provided that title II of the act may be cited as the Performance and Financial Accountability Act of 2002.

Short title of title X of Law 15-39: Section 1001 of D.C. Law 15-39 provided that title X of the act may be cited as the Performance and Financial Accountability Act of 2003.

Short title of subtitle D of title I of Law 15-205: Section 1031 of D.C. Law 15-205 provided that subtitle D of title I of the act may be cited as the Performance and Financial Accountability Amendment Act of 2004.

Short title of subtitle I of title V of Law 15-205: Section 5901 of D.C. Law 15-205 provided that subtitle I of title V of the act may be cited as the Human Support Services Fiscal Year 2005 Program Performance Requirements Act of 2004.

Short title of subtitle B of title I of Law 16-33: Section 1005 of D.C. Law 16-33 provided that subtitle B of title I of the act may be cited as the Performance-Based Budgeting Act of 2005.

Editor's Notes

Sections 5902 and 5903 of D.C. Law 15-205 provided:

“Sec. 5902. Department of Health fiscal year 2005 program performance requirements.

“For fiscal year 2005, the Department of Health shall:

“(1) Have sufficient local match available as needed to be spent so that no federal dollars are lost in programs including the Breast and Cervical Cancer Program, the Prostate Cancer Program, the Comprehensive Cancer Control Program, and the D.C. Cancer Registry;

“(2) Maintain fiscal year 2003 number of full-time employees, hours of operation, and services in the Sexually Transmitted Disease Control Program and the Tuberculosis Control Program; and

“(3) Allocate sufficient funds to the Department of Health, Health Regulation Administration to maintain the fiscal year 2003 funding level and number of inspector and surveyor full-time employees for the following divisions:

“(A) The Health Care Facilities Division;

“(B) Child and Residential Care Facilities Division; and

“(C) Intermediate Care Facilities Division.

“Sec. 5903. Department of Human Services Fiscal Year 2005 program performance requirements.

“For fiscal year 2005, the Department of Human Services shall use the $250,000 that the Committee on Human Services directed from the Department of Mental Health’s Strategic Management Service to the Department of Human Services’ Family Services Administration for the Southeast Veteran’s Access Housing, Inc., for the renovation of the men’s shelter.”

§ 47–308.02. Relevant performance measures.

(a) Each relevant performance measure must be linked to spending on the relevant activity.

(b) Each relevant performance measure shall represent a significant and realistic challenge for expected performance of the activity.

(d) Relevant performance measures for each fiscal year, shall be established by the Mayor or his designee, after consultation with the agency’s stakeholders.

(e) Beginning with fiscal year 2007, and for each subsequent fiscal year, all relevant performance measures for the prior fiscal year shall be provided to the Council in January along with the performance accountability reports submitted pursuant to § 1-614.13, and beginning with fiscal year 2008, and for each following fiscal year, all relevant cost drivers shall be provided with the relevant performance measures in accordance with § 47-308.03(e).

(f) Beginning with fiscal year 2008, and for each subsequent fiscal year, the Mayor, or his designee, shall, in consultation with an agency’s stakeholders, establish relevant performance measures and utilize these performance measures in the agency’s strategic business plan.

(g) Beginning no later than Fiscal Year 2022, and for each subsequent fiscal year, the Mayor shall establish at least one relevant performance measure related to an agency's progress toward achieving racial equity.

§ 47–308.03. Performance accountability reporting.

(a) By September 30, 2005, the Mayor shall ensure that each agency engaged in Performance Based Budgeting shall meet with its stakeholders to review and update its current relevant performance measures.

(b) By September 30, 2006, and each subsequent year, the Mayor shall ensure that for the following fiscal year each agency activity has at least one relevant performance measure and per program one relevant cost driver.

(c)(1) No later than January 15th of each year, the Mayor shall submit to the Council a performance accountability report that includes the evaluation of each agency's performance on its activities, including those relating to achieving racial equity, for the preceding fiscal year and includes all relevant performance measures, as determined in accordance with subsections (a) or (b) of this section, whichever is applicable.

(2) The report shall provide quantitative or qualitative results for the relevant performance measures, where available, accompanied by an analysis of the results achieved.

(d) Beginning with the District of Columbia’s fiscal year 2007 budget and financial plan and continuing in subsequent fiscal years, the Mayor, in consultation with the Chief Financial Officer, shall provide for each agency under performance-based budgeting or funded by O-type funds, relevant performance measures that comply with subsection (c) of this section for Council review within 180 days of the beginning of the fiscal year.

(e) For fiscal year 2007, and each subsequent fiscal year, each independent and executive agency shall have at least one relevant performance measure for each activity reported in the budget and financial plan. Beginning with fiscal year 2008, each independent and executive agency shall have at least one relevant cost driver reported in the budget and financial plan, which for 2008 shall be reported at the program level and for 2009 and beyond shall be reported at the activity level.

(f) For each fiscal year, the Mayor shall:

(1) Submit a copy of the measures developed pursuant to subsection (a) of this section to the Council for review for informational purposes no later than May 31st indicating each relevant performance measure published in the Budget and Financial Plan that was not used to evaluate agency directors for bonuses; and

(2) Publish in the Budget and Financial Plan, at least one relevant performance measure for each agency activity, including a summary explanation of why the measures assist in holding the agency’s management accountable for their use of public funds.

§ 47–308.04. Replacement schedule for capital assets.

The Chief Financial Officer of the District of Columbia shall develop a 15-year replacement schedule for the capital assets of the District government. The schedule shall be prepared in a form that reflects both the adopted capital improvements plan and a replacement schedule for District capital assets. The Chief Financial Officer shall report to the Council and the Mayor on the replacement schedule on an annual basis, with the initial report due on October 1, 2015. All agencies shall cooperate with any requests made by the Chief Financial Officer related to this section.

(Feb. 26, 2015, D.C. Law 20-155, § 1043(b), 61 DCR 9990.)

Emergency Legislation

For temporary (90 days) addition of § 47-308.04, see § 1043(b) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) addition of § 47-308.04, see § 1043(b) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) addition of § 47-308.04, see § 1043(b) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

§ 47–309. Borrowing of funds by Mayor.

The Mayor is authorized to borrow funds from the United States Treasury in anticipation of the collection or receipt of revenues; provided, that each such borrowing is approved by the Council in advance of such borrowing by resolution.

§ 47–310. Master capital projects.

(a) For any master capital project that is included in an approved budget and financial plan and is owned and implemented by the same agency that owns and implements all the sub-projects within it, an agency director may submit requests to the Office of Budget and Planning ("OBP") of the Office of the Chief Financial Officer to:

(1) Reallocate funds from the master capital project to a sub-project;

(2) Reallocate funds from a sub-project to the master capital project; or

(3) Reallocate funds from one sub-project to another sub-project;

(b) Upon receiving a request under subsection (a) of this section, OBP shall reallocate the funds as requested, unless OBP determines that the funds are not available for reallocation.

(c) After funds are reallocated pursuant to subsections (a) and (b) of this section, the agency director described in subsection (a) of this section may obligate and expend the reallocated funds.

(d)(1) An agency director described in subsection (a) of this section also may submit requests to OBP to reallocate to a master capital project any available fund balances from a related capital project, in order to align the related capital project with the master capital project.

(2) For the purposes of this subsection, the term "related capital project" means a capital project that:

(A) Was created before the master capital project was created;

(B) Is associated with the master capital project based on the description of the master project and the description of the capital project; and

(e) Subchapter IV of this chapter shall not apply to reallocations made pursuant to this section.

§ 47–310.01. Financial Reports by Mayor.

(a) Submission of quarterly financial reports. — Not later than fifteen days after the end of every calendar quarter (beginning October 1, 1994), the Mayor shall submit to the Committee on the District of Columbia of the House of Representatives, the Committee on Governmental Affairs of the Senate, and the Subcommittees on District of Columbia Appropriations of the House of Representatives and the Senate a report on the financial and budgetary status of the government of the District of Columbia for the previous quarter.

(b) Contents of report. — Each report submitted under subsection (a) of this section with respect to a quarter shall include the following information:

(1) A comparison of actual to forecasted cash receipts and disbursements for each month of that quarter, as presented in the District’s fiscal year consolidated cash forecast which shall be supported and accompanied by cash forecasts for the general fund and each of the District government’s other funds other than the capital projects fund and trust and agency funds;

(2) A projection of the remaining months’ cash forecast for that fiscal year;

(3) Explanations of (A) the differences between actual and forecasted cash amounts for each of the months in the quarter, and (B) the changes in the remaining months’ forecast as compared to the original forecast for those months of that fiscal year;

(4) The effect of these changes, actual and projected, on the total cash balance of the remaining months and for the fiscal year;

(5) Explanations of the impact on meeting the budget, how the results may be reflected in a supplemental budget request, or how other policy decisions may be necessary which may require the agencies to reduce expenditures in other areas; and

(6) An aging of the outstanding receivables and payables, with an explanation of how they are reflected in the forecast of cash receipts and disbursements.

(c) Reporting on nonappropriated funds. — Not later than the date on which the Mayor issues the Comprehensive Annual Financial Report of the District of Columbia for the fiscal year ended September 30, 1994, the Mayor shall submit to the Committees on Appropriations of the House of Representatives and the Senate, the Committee on the District of Columbia of the House of Representatives, and the Committee on Governmental Affairs on the Senate a report on all revenues and expenditures of the general fund of the District that are characterized as nonappropriated in the Comprehensive Annual Financial Report. The report required by this subsection shall include the following information for each category of nonappropriated funds:

(1) The source of revenues;

(2) The object of the expenditures;

(3) An aging of outstanding accounts receivable and accounts payable;

(4) The statutory or other legal authority under which such category of funds may be expended without having been appropriated as part of the District’s annual budget and appropriations process;

(5) The date when such category of funds was first expended on a nonappropriated basis;

(6) The policy or rationale for why the revenues and expenditures of such funds should not be part of the District’s annual budget and appropriations process; and

(7) A reconciliation of the amounts reported under this subsection with the amounts characterized as nonappropriated in the Comprehensive Annual Financial Report.

(Sept. 30, 1994, 108 Stat. 2589, Pub. L. 103-334, § 137; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-310.1.

Emergency Legislation

For temporary (90 day) amendment of section, see § 2 of Quarterly Financial and Budgetary Status Reporting Emergency Act of 2010 (D.C. Act 18-465, July 6, 2010, 57 DCR 6910).

For temporary (90 day) amendment of section, see § 2 of Quarterly Financial and Budgetary Status Reporting Congressional Review Emergency Amendment Act of 2010 (D.C. Act 18-538, October 5, 2010, 57 DCR 9608).

Temporary Legislation

Section 2 of D.C. Law 18-234, in subsec. (a), substituted “the Mayor shall submit to the Council of the District of Columbia,” for “the Mayor shall submit to”.

Section 4(b) of D.C. Law 18-234 provided that the act shall expire after 225 days of its having taken effect.

§ 47–310.02. Schedule and notice requirement for completion of Annual Comprehensive Financial Report.

Each year in connection with preparation of the February 1 financial statement and report for the preceding fiscal year required under § 1-204.48(a)(4), the Chief Financial Officer shall prepare an audit plan which establishes a schedule of tasks that must be completed to meet the February 1 submission deadline. The schedule shall be transmitted to the Council and the Office of the Inspector General in writing annually before August 16. If a task is not completed when scheduled, the Chief Financial Officer shall notify the Council and the Office of the Inspector General and provide a written explanation for the failure to complete the task, within 5 calendar days of the scheduled date.

§ 47–311. Estimate of expenditures by Mayor.

The Mayor shall, within 10 days of receipt of a request of the chairperson of a Council committee (excluding Saturdays, Sundays and legal holidays), estimate the cost of all expenditures to be incurred by the District of Columbia government under permanent legislation to be adopted by the Council. Within 30 days of the effective date of this section, the Mayor shall adopt standards by which to make such determinations and shall submit such standards to the Council for its disapproval in whole or in part within 30 days of receipt.

§ 47–313.01. 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.

§ 47–314. Office of Financial Management established [Repealed]

Repealed.

(April 17, 1995, 109 Stat. 97, Pub. L. 104-8, § 302(c).)

Prior Codifications

1981 Ed., §§ 47-314 to 47-317.

Editor's Notes

Repeal of §§ 47-314 through 47-317: Section 302(c) of Pub. L. 104-8, 109 Stat. 148, April 17, 1995, provided that effective upon the appointment of the Chief Financial Officer of the District of Columbia under § 1-204.24a, D.C. Law 3-138 which enacted §§ 47-314 through 47-317 are repealed. Upon the appointment of a Chief Financial Officer of the District of Columbia pursuant to Mayor’s Order 95-124, effective October 27, 1995, §§ 47-314 through 47-317 were repealed.

Mayor's Orders

Deputy Mayor for Office of Financial Management established: See Mayor’s Order 83-19, January 3, 1983.

Establishment of Office of District of Columbia Controller: See Mayor’s Order 89-243, October 23, 1989.

Establishment of Office of Treasurer: See Mayor’s Order 89-244, October 23, 1989.

Establishment of Office of Financial Information Services: See Mayor’s Order 89-245, October 23, 1989.

§ 47–315. Duties and responsibilities of Assistant City Administrator for Financial Management and Treasurer [Repealed]

Repealed.

(April 17, 1995, 109 Stat. 97, Pub. L. 104-8, § 302(c).)

Prior Codifications

1981 Ed., §§ 47-314 to 47-317.

Editor's Notes

Mayor's Orders

Deputy Mayor for Office of Financial Management established: See Mayor’s Order 83-19, January 3, 1983.

Establishment of Office of District of Columbia Controller: See Mayor’s Order 89-243, October 23, 1989.

Establishment of Office of Treasurer: See Mayor’s Order 89-244, October 23, 1989.

Establishment of Office of Financial Information Services: See Mayor’s Order 89-245, October 23, 1989.

§ 47–316. Transfer of powers, duties and functions to Treasurer [Repealed]

Repealed.

(April 17, 1995, 109 Stat. 97, Pub. L. 104-8, § 302(c).)

Prior Codifications

1981 Ed., §§ 47-314 to 47-317.

Editor's Notes

Mayor's Orders

Deputy Mayor for Office of Financial Management established: See Mayor’s Order 83-19, January 3, 1983.

Establishment of Office of District of Columbia Controller: See Mayor’s Order 89-243, October 23, 1989.

Establishment of Office of Treasurer: See Mayor’s Order 89-244, October 23, 1989.

Establishment of Office of Financial Information Services: See Mayor’s Order 89-245, October 23, 1989.

§ 47–317. Transfer of resources to Office [Repealed]

Repealed.

(April 17, 1995, 109 Stat. 97, Pub. L. 104-8, § 302(c).)

Prior Codifications

1981 Ed., §§ 47-314 to 47-317.

Editor's Notes

Mayor's Orders

Deputy Mayor for Office of Financial Management established: See Mayor’s Order 83-19, January 3, 1983.

Establishment of Office of District of Columbia Controller: See Mayor’s Order 89-243, October 23, 1989.

Establishment of Office of Treasurer: See Mayor’s Order 89-244, October 23, 1989.

Establishment of Office of Financial Information Services: See Mayor’s Order 89-245, October 23, 1989.

Subchapter I-A. Chief Financial Officer of the District of Columbia.

§ 47–317.01. Reserved

§ 47–317.02. Reserved

§ 47–317.03. Reserved

§ 47–317.03a. Chief Financial Officer — Powers during control periods.

(a) Notwithstanding any other provision of law, during any control period in effect under part B of subchapter VII of this chapter the following shall apply:

(1) The heads and all personnel of the following offices, 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 and 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:

(A) The Office of the Treasurer;

(B) The Controller of the District of Columbia;

(D) The Office of Financial Information Services; and

(E) The Department of Finance and Revenue. The District of Columbia Financial Responsibility and Management assistance Authority established pursuant to § 47-391.01, may remove such individuals from office for cause, after consultation with the Mayor and the Chief Financial Officer.

(2) The Chief Financial Officer shall prepare and submit to the Mayor, for inclusion in the annual budget of the District of Columbia under part D of title IV of the District of Columbia Home Rule Act of 1973, approved December 24, 1973 (87 Stat. 774; Public Law 93-198) [§§ 1-204.41 through 1-204.56e], as amended, for each fiscal year occurring during a control period in effect under part B of subchapter VII of this chapter, annual estimates of the expenditures and appropriations necessary for the operation of the Office of the Chief Financial Officer for the year. All such estimates shall be forwarded by the Mayor to the Council of the District of Columbia for its action pursuant to §§ 1-204.46 and 1-206.03(c), without revision but subject to recommendations. Notwithstanding any other provisions of the District of Columbia Home Rule Act, Public Law 93-198, approved December 24, 1973 [Chapter 2 of Title 1, D.C. Official Code], the Council may comment or make recommendations concerning such estimates, but shall have no authority to revise such estimates.

(Sept. 9, 1996, 110 Stat. 2375, Pub. L. 104-194, § 142; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-317.3a.

References in Text

“Part D of title IV of the District of Columbia Home Rule Act,” referred to in (a)(2), is Part D of title IV of the Act of December 24, 1973, 87 Stat. 774, Pub. L. 93-198 which is composed of §§ 441 through 456 of the act.

Pursuant to the Office of the Chief Financial Officer’s “Notice of Public Interest” published in the April 18, 1997, issue of the District of Columbia Register ( 44 DCR 2345) the Office of Tax and Revenue assumed all of the duties and functions previously performed by the Department of Finance and Revenue, as set forth in Commissioner’s Order 69-96, dated March 7, 1969. This action was made effective January 22, 1997, nunc pro tunc.

Editor's Notes

Powers of Chief Financial Officer for Fiscal Years ending September 30, 1996 and September 30, 1997: Section 152 of Pub. L. 104-134, 110 Stat. 1321 220, provided that “Notwithstanding any other provision of law, for the fiscal years ending September 30, 1996 and September 30, 1997 —

“(a) the heads and all personnel of the following offices, together with all other District of Columbia executive branch accounting, budget, and financial management personnel, shall be approved by, and shall serve at the pleasure of, and shall act under the direction and control of the Chief Financial Officer:

“The Office of the Treasurer.

“The Controller of the District of Columbia.

“The Office of the Budget.

“The Office of Financial Information Services.

“The Department of Finance and Revenue.

“The District of Columbia Financial Responsibility Management Assistance Authority established pursuant to Public Law 104-8, approved April 17, 1995, may remove such individuals from office for cause, after consultation with the Mayor and the Chief Financial Officer.

“(b) The Chief Financial Officer shall prepare and submit to the Mayor, for inclusion in the annual budget of the District of Columbia under part D of title IV of the District of Columbia Self-Government and Governmental Reorganization Act of 1993, approved December 24, 1973 (87 Stat. 774; Public Law 93-198), as amended, for fiscal years 1996, 1997 and 1998, annual estimates of the expenditures and appropriations necessary for the operation of the Office of the Chief Financial Officer for the year. All such estimates shall be forwarded by the Mayor to the Council of the District of Columbia for its action pursuant to sections 446 and 603(c) of such Act, without revision but subject to recommendations. Notwithstanding any other provisions of such Act, the Council may comment or make recommendations concerning such estimates, but shall have no authority to revise such estimates.”

For District of Columbia Home Rule Act provisions, see §§ 1-204.24a through 1-204.24f.

§ 47–317.04. [Reserved].

§ 47–317.04a. Chief Financial Officer — Authorization to privatize tax administration and collection.

The Chief Financial Officer of the District of Columbia may enter into contracts with a private entity for the administration and collection of taxes of the District of Columbia.

(Aug. 5, 1997, 111 Stat. 764, Pub. L. 105-33, § 11302.)

Prior Codifications

1981 Ed., § 47-317.4a.

Effective Dates

Section 11721 of Title XI of Pub. L. 105-33, 111 Stat. 786, the National Capital Revitalization and Self-Government Improvement Act of 1997, provided that except as otherwise provided in this title, the provisions of this title shall take effect on the later of October 1, 1997, or the day the District of Columbia Financial Responsibility and Management Assistance Authority certifies that the financial plan and budget for the District government for fiscal year 1998 meet the requirements of section 201(c)(1) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, as amended by this title.

[Reserved].

§ 47–317.07. SHARE Data Center.

Notwithstanding any other law, all positions, personnel, property, records, and the functions of the Office of Financial Information Services for the SHARE data center are assigned, and authority delegated, to the Office of the Chief Technology Officer.

§ 47–317.08. Compliance and Real Property Tax Administration Fund. [Repealed]

Repealed.

Subchapter I-B. Financial Accountability and Management.

§ 47–318. Definitions.

For the purposes of this subchapter, the term:

(1) “Budget gap” means the difference between estimated expenditures and estimated revenues.

(2) “Budget modification” means a reexamination of all major elements of the current year budget, and shall contain for the current year budget all elements of the multiyear plan listed in paragraph (4) of this section.

(3) “Gap-closing action” means any action designed to eliminate the budget gap. Gap-closing actions include increases in current revenue bases and rates; new taxes, fees, charges, fines, and penalties; expenditure reductions associated with lower service levels; and productivity improvements that yield expenditure reductions without a decrease in service levels. Gap-closing actions must be proposed in the fiscal year prior to their implementation.

(4) “Multiyear plan” means the costs and funding of services in the District over a 4-year period and shall be based on the actual experience of the immediately preceding 3 fiscal years, on the approved current fiscal year budget, and on estimates for at least the 4 succeeding fiscal years. Pursuant to § 1-204.43, the multiyear plan shall include provisions identifying:

(A) Future cost implications of maintaining programs at currently authorized levels, including anticipated changes in wage, salary, and benefit levels;

(B) Future cost implications of all capital projects for which funds have already been authorized, including identification of the amount of already appropriated but unexpended capital project funds;

(C) Future cost implications of new, improved, or expanded programs and capital project commitments proposed for each of the succeeding 4 fiscal years;

(D) The effects of current and proposed capital projects on future operating budget requirements;

(E) Revenues and funds likely to be available from existing revenue sources at current rates or levels;

(F) The specific revenue and tax measures recommended for the forthcoming fiscal year and for the next following fiscal year necessary to balance revenues and expenditures;

(G) The actuarial status and anticipated costs and revenues of retirement systems covering District employees; and

(H) Total debt service payments in each fiscal year in which debt service payments must be made for all bonds which have been or will be issued, and all loans from the United States Treasury which have been or will be received, to finance the total cost on a full funding basis of all projects listed in the capital improvements plan prepared under § 1-204.44; and for each such fiscal year, the percentage relationship of the total debt service payments (with payments for issued and proposed bonds and loans from the United States Treasury, received or proposed, separately identified) to the bonding limitation for the current and forthcoming fiscal year as specified in § 1-206.03(b).

(5) “Multiyear plan modification” means a reexamination of all major elements of the multiyear plan, and shall contain all elements of the multiyear plan listed in paragraph (4) of this section.

(6) “Tax expenditures” means the revenue losses attributable to provisions of federal law and the laws of the District of Columbia that allow, in whole or in part, a special exclusion, exemption, or deduction from taxes authorized in this title, or which provide a special credit, a preferential rate of tax, or a deferral of tax liability.

§ 47–318.01. Mayoral budget submissions required; accounting of expenditures.

(a) In the annual budget submission, the Mayor shall provide the Council with an agency-by-agency accounting of expenditures for all years of the multiyear plan and multiyear plan modifications submitted with the Mayor’s annual budget and budget modifications. This accounting shall be of agency expenditures at the agency level, with such additional detail as the Council may request.

(b) Pursuant to §§ 1-204.42 and 1-204.43, the Chief Financial Officer shall prepare, on a biennial basis, and the Mayor shall include in the budget submission to the Council, a tax expenditure budget that estimates the revenue loss to the District government from each tax expenditure for the current fiscal year and the next 2 fiscal years. The Chief Financial Officer shall present the first tax expenditure budget for inclusion in the fiscal year 2003 budget submission to the Council, but shall also prepare for inclusion in the fiscal year 2002 budget submission a pilot tax expenditure budget that includes the tax expenditures for which, in the judgment of the Chief Financial Officer, there is sufficient information to estimate the revenue loss. Beginning with the fiscal year 2003 budget submission, the tax expenditure budget shall include the following information:

(1) An estimate of the annual revenue loss to the District government from each tax expenditure;

(2) A citation of the statutory authority for each tax expenditure;

(3) A description of the objective of the tax expenditure;

(4) An analysis of whether the tax expenditure is meeting the objective;

(5) An analysis of the tax expenditure’s effect on the distribution of the tax burden and the administration of the tax system; and

(6) Other factors that the Chief Financial Officer may consider appropriate.

(Nov. 25, 1993, D.C. Law 10-64, § 3, 40 DCR 7347; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; October 4, 2000, D.C. Law 13-161, § 2(b), 47 DCR 5805.)

Prior Codifications

1981 Ed., § 47-318.1.

Effect of Amendments

D.C. Law 13-161 designated the existing text as subsec. (a), and added subsec. (b).

Emergency Legislation

For temporary (90 day) Fiscal Year 2005 budget submission requirement, see § 1202 of Fiscal Year 2004 Budget Support Amendment Act of 2003 (D.C. Act 15-105, June 20, 2003, 50 DCR 5613).

For temporary (90 day) Fiscal Year 2005 budget submission requirement, see § 1202 of Fiscal Year 2004 Budget Support Congressional Review Emergency Act of 2003 (D.C. Act 15-149, September 22, 2003, 50 DCR 8360).

For temporary (90 day) amendment of section, see § 1042(a) of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).

For temporary (90 day) amendment of section, see § 1042(a) of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR 11725).

For temporary (90 day) amendment of D.C. Law 15-205, see § 1002 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).

Short Title

Short title of title XII of Law 15-39: Section 1201 of D.C. Law 15-39 provided that title XII of the act may be cited as the Fiscal Year 2005 Budget Submission Act of 2003.

Short title of subtitle A of title I of Law 16-33: Section 1001 of D.C. Law 16-33 provided that subtitle A of title I of the act may be cited as the Fiscal Year 2006 Budget Submission Amendment Act of 2005.

Editor's Notes

Section 1202 of D.C. Law 15-39 provided:

“(a) For fiscal year 2005, the Mayor shall submit a budget to the Council that increases local funds spending by no more than 3.5% of the fiscal year 2004 budget approved by the Council. Any spending transferred from local funds in fiscal year 2004 to non-local funds in Fiscal year 2005 shall be included in any calculation to determine whether the proposed spending for fiscal year 2005 is more than 3.5% greater than local spending in fiscal year 2004.

“(b) By July 1, 2003, the Chief Financial Officer and the Mayor shall identify by contract or subagency, the areas where contract savings identified by the Fiscal Year 2004 Budget Request Act, passed on May 6, 2003 (Enrolled version of Bill 15-214) shall occur and submit the information to Council.

“(c) The budget submission pursuant to subsection (a) of this section shall provide that not less than 1/2 of the personnel costs for Public Safety Communications Center services in fiscal year 2004 shall instead be paid by local funds in fiscal year

Section 1042(a) of D.C. Law 15-205, as amended by section 1002 of D.C. Law 16-33, provided:

“(a) Beginning with the submission of the fiscal year 2006 budget, the Mayor shall submit a budget to the Council that is segmented and distinctly identifies:

“(1) That portion of the budget submission in which local funds are consistent with the amount projected in spending for the previous fiscal year by the Council in its Committee of the Whole Report on the Budget Request Act; provided, that the amounts included in the Committee of the Whole Report are to be revised to incorporate supplemental budget actions approved by the District during the course of any fiscal year; provided further, that the revised projections are certified by the Office of the Chief Financial Officer; and

“(2) Any additional proposed budget expenditures not included in paragraph (1) of this subsection that are supported by the revenue and resources certified as available by the Office of the Chief Financial Officer.”

§ 47–318.01a. Mayoral budget submission required; consistency of budget submission with previous fiscal year spending. [Repealed]

[Repealed].

(Mar. 2, 2007, D.C. Law 16-191, § 72, 53 DCR 6794; Mar. 25, 2009, D.C. Law 17-353, § 131(b), 56 DCR 1117; Oct. 22, 2015, D.C. Law 21-36, § 7022(b), 62 DCR 10905.)

Effect of Amendments

D.C. Law 17-353 validated a previously made technical correction in the section designation.

Emergency Legislation

For temporary (90 days) repeal of D.C. Law 15-205, §§ 1041-1043, see § 7012(a) of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).

For temporary (90 days) repeal of this section, see § 7012(b) of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).

Short Title

Short title of subtitle E of title I of Law 15-205: Section 1041 of D.C. Law 15-205 provided that subtitle E of title I of the act may be cited as the Fiscal Year 2006 Budget Submission Act of 2004.

Editor's Notes

Section 1042(a) of D.C. Law 15-205 provided: “For each fiscal year, the Mayor shall submit a budget to the Council of which the local funds shall be consistent with the amount projected in spending for the previous fiscal year by the Council in the Council Committee of the Whole report on the Budget Request Act.”

Section 1042 of D.C. Law 15-205 was repealed by D.C. Law 21-36, § 7022(a).

§ 47–318.01b. Legislative branch budget submission.

(a) At least 20 days prior to the Mayor’s submission of the annual budget to the Council, the Chairman of the Council shall transmit to the Mayor an estimate in detail of the amount of money required for the:

(1) Council;

(2) Office of the District of Columbia Auditor; and

(3) Office of the Advisory Neighborhood Commissions for the ensuing fiscal year.

(b) The Mayor shall transmit the same estimate required by subsection (a) of this section in his annual estimate of appropriations for the District of Columbia, with such recommendations as he may consider proper.

§ 47–318.02. Mayoral budget submissions required; accounting of expenditures — Budget request and multiyear plan.

(a) The Mayor shall provide the Council with both a budget request and a multiyear plan no earlier than February 1 and no later than February 8 of each calendar year commencing with 1994.

(b) The Mayor shall provide the Council with both a budget modification and a multiyear plan modification 3 times each fiscal year: the first set no earlier than June 1 and no later than June 15, the second set no earlier than November 8 and no later than November 15, and the third set no earlier than February 1 and no later than February 8.

(c) The Council shall adopt each of the budget and multiyear plan modifications no more than 28 days after official submission to the Council. Any modification on which the Council does not act within 28 days shall be deemed approved.

(d) Notwithstanding subsection (b) of this section, for fiscal year 1994, the Mayor shall provide the Council with the first budget modification and first multiyear plan no earlier than November 8 and no later than November 15.

§ 47–318.03. Mayoral budget submissions required; accounting of expenditures — Gap-closing actions.

(a) In the annual budget request, the Mayor shall provide the Council with all gap-closing actions for the upcoming fiscal year budget. Gap-closing actions include increases in current revenue bases and rates; new taxes, fees, charges, fines, forfeitures, and penalties; expenditure reductions associated with lower service levels; and productivity improvements that yield expenditure reductions without a decrease in service levels.

(b) If the Council rejects gap-closing actions of the Mayor either in the annual budget request or any budget modification, it must substitute 1 or more of its own gap-closing actions to make up the amount of the rejected gap-closing actions.

(c) Within 30 days after the end of each month, the Mayor shall provide the Council with a progress report on those gap-closing actions that the Council designates for monitoring.

(d) The Mayor or Mayor’s designee(s) shall appear before a hearing of the Committee of the Whole every 2 months to respond to questions regarding gap-closing actions.

(e) The Mayor shall replace, in the Mayor’s budget modification submission, any gap-closing actions that the Council determines to be in serious danger of failure with gap-closing actions more likely to occur. However, the Mayor may not replace gap-closing actions approved by the Council in any budget adoption process merely because the Mayor does not support such actions.

(f) If the Mayor determines that the budget gap has increased from the submission of the Mayor’s budget request to the submission of the first budget modification, or from the submission of 1 budget modification to the submission of another, the Mayor must increase the aggregate dollar value of the gap-closing actions to cover the difference. If the Mayor determines that the budget gap has decreased from the submission of the Mayor’s budget request to the submission of the first budget modification, or from the submission of 1 budget modification to the submission of another, the Mayor may decrease the aggregate dollar value of the gap-closing actions to eliminate the difference.

§ 47–318.04. Mayoral budget submissions required; accounting of expenditures — Deadline for gap-closing submission.

The Mayor shall submit to the Council, no later than October 8, 1993, all explicit actions necessary to close the FY 1994 budget gap previously identified by the Mayor, as well as the dollar value of each action.

§ 47–318.05. Mayoral budget submissions required; accounting of expenditures — Cash flow statements.

The Mayor shall submit to the Council, beginning October 1, 1993, and every month thereafter, monthly consolidated cash flow statements in the same format as currently prepared by the Office of the D.C. Treasurer, except that the statement submitted to the Council shall contain an explanation of all changes in cash flows that have occurred since the previous month’s report.

§ 47–318.05a. Budget submissions required; agency enhancement requests.

The Mayor and the Chief Financial Officer shall supplement all proposed budgets submitted pursuant to § 1-204.42, and related budget documents required by §§ 1-204.42, 1-204.43, and 1-204.44, by submitting to the Council simultaneously with the proposed budget submission:

(1) Actual copies, not summaries, of all agency budget enhancement requests, including the “Form B” for all District agencies; and

(2) Any similar documentation describing in detail agencies’ budget needs or requests.

§ 47–318.06. Monitoring indications of economic growth.

Each year, in connection with budget estimates, the Chief Financial Officer shall prepare an analysis of change in the economy and in economic assumptions and revenue forecasts which, to the extent practical, shall comment on the impact of tax changes on expanding the District’s tax base. Such analysis shall be transmitted to the Council of the District of Columbia at the time of the Mayor’s budget submission to the Council.

Subchapter I-C. Monitoring Committee.

§ 47–319.01. Establishment of the Initiative Implementation Monitoring Committee; duties.

(a) There is established an Initiative Implementation Monitoring Committee (“Committee”).

(b) The Committee shall advise the Mayor and the Council on the status of the implementation of the initiatives contained in the District’s Revised Fiscal Year 1996 Budget Request Act and the July 1995 recommendations of the Financial Responsibility and Management Assistance Authority.

(c) The Committee is authorized to meet weekly to review weekly reports on the implementation of budget initiatives from subordinate agency heads and the budget officers of independent agencies to facilitate the monitoring of spending initiatives.

§ 47–319.02. Composition.

(a) The Committee shall consist of 9 members as follows:

(1) City Administrator or his or her designee, provided that the designee shall have the full authority of the City Administrator;

(2) Budget Director for the Council;

(3) Inspector General (“IG”) or his or her designee, provided that the designee shall have the full authority of the IG;

(4) Chief Financial Officer (“CFO”) or his or her designee, provided that the designee shall have the full authority of the CFO;

(5) Director of the Office of Personnel (“Director”) or his or her designee, provided that the designee shall have the full authority of the Director;

(6) Auditor or his or her designee, provided that the designee shall have the full authority of the Auditor;

(7) Chief Information Officer;

(8) One person designated by the Chairman of the Council Committee of the Whole; and

(9) One person designated by the Chairman of the Council Committee on Government Operations.

(b) The City Administrator shall serve as the chair of the Committee.

§ 47–319.03. Compensation.

Members of the Committee shall receive no compensation.

§ 47–319.04. Reports.

The Committee shall submit to the Council reports on the status of the Fiscal Year 1996 budget initiatives each month or as requested by the Council.

Subchapter II. Borrowing.

§ 47–321. Reserved

§ 47–322. Reserved

§ 47–323. Reserved

§ 47–324. Reserved

§ 47–325. Reserved

§ 47–326. Reserved

§ 47–327. Reserved

§ 47–328. Reserved

§ 47–329. Reserved

§ 47–330. Reserved

§ 47–331. Reserved

§ 47–332. Reserved

§ 47–333. Reserved

§ 47–334. Definitions.

For the purposes of this subchapter, the term:

(1) “Debt Service” means the amount of money necessary to pay interest on outstanding District Bonds, including interest payments deferred to future years, the principal on maturing District Bonds, and the required contributions to a sinking fund for District Bonds, but excluding debt service payments rebated to the District pursuant to the American Recovery and Reinvestment Act of 2009, approved February 17, 2009 (123 Stat. 115; 26 U.S.C. § 1 note). For tax-supported debt issued as variable-rate District Bonds, if the planned amortization of principal on the District Bonds, as documented in the indenture associated with such District Bonds, is different from the stated maturity of principal on the District Bonds, then the principal on maturing District Bonds shall mean the planned amortization of principal on the District Bonds.

(2) “District Bonds” means:

(A) General obligation bonds issued pursuant to the Home Rule Act [§ 1-201.01 et seq.];

(B) Treasury capital-project loans;

(C) Tax supported revenue bonds, notes, or other debt instruments secured by revenues derived from taxes, fees, or other general revenues of the District, or its agencies and authorities, pursuant to the District’s power to tax and impose fees, including tax increment financed bonds, notes, or other debt instruments and bonds, notes, or other debt instruments financed by payments in lieu of taxes, but excluding revenue bonds, notes, or other debt instruments issued for the purpose of funding water and sewer facilities, as described in section 490(a) of the Home Rule Act [§ 1-204.90(a)], and bonds, notes, or other debt instruments paid or secured by revenues from the Master Settlement Agreement with tobacco companies, federal grants, or revenues from the operation of public enterprises, so long as those enterprises are fully self-supporting;

(D) Certificates of participation, and

(E) Lease purchase financing obligations.

(3) “District Bond Issuance” means the District’s authorizing, selling, and delivering of District Bonds, including District Bonds to refund outstanding District Bonds.

(4) “Home Rule Act” means the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 774; D.C. Official Code § 1-201.01 et seq.).

(5) “Total Expenditures” means the total amount included in the Total Expenditures and Transfers line item in the enacted District Budget and Financial Plan for the General Fund for an applicable fiscal year, plus any Debt Service amounts in an applicable fiscal year on District Bonds for which the Debt Service on such District Bonds is not included in the Total Expenditures and Transfers line item in the enacted District Budget and Financial Plan for the General Fund.

(Mar. 25, 2009, D.C. Law 17-360, § 2(b), 56 DCR 1200; Mar. 3, 2010, D.C. Law 18-111, § 7211(a), 57 DCR 181; Apr. 8, 2011, D.C. Law 18-370, § 752(a), 58 DCR 1008.)

Section References

This section is referenced in § 8-1778.30.

Effect of Amendments

D.C. Law 18-111 rewrote the section.

D.C. Law 18-370, in par. (1), added the second sentence.

Emergency Legislation

For temporary (90 day) amendment of section, see § 2(a) of Limitation on Borrowing and Establishment of the Operating Cash Reserve Technical Amendment Emergency Act of 2009 (D.C. Act 18-174, August 3, 2009, 56 DCR 6639).

For temporary (90 day) amendment of section, see § 7081(a) of Fiscal Year 2010 Budget Support Emergency Act of 2009 (D.C. Act 18-187, August 26, 2009, 56 DCR 7374).

For temporary (90 day) amendment of section, see § 7211(a) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) amendment of section, see § 7211(a) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

For temporary (90 day) amendment of section, see § 752(a) of Fiscal Year 2011 Supplemental Budget Support Emergency Act of 2010 (D.C. Act 18-694, January 19, 2011, 58 DCR 662).

Short Title

Short title: Section 7210 of D.C. Law 18-111 provided that subtitle S of title VII of the act may be cited as the “Limitation on Borrowing Technical Amendments Act of 2009”.

Short title: Section 751 of D.C. Law 18-370 provided that subtitle F of title VII of the act may be cited as “Limitation on Borrowing Amendment Act of 2010”.

§ 47–335. Permissible security.

Any revenue bonds, notes, or other obligations authorized by an act of the Council of the District of Columbia enacted subsequent to August 1, 1981, pursuant to § 1-204.90(a), may be secured by a mortgage of real property or a security interest in any revenues, assets, or other property, notwithstanding that such mortgage or other security interest may not have been authorized by such § 1-204.90(a) as of the effective date of such act.

§ 47–335.01. Borrowing of funds for capital projects.

The Mayor shall not borrow any funds for capital projects unless the Mayor has obtained prior approval from the Council, by resolution, identifying the projects and amounts to be financed with such borrowings. In determining the amounts to be financed, the Mayor shall consult with the Chief Financial Officer to determine if any funds appropriated for Debt Service, as defined in § 47-334(1), in excess of Debt Service requirements are available to reduce the amount of borrowing for the next bond issuance.

(Oct. 19, 2000, D.C. Law 13-172, § 3302, 47 DCR 6308; Feb. 26, 2015, D.C. Law 20-155, § 1043(c), 61 DCR 9990.)

Effect of Amendments

The 2015 amendment by D.C. Law 20-155 added the last sentence.

Emergency Legislation

For temporary (90 day) authorization to borrow funds for capital projects through the issuance of general obligation bonds, see § 2 of Fiscal Year 2005 General Obligation Bond Issuance Emergency Approval Act of 2004 (D.C. Act 15-593, October 26, 2004, 51 DCR 10734).

For temporary (90 day) addition of section, see § 3 of Fiscal Year 2011 Income Tax Secured Revenue Bond and General Obligation Bond Issuance Emergency Approval Act of 2010 (D.C. Act 18-607, November 17, 2010, 57 DCR 11054).

For temporary (90 days) amendment of this section, see § 1043(c) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see § 1043(c) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, see § 1043(c) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

Temporary Legislation

Section 3 of D.C. Law 18-308 added a section to read as follows:

“Sec. 3. (a) Pursuant to section 3302 of the Fiscal Year 2001 Budget Support Act of 2000, effective October 19, 2000 (D.C. Law 13-172; D.C. Official Code § 47-335.01), the Council approves the issuance and sale of general obligation bonds in an aggregate principal amount not to exceed $180 million to fund certain capital projects listed in section 4, plus all costs and expenses related to issuing and delivering the bonds as authorized pursuant to the Bond Acts.

“(b) The capital projects listed in section 4 have been authorized pursuant to section 446 of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 801; D.C. Official Code § 1-204.46), the District of Columbia Appropriations Act, 2000, approved November 29, 1999 (Pub. L. No. 106-113; 113 Stat. 1501), the District of Columbia Appropriations Act, 2001, approved November 22, 2000 (Pub. L. No. 106-522; 114 Stat. 2457), the District of Columbia Appropriations Act, 2002, approved December 21, 2001 (Pub. L. No. 107-96; 115 Stat. 923), the District of Columbia Appropriations Act, 2003, approved February 20, 2003 (Pub. L. No. 108-7; 117 Stat. 11), the District of Columbia Appropriations Act, 2004, approved January 23, 2004 (Pub. L. No. 108-199; 118 Stat. 3), the District of Columbia Appropriations Act, 2005, approved October 18, 2004 (Pub. L. No. 108-335; 118 Stat. 1322), the District of Columbia Appropriations Act, 2006, approved November 30, 2005 (Pub. L. No 109-115; 119 Stat. 2508), the Continuing Appropriations Resolution, 2007, approved February 15, 2007 (Pub. L. No. 110-5; 121 Stat. 8), the Continuing Appropriations Resolution, 2008, approved September 29, 2007 (Pub. L. No. 110-92; 121 Stat. 989), the District of Columbia Appropriations Act, 2008, approved December 26, 2007 (Pub. L. No. 110-161; 121 Stat. 1990), the Continuing Appropriations Resolution, 2009, approved September 30, 2008 (Pub. L. No. 110-329; 119 Stat. 3574), the District of Columbia Appropriations Act, 2009, approved March 11, 2009 (Pub. L. No. 111-8; 123 Stat. 524), the Continuing Appropriations Resolution, 2010, approved October 1, 2009 (Pub. L. No. 111-68; 123 Stat. 2023), the Further Continuing Appropriations Resolution, 2010, approved October 30, 2009 (Pub. L. No. 111-88; 123 Stat. 2904), the District of Columbia Appropriations Act, 2010, approved December 16, 2009 (Pub. L. No. 111-117; 123 Stat. 3034), the Continuing Appropriations Resolution, 2011, approved September 30, 2010 (Pub. L. No. 111-242; 124 Stat. 2607), and are included within the schedule of capital projects for which the District of Columbia is authorized to incur indebtedness under the General Obligation Bonds and Bond Anticipation Notes for Fiscal Years 1999—2004 Authorization Act of 1999, effective July 29, 1999 (D.C. Law 13-22; D.C. Official Code § 1-204.61, note); the General Obligation Bonds and Bond Anticipation Notes for Fiscal Years 2002-2007 Authorization Act of 2002, effective March 25, 2003 (D.C. Law 14-214; D.C. Official Code § 1-204.61, note); and the General Obligation Bonds and Bond Anticipation Notes for Fiscal Years 2007-2012 Authorization Act of 2006, effective March 6, 2007 (D.C. Law 16-212; D.C. Official Code § 1.204.61, note) (’Bond Acts’).”

Section 8(b) of D.C. Law 18-308 provided that the act shall expire after 225 days of its having taken effect.

Resolutions

Resolution 14-224, the “General Obligation Bond Issuance Authorization Resolution of 2001”, was approved effective October 16, 2001.

Resolution 14-225, the “General Obligation Bond Proceeds Financing Reallocation Authorization Resolution of 2001”, was approved effective October 16, 2001.

Resolution 14-585, the “General Obligation Bond Issuance Authorization Emergency Resolution of 2002”, was approved effective October 18, 2002.

Resolution 15-129, the “General Obligation Bond Issuance Approval Resolution of 2003”, was approved effective July 8, 2003.

Resolution 16-356, the “Fiscal Year 2006 General Obligation Bond Issuance Approval Emergency Resolution of 2005”, was approved effective November 1, 2005.

§ 47–335.02. Borrowing limitation.

(a) The Council shall not approve proposed District Bonds if the applicable annual Debt Service on the proposed District Bonds would cause the Debt Service on all District Bonds in the fiscal year in which the proposed District Bonds are issued, or in any of the 5 succeeding fiscal years, to exceed 12% of Total Expenditures in any applicable fiscal year, as contained in the most recently enacted District Budget and Financial Plan.

(b) Obligations incurred pursuant to the authority contained in subchapter II of Chapter 3 of Title 3, obligations incurred by the agencies transferred or established by sections 201 or 202 of the Home Rule Act [§ 1-202.01 or § 1-202.02], whether incurred before or after such transfer or establishment, and obligations incurred pursuant to District Bonds issued prior to October 1, 1996, for the financing of Department of Public Works, Water and Sewer Utility Administration capital projects shall not be included in determining the aggregate amount of Debt Service on all outstanding District Bonds subject to the 12% limitation specified in subsection (a) of this section.

(c) The 12% limitation specified in subsection (a) of this section shall be calculated by the Office of the Chief Financial Officer as follows:

(1) Determine the dollar amount equivalent to 12% of the Total Expenditures during the fiscal year for which the proposed District Bonds will be issued and the 5 succeeding fiscal years;

(2) Determine the actual total amount of Debt Service to be paid during the fiscal year for which the proposed District Bonds will be issued and the 5 succeeding fiscal years for all outstanding District Bonds;

(3) Determine the amount of Debt Service to be paid during the fiscal year for which the proposed District Bonds will be issued and the 5 succeeding fiscal years; and

(4) If in any applicable fiscal year the sum of paragraphs (2) and (3) of this subsection exceeds the amount determined under paragraph (1) of this subsection, then the proposed District Bonds or Treasury loan shall not be issued.

(Mar. 25, 2009, D.C. Law 17-360, § 2(c), 56 DCR 1200; Mar. 3, 2010, D.C. Law 18-111, § 7211(b), 57 DCR 181; Apr. 8, 2011, D.C. Law 18-370, § 752(b), 58 DCR 1008.)

Effect of Amendments

D.C. Law 18-111 rewrote the section.

D.C. Law 18-370 substituted “5 succeeding fiscal years” for “3 succeeding fiscal years”.

Emergency Legislation

For temporary (90 day) amendment of section, see § 2(b) of Limitation on Borrowing and Establishment of the Operating Cash Reserve Technical Amendment Emergency Act of 2009 (D.C. Act 18-174, August 3, 2009, 56 DCR 6639).

For temporary (90 day) amendment of section, see § 7081(b) of Fiscal Year 2010 Budget Support Emergency Act of 2009 (D.C. Act 18-187, August 26, 2009, 56 DCR 7374).

For temporary (90 day) amendment of section, see § 7211(b) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) amendment of section, see § 7211(b) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

For temporary (90 day) amendment of section, see § 752(b) of Fiscal Year 2011 Supplemental Budget Support Emergency Act of 2010 (D.C. Act 18-694, January 19, 2011, 58 DCR 662).

Subchapter II-A. Capital Review and Debt Affordability.

§ 47–336. Definitions.

For the purposes of this subchapter, the term:

(1) “Capital lease financings” means a lease in which the District is the lessee and which meets 1 or more of the following criteria:

(A) The lease transfers ownership of the property to the lessee by the end of the lease term;

(B) The lease allows the lessee to purchase the real property at a bargain price;

(D) The present value of the lease payments is 90% or more of the fair market value of the real property.

(2) “Committee” means the Capital Review and Debt Affordability Committee.

(3) “Multiyear capital improvements plan” means the multiyear capital improvements plan required by § 1-204.44.

(4) “Special real property tax levy” means that portion of the real property tax levy required by District of Columbia general obligation bonds acts to be deposited in the debt service fund so that, when added to the funds already on deposit in the fund, the fund will be sufficient to pay the principal and interest on all outstanding general obligation bonds and additional general obligation bonds coming due in any year.

§ 47–337. Capital Review and Debt Affordability Committee.

(a) There is established a Capital Review and Debt Affordability Committee.

(b) The Committee shall consist of the following 5 members:

(1) One individual appointed by the Mayor; and

(2) The following 4 ex officio members:

(A) The City Administrator;

(B) The Chief Financial Officer;

(D) The Chairman of the Council.

(d) The chairperson shall call meetings of the Committee as needed to perform its duties.

§ 47–338. Duties of the Committee.

(a) The Committee shall review the size and condition of the District general obligation bonds and capital lease financings on a continuing basis.

(b) On or before August 1 of each year, the Committee shall submit to the Mayor and the Council the Committee’s estimate of the total amount of new District general obligation bonds and capital lease financings that prudently may be authorized for the next fiscal year.

(1) The amount of District general obligation bonds and capital lease financings that, during the next fiscal year:

(A) Will be outstanding; and

(B) Will be authorized but unissued;

(2) The capital budget;

(3) The multiyear capital improvements plan;

(4) Projections of debt service and capital lease payment requirements during the next 6 years;

(5) The criteria used by bond rating agencies to judge the quality of issues of District bonds; and

(6) Any other factor that is relevant to the ability of the District to meet its projected debt service and capital lease financings.

(d) The estimate of the Committee is advisory and does not bind the Council or the Mayor.

(e) The Committee may review the capital needs of the District on a continuing basis.

(f) On or before October 1 of each year, the Committee may submit to the Mayor and the Council the Committee’s recommended allocation for the following budget year of financing determined under this section for the following capital projects:

(1) Mass Transit Facilities and Equipment;

(2) Public School and Public Education Facilities and Equipment;

(3) Governmental and Public Works Facilities and Equipment;

(4) Administrative Services Facilities and Equipment;

(5) Transportation and Public Works Facilities and Equipment;

(6) Public and Assisted Housing Facilities and Equipment;

(7) Correctional and Public Safety Facilities and Equipment; and

(8) All other capital projects.

(g) In recommending the allocation, the Committee shall consider the following:

(1) A multiyear capital improvements strategy;

(2) The condition and life replacement cycle of the District’s infrastructure;

(3) The requirements for sustained economic development;

(4) The availability of matching federal grant funds;

(5) The condition of and need for public and correctional facilities;

(6) Existing contract commitments;

(7) Commitments for regional participation; and

(8) Comprehensive plans for other specific types of capital investment.

(h) The allocation of financing recommended by the Committee is advisory and does not bind the Mayor or the Council.

§ 47–339. Preliminary capital budget and multiyear capital improvements plan.

On or before January 10 of each year, the Mayor shall transmit to the Council a preliminary capital budget for the next fiscal year and a preliminary multiyear capital improvements plan.

§ 47–339.01. Capital projects.

(a)(1) In accordance with §§ 1-204.43 and 1-204.44, the Mayor shall prepare and include in the annual budget a multiyear capital improvements plan for all agencies for all capital projects, which shall include for each capital project a written:

(A) Description of the scope of the project;

(B) Description of the purpose of the project;

(D) Estimated impact on the operating budget;

(E) Description of its geographic location, including the address and ward; provided, that planning and other studies as set forth in § 1-201.03(8)(A)), or a project established solely to procure capital equipment or information technology equipment, including those projects under the Master Lease program, shall not require a specified location; and

(F) A facility name or identifier, if applicable.

(2)(A) A capital project may include multiple public betterments or improvements only if the public betterments or improvements are:

(i) At more than one location;

(ii) Of similar type or purpose; and

(iii) Do not involve construction of new facilities or substantial rehabilitation of government buildings.

(B) The information listed in paragraph (1) of this subsection shall be separately provided for any public betterment or improvement included as part of a capital project if the cost of the public betterment or improvement is greater than $500,000 or more than 10% of the approved budget for the capital project.

(3)(A) For a capital project meeting the requirements of § 2-356.06(a)(3), the estimated fully funded cost information provided pursuant to paragraph (1)(C) of this subsection shall account for the cost of compliance with the requirements of § 2-356.06 in an amount equal to 10% of the total estimated cost of the project or some other amount determined to be sufficient by the Mayor.

(B) This paragraph shall apply to capital projects for which construction costs will be incurred beginning in or after Fiscal Year 2020.

(b)(1) The Mayor shall provide the information required by subsection (a) of this section for every capital project for which funds have been appropriated, in whole or in part, beginning in fiscal year 2008, with the annual budget for each fiscal year until the project has been completed.

(2) For projects included in fiscal years 2008, 2009, and 2010 budgets, the Mayor shall submit to the Council the information required by subsection (a) of this section by February 1, 2010, for each capital project for which this information has not been provided.

(Mar. 3, 2010, D.C. Law 18-111, § 1141(b), 57 DCR 181; Oct. 30, 2018, D.C. Law 22-168, § 1022, 65 DCR 9388.)

Emergency Legislation

For temporary (90 days) amendment of this section, see § 1022 of Fiscal Year 2019 Budget Support Congressional Review Emergency Act of 2018 (D.C. Act 22-458, Oct. 3, 2018, 65 DCR 11212).

For temporary (90 days) amendment of this section, see § 1022 of Fiscal Year 2019 Budget Support Emergency Act of 2018 (D.C. Act 22-434, July 30, 2018, 65 DCR 8200).

For temporary (90 day) addition of this section, see § 2(b) of the Revised Capital Project Clarification Emergency Amendment Act of 2009 (D.C. Act 18-120, June 20, 2009, 56 DCR 4955).

For temporary (90 day) addition, see § 2(b) of Capital Project Clarification Emergency Amendment Act of 2009 (D.C. Act 18-100, June 2, 2009, 56 DCR 4449).

For temporary (90 day) addition, see § 1011(b) of Fiscal Year 2010 Budget Support Emergency Act of 2009 (D.C. Act 18-187, August 26, 2009, 56 DCR 7374).

For temporary (90 day) addition, see § 1141(b) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) addition, see § 1141(b) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

Short Title

Short title: Section 1140 of D.C. Law 18-111 provided that subtitle O of title I of the act may be cited as the “Capital Project Clarification Act of 2009”.

§ 47–340. Notation of debt service requirement on real property tax bills.

Commencing with the tax year beginning October 1, 1994, and ending September 30, 1995, and for each tax year thereafter, the Mayor shall note on the first half tax bill, which is due and payable by March 31, 1995, and on the second half tax bill, which is due and payable by September 15, 1995, the percent of the total real property tax levy that constitutes the special real property tax levy.

Subchapter II-B. Industrial Revenue Bond Forward Commitment Program.

§ 47–340.01. Revenue bonds and other obligations.

For the purpose of this subchapter, the term:

(1) “Applicant” means each person, sole proprietorship, corporation, partnership, limited partnership, joint venture, trust, firm, association, unincorporated organization, or a government or an agency or political subdivision thereof, or other legal entity, applying to receive revenue bond financing pursuant to section 490 of the Home Rule Act [§ 1-204.90].

(2) “Authorized delegate” means the Assistant City Administrator for Economic Development, the Deputy Mayor for Financial Management, or any officer or employee of the Executive Office of the Mayor to whom the Mayor has delegated or to whom the foregoing individuals have subdelegated any of the Mayor’s functions under this subchapter pursuant to section 422(6) of the Home Rule Act [§ 1-204.22(6)].

(3) “Bond counsel” means a firm or firms of attorneys designated as bond counsel from time to time by the Mayor.

(4) “Bonds” means one or the several separate series of District revenue bonds, notes, and other obligations authorized to be issued pursuant to this subchapter.

(5) “Chairman” means the Chairman of the Council of the District of Columbia.

(6) “Closing documents” means all documents and agreements other than financing documents that may be necessary and appropriate to issue, sell, and deliver each applicable series of bonds and to make the loans contemplated thereby, and includes agreements, certificates, letters, opinions, forms, receipts, and other similar instruments.

(7) “Council” means the Council of the District of Columbia.

(8) “Development” means the acquisition, purchase, construction, reconstruction, improvement, renovation, rehabilitation, restoration, remodeling, repair, expansion, or extension and the equipping and the furnishing of eligible projects.

(9) “District” means the District of Columbia.

(10) “Eligible project” means the financing, refinancing, or reimbursing of costs of the development of facilities in the areas of housing, health facilities, transit and utility facilities, recreation facilities, college and university facilities, college and university student loan programs, pollution control facilities, and industrial and commercial development authorized pursuant to this subchapter.

(11) “Financing documents” means the documents other than closing documents that relate to the financing or refinancing of transactions to be effected through the issuance, sale, and delivery contemplated thereby, including any offering documents and any required supplements to those documents.

(12) “Forward authorization program” means District approval of a program to expedite the issuance, sale, and delivery of revenue bonds in one or multiple separate series pursuant to this subchapter.

(13) “Home Rule Act” means the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 774; § 1-201.01 et seq.).

(14) “Issuance costs” means all fees, costs, charges, and expenses paid or incurred in connection with the authorization, preparation, printing, issuance, sale, and delivery of each applicable series of bonds and the making of loans contemplated thereby, including, but not limited to, program fees and administrative fees charged by the District; underwriting, legal, accounting, rating agency, and other financing fees, costs, and expenses; fees paid to financial institutions and insurance companies; initial letter of credit fees, compensation to financial advisors and other persons (other than full-time employees of the District) and entities performing services on behalf of or as agents for the District; and all other fees, costs, charges, and expenses incurred in connection with the development, and implementation of the financing documents, the closing documents, and those other documents necessary or appropriate in connection with the authorization, preparation, printing, issuance, sale, marketing, and delivery of each applicable series of bonds and the making of loans contemplated thereby.

(15) “Loan” means the District’s lending of proceeds from the sale of each applicable series of bonds, including by the purchase of any mortgage, note, or other security or by the purchase, lease, or sale of any property.

(16) “Mayor” means the Mayor of the District of Columbia.

(17) “Rules of the Council” means the guidelines and standards governing Council conduct adopted by the Council.

(Sept. 20, 1995, D.C. Law 11-46, § 2, 42 DCR 3603; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-340.1.

Editor's Notes

Medlantic Healthcare Group, Inc., Revenue Bond Project Approval Resolution of 1995: Pursuant to Resolution 11-163, effective November 7, 1995, the Council approved the loan of proceeds from the issuance and sale of District of Columbia Revenue bonds to Medlantic Healthcare Group, Inc., d/b/a/ Washington Hospital Center and National Rehabilitation Hospital.

American University Revenue Bond Project Approval Resolution of 1996: Pursuant to Resolution 11-416, effective July 3, 1996, the Council approved the loan of proceeds from the issuance and sale of District of Columbia revenue bonds to the American University Revenue Bond Project.

Georgetown University Revenue Bond Project Approval Resolution of 1996: Pursuant to Resolution 11-417, effective July 3, 1996, the Council approved the loan of proceeds from the issuance and sale of District of Columbia revenue bonds to the Georgetown University Revenue Bond Project.

Howard University Revenue Bond Project Approval Resolution of 1996: Pursuant to Resolution 11-418, effective July 3, 1996, the Council approved the loan of proceeds from the issuance and sale of District of Columbia revenue bonds to the Howard University Revenue Bond Project.

Lucy Webb Hayes National Training School for Deaconesses and Missionaries, in care of Sibley Memorial Hospital, Hospital Revenue Bond Project Approval Resolution of 1996: Pursuant to Resolution 11-524, effective October 1, 1996, the Council approved the issuance, sale, and delivery of District of Columbia Revenue Bonds and the loan of proceeds thereof to assist in the financing, refinancing, or reimbursing of costs related to the Lucy Webb Hayes National Training School for Deaconesses and Missionaries, in care of Sibley Memorial Hospital.

Individual Development, Inc. (Successor to We Care Projects, Inc.) Revenue Bond Project Emergency Approval Resolution of 1996: Pursuant to Resolution 11-670, effective December 3, 1996, the Council approved, on an emergency basis, the issuance, sale, and delivery of District of Columbia revenue bonds and the loan of proceeds thereof to assist in the financing, refinancing, or reimbursing of costs related to certain intermediate care residential facilities for the mentally retarded owned and operated by Individual Development, Inc. (Successor to We Care Projects, Inc.).

§ 47–340.02. Bond authorization.

(a) The Mayor is authorized to assist in financing, refinancing, and reimbursing costs of the development of eligible projects by:

(1) Approving the issuance, sale, and delivery of one or more series of revenue bonds in multiple separate series in an aggregate principal amount not to exceed $850,000,000; and

(2) The making of various loans, pursuant to the Home Rule Act, provided that each such contemplated project shall have been submitted for Council review and approval in accordance with § 47-340.03, and shall not have been the subject of a Council resolution of disapproval.

(b) The Mayor is authorized to make loans to various applicants for the purpose of financing, refinancing, or reimbursing the costs of development of eligible projects, pay issuance costs with respect to the bonds, and establish any fund with respect to the various series of bonds as required by the financing documents.

(c) The Mayor may charge a program fee to each applicant, including, but not limited to, an amount sufficient to cover costs and expenses incurred by the District in connection with the issuance, sale and delivery of each series of bonds and the District’s participation in monitoring of the use of bond proceeds and compliance with any public benefit agreements with the District, maintaining official records of each bond transaction and assisting in the redemption, repurchase, and remarketing of the bonds.

§ 47–340.03. Council review for each individual project.

(a) For each individual project for which there is a proposed bond series issuance, the Mayor shall submit to the Council a resolution of project approval accompanied by a summary description of the proposed project, a listing of the public purpose benefits to be derived from the proposed undertaking, the preliminary legal sufficiency determinations of the Office of the Attorney General for the District of Columbia and bond counsel, and a summary of any finding of approval by the Mayor for a 30-day period of Council review, excluding Saturdays, Sundays, legal holidays, and days of Council recess.

(b) The Council may approve, conditionally approve, or disapprove a proposed project by resolution within 30 days after the Mayor transmits to the Council the information set forth in subsection (a) of this section. Failure of the Council to take action on a resolution within the 30-day review period shall be deemed to be Council approval of the project.

(c) The Council shall transmit to the Mayor notice of expiration of the review period under subsections (a) and (b) of this section.

§ 47–340.04. Details of each series of bonds.

(a) The Mayor is authorized to take any action necessary or appropriate in accordance with this subchapter in connection with the preparation, execution, issuance, sale, delivery, security for, and payment of each series of bonds, including, but not limited to, determinations of:

(1) The final form, content, designation, and terms of the bonds, including a determination that such bonds may be issued in certificate or book entry form;

(2) The principal amount of the bonds to be issued and denominations of the bonds;

(3) The rate or rates of interest or the method for determining the rate or rates of interest on the bonds;

(4) The date or dates of issuance, sale, and delivery of, and the payment of interest on the bonds, and the maturity date or dates of such bonds;

(5) The terms under which the bonds may be paid, optionally or mandatorily redeemed, accelerated, tendered, called, or put for redemption, repurchase, or remarketing before their respective stated maturities;

(6) Provisions for the registration, transfer, and exchange of each series of bonds and the replacement of mutilated, lost, stolen, or destroyed bonds;

(7) The creation of any reserve fund, sinking fund, or other fund with respect to the bonds;

(8) The time and place of payment of the bonds;

(9) Procedures for monitoring the use of the proceeds received from the sale of the bonds to ensure that they are properly applied to their respective project and used to accomplish the purposes of the Home Rule Act;

(10) Actions necessary to qualify the bonds under blue sky laws of any jurisdiction where the bonds are marketed; and

(11) The terms and types of credit enhancement under which the bonds may be secured.

(b) The bonds shall contain a legend, which shall provide that the bonds shall be special obligations of the District, shall be without recourse to the District, shall not be a pledge of, and shall not involve, the faith and credit or the taxing power of the District, shall not constitute a debt of the District, and shall not constitute lending of the public credit for private undertakings as prohibited in section 602(a)(2) of the Home Rule Act [§ 1-206.02(a)(2)].

(c) The bonds shall be executed in the name of the District and on its behalf by the manual or facsimile signature of the Mayor. The Mayor’s execution and delivery of the bonds shall constitute conclusive evidence of the Mayor’s approval, on behalf of the District, of the final form and content of the bonds.

(d) The official seal of the District, or a facsimile of it, shall be impressed, printed, or otherwise reproduced on the bonds.

(e) The bonds may be issued in accordance with the terms of the trust instruments entered into by the District and one or more trustees to be selected by the Mayor, and may be subject to the terms of one or more agreements entered into by the Mayor pursuant to section 490(a)(4) of the Home Rule Act [§ 1-204.90(a)(4)].

(f) The bonds may be issued at any time or from time to time in 1 or more issues and in 1 or more series.

§ 47–340.05. Sale of the bonds.

(a) The bonds of any series may be sold at negotiated or competitive sale at, above, or below par, to one or more persons or entities, and upon terms that the Mayor considers to be in the best interest of the District.

(b) The Mayor or an authorized delegate may execute, in relation to each sale of the bonds, offering documents on behalf of the District and may authorize the distribution of the documents in relation to the bonds being sold.

(c) The Mayor is authorized to deliver the executed and sealed bonds, on behalf of the District, for authentication, and, after the bonds have been authenticated, to deliver the bonds to the original purchasers of the bonds upon payment of the purchase price.

(d) The bonds shall not be issued until the Mayor receives an approving opinion from bond counsel as to the validity of the bonds and, if the interest on the bonds is expected to be exempt from federal income taxes, the treatment of the interest on the bonds for purposes of federal income taxation.

§ 47–340.06. Payment and security.

(a) The principal of, premium, if any, and interest on the bonds shall be payable solely from proceeds received from the sale of the bonds, income realized from the temporary investment of those proceeds, receipts and revenues realized by the District from the loan, income realized from the temporary investment of those receipts and revenues prior to payment to the bond owners, other moneys that, as provided in the financing documents, may be made available to the District for the payment of the bonds, and other sources, other than the District, of payment, all as provided for in the financing documents.

(b) Payment of the bonds shall be secured as provided in the financing documents and by an assignment by the District for the benefit of the bond owners of certain of its rights under the financing documents and closing documents, including a security interest in certain collateral, to the trustee for the bonds pursuant to the financing documents.

(c) The trustee is authorized to deposit, invest, and disburse the proceeds received from the sale of the bonds pursuant to the financing documents.

§ 47–340.07. Financing and closing documents.

(a) The Council approves the financing documents to which the District is a party in substantially the form in which these documents are filed by the Council with the Office of the Secretary to the Council, and authorizes the Mayor to make modifications to these documents that are within the limitations of the Home Rule Act, and that the Mayor considers appropriate to carry out the purposes of this subchapter.

(b) The Mayor is authorized to prescribe the final form and content of all financing documents and all closing documents to which the District is a party that may be necessary or appropriate to issue, sell, and deliver bonds and to make loans to applicants. Each of the financing documents and each of the closing documents to which the District is not a party shall be approved, as to form and content, by the Mayor.

(c) The Mayor is authorized to execute in the name of the District, and on its behalf, any financing documents and any closing documents to which the District is a party by the Mayor’s manual or facsimile signature.

(d) The official seal of the District, or a facsimile of it, shall be impressed, printed, or otherwise reproduced on the financing documents and the closing documents to which the District is a party.

(e) The Mayor’s execution and delivery of the financing documents and the closing documents to which the District is a party shall constitute conclusive evidence of the Mayor’s approval, on behalf of the District, of the final form and content of the executed financing documents and the executed closing documents.

(f) The Mayor is authorized to deliver the executed and sealed financing documents and closing documents, on behalf of the District, prior to or simultaneously with the issuance, sale, and delivery of the bonds, and to ensure the due performance of the obligations of the District contained in the executed, sealed, and delivered financing documents and closing documents.

§ 47–340.08. Authorized delegation of authority.

To the extent permitted by District and federal law, the Mayor may delegate to any authorized delegate the performance of any function authorized to be performed by the Mayor under this subchapter.

§ 47–340.09. Limited liability.

(a) The bonds shall be special obligations of the District. The bonds shall be without recourse to the District. The bonds shall not be general obligations of the District, shall not be a pledge of or involve the faith and credit or the taxing power of the District, shall not constitute a debt of the District, and shall not constitute lending of the public credit for private undertakings as prohibited in section 602(a)(2) of the Home Rule Act [§ 1-206.02(a)(2)].

(b) The bonds shall not give rise to any pecuniary liability of the District and the District shall have no obligation with respect to the purchase of the bonds.

(c) Nothing contained in the bonds, in the financing documents, or in the closing documents shall create any obligation on the part of the District to make payments with respect to the bonds from sources other than those listed for that purpose in § 47-340.06.

(d) The District shall not have liability for the payment of any issuance costs or for any transaction or event to be effected by the financing documents.

(e) All covenants, obligations, and agreements of the District contained in this subchapter, the bonds, and the executed, sealed, and delivered financing and closing documents to which the District is a party, shall be considered to be the covenants, obligations, and agreements of the District to the fullest extent authorized by law, and each of those covenants, obligations, and agreements shall be binding upon the District, subject to the limitations set forth in this subchapter.

(f) No person, including any applicant and any bond owner, shall have any claims against the District or any of its elected or appointed officials, officers, employees, or agents for monetary damages suffered as a result of the failure of the District to perform any covenant, undertaking, or obligation under this subchapter, the bonds, the financing documents, or the closing documents, nor as a result of the incorrectness of any representation in or omission from the financing documents or the closing documents, unless the District or its elected or appointed officials, officers, employees, or agents have acted in a willful and fraudulent manner.

§ 47–340.10. District officials.

(a) The elected or appointed officials, officers, employees, or agents of the District shall not be liable personally for the payment of the bonds or be subject to any personal liability by reason of the issuance of the bonds, or for any representations, warranties, covenants, obligations, or agreements of the District contained in this subchapter, the bonds, the financing documents, or the closing documents.

(b) The signature, countersignature, facsimile signature, or facsimile countersignature of any official appearing on the bonds, the financing documents, or the closing documents shall be valid and sufficient for all purposes, notwithstanding the fact that the official ceases to be that official before delivery of the bonds, the financing documents, or the closing documents.

§ 47–340.11. Maintenance of documents.

Copies of the specimen bonds and of the final financing documents and closing documents shall be filed in the Office of the Secretary of the District.

§ 47–340.12. Information reporting.

Within 3 days after the Mayor’s receipt of the transcript of proceedings relating to the issuance of any series of bonds, the Mayor shall transmit a copy of this transcript to the Secretary to the Council.

§ 47–340.13. Disclaimer.

(a) The issuance of bonds is in the discretion of the District. Nothing contained in this subchapter, including, but not limited to, the bonds, the financing documents, the closing documents or the Council resolution, shall be construed as obligating the District to issue any bonds for the benefit of any applicant or to participate in or assist any applicant in any way with financing, refinancing, or reimbursing the costs of the development of any project. The applicant shall have no claims for damages or for any other legal or equitable relief against the District, its elected or appointed officials, officers, employees, or agents as a consequence of any failure to issue any bonds for the benefit of any applicant.

(b) The District reserves the right to issue its bonds in the order or priority it determines in its sole and absolute discretion. The District gives no assurance and makes no representations that any portion of any limited amount of bonds, the interest on which is excludable from gross income for federal income tax purposes, will be reserved or will be available at the time of the proposed issuance of any bonds authorized by this subchapter.

(c) The District, by enacting this subchapter or by taking any other action in connection with financing, refinancing, or reimbursing any project, does not provide any assurance that the project is viable or sound, that the applicant is financially sound, or that amounts owing on any bonds or under any loan will be paid. Neither the applicant, any purchaser of the bonds, nor any other person shall rely upon the District with respect to these matters.

§ 47–340.14. Expiration.

If any series of bonds is not issued, sold, and delivered to the original purchaser within 3 years of the date of Council approval of a project pursuant to § 47-340.03, the authorization provided in this subchapter with respect to the issuance, sale, and delivery of such series of bonds shall expire.

§ 47–340.15. Severability.

If any particular provision of this subchapter, or the application thereof to any person or circumstance, is held invalid, the remainder of this subchapter and the application of such provision to other persons or circumstances shall not be affected thereby. If any action or inaction contemplated under this subchapter is determined to be contrary to the requirements of applicable law, such action or inaction shall not be necessary for the purpose of issuing of the bonds authorized by this subchapter, and the validity of the bonds shall not be adversely affected.

§ 47–340.16. Conflict of laws.

The procedures set forth in this subchapter shall prevail over any other subchapter of the Council or provision of District law that might be deemed to be inconsistent with this subchapter.

Subchapter II-C. Industrial Revenue Bond Fees.

§ 47–340.20. Program fee.

The Mayor may assess fees in connection with the provision to any for-profit or not for profit entity of loans, grants, credit support, revenue bonds, notes or other obligations authorized pursuant to federal law or regulations or any act or resolution of the Council of the District of Columbia. Such fees shall be in amounts reasonably calculated to defray costs associated with developing, implementing, administering, monitoring, evaluating or otherwise supporting such financial assistance for economic development purposes.

(Mar. 20, 1998, D.C. Law 12-60, § 502(b), 44 DCR 7378; Oct. 19, 2000, D.C. Law 13-172, § 2002, 47 DCR 6308.)

Prior Codifications

1981 Ed., § 47-340.20.

Section References

This section is referenced in § 47-340.21 and § 47-340.23.

Effect of Amendments

D.C. Law 13-172 rewrote this section which formerly provided: “The Mayor may charge a program fee to each entity on whose behalf the District of Columbia issues industrial revenue bonds authorized pursuant to § 47-334 in an amount sufficient to cover costs and expenses incurred by the District, including those incurred in connection with the issuance, sale, and delivery of bonds, the District’s participation in monitoring the use of bond proceeds and compliance with contracts and public benefit requirements, the maintenance of official records of transactions, the assistance in the redemption, repurchase, and remarketing of the bonds, and other activities related to the loan and disposition of revenue bond proceeds.”

Short Title

Industrial Revenue Bond Fees Act of 1997: Section 501 of D.C. Law 12-60 provided that § 502 of the act may be cited as the “Industrial Revenue Bond Fees Act of 1997.”

§ 47–340.21. Deposit of fees and other monies.

Fees authorized under § 47-340.20 and the earnings thereon, capital, and other funds appropriated by Council, and such additional monies that may be contributed from any lawful source shall be deposited in an account to be known as the District of Columbia Great Streets Development Account (“Account”), that shall be a sub-account of the special account established under § 47-131(c)(4).

Prior Codifications

1981 Ed., § 47-340.21.

Section References

This section is referenced in § 47-340.22.

Effect of Amendments

D.C. Law 13-172 inserted “, which shall be a sub-account of the special account”.

D.C. Law 14-28 rewrote the section which had read as follows: “Program fees and the earnings thereon authorized under § 47-340.20 shall be deposited in the industrial revenue bond program fee account, which shall be a sub-account of the special account established under § 47-131(c)(4).”

D.C. Law 16-33 rewrote section, which had read as follows: “Program fees and the earnings thereon authorized under § 47-340.20 shall be deposited in the industrial revenue bond special account established under § 47-131(c)(4).”

Emergency Legislation

For temporary (90 day) amendment of section, see § 1002 of Fiscal Year 2002 Budget Support Emergency Act of 2001 (D.C. Act 14-124, August 3, 2001, 48 DCR 7861).

For temporary (90 day) amendment of section, see § 2112(b) of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).

Editor's Notes

Application of Law 12-60: See Historical and Statutory Notes following § 47-340.20.

Industrial Revenue Bond Fees Act of 1997: See Historical and Statutory Notes following § 47-340.20.

§ 47–340.22. Allocation of funds.

Monies credited to the Account established under § 47-340.21 shall be allocated annually to the Office of the Deputy Mayor for Planning and Economic Development in an aggregate amount that is equal to the total deposits and earnings that have accrued during the immediately preceding fiscal year. Monies remaining in the Account at the end of any fiscal year shall not revert to the General Fund, but shall remain in the Account.

(Mar. 20, 1998, D.C. Law 12-60, § 502(b), 44 DCR 7378; Oct. 20, 1999, D.C. Law 13-38, § 2602, 46 DCR 6373; Oct. 19, 2000, D.C. Law 13-172, § 2002, 47 DCR 6308; Apr. 3, 2001, D.C. Law 13-226, § 4(b), 48 DCR 1603; Oct. 3, 2001, D.C. Law 14-28, § 1102, 48 DCR 6981; Oct. 1, 2002, D.C. Law 14-190, § 1122, 49 DCR 6968; Mar. 13, 2004, D.C. Law 15-105, § 75(b), 51 DCR 881; Oct. 20, 2005, D.C. Law 16-33, § 2112(b), 52 DCR 7503.)

Prior Codifications

1981 Ed., § 47-340.22.

Section References

This section is referenced in § 47-340.23.

Effect of Amendments

D.C. Law 13-38 and D.C. Law 13-172 rewrote this section which formerly provided: “Subject to authorization in a Congressional appropriations act, funds credited to the Industrial Revenue Bond Program Fee Account shall be allocated annually to the office, agency, or department of the District government responsible for administering the industrial revenue bond program fees and earnings thereon.”

D.C. Law 13-226 substituted “funds in excess of $5 million or in excess of” for “funds in excess of”.

D.C. Law 14-28 rewrote the section which had read as follows: “Beginning in Fiscal year 2001, funds credited to the industrial revenue bond program fee account established under § 47-340.21 shall be allocated annually to the Office of the Deputy Mayor for Planning and Economic Development in an aggregate amount that is equal to the program fees paid and the earnings that have accrued during the immediately preceding fiscal year, provided that funds in excess of those needed for the purposes set forth in § 47-340.23 shall be part of the local funds within the General Fund.”

D.C. Law 14-190 substituted “at the designation of the Council, or at the designation of the Mayor or Deputy Mayor for Planning and Economic Development, with the approval of the Council” for “for Fiscal Year 2002”.

D.C. Law 15-105 validated a previously made technical correction.

D.C. Law 16-33 rewrote section, which had read as follows: “Funds credited to the industrial revenue bond special account established under § 47-131(c)(4) shall be allocated for each fiscal year to the Office of the Deputy Mayor for Planning and Economic Development or, at the designation of the Council, or at the designation of the Mayor or Deputy Mayor for Planning and Economic Development, with the approval of the Council, for economic development programs or initiatives in other District agencies in an amount equal to the program fees paid and the earnings that have accrued, and the program fees expected to be paid and the earnings that are expected to accrue, during the immediately preceding fiscal year, plus any other funds remaining in the account; provided, that funds which are credited to the special account but which are not designated for expenditure under an approved spending plan under § 47-340.23 by the beginning of the fiscal year shall become part of the local funds within the General Fund.”

Emergency Legislation

For temporary (90 day) amendment of section, see § 4(b) of the Redevelopment Land Agency Disposition Review Congressional Review Emergency Amendment Act of 2000 (D.C. Act 13-524, January 11, 2001, 48 DCR 624).

For temporary (90 day) amendment of section, see § 1002 of Fiscal Year 2002 Budget Support Emergency Act of 2001 (D.C. Act 14-124, August 3, 2001, 48 DCR 7861).

For temporary (90 day) amendment of section, see § 1122 of Fiscal Year 2003 Budget Support Emergency Act of 2002 (D.C. Act 14-453, July 23, 2002, 49 DCR 8026).

For temporary (90 day) amendment of section, see § 2112(b) of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).

Short Title

Short title of subtitle B of title XI of Law 14-190: Section 1121 of D.C. Law 14-190 provided that subtitle B of title XI of the act may be cited as the Industrial Revenue Bond Special Account Act of 2002.

Editor's Notes

Industrial Revenue Bond Fees Act of 1997: See Historical and Statutory Notes following § 47-340.20.

§ 47–340.23. Use of funds allocated.

(a) Account monies allocated to the Office of the Deputy Mayor for Planning and Economic Development as provided in § 47-340.22 may be used to pay the costs of operating and administering economic development programs, including the provision of credit support or enhancement, loans, grants, contacts, and the implementation of other initiatives that are consistent with and in furtherance of the purposes of this subtitle or § 47-340.20. The Mayor shall report to the Council the details of how these monies are used in accordance with this subtitle or § 47-340.20.

(b)(1) Prior to the expenditure of funds from the Account, the Mayor shall transmit legislation to the Council to:

(A) Foster increased commercial, residential, cultural, and industrial development to promote the health, safety, and general welfare of the citizens of the District, and to help expand the tax base through the use of loans, the abatement or forgiveness of District taxes, the award of grants and employment tax credits, and the provision of other direct and indirect forms of economic assistance;

(B) Provide economic assistance to enable the District to leverage its limited financial resources more efficiently and effectively assist in financing the costs of capital improvements that are essential to the development or redevelopment of certain commercial areas; and

(C) Provide a means to defray the costs of enhancing economic value and public enjoyment; to attract and retain businesses; stimulate the development of commercial, residential, recreational, and cultural projects; increase employment; promote and expand trade, tourism, and other industries, and contribute to community betterment.

(2) No funds shall be expended from the Account until the Council has approved legislation to authorize their expenditure.

(c)(1) Notwithstanding subsections (a) or (b) of this section, the funds described in the fiscal year 2006 capital budget as the Neighborhood Revitalization Commercial Corridor Redevelopment Project (EB3-04) in the amount of $16.6 million shall be expended in the amount of $4.5 million in accordance with the Great Streets spending plan established by the Deputy Mayor for Planning and Economic Development in May 2006, including:

(A) The amount of $2 million shall be allocated to the Deputy Mayor for Planning and Economic Development for the purposes of acquisition and redevelopment of property in the 3200 block of Georgia Avenue, N.W., for redevelopment of Park Morton under the Great Streets initiative;

(B) The amount of $2 million shall be allocated to the Deputy Mayor for Planning and Economic Development for the purposes of gap financing economic assistance for the proposed Radio One development at 7th and S Streets, N.W;

(C) The amount of $500,000 shall be allocated to the Deputy Mayor for Planning and Economic Development for grants to property owners for facade and other improvements along H Street, N.E., the 1100 block of Good Hope Road, S.E., the 3600 block of Georgia Avenue, N.W[.], and the 3100 block of Martin Luther King, Jr. Avenue, S.E.; and

(D) The amount of $1 million shall be allocated to the Deputy Mayor for Planning and Economic Development for the purposes of property acquisition and gap financing economic assistance in the 1900 block of Martin Luther King, Jr. Avenue, S.E[.];

(2) The remaining $12.1 million shall be spent on Great Streets supporting projects in the following manner:

(A) The amount of $1.5 million shall be allocated to the Deputy Mayor for Planning and Economic Development for the purposes of issuing a grant to the Lincoln Theater to provide for repairs to the roof and other capital maintenance issues;

(B) The amount of $500,000 shall be allocated to the Anacostia Waterfront Corporation to begin a planning process for the construction of a new pedestrian bridge in Ward 7;

(C) The amount of $950,000 shall be allocated to the Deputy Mayor for Planning and Economic Development for the purposes of issuing a grant to the Historical Society of Washington;

(D) The amount of $450,000 shall be allocated to the Department of Parks and Recreation for the purposes of renovating the S and T Street, N.W., parks;

(E) The amount of $600,000 shall be allocated to the Department of Parks and Recreation for the purposes of a complete playground renovation at the Hearst Recreation Center, 3950 37th Street, N.W.;

(F) The amount of $100,000 shall be allocated to the Department of Parks and Recreation for the purposes of designing and building a new state-of-the-art ADA-compliant recreation center at Ft. Stanton Recreation Park, 1812 Erie Street, S.E.;

(G) The amount of $100,000 shall be allocated to the Department of Parks and Recreation for the purposes of a renovation project at North Michigan Park Recreation Center, 1333 Emerson Street, N.E.;

(H) The amount of $150,000 shall be allocated to the Department of Parks and Recreation for the purposes of designing and building a new state-of-the-art ADA-compliant recreation center at Douglas Recreation Center, 2100 Stanton Terrace, S.E.;

(I) The amount of $100,000 shall be allocated to the Department of Parks and Recreation for the Marvin Gaye Recreation Center;

(J) The amount of $1.2 million shall be allocated to the Deputy Mayor for Planning and Economic Development for purposes of acquisition along with facade and other improvements on Nannie Helen Burroughs Avenue, N.E.;

(K) The amount of $2 million shall be allocated to the Deputy Mayor for Planning and Economic Development for purposes of acquisition along with facade and other improvements on Pennsylvania Avenue, S.E., from the 2300 block of Pennsylvania Avenue, S.E., to Southern Avenue, S.E., at the Maryland line;

(L) The amount of $500,000 shall be allocated to begin the planning process and development of an environment education center and other environmental improvements at Kingman Island;

(M) The amount of $200,000 shall be allocated to the Department of Parks and Recreation for purposes of accelerating the designing and building of a new state-of-the-art ADA-compliant recreation center at Ridge Road Recreation Center at Ridge Road and Burns Street, S.E.;

(N) The amount of $500,000 shall be allocated to the Deputy Mayor for Planning and Economic Development for purposes of issuing a grant to the Boys and Girls Club of Metropolitan Washington #10 located at 2500 14th Street, N.W., for the purpose of capital improvements.;

(O) [Repealed].

(P) The amount of $500,000 shall be allocated to the Deputy Mayor for Planning and Economic Development for purposes of site acquisition and site preparation costs for a sit-down restaurant in the 5800 block of Georgia Avenue, N.W.;

(Q) The amount of $1.5 million shall be allocated to the Deputy Mayor for Planning and Economic Development for the purpose of issuing a grant to Georgia Avenue Investment Partners, LLC, to support the development of affordable housing units or neighborhood-serving retail in the 6400 block of Georgia Avenue, N.W.;

(R) The amount of $100,000 shall be allocated to the Department of Parks and Recreation for the purposes of designing and building a new state of the art ADA compliant recreation center at Ft. Greble Recreation Center, Martin Luther King Jr. Ave. and Elmira St, S.W.; and

(S) The amount of $150,000 shall be allocated to the Department of Parks and Recreation for the purposes of issuing a grant to the Marvin Deal African Heritage Dancers for studio/theater build-out expenses on newly acquired property at 1230 Good Hope Road, S.E.

(Mar. 20, 1998, D.C. Law 12-60, § 502(b), 44 DCR 7378; Oct. 19, 2000, D.C. Law 13-172, § 2002, 47 DCR 6308; Oct. 3, 2001, D.C. Law 14-28, § 1102, 48 DCR 6981; Oct. 20, 2005, D.C. Law 16-33, § 2112(b), 52 DCR 7503; Mar. 2, 2007, D.C. Law 16-191, § 5(m), 53 DCR 6794; Mar. 2, 2007, D.C. Law 16-192, § 2102, 53 DCR 6899; Mar. 14, 2007, D.C. Law 16-294, §§ 8(b), 11, 54 DCR 1086; Apr. 15, 2008, D.C. Law 17-141, § 2, 55 DCR 2223; Mar. 25, 2009, D.C. Law 17-353, §§ 170(a), 252, 56 DCR 1117.)

Prior Codifications

1981 Ed., § 47-340.23.

Section References

This section is referenced in § 47-131.

Effect of Amendments

D.C. Law 13-172 rewrote this section which formerly provided: “Funds allocated to the office, agency, or department described in § 47-340.22 may be used to defray costs of operating and administering the industrial revenue bond program and to further the purposes of § 47-334.”

D.C. Law 14-28 rewrote the section which had read as follows: “Beginning in Fiscal year 2001, funds allocated to the Office of the Deputy Mayor for Planning and Economic Development as provided in § 47-340.22 may be used to pay the costs of operating and administering economic development programs, including the provision of credit support, loans, grants, contracts, and the implementation of other initiatives that are consistent with, and in furtherance of the purposes of § 1-204.90, provided that a spending plan for these economic development programs has been approved by the Mayor and the Council and certified by the Chief Financial Officer.”

D.C. Law 16-33 rewrote section, which had read as follows: “Funds allocated to the Office of the Deputy Mayor for Planning and Economic Development or for economic development programs or initiatives in other District agencies as provided in § 47-340.22 may be used to pay the costs of operating and administering economic development programs, including the provision of credit support, loans, grants, contracts, and the implementation of other initiatives that are consistent with, and in furtherance of, the purposes of § 47-334, and for other initiatives to advance economic development in the District; provided, that a detailed spending plan for these economic development programs and initiatives has been approved by the Council and certified by the Chief Financial Officer.”

D.C. Law 16-191, in subsec. (a), validated a previously made technical correction.

D.C. Law 16-192 added subsec. (c).

D.C. Law 16-294, in subsec. (c)(1)(A), substituted “$2 million shall be allocated to the Deputy Mayor for Planning and Economic Development for the purposes of acquisition and redevelopment of property in the 3200 block of Georgia Avenue, N.W., for redevelopment of Park Morton under the Great Streets initiative” for “$1 million shall be allocated to the Deputy Mayor for Planning and Economic Development for the purposes of acquisition and redevelopment of property in the 3300 block of Georgia Avenue, N.W.”; in subsec. (c)(2)(C), deleted “million” following “$950,000”; repealed subsec. (c)(2)(O); and, in subsec. (c)(2)(Q), substituted “6400 block” for “6500 block”. Prior to repeal, subsec. (c)(2)(O) read as follows: “(O) The amount of $1 million shall be allocated to the Deputy Mayor for Planning and Economic Development for the purposes of gap financing economic assistance for proposed mixed use development in the 3600 block of Georgia Avenue, N.W.;”.

D.C. Law 17-141 amended subsec. (c)(2)(Q), which had read as follows: “(Q) The amount of $1.5 million shall be allocated to the Deputy Mayor for Planning and Economic Development for the purposes of affordable housing and neighborhood-serving retail assistance for a mixed use development of residential and retail uses in the 6400 block of Georgia Avenue, N.W.”

D.C. Law 17-353 validated a previously made technical correction in subsec. (c)(1)(A), and in subsec. (c)(2)(C), substituted “of $950,000” for “of $950,000 million”.

Emergency Legislation

For temporary (90 day) amendment of section, see § 1002 of Fiscal Year 2002 Budget Support Emergency Act of 2001 (D.C. Act 14-124, August 3, 2001, 48 DCR 7861).

For temporary (90 day) amendment of section, see § 2112(b) of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).

For temporary (90 day) amendment of section, see § 2102 of Fiscal Year 2007 Budget Support Emergency Act of 2006 (D.C. Act 16-477, August 8, 2006, 53 DCR 7068).

For temporary (90 day) amendment of section, see § 2102 of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2006 (D.C. Act 16-499, October 23, 2006, 53 DCR 8845).

For temporary (90 day) amendment of section, see § 2102 of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2007 (D.C. Act 17-1, January 16, 2007, 54 DCR 1165).

For temporary (90 day) amendment of section, see § 3 of Howard Theatre and Seventh Street, N.W., Revitalization Grants Approval Emergency Act of 2008 (D.C. Act 17-348, April 14, 2008, 55 DCR 5202).

For temporary (90 day) addition, see § 3016 of Fiscal Year 2009 Budget Support Emergency Act of 2008 (D.C. Act 17-468, July 28, 2008, 55 DCR 8746).

For temporary (90 day) repeal of section 3016 of D.C. Law 17-219, see § 2 of Boys and Girls Clubs of Greater Washington Plan Repeal Emergency Amendment Act of 2008 (D.C. Act 17-595, December 8, 2008, 55 DCR 12814).

For temporary (90 day) repeal of section 3016 of D.C. Law 17-219, see § 2 of Boys and Girls Clubs of Greater Washington Plan Repeal Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-10, February 23, 2009, 56 DCR 1913).

Temporary Legislation

Section 3 of D.C. Law 17-190, in subsec. (c)(1)(B), substituted “for the purposes of issuing a grant to support” for “for the purposes of gap financing economic assistance for”.

Section 4(b) of D.C. Law 17-190 provided that the act shall expire after 225 days of its having taken effect.

Section 2 of D.C. Law 17-327 repealed section 3016 of D.C. Law 17-219.

Section 4(b) of D.C. Law 17-327 provided that the act shall expire after 225 days of its having taken effect.

Short Title

Short title: Section 2101 of D.C. Law 16-192 provided that subtitle H of title II of the act may be cited as the “Great Streets Capital Expenditures Act of 2006”.

Short title: Section 3015 of D.C. Law 17-219 provided that subtitle G of title III of the act may be cited as the “Plan for Boys and Girls Clubs Act of 2008”.

Editor's Notes

Section 2082 of D.C. Law 24-45 provided: "The use of funds allocated for the redevelopment of public housing at Park Morton shall be limited to furthering the project requirements and shall be subject to the guidelines, conditions, and standards as approved by the Zoning Commission for the District of Columbia in Zoning Commission Order Nos. 16-11 and 16-12, and in any subsequent applicable orders."

Section 3016 of D.C. Law 17-219 provided: “Notwithstanding any other provision of law, no funds appropriated in fiscal year 2009 shall be used by or for the Boys and Girls Clubs of Greater Washington (‘Clubs’) prior to the approval of a plan for its real property located within the District of Columbia. The Plan shall be prepared by the Clubs and shall ensure the future of the Eastern Branch, Jelleff Branch Clubhouse #8, Mary & Daniel Loughran Clubhouse #10, and the Robert V. Murray Clubhouse #11 as viable facilities to provide recreational, social, educational, and developmental services to all District residents and the communities in which they exist. The plan shall be submitted by the Clubs to the Council and approved by act.”

Industrial Revenue Bond Fees Act of 1997: See Historical and Statutory Notes following § 47-340.20.

Subchapter II-D. Income Tax Secured Bonds.

§ 47–340.26. Definitions.

For the purposes of this subchapter, the term:

(1) “Additional Bonds” means additional District of Columbia Income Tax Secured Bonds that may be issued pursuant to § 1-204.90 and this subchapter and in satisfaction of the tests for additional bonds established in the Financing Documents, with a parity claim with the initial series of District of Columbia Income Tax Secured Bonds on the Available Tax Revenues.

(2) “Authorized Delegate” means the Chief Financial Officer, the Treasurer, or any Deputy Mayor in the executive office of the Mayor to whom the Mayor has delegated any of the Mayor’s functions under this subchapter pursuant to § 1-204.22(6).

(3) “Available Business Franchise Tax Revenues” means the revenues resulting from the imposition of the Business Franchise Tax, including penalty and interest charges.

(4) “Available Income Tax Revenues” means the revenues resulting from the imposition of the Income Tax, including penalty and interest charges.

(5) “Available Tax Revenues” means the sum of the Available Business Franchise Tax Revenues and Available Income Tax Revenues generated and to be generated in any fiscal year of the District.

(6) “Bond Counsel” means a firm of attorneys designated as bond counsel from time to time by the Chief Financial Officer.

(7) “Bonds” means the initial series of District of Columbia Income Tax Secured Bonds and Additional Bonds, notes, or other obligations, including refunding bonds, notes, bond anticipation notes, and other obligations, in one or more series, and Subordinated Bonds, authorized to be issued pursuant to § 1-204.90 and this subchapter.

(8) “Business Franchise Tax” means the franchise tax imposed on corporations and unincorporated businesses pursuant to §§ 47-1807.02, 47-1808.03, and 47-1817.06.

(9) “Capital Projects” means the payment of the cost of acquiring, undertaking, or financing capital projects authorized by § 1-204.90 for general governmental and enterprise purposes, and New Communities Initiative Projects, including reimbursing amounts temporarily advanced from the General Fund of the District of Columbia, any enterprise fund, or other fund or account of the District.

(10) “Chief Financial Officer” means the Chief Financial Officer of the District of Columbia established by § 1-204.24a(a).

(11) “Closing Documents” means all documents and agreements, other than Financing Documents, that may be necessary or appropriate to issue, sell, and deliver the bonds, and includes agreements, certificates, letters, opinions, forms, receipts, and other similar instruments.

(12) “Collection Agent” means the financial institution acting as the trustee or as agent for the trustee and chosen by the Chief Financial Officer to receive Available Tax Revenues, to deposit those payments into the Income Tax Secured Bond Fund, to transfer the amounts to the trustee sufficient to pay debt service on the bonds, and to otherwise comply with the Financing Documents.

(13) “Financing Documents” means the documents, other than Closing Documents, that relate to the financing or refinancing of transactions to be effected through the issuance, sale, and delivery of any series of the bonds, including contracts or agreements for an escrow agent, trustee, Collection Agent, registrar, Paying Agent, underwriting, legal services, accounting, financial advisory services, bond insurance or other credit enhancement or liquidity agreements, printing, or placement of any investment or obligation or program of investment, including any offering document, contract based on interest rate, currency, cash flow, or other basis, including Hedge Agreements, and any required supplements to any such documents.

(14) “Hedge Agreement” means any financial arrangement that is a cap, floor, or collar; forward rate; future rate; swap, which swap may be based on an amount equal to either a principal amount or a notional principal amount relating to all or a portion of the principal amount of a series of bonds; asset, index, price, or market-linked transaction or agreement; other interest rate exchange or rate protection transaction agreement; other similar transactions, however designated; any combination thereof; any option with respect thereto; or any similar arrangement, which is executed by the District for purposes of debt management, including managing interest rate fluctuations on bonds, but not for purposes of speculation.

(15) “Income Tax” means the income tax imposed on individuals by § 47-1806.03.

(16) “Income Tax Secured Bond Fund” means the Income Tax Secured Bond Fund established by § 47-340.27.

(16A) “New Communities Initiative Projects” means the projects approved in accordance with § 42-2812.03(e).

(17) “Outstanding Debt” means any tax-supported indebtedness of the District outstanding at any time, including any outstanding general obligation bonds and bond anticipation notes issued by the District, and certificates of participation issued on behalf of the District, excluding debt from the District’s Deed Tax Revenue Bonds issued before May 1, 2013, but, unless expressly authorized by Council resolution, the term “Outstanding Debt” shall not include tax increment financing and payment in lieu of taxation debt.

(18) “Parity Bonds” means, collectively, the initial series of District of Columbia Income Tax Secured Bonds and any Additional Bonds.

(19) “Paying Agent” means the District or any bank, trust company, or national banking association designated to serve in that capacity by the Chief Financial Officer, and may be the trustee.

(20) “Registrar” means the District or any bank, trust company, or national banking association designated to serve in that capacity by the Chief Financial Officer, and may be the trustee.

(21) “Subordinated Bonds” means any bonds, notes, or other obligations, including refunding bonds, notes, bond anticipation notes, and other obligation, the payment of debt service thereon which is subordinate to the Parity Bonds and which are not equally and ratably secured with the Parity Bonds by the Available Tax Revenues and other funds in and to be in the Income Tax Secured Bond Fund.

(22) “Treasurer” means the District of Columbia Treasurer established by § 1-204.24a(c)(3).

(23) “Trustee” means the trustee for the bond owners selected by the Chief Financial Officer for one or more series of bonds.

(Oct. 22, 2008, D.C. Law 17-254, § 2(b), 55 DCR 9275; Nov. 16, 2011, D.C. Law 19-39, § 2(a), 58 DCR 8471; June 26, 2014, D.C. Law 20-117, § 10(a), 61 DCR 2032.)

Section References

This section is referenced in § 42-2812.03.

Effect of Amendments

D.C. Law 19-39, in par. (9), substituted “undertaking, or financing” for “undertaking or financing” and deleted “, and the refunding of Outstanding Debt” following “account of the District”.

The 2014 amendment by D.C. Law 20-117 added “and New Communities Initiative Projects” in (9); added (16A); and added “excluding debt from the District’s Deed Tax Revenue Bonds issued before May 1, 2013” in (17).

Emergency Legislation

For temporary (90 day) addition of sections, see §§ 2 and 3 of Fiscal Year 2011 Income Tax Secured Revenue Refunding Bond Issuance Emergency Approval Act of 2010 (D.C. Act 18-606, November 17, 2010, 57 DCR 11052).

For temporary (90 day) addition of section, see § 2 of Fiscal Year 2011 Income Tax Secured Revenue Bond and General Obligation Bond Issuance Emergency Approval Act of 2010 (D.C. Act 18-607, November 17, 2010, 57 DCR 11054).

For temporary (90 day) amendment of section, see § 2(a) of Income Tax Secured Bond Authorization Emergency Act of 2011 (D.C. Act 19-145, August 9, 2011, 58 DCR 6823).

For temporary (90 day) amendment of section, see § 2(a) of Income Tax Secured Bond Authorization Congressional Review Emergency Act of 2011 (D.C. Act 19-216, October 31, 2011, 58 DCR 9348).

Temporary Legislation

Sections 2 and 3 of D.C. Law 18-307 added sections to read as follows: “Sec. 2. Pursuant to and in accordance with Subchapter II-D of Chapter 3 of Title 47 of the District of Columbia Official Code (’Subchapter II-D’), the Council approves the issuance and sale of income tax secured revenue bonds in an aggregate principal amount not to exceed $70 million to refund certain outstanding income tax secured revenue bonds of the District (‘Outstanding Bonds’), plus pay all costs related to structuring, issuing, securing, marketing, delivering, and maintaining the bonds issued pursuant to this act, including, without limitation, capitalized interest, underwriting fees, discounts and expenses, rating agency fees, legal fees, accounting fees, financial advisory fees, trustee and paying agent fees, collection agent fees, bond insurance and other credit enhancement fees, liquidity enhancement fees, swap termination fees, printing costs and expenses, costs of refunding and repayment of the Outstanding Bonds, and all other costs incurred by the District pursuant to the financing documents related to the bonds.

“Sec. 3. Pursuant to and in accordance with Subchapter II-D and other applicable law, the Council approves the execution and delivery by the Mayor, or the Chief Financial Officer, as applicable, on behalf of the District, of any agreement, document, contract, and instrument, including any amendment of or supplement to any such agreement, document, contract, or instrument, in connection with the issuance, sale, and delivery of the income tax secured revenue bonds pursuant to Subchapter II-D.”

Section 5(b) of D.C. Law 18-307 provided that the act shall expire after 225 days of its having taken effect.

Section 2 of D.C. Law 18-308 added a section to read as follows: “Sec. 2. Pursuant to and in accordance with the Income Tax Secured Bond Authorization Act of 2008, effective October 22, 2008 (D.C. Law 17-254; D.C. Official Code § 47-340.26 et seq.) (‘Income Tax Bond Act’), the Council approves the issuance and sale of income tax secured revenue bonds in an aggregate principal amount not to exceed $340 million to fund certain capital projects listed in section 4, plus the costs and expenses authorized by the Income Tax Bond Act, including, but not limited to, reimbursing amounts temporarily advanced from the General Fund of the District of Columbia, any enterprise fund, or other fund or account of the District, plus an amount equal to all costs related to structuring, issuing, securing, marketing, delivering, and maintaining the bonds issued pursuant to this act, including, without limitation, capitalized interest, underwriting fees, discounts and expenses, rating agency fees, legal fees, accounting fees, financial advisory fees, trustee and paying agent fees, collection agent fees, bond insurance and other credit enhancement fees, liquidity enhancement fees, swap termination fees, printing costs and expenses, redemption premiums and other costs of redemption, and all other costs incurred by the District pursuant to the financing documents related to the bonds.”

Section 8(b) of D.C. Law 18-308 provided that the act shall expire after 225 days of its having taken effect.

Editor's Notes

Applicability of D.C. Law 20-117: Section 18 of D.C. Law 20-117 provided that the act shall apply as of October 1, 2013.

Delegation of Authority

Delegation of Authority Under the Income Tax Secured Bond Authorization Act of 2008, effective October 22, 2008 (D.C. Law 17-254, D.C. Official Code §§ 47-340.26-36), see Mayor’s Order 2009-30, March 18, 2009 ( 56 DCR 6766).

Delegation of Authority Under the Income Tax Secured Bond Authorization Act of 2008, effective October 22, 2008 (D.C. Law 17-254; D.C. Official Code §§ 47-340.26—47-340.36), see Mayor’s Order 2011-159, September 20, 2011 ( 58 DCR 8413).

§ 47–340.27. Creation of the Income Tax Secured Bond Fund.

(a) There is established separate and apart from the General Fund of the District of Columbia as a nonlapsing fund the Income Tax Secured Bond Fund.

(b) The Chief Financial Officer may direct every taxpayer that is required to pay either the Business Franchise Tax or the Income Tax, or both, every employer that pays withholding taxes for employees, and every taxpayer that is required to pay estimated taxes, to send the payments directly to the Collection Agent for collection and disbursement in accordance with the collection instructions of the Chief Financial Officer. Tax payments or collections received pursuant to enforcement actions, received from bankruptcy trustees or through the Bankruptcy Courts, received as a result of garnished wages, received as collections of tax levies, including the release of liens at real estate closings, received as a result of closures of estates, received as a result of the sales of businesses or involving business licenses, and other collection activities shall be collected by the Chief Financial Officer and forwarded to the Collection Agent or deposited in the Income Tax Secured Bond Fund upon reconciliation of accounts.

(c) The Collection Agent may collect, receive, hold, and invest Available Tax Revenues, and shall promptly deposit all receipts into the Income Tax Secured Bond Fund, along with any other taxes or fees specifically designated by law for deposit in the Income Tax Secured Bond Fund.

(d) The Mayor, through the Chief Financial Officer, shall pledge, assign, and create a security interest in the Available Tax Revenues and all other funds in the Income Tax Secured Bond Fund, or any sub-account within the Income Tax Secured Bond Fund, for the payment of the costs of carrying out any of the purposes described in subsection (g) of this section without further action by the Council as permitted by § 1-204.90. If bonds are issued, the payment shall be made in accordance with the provisions of the Financing Documents entered into by the District in connection with the issuance of the bonds. If the District pays or makes provision to pay, pursuant to the terms of the Financing Documents, to the owners of bonds the principal or redemption price, and the interest due or to become due, at the time and in the manner stipulated, such that the bonds are no longer considered outstanding within the meaning of the Financing Documents, the security interest in the Available Tax Revenues shall be terminated with respect to the defeased bonds.

(e) Although payment of debt service on the bonds does not require an appropriation for that purpose pursuant to § 1-204.90, the Council may, in establishing the annual budget of the District, include in each annual budget for a fiscal year of the District sufficient funds to pay the principal of, and interest on, the bonds becoming due and payable for any reason during that fiscal year.

(f) When deposited in the Income Tax Secured Bond Fund, the funds in the Fund and all investments or earnings on these funds shall be irrevocably dedicated and pledged to the payment of the principal of, and interest on, the bonds and costs as provided in subsection (g) of this section. Any escrow or other agreement entered into by the Chief Financial Officer providing for holding funds for the benefit of the holders of the bonds shall be maintained so long as any of the bonds are outstanding under the Financing Documents.

(g) The funds deposited in the Income Tax Secured Bond Fund may be used to pay:

(1) The costs of the Collection Agent and the trustee; and

(2) Debt service on the bonds and such other applications as may be set forth in the Financing Documents.

(h) If, at the end of any period determined in the Financing Documents, the balance of cash and investments in the Income Tax Secured Bond Fund exceeds the amount required to be held in the Income Tax Secured Bond Fund pursuant to the Financing Documents, the excess shall be transferred to the unrestricted fund balance of the General Fund of the District of Columbia in accordance with the Financing Documents.

§ 47–340.28. Bond authorization.

(a) Bonds in one or more series may be issued in an aggregate principal amount not to exceed $15,561,503,000 to fund costs of Capital Projects and the New Communities Initiative Projects (including the issuance of both refunding bonds and bond anticipation notes from time to time in one or more series to refund Outstanding Debt or in anticipation of all or a portion of the bonds; provided, that the principal amount of any such refunded bonds or notes shall not be included in the total amount authorized by this section upon their repayment or defeasance from bond proceeds), such amount being subject to adjustment by Council act, plus an amount equal to all costs and expenses of issuing and delivering the bonds, including, but not limited to, underwriting, rating agency fees, legal fees, accounting fees, financial advisory fees, bond insurance and other credit enhancements, liquidity enhancements, printing costs and expenses, capitalized interest, establishment of debt service or other reserve funds related to the bonds, the payment of costs of contracts described in § 47-340.30(f), and the payments of other debt program related costs as provided in the related agreements.

(b) The bonds authorized pursuant to subsection (a) of this section shall be tax-exempt or taxable as the Chief Financial Officer shall determine and shall be payable in the manner set forth in § 47-340.31.

(b-1) The Council shall specify and determine from time to time, by resolution, the Capital Projects and the New Communities Initiative Projects for which the issuance of bonds shall be authorized.

(c) The Chief Financial Officer may pay from the proceeds of the bonds the costs and expenses specified in subsection (a) of this section, plus amounts, to the extent necessary, to establish or maintain the tax-exempt status of any of the bonds issued on a tax-exempt basis.

(d) Subject to applicable law, the District shall maintain a capital projects fund separate and apart from other funds of the District into which it will deposit the proceeds of any series of the bonds for the Capital Projects, less any capitalized interest, accrued interest, and costs of issuance. Subject to applicable law, the District shall maintain a new communities initiative project fund separate and apart from other funds of the District into which it will deposit the proceeds of any series of the bonds for the New Communities Initiative Projects, less any capitalized interest, accrued interest, and costs of issuance. The District shall expend the bond proceeds only to finance Capital Projects or to refund Outstanding Debt. Subject to applicable law, the proceeds of any series of the bonds may be escrowed in appropriate accounts with escrow agents or the trustee to be applied to the applicable purposes. Interest or other investment earnings of proceeds in the capital projects fund shall be credited to the General Fund of the District of Columbia, subject to provisions for any deposit requirements to a rebate fund or other funds in accordance with agreements pertaining to the bonds.

(e) The costs of the capital projects approved for financing pursuant to this section and prior bond acts that have become law, which are paid originally from the General Fund of the District of Columbia, any enterprise fund, or other fund or account of the District, are reasonably expected to be reimbursed in whole or in part with the proceeds of the bonds in the maximum amount set forth in subsection (a) of this section. The Council declares that it is the intent of the District, in accordance with Treas. Reg. § 1.150-2, issued under the Internal Revenue Code of 1986, approved October 22, 1986 (100 Stat. 2085; 26 U.S.C. § 1 et seq.), to reimburse the General Fund of the District of Columbia, any enterprise fund, or other fund or account of the District, with the proceeds of the bonds.

(Oct. 22, 2008, D.C. Law 17-254, § 2(b), 55 DCR 9275; Nov. 16, 2011, D.C. Law 19-39, § 2(b), 58 DCR 8471; Dec. 5 , 2013, D.C. Law 20-46, § 2, 60 DCR 14962; June 26, 2014, D.C. Law 20-117, § 10(b), 61 DCR 2032; Sept. 18, 2024, D.C. Law 25-217, § 7212(a), 71 DCR 9990.)

Effect of Amendments

D.C. Law 19-39 rewrote subsecs. (a) and (b); and added subsecs. (b-1) and (e).

The 2013 amendment by D.C. Law 20-46 substituted “$9,180,985,000” for “$5,180,985,000 in (a).

The 2014 amendment by D.C. Law 20-117 substituted “costs of Capital Projects and the New Communities Initiative Projects” for “costs of Capital Projects” in (a); substituted “the Capital Projects and the New Communities Initiative Projects” for “the capital projects” in (b-1); and, in (d), substituted “series of the bonds for the Capital Projects, less any capitalized interest, accrued interest, and costs of issuance” for “series of the bonds, less any capitalized interest accrued interest and costs of issuance” in the first sentence, and added the second sentence.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7212(a) of Fiscal Year 2025 Budget Support Emergency Act of 2024 (D.C. Act 25-506, July 15, 2024, 71 DCR 8406).

For temporary (90 day) amendment of section, see § 2(b) of Income Tax Secured Bond Authorization Emergency Act of 2011 (D.C. Act 19-145, August 9, 2011, 58 DCR 6823).

For temporary (90 day) amendment of section, see § 2(b) of Income Tax Secured Bond Authorization Congressional Review Emergency Act of 2011 (D.C. Act 19-216, October 31, 2011, 58 DCR 9348).

For temporary (90 days) amendment of this section, see § 2 of the Income Tax Secured Bond Authorization Emergency Act of 2013 (D.C. Act 20-166, September 30, 2013, 60 DCR 14730).

Legislative History

Legislative history of Law 20–117

See note to § 47-340.26.

Editor's Notes

Applicability of D.C. Law 20-117: Section 18 of D.C. Law 20-117 provided that the act shall apply as of October 1, 2013.

§ 47–340.29. Bond details.

(a) The Chief Financial Officer may take any action reasonably necessary or appropriate in accordance with this subchapter in connection with the preparation, execution, issuance, sale, delivery, security for, and payment of the bonds of each series, including, determinations of:

(1) Whether the bonds are to be issued in one or more series and the principal amount of each series;

(2) The final form, content, denominations, lettering, numbering, designation, and terms of each series of the bonds, or the manner of determining the designations and denominations, lettering, and numbering, including a determination that the bonds may be issued in certificated or book-entry form;

(3) The rate or rates of interest or the method for determining the rate or rates of interest on each series of the bonds;

(4) The date or dates of issuance, sale, and delivery of, and the payment of interest on each series of the bonds, and the maturity date or dates of the bonds;

(5) The price and terms under which any series of the bonds may be paid, optionally or mandatorily redeemed, accelerated, tendered, called, or put for redemption, repurchase, or remarketing before their respective stated maturities;

(6) The maximum debt service payable in any fiscal year for each series of the bonds;

(7) Provisions for the registration, transfer, and exchange of each series of the bonds and the replacement of mutilated, lost, stolen, or destroyed bonds;

(8) The creation of any reserve fund, sinking fund, or other fund with respect to each series of the bonds;

(9) The method of collection and deposit of Available Tax Revenues into the Income Tax Secured Bond Fund and the distributions from the Income Tax Secured Bond Fund to the trustee;

(10) The dates and place of payment of each series of the bonds;

(11) Procedures for monitoring the use of the proceeds received from the sale of each series of the bonds to ensure that the proceeds are properly applied and used to accomplish the purposes of Chapter 2 of Title 1, this subchapter, or Chapter 28 of Title 42;

(12) The designation of the Collection Agent, trustee, Paying Agent, and registrar for each series of the bonds;

(13) Actions necessary to qualify each series of the bonds under blue sky laws of any jurisdiction where the bonds are marketed;

(14) Whether to enter into a Hedge Agreement related to all or a portion of a series of bonds; and

(15) The terms and types of security granted to the holders of each series of the bonds, including bond insurance and other credit enhancement.

(b) The bonds shall be executed in the name of the District and on its behalf by the manual or facsimile signature of the Mayor, and attested by the Secretary of the District of Columbia by the Secretary’s manual or facsimile signature.

(c) The bonds of any series may be issued in accordance with the terms of a trust instrument to be entered into by the District and the trustee, and may be subject to the terms of one or more agreements entered into by the Mayor, through the Chief Financial Officer, pursuant to § 1-204.90.

(d) The bonds may be issued at any time or from time to time in one or more issues and in one or more series.

(e) The bonds are declared to be issued for essential public and governmental purposes. The bonds, the interest thereon, and the income therefrom shall at all times be exempt from taxation by the District, except for estate, inheritance, and gift taxes.

(f) The District irrevocably pledges for and on behalf of the owners of the bonds as further security for the due and punctual payment of the principal and redemption price, if any, and interest on, the bonds as they shall become due and payable for any reason, all of its right, title, and interest now owned or later acquired in and to the Available Tax Revenues, whether received or to be received, or held at the time, by a Collection Agent, custodian, escrow agent, or District officials. This pledge creates and grants a security interest as contemplated in § 1-204.90, subject to the terms, conditions, and limitations in this subchapter.

(g)(1) The District pledges, covenants, and agrees with the holders of the bonds that, subject to the provisions of the Financing Documents, the District will not:

(A) Limit or alter the revenues pledged to secure the bonds or the basis on which the revenues are collected or allocated in a manner that would generate Available Tax Revenues below the levels required to pay or secure the payment of the bonds;

(B) Impair the contractual obligations of the District to fulfill the terms of any agreement made with the holders of the bonds; provided, that the District may modify the Business Franchise Tax or Income Tax rates or the income subject to those rates only if the modification, if in effect, would not have reduced the ratio of Income Tax generated by the withholding portion of the Available Income Tax Revenues for any 12-consecutive-month period during the 15-month period immediately preceding the calculation to the maximum annual debt service on the Parity Bonds then outstanding, below 2.0 times, pursuant to the Financing Documents;

(D) Modify in any way the exemptions from taxation provided for in subsection (e) of this section until the bonds, together with interest thereon, and all costs and expenses in connection with any suit, action, or proceeding by or on behalf of the holders of the bonds, are fully met and discharged.

(2) The pledge and agreement of the District under this subsection may be included as part of the contract with the holders of the bonds and this subsection shall constitute a contract between the District and the holders of the bonds. To the extent that any acts or resolutions of the Council may be in conflict with this subchapter, this subchapter shall be controlling.

(h) Consistent with § 1-204.90(a)(4)(B) and notwithstanding Article 9 of Title 28:

(1) A pledge made and security interest created in respect of the bonds or pursuant to any related Financing Document shall be valid, binding, and perfected from the time the security interest is created, with or without physical delivery of any funds or any property and with or without any further action;

(2) The lien of the pledge shall be valid, binding, and perfected as against all parties having any claim of any kind in tort, contract, or otherwise against the District, whether or not the party has notice of the lien; and

(3) The security interest shall be valid, binding, and perfected whether or not any statement, document, or instrument relating to the security interest is recorded or filed.

§ 47–340.30. Issuance of the bonds.

(a) The bonds of any series may be sold as Parity Bonds or Subordinated Bonds at negotiated or competitive sale at, above, or below par, to one or more persons or entities, and upon terms that the Chief Financial Officer considers to be in the best interests of the District.

(b) The Chief Financial Officer may prepare or cause to be prepared and execute, in connection with each sale of the bonds, offering documents on behalf of the District, may deem final any such offering document on behalf of the District for purposes of compliance with federal laws and regulations governing such matters, and may authorize the distribution of the documents in connection with the bonds.

(c) The Chief Financial Officer may deliver executed bonds, on behalf of the District, for authentication, and, after the bonds have been authenticated, to deliver the bonds to the original purchasers of the bonds upon payment of the purchase price.

(d) The bonds shall not be issued until the Chief Financial Officer receives an approving opinion from Bond Counsel as to the validity of the bonds of such series and, if the interest on the bonds is expected to be exempt from federal income taxation, the treatment of the interest on the bonds for purposes of federal income taxation.

(e) No series of the bonds shall be issued unless the Chief Financial Officer provides certification that the issue of that series of the bonds shall not create a violation of § 1-206.03(b), treating the bonds as general obligation bonds solely for the purpose of determining whether § 1-206.03(b) would be violated with this treatment of the bonds, and, for purposes of the certification, pursuant to § 1-204.75:

(A) The Chief Financial Officer shall include in any calculation, while any bond anticipation notes are outstanding, the estimated maximum annual debt service amount for the bonds anticipated by such bond anticipation notes;

(B) The Chief Financial Officer shall not include in any such calculation the debt service on the bond anticipation notes; and

(C) The estimated maximum annual debt service on the bonds anticipated by the bond anticipation notes shall be as estimated at the time the bond anticipation notes are issued.

(f) Chapter 3 of Title 2 and subchapter III-A of this chapter shall not apply to any contract the Mayor or Chief Financial Officer may from time to time enter into, or the Mayor or Chief Financial Officer may determine to be necessary or appropriate, for purposes of this subchapter, including the selection of Bond Counsel, underwriters, financial advisors, or other professionals for a particular bond issue.

(Oct. 22, 2008, D.C. Law 17-254, § 2(b), 55 DCR 9275; Nov. 16, 2011, D.C. Law 19-39, § 2(c), 58 DCR 8471.)

Section References

This section is referenced in § 47-340.28.

Effect of Amendments

D.C. Law 19-39, in subsec. (f), substituted “subchapter III-A” for “subchapter III”.

Emergency Legislation

For temporary (90 day) amendment of section, see § 2(c) of Income Tax Secured Bond Authorization Emergency Act of 2011 (D.C. Act 19-145, August 9, 2011, 58 DCR 6823).

For temporary (90 day) amendment of section, see § 2(c) of Income Tax Secured Bond Authorization Congressional Review Emergency Act of 2011 (D.C. Act 19-216, October 31, 2011, 58 DCR 9348).

§ 47–340.31. Payment and security.

(a) The bonds shall be special obligations of the District payable solely from the Available Tax Revenues pledged therefor under this subchapter and other receipts, revenues, and funds in the Income Tax Secured Bond Fund and payable to the Income Tax Secured Bond Fund pursuant to this subchapter and the Financing Documents. The Available Tax Revenues shall constitute dedicated taxes and fees and available revenues within the meaning of § 1-204.90(n). As such, the holders of the bonds shall have a first lien on and pledge of the Available Tax Revenues superior to that of any other person, including holders of general obligation bonds or notes secured by the full faith and credit of the District pursuant to § 1-204.82.

(b) The bonds shall be without recourse to the District, are not a pledge of, and do not involve, the faith and credit or the taxing power of the District (other than the Available Tax Revenues and any other taxes and fees allocated to the Income Tax Secured Bond Fund), do not constitute a debt of the District, and do not constitute lending of the public credit for private undertakings as prohibited in § 1-206.02(a)(2). The bonds shall contain a legend expressly setting forth the limitations set forth in the preceding sentence.

(c) Payment of the bonds shall be secured as provided in the Financing Documents and by an assignment by the District for the benefit of the bond owners of certain of its rights under the Financing Documents and Closing Documents to the Collection Agent and trustee pursuant to the Financing Documents.

(d) The Collection Agent and trustee, respectively, may deposit, invest, and disburse the Available Tax Revenues received pursuant to the Financing Documents.

(e) The trustee may disburse the proceeds of the bonds to the District.

§ 47–340.32. Financing and closing documents.

(a) The Chief Financial Officer may prescribe the final form and content of all Financing Documents and all Closing Documents to which the District is a party that may be necessary or appropriate to issue, sell, and deliver the bonds.

(b) The Chief Financial Officer may, through a trust agreement or other instrument, make additional covenants of the District and agree to other provisions to better secure, administer funds for, and protect the bonds and the owners thereof.

(c) The Chief Financial Officer may execute, in the name of the District and on its behalf, the Financing Documents and any Closing Documents to which the District is a party. The Mayor or an Authorized Delegate may execute the bonds, in the name of the District, by the Mayor’s or Authorized Delegate’s manual or facsimile signature.

(d) If required, the official seal of the District, or a facsimile of it, shall be impressed, printed, or otherwise reproduced on the bonds, the other Financing Documents, and the Closing Documents to which the District is a party.

(e) The Chief Financial Officer’s execution and delivery of the Financing Documents and Closing Documents to which the District is a party, and the Mayor’s execution of the bonds, shall constitute conclusive evidence of the Chief Financial Officer’s and Mayor’s approval, on behalf of the District, of the final form and content of the executed Financing Documents and the executed Closing Documents.

(f) The Chief Financial Officer may deliver the executed and sealed Financing Documents and Closing Documents, on behalf of the District, prior to or simultaneously with the issuance, sale, and delivery of the bonds, and to ensure the due performance of the obligations of the District contained in the executed, sealed, and delivered Financing Documents and Closing Documents.

§ 47–340.33. Limited liability.

No person, including any bond owner, shall have any claims against the District or any of its elected or appointed officials, officers, employees, or agents for monetary damages suffered as a result of the failure of the District to perform any covenant, undertaking, or obligation under this subchapter, the bonds, the Financing Documents, or the Closing Documents, or as a result of the incorrectness of any representation in or omission from the Financing Documents or the Closing Documents, unless the District or its elected or appointed officials, officers, employees, or agents have acted in a willful and fraudulent manner.

§ 47–340.34. District officials.

(a) Except as otherwise provided § 47-340.33, the elected or appointed officials, officers, employees, or agents of the District shall not be liable personally for the payment of the bonds or be subject to any personal liability by reason of the issuance of the bonds, or for any representations, warranties, covenants, obligations, or agreements of the District contained in this subchapter, the bonds, the Financing Documents, or the Closing Documents.

(b) The signature, countersignature, facsimile signature, or facsimile countersignature of any official appearing on the bonds, the Financing Documents, or the Closing Documents shall be valid and sufficient for all purposes notwithstanding the fact that the individual signatory ceases to hold that office before delivery of the bonds, the Financing Documents, or the Closing Documents.

(c) To the extent permitted by law, the Mayor may delegate to any Authorized Delegate the performance of any act authorized to be performed by the Mayor under this subchapter.

§ 47–340.35. Maintenance of documents.

Copies of the specimen bonds and of the final Financing Documents and Closing Documents shall be filed in the Office of the Secretary of the District of Columbia.

§ 47–340.36. Information reporting.

Within 3 days after the Chief Financial Officer’s receipt of the transcript of proceedings relating to the issuance of the bonds, the Chief Financial Officer shall transmit a copy of the transcript to the Secretary to the Council.

Subchapter III. Deposit of Public Funds. [Repealed].

§ 47–341. Definitions. [Repealed]

Repealed.

(Oct. 26, 1977, D.C. Law 2-32, § 2, 24 DCR 3725; Oct. 8, 1981, D.C. Law 4-40, § 2(a), 28 DCR 3395; Sept. 26, 1984, D.C. Law 5-118, § 6(b), 31 DCR 4034; Mar. 7, 1991, D.C. Law 8-220, § 2, 38 DCR 199; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Mar. 18, 1998, D.C. Law 12-56, § 2(a), 44 DCR 6933.)

Prior Codifications

1981 Ed., § 47-341.

1973 Ed., § 47-271.

Mayor's Orders

Amendment of Organization Order No. 112, establishing Board of Appeals and Review: See Mayor’s Order 84-31, February 9, 1984.

Amendment of delegation of authority under D.C. Law 2-32: See Mayor’s Order 85-168, October 4, 1985.

Delegation of Authority

Delegation of authority under D.C. Law 2-32, see Mayor’s Order 85-87, June 10, 1985.

§ 47–342. Mayor to invest or deposit certain funds. [Repealed]

Repealed.

(Oct. 26, 1977, D.C. Law 2-32, § 3, 24 DCR 3725; Mar. 8, 1984, D.C. Law 5-50, § 2, 30 DCR 5916; July 22, 1992, D.C. Law 9-127, § 2, 39 DCR 3828; Mar. 16, 1993, D.C. Law 9-185, § 2, 39 DCR 8221; June 28, 1994, D.C. Law 10-134, § 2, 41 DCR 2597; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Mar. 18, 1998, D.C. Law 12-56, § 2(a), 44 DCR 6933.)

Prior Codifications

1981 Ed., § 47-342.

1973 Ed., § 47-272.

Editor's Notes

Companies and their subsidiaries or affiliates doing business in or with the Republic of South Africa or Namibia: See Mayor’s Order 90-115, August 14, 1990 and Mayor’s Order 90-189, November 30, 1990.

Delegation of Authority

Delegation of authority under Law 5-50, see Mayor’s Order 84-82, May 4,1984.

Delegation of authority under D.C. Law 9-185, “Public Funds Investment Policy in Financial Institutions and Companies Making Loans to or Doing Business with Northern Ireland Amendment Act of 1992”, see Mayor’s Order 93-76, June 16, 1993.

§ 47–343. Selection of depositories and investments. [Repealed]

Repealed.

(Oct. 26, 1977, D.C. Law 2-32, § 4, 24 DCR 3725; Mar. 4, 1981, D.C. Law 3-128, § 10, 28 DCR 246; Apr. 8, 1992, D.C. Law 9-91, § 2(a), 39 DCR 1365; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Mar. 18, 1998, D.C. Law 12-56, § 2(a), 44 DCR 6933.)

Prior Codifications

1981 Ed., § 47-343.

1973 Ed., § 47-273.

Repeal of Law

Repeal of Law 9-11

Section 3 of D.C. Law 9-91 repealed the District of Columbia Depository Act of 1977 Temporary Amendment Act of 1991 (D.C. Law 9-11).

Severability of Law

Inseverability of Law 9-91: Section 4 of D.C. Law 9-91 provided that if any provision of § 47-343(f) or § 47-344(f), as added by § 2 of the act, or its application to any person or circumstance is held to be unconstitutional, beyond the statutory authority of the Council of the District of Columbia, or otherwise invalid, then all provisions of §§ 47-343(e)-(f) and 47-344(e)-(f), as added by § 2 of the act, shall be deemed invalid.

§ 47–344. Ranking of depositories; qualifying loans; information required to bid. [Repealed]

Repealed.

(Oct. 26, 1977, D.C. Law 2-32, § 5, 24 DCR 3725; Oct. 8, 1981, D.C. Law 4-40, § 2(b), 28 DCR 3395; Mar. 16, 1989, D.C. Law 7-187, § 4, 35 DCR 8648; Apr. 8, 1992, D.C. Law 9-91, § 2(b), 39 DCR 1365; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Mar. 18, 1998, D.C. Law 12-56,§ 2(a), 44 DCR 6933.)

Prior Codifications

1981 Ed., § 47-344.

1973 Ed., § 47-274.

Repeal of Law

Repeal of Law 9-11

Section 3 of D.C. Law 9-91 repealed the District of Columbia Depository Act of 1977 Temporary Amendment Act of 1991 (D.C. Law 9-11).

Severability of Law

§ 47–345. Limitation on amount. [Repealed]

Repealed.

§ 47–345.01. Cashing government checks of District residents required. [Repealed]

Repealed.

§ 47–346. Required collateral and financial information. [Repealed]

Repealed.

§ 47–347. Public disclosure of certain information; required reports by depositories and Mayor. [Repealed]

Repealed.

§ 47–348. Termination of depositories or refusal of contracts; immediate withdrawal. [Repealed]

Repealed.

§ 47–349. Powers of Mayor and District of Columbia Auditor; accountability of Auditor. [Repealed]

Repealed.

§ 47–350. Authorized staff for District of Columbia Auditor and Committee on Employment and Economic Development. [Repealed]

Repealed.

Subchapter III-A. Financial Institutions Deposits and Investments.

§ 47–351.01. Definitions.

For the purposes of this subchapter, the term:

(1) “Bank” means an insured financial institution as defined in section 2 of the Federal Deposit Insurance Act, approved September 21, 1950 (64 Stat. 873; 12 U.S.C. § 1813), which:

(A) Accepts demand deposits or deposits that the depositor may withdraw by check or similar means for payment to third parties or others; and

(B) Is engaged in the business of making commercial loans.

(2) “Banking business” means the deposit or investment of District funds or the use of District funds for the provision of financial services.

(2A) “Collateralized mortgage obligations” shall mean securities issued by a government or quasi-governmental agency and backed by a pool of underlying home mortgages packaged and sold in the secondary market.

(3) “Community Reinvestment Act” means the Community Reinvestment Act of 1977, approved October 12, 1977 (91 Stat. 1147; 12 U.S.C. §§ 2901-2907).

(4) “Compensating balances” means collected balances held by the depository to compensate the depository for the cost of financial services rendered.

(5) “Credit union” means an institution insured by the National Credit Union Administration, and either serving designated geographical areas within the District of Columbia or serving the employees of the District.

(6) “Deposit” means District funds which are held by a financial institution subject to withdrawal upon demand by the District or upon a check or warrant of the District or the act of entrusting District funds into a financial institution.

(7) “District” means the government of the District of Columbia.

(8) “District funds” means money, currency, notes, or drafts belonging to or under the control of the District, including, but not limited to, the federal payment, federal grants, taxes, fees, special assessments, all other funds received from the federal government, and funds paid to or received by a board, agency, commission, institution, committee, or office of the District or from any other source. This does not include any assets of a pension, assets held by the District of Columbia Financial Responsibility and Management Assistance Authority, an employee deferred compensation program of the District, or an irrevocable trust established pursuant to § 1-626.11.

(9) “Eligible financial institution” means any bank or any brokerage firm registered with the United States Securities and Exchange Commission (“SEC”) or any savings and loan association, savings bank, credit union, or any subsidiary or affiliate thereof meeting the requirements to become eligible to submit a bid pursuant to § 47-351.04.

(10) “Financial services” means those services performed by a financial institution in connection with the retention of deposits, including check payment, check clearing, reconciliation of accounts, check printing, the collection and transfer of taxes and fees, night depository services, custodial services, and other services that may be necessary for the efficient management of District funds.

(11) “Home Mortgage Disclosure Act” means the Home Mortgage Disclosure Act of 1975, approved December 31, 1975 (89 Stat. 1124; 12 U.S.C. § 2801 et seq.).

(12) “Insured financial institution” or “insured institution” means a bank, savings and loan association, savings bank, credit union, or any subsidiary or affiliate thereof.

(13) “Invest” means to commit District funds in order to gain profit or interest.

(14) “Investment” means property acquired with District funds for future profit or interest.

(15) “Investment grade obligation” means securities that have a minimum rating of BBB, Baa, or BBB- from Standard and Poor’s, Moody’s Investor Service, or Fitch Investor Service rating agencies that rate the securities.

(16) “Linked deposit” means limited deposits in an insured financial institution made pursuant to an authorization from the Mayor, or CFO pursuant to § 47-351.02(c), to waive the competitive bidding requirements of the act in order to make a deposit in return for that institution’s commitment to make community development loans in low-to-moderate income areas.

(17) “Low-to-moderate income area” means a census tract in which more than 50% of the households have a median household income of less than 100% of the District’s median household income based on the most recent decennial census.

(18) “Mayor” means the Mayor of the District of Columbia.

(19) “Mortgage loan” means a loan that is secured by residential real property.

(20) “Noninsured financial institution” means an investment advisor, investment banker, investment company, investment trust, or any other company, subsidiary, or affiliate thereof designated by the Mayor, or the CFO during a control year.

(21) “Quasi-governmental corporation” means United States government-sponsored enterprises that issue investment-grade obligations. This includes, but is not limited to, banks for cooperatives, federal land banks, federal intermediate credit banks, federal farm credit banks, federal home loan banks, the Federal Home Loan Bank Board, the Tennessee Valley District, the Small Business Administration, or any such agency or enterprise that may be created.

(22) “Savings and loan association” means an institution organized as a savings and loan association under the laws of the United States, a state, or the District, the deposits of which are insured by the Federal Deposit Insurance Corporation.

(23) “Savings bank” means an institution organized as a savings bank under the laws of the United States, a state, or the District, the deposits of which are insured by the Federal Deposit Insurance Corporation.

(24) “Small business” means a business with annual gross sales or revenues of $5 million or less.

§ 47–351.02. Powers of the Mayor.

(a) The Mayor or the Mayor’s designated officer shall invest, deposit, or obtain financial services for all District funds that the Mayor does not need for immediate disbursement.

(b) The Mayor may exercise any power that is necessary to implement and enforce this subchapter.

(c) During a control year, as defined in § 47-393(4), the powers exercised by the Mayor pursuant to this subchapter, except for § 47-351.16, shall be exercised by the Chief Financial Officer of the District of Columbia (“CFO”).

(Mar. 18, 1998, D.C. Law 12-56, § 2(c), 44 DCR 6933.)

Prior Codifications

1981 Ed., § 47-351.2.

Section References

This section is referenced in § 47-351.01, § 47-351.03, § 47-351.04, § 47-351.05, § 47-351.06, § 47-351.07, § 47-351.08, § 47-351.09, § 47-351.10, § 47-351.11, § 47-351.12, and § 47-351.13.

Emergency Legislation

See Historical and Statutory Notes following § 47-351.01.

Mayor's Orders

Delegation of Authority

Delegation of authority under Law 5-50, see Mayor’s Order 84-82, May 4,1984.

§ 47–351.03. General deposit and investment requirements.

(a) Unless otherwise provided by law, the Mayor, or the CFO pursuant to § 47-351.02(c), shall invest and deposit District funds in, and obtain financial services from, eligible financial institutions.

(b) The Mayor, or the CFO pursuant to § 47-351.02(c), shall determine what amount of District funds are needed immediately and maintain deposit funds in amounts great enough to satisfy that need. The Mayor, or the CFO pursuant to § 47-351.02(c), shall invest all other funds.

(1) Bonds, bills, notes, or other obligations issued by the United States government;

(2) Federally insured negotiable certificates of deposit or other insured or uninsured evidences of deposit at a financial institution;

(3) Bonds, bills, notes, mortgage-backed or asset-backed securities, or other obligations of a quasi-governmental corporation;

(4) Prime banker acceptances that do not exceed 270 days maturity;

(5) Prime commercial paper that does not:

(A) Have a maturity that exceeds 180 days; and

(B) Exceed 10% of the outstanding commercial paper of the issuing corporation at the time of purchase;

(6) Investment grade obligations of the District or a state or local government;

(7) Repurchase agreements for the sale or purchase of securities by the District under the condition that, after a stated period of time, the original seller or purchaser will buy back or sell the securities at an agreed price that shall include interest;

(8) Investment grade asset-backed or mortgaged-backed securities; or

(9) Money market funds registered with the Securities and Exchange Commission and which meet the requirements of Rule 2(a)(7) of the Investment Company Act of 1940, approved August 22, 1940 (54 Stat. 789; 15 U.S.C. § 80a-1 et seq.).

(d) The Mayor, or the CFO pursuant to § 47-351.02(c), shall not allow the amount of District funds deposited or placed for the provision of financial services in a single eligible financial institution to exceed the lesser of either:

(1) Twenty-five percent of the total assets of the eligible financial institution, exclusive of District funds; or

(2) Twenty-five percent of the total District funds available for deposit or investment as of the date of such deposit or placement and as of the end of each fiscal quarter thereafter.

§ 47–351.04. Eligibility requirements; bidding; awards process.

(a) To become eligible to submit a bid under this subsection:

(1) An insured institution shall provide the Mayor, or the CFO pursuant to § 47-351.02(c), with information from which the Mayor, or the CFO pursuant to § 47-351.02(c), can calculate a community development score under § 47-351.07. This information may include, but need not be limited to, current community development data, Community Reinvestment Act statement and evaluation with a minimum of “satisfactory” rating on its latest Community Reinvestment Act examination, and Home Mortgage Disclosure Act reports.

(2) A noninsured institution shall submit to the Mayor, or the CFO pursuant to § 47-351.02(c), a statement of Equal Employment Opportunity or Affirmative Action.

(b) Each year the Mayor, or the CFO pursuant to § 47-351.02(c), shall compile a list of eligible financial institutions that submit the information pursuant to the requirements of subsection (a) of this section.

(c) The Mayor, or the CFO pursuant to § 47-351.02(c), shall send the solicitations for bids to all financial institutions that are eligible. The Mayor, or the CFO pursuant to § 47-351.02(c), shall remove from the eligible list those financial institutions that the Mayor, or the CFO pursuant to § 47-351.02(c), has deemed to be financially unsound and those bidders that have put District funds at risk pursuant to § 47-351.13(a).

(d) In solicitations for bids, the Mayor, or the CFO pursuant to § 47-351.02(c), shall include the following information:

(1) In the case of deposits or investments:

(A) The term of the deposit or investments;

(B) The approximate amount available for deposit or investment;

(D) All other information required by the Mayor, or the CFO pursuant to § 47-351.02(c), or that is necessary for compliance with this subchapter.

(2) In the case of financial services:

(A) A list of the financial services needed;

(B) The evaluation criteria; and

(C) All other information required by the Mayor, or the CFO pursuant to § 47-351.02(c), or that is necessary for compliance with this subchapter.

(e) The Mayor, or the CFO pursuant to § 47-351.02(c), may solicit bids for either single financial services or groups of financial services.

(f) If applicable, a bidder shall provide the following information in a bid:

(1) The identity of the bidder;

(2) The minimum and maximum amount of District funds the bidder will accept;

(3) The rate of return;

(4) The type of financial services to be provided and the cost to the District for the financial services;

(5) The amount of the compensating balances, if any, and the rate of return on any deposit used for a compensating balance;

(6) A description of the experience and capacity of the financial institution to perform the banking business for which the bid is submitted;

(7) Information necessary to assess risk and liquidity; and

(8) Any other information required by the Mayor, or the CFO pursuant to § 47-351.02(c).

(g) The Mayor, or the CFO pursuant to § 47-351.02(c), shall make available to each bidder the notice of the bid award including the terms of the bid award.

(h) Two or more eligible financial institutions may submit a joint bid.

(i) The Mayor, or the CFO pursuant to § 47-351.02(c), may at any time prior to the notice of award withdraw a bid solicitation for good cause. The Mayor, or the CFO pursuant to § 47-351.02(c), shall notify any financial institution that has submitted a bid prior to the withdrawal of the bid solicitation.

(j) The Mayor, or the CFO pursuant to § 47-351.02(c), may retain or maintain deposits, investments, or financial services agreements at a financial institution which is a successor to the contractual agreement.

§ 47–351.05. Competition for banking business.

(a) Except as otherwise provided by §§ 47-351.09, 47-351.10, and 47-351.11, the Mayor, or the CFO pursuant to § 47-351.02(c), shall select eligible financial institutions with which to conduct the banking business of the District based on the highest composite score for a bid. If 2 or more eligible financial institutions receive the highest composite score, the Mayor, or the CFO pursuant to § 47-351.02(c), shall select the eligible financial institution with the highest community development score calculated under § 47-351.07.

(b) The Mayor, or the CFO pursuant to § 47-351.02(c), shall calculate the composite score of an eligible financial institution in the following manner:

(1) Eighty percent based upon a financial score, calculated under § 47-351.06; and

(2) Twenty percent based upon a community development score, calculated under § 47-351.07.

§ 47–351.06. Financial score.

The Mayor, or the CFO pursuant to § 47-351.02(c), shall calculate a financial score for each eligible financial institution. For each bid solicitation, the Mayor, or the CFO pursuant to § 47-351.02(c), shall decide how much weight and how many points to give each of the following elements to calculate the financial score:

(1) Investment and deposit bids based on the rate of return that a bidder offers;

(2) Financial services bids based on the cost of service;

(3) All bids based on an assessment of risk and financial condition;

(4) All bids based on the capacity of a bidder to perform and prior performance record; and

(5) Any other criteria required to evaluate a bid.

§ 47–351.07. Community development score.

(a) The Mayor, or the CFO pursuant to § 47-351.02(c), shall calculate the community development score by calculating a ratio of the eligible financial institution’s performance for 1 or more of the criteria in each of the 3 categories under subsection (b) of this section; multiplying the ratio by the weight for each category listed in subsection (c) of this section; and then adding the weighted points for all 3 categories to produce the final community development score.

(b) The Mayor, or the CFO pursuant to § 47-351.02(c), shall calculate a ratio for an eligible financial institution’s performance listed within the categories of mortgage lending, community development lending, and financial services. A ratio is the level of activity for a specific criterion divided by the institution’s overall performance in the generic activity that includes the specific criterion. The criteria to be considered for mortgage lending are the total mortgage lending made in low-to-moderate income areas in the District and the total mortgage lending made in low-to-moderate income areas by third parties and purchased by the bidding financial institution in the secondary market; for community development lending are the total lending activity to small businesses located in low-to-moderate income areas in the District and the total lending to small businesses located in low-to-moderate income areas in the District by third parties and purchased by the financial institution in the secondary market; and for financial services is the number of branches in low-to-moderate income areas in the District.

(c) The Mayor, or the CFO pursuant to § 47-351.02(c), shall assign the following weighing factors to the numerical scores given under the categories listed in subsection (b) of this section, to calculate the community development score for an eligible financial institution:

(1) Forty percent for mortgage lending;

(2) Forty percent for community development lending; and

(3) Twenty percent for financial services.

(d) Noninsured institutions providing investment services are exempt from providing data for a community development score as prescribed in this section. Investment services from noninsured institutions shall be awarded on the basis of a financial score, as calculated under § 47-351.06.

(e) The Mayor, or the CFO pursuant to § 47-351.02(c), shall periodically issue a report on the community development efforts of the eligible financial institutions on the eligible bidder’s list.

§ 47–351.08. Collateral and reporting requirements.

(a) Except for securities directly purchased without a repurchase agreement and money market funds, an eligible financial institution must at all times provide collateral equal to at least 102% of the District funds held by the eligible financial institution for deposits and investments that are not fully federally insured.

(b) The Mayor, or the CFO pursuant to § 47-351.02(c), may accept as collateral any combination of the following:

(1) Bonds, bills, or notes for which the interest and principal are guaranteed by the United States government;

(2) Securities of a quasi-governmental corporation;

(3) Investment grade obligations of the District or a state or local government;

(4) Collateralized mortgage obligations; or

(5) Letters of credit issued by a Federal Home Loan Bank.

(c) The Mayor, or the CFO pursuant to § 47-351.02(c), may at any time classify the use of a particular type of collateral as ineligible.

(d) The Mayor, or the CFO pursuant to § 47-351.02(c), may at any time require that collateral exceed 102% of the District funds held for deposit or investment.

(e) The Mayor, or the CFO pursuant to § 47-351.02(c), shall require the eligible financial institution to place required collateral in a joint custody account established for the benefit of the District at the Federal Reserve Bank under procedures of the Federal Reserve Bank, or in an independent third-party insured institution. Collateral for investments may be placed at a third-party insured institution customer account in a Federal Reserve Bank with the approval of the Mayor, or the CFO pursuant to § 47-351.02(c).

(f) Upon written approval of the Mayor, or the CFO pursuant to § 47-351.02(c), an eligible financial institution may substitute collateral of greater or equivalent value from the various types listed in subsection (b) of this section.

(g) An eligible financial institution may not withdraw collateral previously pledged without the prior approval of the Mayor, or the CFO pursuant to § 47-351.02(c).

(h) An eligible financial institution shall submit to the Mayor, or the CFO pursuant to § 47-351.02(c), monthly verified reports that list all segregated collateral for District funds and its market value. The report shall also include the average daily balance of the amount of District funds on deposit or invested for the previous month. An insured institution shall submit copies of its quarterly call reports within 45 days after each fiscal quarter. A noninsured institution shall submit its Form 10K or annual financial statements within 60 days after each fiscal year.

(Mar. 18, 1998, D.C. Law 12-56, § 2(c), 44 DCR 6933; Apr. 20, 1999, D.C. Law 12-264, § 52(d), 46 DCR 2118; Apr. 12, 2000, D.C. Law 13-91, § 156(a), 47 DCR 520; June 16, 2006, D.C. Law 16-125, § 2(b), 53 DCR 4707; Oct. 22, 2015, D.C. Law 21-36, § 7112, 62 DCR 10905.)

Prior Codifications

1981 Ed., § 47-351.8.

Section References

This section is referenced in § 47-351.11 and § 47-351.13.

Effect of Amendments

D.C. Law 13-91 amending subsec. (h) struck the word “Noninsured” and inserted the word “noninsured” in its place.

D.C. Law 16-125, in par. (b)(2), deleted “or”; in par. (b)(3), substituted “; or” for a period at the end; and added par. (b)(4).

The 2015 amendment by D.C. Law 21-36 added (b)(5) and made related changes.

Emergency Legislation

See Historical and Statutory Notes following § 47-351.01.

For temporary (90 days) amendment of this section, see § 7082 of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).

§ 47–351.09. Linked deposits for community development lending.

(a) The Mayor, or the CFO pursuant to § 47-351.02(c), may make a deposit in an insured financial institution in return for a commitment by that institution to make specific community development loans in a low-to-moderate income area. The Mayor, or the CFO pursuant to § 47-351.02(c), shall determine the amount and scope of community development loans required to qualify for such linked deposits.

(b) When making a linked deposit, the Mayor, or the CFO pursuant to § 47-351.02(c), may accept a below-market interest rate that is within 3% of the market rate interest if the insured financial institution provides an equivalent reduction in the interest rate charged for the community development lending to which the deposit is linked.

(d) An insured financial institution may submit to the Mayor, or the CFO pursuant to § 47-351.02(c), a linked deposit application that includes information about the proposed community development lending and any other information the Mayor, or the CFO pursuant to § 47-351.02(c), requires.

(e) If the Mayor, or the CFO pursuant to § 47-351.02(c), approves a linked deposit application, the Mayor, or the CFO pursuant to § 47-351.02(c), and the insured financial institution shall enter into an agreement that includes each of the following terms and conditions and any others the Mayor, or the CFO pursuant to § 47-351.02(c), may require:

(1) A requirement that the insured institution shall not assign or sell a loan made with the proceeds of a linked deposit without approval of the Mayor, or the CFO pursuant to § 47-351.02(c), as long as the linked deposit is in effect;

(2) A requirement that a delay in payment or default by a borrower receiving a linked deposit loan does not affect the agreement between the insured financial institution and the Mayor, or the CFO pursuant to § 47-351.02(c);

(3) The terms of the deposit;

(4) A requirement that the Mayor, or the CFO pursuant to § 47-351.02(c), shall monitor compliance with the agreement; and

(5) The terms of the community development loans lending effort.

(f) The total amount of linked deposits and community development program deposits shall not exceed 7% of the average annual investment balance of the latest audited fiscal year.

§ 47–351.10. Preservation of banking services.

(a) Without regard to the competitive bidding requirements of §§ 47-351.04 and 47-351.05, the Mayor, or the CFO pursuant to § 47-351.02(c), may place deposits or investments at an insured financial institution for the purpose of maintaining banking services in a low-to-moderate income area in the District.

(b) If the Mayor, or the CFO pursuant to § 47-351.02(c), waives the requirements of §§ 47-351.04 and 47-351.05, the Mayor, or the CFO pursuant to § 47-351.02(c), shall execute a community development program agreement with the insured financial institution or certify that the insured financial institution is meeting the objectives of an existing community development program.

(c) For the purposes of this section only, a community development program agreement shall meet the requirements of § 26-704(d).

§ 47–351.11. District funds reserved for certain insured institutions.

Without regard to the competitive bidding requirements of §§ 47-351.05 and 47-351.07, the Mayor, or the CFO pursuant to § 47-351.02(c), may reserve up to 10% of District funds available for deposit or investment in order to make an investment or a deposit with one or more insured financial institutions located in the District that have less than $550 million in assets. The amount available for deposit or investment is to be calculated based upon the prior year’s average investment balance. In selecting an insured financial institution under this section, the Mayor, or the CFO pursuant to § 47-351.02(c), shall follow the provisions of § 47-351.04 and shall encourage the use of women-owned banks and federally or District chartered minority-owned banks certified by the Small and Local Business Opportunity Commission in accordance with [subchapter IX-A of Chapter 2 of Title 2]. The amount of District funds deposited in any such institution shall not exceed the federally insured amount, unless the amount of District funds deposited that exceed the federally insured amount meet the collateral requirements set forth in § 47-351.08 and the permitted investment instrument provisions set forth in § 47-351.03.

(Mar. 18, 1998, D.C. Law 12-56, § 2(c), 44 DCR 6933; October 4, 2000, D.C. Law 13-169, § 8, 47 DCR 5846; Oct. 20, 2005, D.C. Law 16-33, § 2381(c), 52 DCR 7503; Mar. 20, 2008, D.C. Law 17-124, § 2, 55 DCR 1516.)

Prior Codifications

1981 Ed., § 47-351.11.

Section References

This section is referenced in § 47-351.05.

Effect of Amendments

D.C. Law 13-169 authorized striking the phrase “Minority Business Opportunity Commission in accordance with § 1-1141 et seq.” and inserting the phrase “Local Business Opportunity Commission in accordance with subchapter II-B of Chapter 2 of Title 2.” in its place.

D.C. Law 16-33 substituted “Small and Local Business Opportunity Commission in accordance with subchapter IX-A if Chapter 2 of Title 2 ” for “District of Columbia Local Business Opportunity Commission in accordance with subchapter IX of Chapter 2 of Title 2”.

D.C. Law 17-124 substituted “10%” for “1%”; substituted “550” for “350”; and inserted “, unless the amount of District funds deposited that exceed the federally insured amount meet the collateral requirements set forth in § 47-351.08 and the permitted investment instrument provisions set forth in § 47-351.03”.

Emergency Legislation

For temporary (90 day) amendment of section, see § 2381(c) of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).

§ 47–351.12. Public disclosure.

(a) Except as provided in subsection (b) of this section, all information submitted by a financial institution to the Mayor, or the CFO pursuant to § 47-351.02(c), shall be available for public inspection and reproduction during regular business hours.

(b) Proprietary financial and commercial information of any financial institution shall be kept confidential.

§ 47–351.13. Protection of District funds at risk.

(a) The Mayor, or the CFO pursuant to § 47-351.02(c), may take the action provided for in subsection (b) of this section to protect District funds if:

(1) A financial institution fails to return a deposit upon demand or upon the termination of or pursuant to the terms of an agreement;

(2) A financial institution fails to pay a valid check, draft, or warrant issued by the Mayor, or the CFO pursuant to § 47-351.02(c);

(3) A financial institution fails to honor a request for the electronic transfer of District funds;

(4) A financial institution fails to account for a check, draft, warrant, order, deposit, certificate, or money that the District entrusts to it;

(5) A financial institution fails to return an investment under the terms of an agreement or upon the termination of an agreement;

(6) A financial institution fails to perform under the terms of an agreement involving banking business;

(7) A financial institution fails to maintain the required collateral pursuant to § 47-351.08;

(8) A court or a federal, District, or state banking regulator orders a financial institution to refrain from making payments on its liabilities;

(9) A court or a federal, District, or state banking regulator appoints a conservator or receiver for the financial institution;

(10) The Mayor, or the CFO pursuant to § 47-351.02(c), determines that the financial institution is financially unsound;

(11) A financial institution fails to comply with this subchapter; or

(12) Any other action has occurred or is impending which the Mayor, or the CFO pursuant to § 47-351.02(c), decides would place District funds in jeopardy.

(b) If the Mayor, or the CFO pursuant to § 47-351.02(c), determines that any condition under subsection (a) of this section exists, the Mayor, or the CFO pursuant to § 47-351.02(c), may, without any further action:

(1) Withdraw or demand the return of District funds immediately;

(2) Take action to seize all collateral provided under section 9;

(3) Liquidate collateral and retain proceeds in the amount equal to District funds held by the financial institution plus liquidation costs;

(4) Direct the financial institution to immediately stop performing any financial services for the District;

(5) Terminate any agreement relating to banking business;

(6) Remove the financial institution from the eligible bidder’s list; or

(7) Take other action deemed necessary for the protection of District funds.

§ 47–351.14. Check cashing; identification.

(a) An eligible financial institution shall cash checks issued by the District government without charge for both account and non-account holders.

(b) An insured institution may require a holder of a check meeting the requirements of subsection (a) of this section to show proper identification. Proper identification is any form of identification as required by the bank in accordance with its rules and regulations.

§ 47–351.15. Penalties.

Any director, officer, manager, agent, or employee of an eligible financial institution who knowingly violates a provision of this subchapter may, upon conviction, be fined not less than $500 nor more than $2,000.

§ 47–351.16. Rulemaking.

The Mayor, pursuant to title 1 of the District of Columbia Administrative Procedure Act, approved October 21, 1968 (82 Stat. 1204; § 2-501 et seq.), shall issue rules to implement the provisions of this subchapter.

Subchapter III-B. Anti-Deficiency.

§ 47–355.01. Definitions.

For the purposes of this subchapter, the term:

(1) “Agency” means an agency, office, department, board, commission, or independent agency or instrumentality of the District Government.

(2) “Apportionment” means the division of an agency’s appropriated budget authority by periods within a fiscal year.

(2A) “Emergencies involving the safety of human life or the protection of property” does not include ongoing, regular functions of government the suspension of which would not imminently threaten the safety of human life or the protection of property.

(3) “Employee” means an individual who performs a function of the District Government and who receives compensation for the performance of that function.

(4) “Manager” means an individual chosen or appointed to manage, direct, or administer some affairs of the agency, including the expenditure of funds.

(5) “Program” means the highest level, for budgeting and expenditure control, within the agency that the District of Columbia Government uses for a specific purpose for appropriated budget authority. A program may consist of multiple activities, which combined achieve the stated purpose and goals.

(Apr. 4, 2003, D.C. Law 14-285, § 2, 50 DCR 940; Mar. 13, 2004, D.C. Law 15-105, § 77(a), 51 DCR 881; Sept. 20, 2012, D.C. Law 19-168, § 1102(a), 59 DCR 8025.)

Effect of Amendments

D.C. Law 15-105, in the introductory paragraph, validated a previously made technical correction.

The 2012 amendment by D.C. Law 19-168 added (2A).

Emergency Legislation

For temporary (90 day) amendment of section, see § 1102(a) of Fiscal Year 2013 Budget Support Emergency Act of 2012 (D.C. Act 19-383, June 19, 2012, 59 DCR 7764).

For temporary (90 day) amendment of section, see § 1102(a) of Fiscal Year 2013 Budget Support Congressional Review Emergency Act of 2012 (D.C. Act 19-413, July 25, 2012, 59 DCR 9290).

Mayor's Orders

Allocation of Spending (FY 2011), see Mayor’s Order 2010-160, October 8, 2010 ( 57 DCR 9559).

Rescission of Quarterly Apportionment Provisions and Non-Personal Services Restrictions for Subordinate Executive Branch Agencies Imposed Under Mayor’s Order 2010-160, see Mayor’s Order 2011-35, January 19, 2011 ( 58 DCR 869).

NPS Restrictions for Subordinate Executive Branch Agencies, see Mayor’s Order 2011-102, May 18, 2011 ( 58 DCR 4678).

Allocation of Spending (FY 2012), see Mayor’s Order 2011-188, December 1, 2011 ( 58 DCR 10385).

§ 47–355.02. Limitations on expenditures and obligating amounts.

A District agency head, deputy agency head, agency fiscal officer, agency budget director, agency controller, manager, or other employee may not:

(1) Make or authorize an expenditure or obligation exceeding an amount available in an appropriation for an agency, fund, or capital project;

(2) Obligate the District for the payment of money before an appropriation is made or before a certification of the availability of funds is made, unless authorized by law; provided, that this paragraph shall not prohibit the acceptance of voluntary services or employment of personal services exceeding that authorized by law during emergencies involving the safety of human life or the protection of property;

(3) Approve a disbursement without appropriate authorization;

(4) Defer recording a transaction incurred in the current fiscal year to a future fiscal year;

(5) Allow an expenditure or obligation to exceed apportioned amounts;

(6) Fail to submit a required plan or projection in a timely manner;

(7) Knowingly report incorrectly on spending to date or on projected total annual spending;

(8) Fail to adhere to a spending plan through overspending that is greater than 5% of the agency’s budget, or $1 million, regardless of the percentage, or, for capital projects, 5% of the project's budget or $1 million, regardless of the percentage; or

(9) Make or authorize an expenditure or obligation for one capital project from another capital project.

(Apr. 4, 2003, D.C. Law 14-285, § 2, 50 DCR 940; Mar. 14, 2007, D.C. Law 16-293, § 2(a), 54 DCR 1083; Sept. 20, 2012, D.C. Law 19-168, § 1102(b), 59 DCR 8025; Dec. 13, 2017, D.C. Law 22-33, § 8022(a), 64 DCR 7652.)

Section References

This section is referenced in § 47-355.06 and § 47-355.07.

Effect of Amendments

D.C. Law 16-293 rewrote the section, which formerly read:

“A District agency head, deputy agency head, agency chief financial officer, agency budget director, agency controller, manager, or other employee may not:

“(1) Make or authorize an expenditure or obligation exceeding an amount available in an appropriation or fund;

“(2) Involve the District in a contract or obligation for the payment of money before an appropriation is made unless authorized by law;

“(3) Approve a disbursement without appropriate authorization; or

“(4) Defer recording a transaction incurred in the current fiscal year to a future fiscal year.”

The 2012 amendment by D.C. Law 19-168 substituted “agency, fund, or capital project” for “agency or fund” in (1); added “provided, that this paragraph shall not prohibit the acceptance of voluntary services or employment of personal services exceeding that authorized by law during emergencies involving the safety of human life or the protection of property” in (2); added (9); and made related changes.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 8022(a) of Fiscal Year 2018 Budget Support Congressional Review Emergency Act of 2017 (D.C. Act 22-167, Oct. 24, 2017, 64 DCR 10802).

For temporary (90 days) amendment of this section, see § 8022(a) of Fiscal Year 2018 Budget Support Emergency Act of 2017 (D.C. Act 22-104, July 20, 2017, 64 DCR 7032).

For temporary (90 day) amendment of section, see § 1102(b) of Fiscal Year 2013 Budget Support Emergency Act of 2012 (D.C. Act 19-383, June 19, 2012, 59 DCR 7764).

For temporary (90 day) amendment of section, see § 1102(b) of Fiscal Year 2013 Budget Support Congressional Review Emergency Act of 2012 (D.C. Act 19-413, July 25, 2012, 59 DCR 9290).

Mayor's Orders

Allocation of Spending (FY 2010), see Mayor’s Order 2010-24, February 5, 2010 ( 57 DCR 1276).

§ 47–355.03. Reporting requirements of managers.

A manager shall develop year-end spending projections, by source of funds, on a quarterly basis, which show year-to-date spending, approved budget, year-end projected spending, explanations of variances greater than 5%, and in the case of overspending, a corrective action plan. Spending projections shall be submitted to the agency head and the agency fiscal officer. Summarized agency spending projections shall be submitted to the Chief Financial Officer no more than 30 days after the end of the quarter.

§ 47–355.04. Reporting requirements of agency heads and chief financial officers.

(a) By October 1 of each year, an agency head and agency fiscal officer shall jointly submit to the Chief Financial Officer a monthly spending plan and a Schedule A, each by source of funds, based on the finally enacted annual budget. If an agency’s budget is changed after final enactment, a revised spending plan and a revised Schedule A, each by source of funds, must be submitted to the Chief Financial Officer within one month of final approval of the budget.

(a-1) By October 20 of each year, an agency head and agency fiscal officer shall jointly submit to the Chief Financial Officer a monthly spending plan for each capital project based on the finally enacted annual budget. If a project's budget is changed after final enactment of the annual budget, the agency head and agency fiscal officer shall submit a revised project spending plan to the Chief Financial Officer within one month of final approval of the changes to the project's budget.

(b) Any revision to an agency’s approved operating budget or approved budget for a capital project during a fiscal year shall be reflected in a revised spending plan submitted to the Chief Financial Officer within one month of the approval of the revised budget.

§ 47–355.05. Reporting requirements of the Chief Financial Officer and Agency Fiscal Officers.

(a) The Chief Financial Officer shall submit reports to the Council and the Mayor on a quarterly basis indicating each agency's actual operating expenditures, obligations, and commitments, each by source of funds, and the expenditures for each capital project, compared to their approved spending plan. This report shall be accompanied by the Chief Financial Officer's observations regarding spending patterns and identify steps being taken to assure spending remains within the approved budget.

(a-1) Each Agency Fiscal Officer ("AFO") shall submit quarterly reports to the Chairperson of the Council committee that has purview over the AFO's agency. Each report shall include the agency’s actual expenditures, obligations, and commitments, organized by source of funds, and compared to their approved spending plan. The report shall be accompanied by the AFO's analysis of spending patterns and of the steps taken to assure that spending remains within the approved budget.

(b) The Chief Financial Officer shall be required to develop the quarterly apportionment of funds, by source of funds, for each agency based on the spending plans submitted by agency heads and agency fiscal officers. The apportionment shall be binding on agencies unless otherwise modified by the Chief Financial Officer.

(c) The Chief Financial Officer shall determine when each agency will transition to the quarterly apportionment of funds, so long as all agencies transition to quarterly apportionment within 3 years of [April 4, 2003].

(d) Nothing in this section is intended to interfere with the exclusive authority and discretion of the District of Columbia Retirement Board to manage and control retirement funds pursuant to [Chapter 7 of Title 1].

(e)(1) The Chief Financial Officer shall submit a quarterly summary to the Council and the Mayor on all:

(A) Reprogrammings; and

(B) [Repealed].

(C) Other budget modifications that involve a change in the purpose of the use of the funds that are not included in the annual budget and are more than $50,000 and less than $500,000.

(2)(A) The summary shall set forth clearly and concisely each budget category affected by the reprogramming or other budget modification, as described in paragraph (1) of this subsection, as follows:

(i) For the operating budget, by:

(I) Agency;

(II) Object category; and

(III) Comptroller source group; and

(ii) For capital projects, by:

(I) Agency; and

(II) Project and subproject.

(B) For capital projects, the summary shall also describe any consequences of the shift, such as personnel shifts or equipment transfers.

(Apr. 4, 2003, D.C. Law 14-285, § 2, 50 DCR 940; Mar. 13, 2004, D.C. Law 15-105, § 77(b), 51 DCR 881; Mar. 14, 2007, D.C. Law 16-293, § 2(d), 54 DCR 1083; Mar. 25, 2009, D.C. Law 17-353, § 169, 56 DCR 1117; Sept. 24, 2010, D.C. Law 18-223, § 7142(b), 57 DCR 6242; Apr. 8, 2011, D.C. Law 18-370, § 122(a), 58 DCR 1008; Dec. 13, 2017, D.C. Law 22-33, § 8022(c), 64 DCR 7652; Sept. 21, 2022, D.C. Law 24-167, § 7002(a), 69 DCR 009223.)

Section References

This section is referenced in § 1-301.01.

Effect of Amendments

D.C. Law 15-105, in subsec. (d), validated a previously made technical correction.

D.C. Law 16-293, substituted “agency fiscal officer” for “agency chief financial officer”.

D.C. Law 17-353 validated a previously made technical correction in subsec. (b).

D.C. Law 18-223, in the section heading, substituted “Chief Financial Officer and Agency Fiscal Officers” for “Chief Financial Officer”; and added subsec. (a-1).

D.C. Law 18-370 added subsec. (e).

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7002(a) of Fiscal Year 2023 Budget Support Emergency Act of 2022 (D.C. Act 24-470, July 13, 2022, 69 DCR 008707).

For temporary (90 days) amendment of this section, see § 8022(c) of Fiscal Year 2018 Budget Support Congressional Review Emergency Act of 2017 (D.C. Act 22-167, Oct. 24, 2017, 64 DCR 10802).

For temporary (90 days) amendment of this section, see § 8022(c) of Fiscal Year 2018 Budget Support Emergency Act of 2017 (D.C. Act 22-104, July 20, 2017, 64 DCR 7032).

For temporary (90 day) amendment of section, see § 7142(b) of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).

For temporary (90 day) amendment of section, see § 3 of Financial Stability Measures Clarification Emergency Amendment Act of 2010 (D.C. Act 18-593, November 3, 2010, 57 DCR 10475).

For temporary (90 day) amendment of section, see § 122(a) of Fiscal Year 2011 Supplemental Budget Support Emergency Act of 2010 (D.C. Act 18-694, January 19, 2011, 58 DCR 662).

For temporary addition of (f), see § 2 of the Office of the Chief Financial Officer Audit Report Transparency Emergency Act of 2012 (D.C. Act 19-530, November 2, 2012, 59 DCR 13332).

For temporary (90 days) amendment of this section, see § 2 of the OCFO Audit Report Transparency Congressional Review Emergency Act of 2013 (D.C. Act 20-8, January 31, 2013, 60 DCR 3952, 20 DCSTAT 458).

Temporary Legislation

For temporary (225 days) amendment of this section, see § 2 of the Office of the Chief Financial Officer Audit Report Transparency Temporary Act of 2013 (D.C. Law 19-228, November 16, 2012, 59 DCR 13578, 20 DCSTAT 263).

Short Title

Short title: Section 7141 of D.C. Law 18-223 provided that subtitle O of title VII of the act may be cited as the “Agency Financial Reporting Act of 2010”.

Short title: Section 121 of D.C. Law 18-370 provided that subtitle C of title I of the act may be cited as “Reprogramming Policy Reform Act of 2010”.

§ 47–355.06. Penalties.

An agency head, deputy agency head, agency fiscal officer, agency budget director, agency controller, manager, or other employee may be subject to adverse personnel action, including removal, for violating any provision in § 47-355.02.

(Apr. 4, 2003, D.C. Law 14-285, § 2, 50 DCR 940; Mar. 13, 2004, D.C. Law 15-105, §§ 12(a), 77(c), 51 DCR 881; Mar. 14, 2007, D.C. Law 16-293, § 2(e), 54 DCR 1083.)

Effect of Amendments

D.C. Law 15-105, in par. (1), validated previously made technical corrections.

D.C. Law 16-293, rewrote this section, which formerly read:

“An agency head, deputy agency head, agency chief financial officer, agency budget director, agency controller, manager, or other employee may be subject to adverse personnel action, including removal, for:

“(1) Violating § 47-355.02;

“(2) Allowing an expenditure or obligation to exceed apportioned amounts;

“(3) Not submitting a required plan or projection in a timely manner;

“(4) Knowingly reporting incorrectly on spending to date or on projected total annual spending; or

“(5) Failure to adhere to a spending plan.”

§ 47–355.07. Board of Review for Anti-Deficiency Violations.

(a) The Board of Review for Anti-Deficiency Violations (“Review Board”) is established as an independent agency within the District of Columbia government, consistent with the meaning of the term independent agency, as provided in [§ 1-603.01(13)].

(b) The Review Board shall:

(1) Advise and make recommendations to the Mayor, Council, Chief Financial Officer, and Inspector General on issues relative to anti-deficiency law violations in the District of Columbia; and

(2) Convene within 30 days of learning of an alleged violation of § 47-355.02 to determine whether a violation occurred.

(c)(1) The Review Board shall be comprised of 5 members of the District of Columbia government appointed as follows:

(A) Two representatives who shall be appointed by the Chief Financial Officer, one of whom shall be appointed by the Chief Financial Officer to serve as Chairperson of the Review Board;

(B) One representative who shall be appointed by the Mayor;

(C) One representative of the Council, who shall be an employee of the Council and shall be appointed by the Chairman of the Council; and

(D) One representative who shall be appointed by the Inspector General.

(2) Members shall be appointed to a term of 3 years. Each member may serve beyond the end of their term until reappointed or replaced by the appropriate appointing authority.

(3) Members shall serve without compensation; provided, that a member may be reimbursed for expenses incurred in the authorized execution of official duties of the Review Board if those expenses are approved in advance by the Chief Financial Officer.

(d) If the Review Board determines that a violation of § 47-355.02 has occurred, it shall:

(1) Assess the responsibility of culpable employees;

(2) Except as provided in subsection (e) of this section, recommend an appropriate disciplinary action; and

(3) Present a report to the Council within 30 days of the determination of a violation that includes all relevant facts, including:

(A) The violation;

(B) The name and title of the employees who were responsible for the violation;

(D) A statement of the action recommended.

(d-1)(1) The Review Board shall conduct an investigation upon receipt of a report of an alleged violation.

(2) In investigating a report of an alleged violation, the Review Board may:

(A) Request assistance from the Office of the Chief Financial Officer, the Office of the Inspector General, and the Office of the Attorney General; and

(B) Consult with the Office of the Attorney General for the purposes of obtaining legal advice.

(d-2) The Review Board:

(1) Shall have access, subject to any privileges or confidentiality requirements as provided by law, to all facilities, files, and databases of the District government, including all files, electronic paper records, reports, documents, and other materials that may relate to the investigation;

(2) May request information or assistance from any District, federal, state, or local government agency as may be necessary for carrying out the investigation; and

(3) May seek information from parties outside the District government, including government contractors, that may be relevant to the investigation.

(d-3)(1) Subject to any applicable privileges, all officers, employees, and members of boards, commissions, and councils of the District government shall cooperate in an investigation by the Review Board and shall provide documents, materials, and information to the Review Board upon request.

(2) Subject to any applicable privileges, officers, employees, and members of boards, commissions, and councils of the District government shall respond truthfully to all questions posed by the Review Board, and shall not prevent or prohibit the Review Board from initiating, carrying out, or completing an investigation within its jurisdiction.

(3) The Review Board:

(A) May require any officer, employee, or member of a board, commission, or council of the District government, including the subject of an allegation, to appear before the Review Board; and

(B) Shall provide any officer, employee, or member of a board, commission, or council of the District who is potentially subject to disciplinary action an opportunity to appear before the Review Board.

(4) The Review Board may recommend an appropriate disciplinary action with respect to any officer, employee, or member of a board, commission, or council of the District government who fails to cooperate fully with a Review Board investigation.

(e)(1) A finding by the Review Board that a violation of § 47-355.02 has occurred shall not be a prerequisite for adverse personnel action under § 47-355.06.

(2) In recommending appropriate disciplinary action under subsection (d) of this section, the Review Board may make a recommendation that no action be taken where it finds justification for the violation. Justification may include overspending as a result of court orders, entitlements, or explicit authorization in an appropriations act.

(f) The Review Board is authorized to establish subcommittees as needed. A subcommittee may include District government employees who are not members of the Review Board; provided, that each subcommittee is chaired by a member of the Review Board.

(g) The Review Board may establish its own bylaws and rules of procedure, subject to the approval of the Chief Financial Officer or his or her designee.

(h) The Office of the Chief Financial Officer shall provide administrative and staff support to the Review Board.

(Apr. 4, 2003, D.C. Law 14-285, § 2, 50 DCR 940; Mar. 13, 2004, D.C. Law 15-105, §§ 12(b), 77(d), 51 DCR 881; Mar. 14, 2007, D.C. Law 16-293, § 2(f), 54 DCR 1083; May 2, 2015, D.C. Law 20-271, § 231, 62 DCR 1884; Oct. 8, 2016, D.C. Law 21-160, § 7028(a), 63 DCR 10775.)

Effect of Amendments

D.C. Law 15-105, in subsec. (a), substituted “§ 47-355.06” for “subsection (a) of this section”; and, in subsec. (c), validated a previously made technical correction.

D.C. Law 16-293, rewrote subsecs. (a) and (c), which formerly read:

“(a) Within 30 days of April 4, 2003, the Mayor and Chief Financial Officer shall establish a review board, which shall within 30 days of learning of a violation specified in § 47-355.06 by an agency convene a review board to investigate the causes of the violation. The review board shall assess the culpability of responsible employees, recommend an appropriate disciplinary action, and report to the Council the actions proposed to be taken based on the review board’s findings.”

“(c) The review board may recommend that no action be taken where it finds a justification for the violation. Justification may include overspending as a result of court orders, entitlements, or explicit authorization in an appropriations act.”

The 2015 amendment by D.C. Law 20-271 rewrote the section.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 231 of the New Columbia Statehood Initiative, Omnibus Boards and Commissions, and Election Transition Reform Emergency Amendment Act of 2014 (D.C. Act 20-481, Nov. 18, 2014, 61 DCR 12133, 20 STAT 4405).

For temporary (90 days) amendment of this section, see § 231 of the New Columbia Statehood Initiative, Omnibus Boards and Commissions, and Election Transition Reform Congressional Review Emergency Amendment Act of 2015 (D.C. Act 21-7, Feb. 26, 2015, 62 DCR 2646, 21 STAT 807).

For temporary (90 days) amendment of section, see § 5 of the Fiscal Year 2016 Second Budget Support Clarification Emergency Amendment Act of 2015 (D.C. Act 21-202, Nov. 23, 2015, 62 DCR 15276).

For temporary (90 days) amendment of this section, see § 5 of the Fiscal Year 2016 Budget Support Clarification Congressional Review Emergency Amendment Act of 2016 (D.C. Act 21-307, Feb. 18, 2016, 63 DCR 2182).

Temporary Legislation

For temporary (225 days) amendment of this section, see § 12 of the Fiscal Year 2016 Budget Support Clarification Temporary Amendment Act of 2015 (D.C. Law 21-76, Feb. 27, 2016, 63 DCR 264).

Editor's Notes

Establishment—Board of Review for Anti-Deficiency Violations, see Mayor’s Order 2003-156, November 7, 2003 ( 50 DCR 10187).

Delegation of Authority

Delegation of Mayor’s Rulemaking Authority to the Board of Review for Anti-Deficiency Violations, see Mayor’s Order 2004-125, August 2, 2004 ( 51 DCR 8006).

§ 47–355.08. Notice requirement.

Within 30 days of the effective date of this subchapter [April 4, 2003], the Mayor shall issue an administrative order advising all District agency heads, deputy agency heads, chief financial officers, agency budget directors, agency controllers, and other managers of the requirement of this subchapter.

Subchapter IV. Reprogramming Policy.

§ 47–361. Definitions.

For the purposes of this subchapter, the term:

(1) “Agency” means the highest organizational unit of the District of Columbia government at which budgeting data is aggregated.

(2) “Agency funding source” means the designated resource or fund to which expenditures shall be charged.

(3) “Budget” means the entire annual appropriation, including borrowing and spending authority, for all activities of all agencies of the District of Columbia government financed from all existing, proposed, or anticipated resources.

(4) “Budget category” means:

(A) For the operating budget: agencies, programs, agency funding sources, object categories, and object classes, as shown in the budget; and

(B) For the capital budget: agencies, agency funding sources, and capital projects and subprojects, as shown in the budget.

(5) “Capital budget” means that part of the budget that describes the annual element of the multiyear capital improvements plan.

(6) “Capital project” shall have the same meaning as provided in [§ 1-201.03(8)].

(7) “Highway Trust Fund” means the District of Columbia Highway Trust Fund, established by [§ 9-111.01], and the Federal Highway Trust Fund, established pursuant to Title 23 of the United States Code.

(7A) "Interagency project" means a project in the District's financial system that has funds budgeted in one District agency that are segregated for use for a particular purpose by another District agency, pursuant to an agreement between the agency and the other agency.

(8) [Repealed].

(9) “Object category” means the 2 major types of expenditures, which are personal services and non-personal services.

(10) “Object class” means the subdivision of specific types of expenditures in the operating budget, such as fringe benefits and supplies.

(11) “Offsetting” means an increase that is matched by a decrease with no change occurring in budget authority.

(12) “Operating budget” means that part of the budget for the operation of the District government, excluding the capital budget.

(13) “Program” means the highest level of budgeting and expenditure control within an agency that is designated for a specific purpose in the operating budget, which may consist of multiple actions necessary to achieve the stated purpose and goals.

(14) “Reprogramming” means a budget modification of $500,000 or more for purposes other than those originally authorized that results in an offsetting reallocation of budget authority from one budget category to another budget category; provided, that with respect to a capital reprogramming, the term “reprogramming” means a cumulative adjustment to a project’s capital budget during a fiscal year of $500,000 or more; provided further, that for an interagency project, the term "reprogramming" means a budget modification of $500,000 or more for purposes other than those originally authorized that results in an offsetting reallocation of budget authority from one program to another program.

(15) "Reverse Paygo action" means the movement of authorized Paygo capital budget funds to the operating budget, through a paper project for the purpose of transaction recording and tracking.

(Sept. 16, 1980, D.C. Law 3-100, § 2, 27 DCR 3617; Apr. 3, 1984, D.C. Law 5-70, § 2(a), 31 DCR 628; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Oct. 1, 2002, D.C. Law 14-190, § 102(a), 49 DCR 6968; Mar. 3, 2010, D.C. Law 18-111, § 1131(a), 57 DCR 181; Apr. 8, 2011, D.C. Law 18-370, § 122(b), 58 DCR 1008; Oct. 22, 2015, D.C. Law 21-36, § 7034, 62 DCR 10905; Dec. 13, 2017, D.C. Law 22-33, § 8042(a), 64 DCR 7652; Sept. 21, 2022, D.C. Law 24-167, § 7002(b), 69 DCR 009223.)

Prior Codifications

1981 Ed., § 47-361.

Effect of Amendments

D.C. Law 14-190 added pars. (8A) and (8B).

D.C. Law 18-111, in par. (2A), substituted “centers, responsibility centers, capital projects, capital sub-projects, and, in a performance-based agency, includes programs, activities, and object classes” for “centers and responsibility centers”.

D.C. Law 18-370 rewrote the section, which formerly read:

“As used in this subchapter, the term:

“(1) ‘Agency’ means the highest organizational structure of the District of Columbia government at which budgeting data is aggregated.

“(2) ‘Appropriated budget authority’ means authorization by an act of the Congress that permits the District of Columbia government to incur obligations and make payments for specific purposes against funds included in the annual appropriations act for the District of Columbia.

“(2A) ‘Budget category’ includes control centers, responsibility centers, capital projects, capital sub-projects, and, in a performance-based agency, includes programs, activities, and object classes.

“(3) ‘Control center’ means the organizational authority subject to approval by Congress in the annual appropriations act for the District of Columbia.

“(4) ‘Council’ means the Council of the District of Columbia.

“(5) ‘Gross-obligation budget’ means budget authority from all sources of funding.

“(6) ‘Non-appropriated budget authority’ means the ability of the District of Columbia government to incur obligations and make payments for specified purposes against funds which are not subject to approval by the Congress in the annual appropriations act for the District of Columbia.

“(7) ‘Non-offsetting’ means an increase or decrease that occurs in the gross-obligation budget or in the appropriated budget authority.

“(8) ‘Offsetting’ means an increase that is matched by a decrease such that no change occurs in the gross-obligation budget or in the appropriated budget authority.

“(8A) ‘Performance-based budgeting’ shall have the same meaning as the term is defined in § 47-308.01(a).

“(8B) ‘Program’ means the highest level, for budgeting and expenditure control, within an agency that the District of Columbia government uses for a specific purpose for appropriated budget authority, which may consist of multiple activities that combined, assist the program in achieving the stated purpose and goals.

“(9) ‘Reprogramming’ means any budget modification which results in an offsetting reallocation of funds from 1 budget category to another, for purposes other than those originally planned.

“(10) ‘Responsibility center’ means the organizational component below the control center level.”

The 2015 amendment by D.C. Law 21-36 added “provided, that with respect to a capital reprogramming, the term ‘reprogramming’ means a cumulative adjustment to a project's capital budget during a fiscal year of $ 500,000 or more” in (14).

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7002(b) of Fiscal Year 2023 Budget Support Emergency Act of 2022 (D.C. Act 24-470, July 13, 2022, 69 DCR 008707).

For temporary (90 days) amendment of this section, see § 8042(a) of Fiscal Year 2018 Budget Support Congressional Review Emergency Act of 2017 (D.C. Act 22-167, Oct. 24, 2017, 64 DCR 10802).

For temporary (90 days) amendment of this section, see § 8042(a) of Fiscal Year 2018 Budget Support Emergency Act of 2017 (D.C. Act 22-104, July 20, 2017, 64 DCR 7032).

For temporary (90 day) amendment of section, see § 102(a) of Fiscal Year 2003 Budget Support Emergency Act of 2002 (D.C. Act 14-453, July 23, 2002, 49 DCR 8026).

For temporary (90 day) amendment of section, see § 1002(a) of Fiscal Year 2010 Budget Support Emergency Act of 2009 (D.C. Act 18-187, August 26, 2009, 56 DCR 7374).

For temporary (90 day) amendment of section, see § 1131(a) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) amendment of section, see § 1131(a) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

For temporary (90 day) amendment of section, see § 122(b) of Fiscal Year 2011 Supplemental Budget Support Emergency Act of 2010 (D.C. Act 18-694, January 19, 2011, 58 DCR 662).

For temporary (90 days) amendment of this section, see § 7013 of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).

Short Title

Short title of title I of Law 14-190: Section 101 of D.C. Law 14-190 provided that title I of the act may be cited as the Reprogramming Policy Act of 2002.

Short title: Section 1130 of D.C. Law 18-111 provided that subtitle N of title I of the act may be cited as the “Reprogramming Policy Act of 2009”.

Editor's Notes

Appropriations authorized for reprogramming: Section 118 of Pub. L. 102-382, 106 Stat. 1432, the District of Columbia Appropriations Act, 1993, provided that 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 Appropriations 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 § 47-361 et seq.

§ 47–362. Policies enumerated.

(a) A reprogramming shall be used only when an unforeseen situation develops, and then only if postponement until the next appropriations cycle would result in a serious hardship in the management of the City.

(b) Reprogrammings shall not be used to establish new programs or to change allocations specifically denied, limited, or increased by the Council in the budget act, or the accompanying budget report or mark-up sheets.

(c) Any program or project deferred through reprogramming shall not be later accomplished by means of further reprogramming. Funding for such section shall await the regular budget request.

(d) Should unusual circumstances require changes to the policies included in subsections (a) through (c) of this section, proposals shall be submitted to the Council for approval regardless of the dollar amount involved.

(e) Repealed.

(f) Notwithstanding § 47-363, any funds appropriated for Debt Service, as defined in § 47-334(1), in excess of Debt Service requirements may not be reprogrammed, unless the Council approves the reprogramming request by resolution.

(g)(1) Notwithstanding § 47-363, local funds appropriated for the Department of Healthcare Finance in Fiscal Year 2019 shall not be reprogrammed, unless the Council approves the reprogramming request by resolution.

(2) This subsection shall sunset on the date of inclusion of the fiscal effect of the D.C. Healthcare Alliance Re-Enrollment Reform Amendment Act of 2018, effective February 17, 2018 (D.C. Law 22-62; 65 DCR 2632), in an approved budget and financial plan.

(h) Notwithstanding § 47-363, local funds appropriated for the Department of Health Care Finance and the Medicaid Reserve in Fiscal Year 2021 shall not be reprogrammed to other agencies unless the Council approves the reprogramming by resolution.

(i) [Repealed].

(Sept. 16, 1980, D.C. Law 3-100, § 3, 27 DCR 3617; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Oct. 3, 2001, D.C. Law 14-28, § 102, 48 DCR 6981; Mar. 3, 2010, D.C. Law 18-111, § 1131(b), 57 DCR 181; Feb. 26, 2015, D.C. Law 20-155, § 1043(d), 61 DCR 9990; Oct. 22, 2015, D.C. Law 21-36, § 7035, 62 DCR 10905; Oct. 30, 2018, D.C. Law 22-168, § 5082, 65 DCR 9388; Mar. 16, 2021, D.C. Law 23-251, § 203, 68 DCR 001234; Sept. 6, 2023, D.C. Law 25-50, §§ 6043, 7027(a), 70 DCR 10366; Sept. 18, 2024, D.C. Law 25-217, §§ 6052, 7062, 71 DCR 9990.)

Prior Codifications

1981 Ed., § 47-362.

Effect of Amendments

D.C. Law 14-28 added subsec. (e).

D.C. Law 18-111 repealed subsec. (e).

The 2015 amendment by D.C. Law 20-155 added (f).

The 2015 amendment by D.C. Law 21-36 designated the existing text of (f)(2) as (f)(2)(A); substituted “equally among the Local Streets Ward-Based Capital Projects” for “to the Capital Fund as Paygo” in (f)(2)(A); and added (f)(2)(B).

Applicability

Section 6044 of D.C. Law 25-50 provided that the amendments to this section by § 6043 of D.C. Law 25-50 shall apply as of July 14, 2023.

Section 6044 of D.C. Act 25-172 provided that the amendments to this section by § 6043 of D.C. Act 25-172 shall apply as of July 14, 2023.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7062 of Fiscal Year 2025 Budget Support Emergency Act of 2024 (D.C. Act 25-506, July 15, 2024, 71 DCR 8406).

For temporary (90 days) amendment of this section, see § 6052 of Fiscal Year 2025 Budget Support Emergency Act of 2024 (D.C. Act 25-506, July 15, 2024, 71 DCR 8406).

For temporary (90 days) amendment of this section, see § 6043 of Fiscal Year 2024 Budget Support Emergency Act of 2023 (D.C. Act 25-172, July 14, 2023, 70 DCR 9933).

For temporary (90 days) amendment of this section, see § 4 of Department of Health Care Finance Alliance Reform and Budget Transparency Emergency Amendment Act of 2021 (D.C. Act 24-6, Jan. 29, 2021, 68 DCR 001539).

For temporary (90 days) amendment of this section, see § 2 of Intra-District Transfer Limitation Emergency Amendment Act of 2019 (D.C. Act 23-142, Oct. 29, 2019, 66 DCR 14327).

For temporary (90 days) amendment of this section, see § 2 of Florida Avenue Multimodal Project Completion Congressional Review Emergency Amendment Act of 2019 (D.C. Act 23-87, July 17, 2019, 66 DCR 8489).

For temporary (90 days) amendment of this section, see § 2 of Florida Avenue Multimodal Project Completion Emergency Amendment Act of 2019 (D.C. Act 23-57, June 1, 2019, 66 DCR 6788).

For temporary (90 days) amendment of this section, see § 5082 of Fiscal Year 2019 Budget Support Congressional Review Emergency Act of 2018 (D.C. Act 22-458, Oct. 3, 2018, 65 DCR 11212).

For temporary (90 days) amendment of this section, see § 5082 of Fiscal Year 2019 Budget Support Emergency Act of 2018 (D.C. Act 22-434, July 30, 2018, 65 DCR 8200).

For temporary (90 day) amendment of section, see § 102 of Fiscal Year 2002 Budget Support Emergency Act of 2001 (D.C. Act 14-124, August 3, 2001, 48 DCR 7861).

For temporary (90 day) amendment of section, see § 1002(b) of Fiscal Year 2010 Budget Support Emergency Act of 2009 (D.C. Act 18-187, August 26, 2009, 56 DCR 7374).

For temporary (90 day) amendment of section, see § 1131(b) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) amendment of section, see § 1131(b) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

For temporary (90 days) amendment of this section, see § 1043(d) of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see § 1043(d) of the Fiscal Year 2015 Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, see § 2(a) of the Fiscal Year 2015 Budget Support Clarification Emergency Act of 2014 (D.C. Act 20-461, November 6, 2014, 61 DCR 11784, 20 STAT 4368).

For temporary (90 days) amendment of this section, see § 1043(d) of the Fiscal Year 2015 Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

For temporary (90 days) amendment of this section, see § 2(a) of the Fiscal Year 2015 Budget Support Clarification Congressional Review Emergency Amendment Act of 2014 (D.C. Act 20-587, January 13, 2015, 62 DCR 1294, 21 STAT 758).

For temporary (90 days) amendment of this section, see § 7016(a) of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).

Temporary Legislation

For temporary (225 days) amendment of this section, see § 2 of Intra-District Transfer Limitation Temporary Amendment Act of 2019 (D.C. Law 23-47, Jan. 10, 2020, 66 DCR 15349).

For temporary (225 days) amendment of this section, see § 2 of Florida Avenue Multimodal Project Completion Temporary Amendment Act of 2019 (D.C. Law 23-12, Aug. 24, 2019, 66 DCR 8067).

For temporary (225 days) amendment of this section, see § 2(a) of the Fiscal Year 2015 Budget Support Clarification Temporary Amendment Act of 2014 (D.C. Law 20-179, March 7, 2015, 62 DCR 424).

§ 47–363. Council approval of reprogrammings.

(a) The Mayor shall submit to the Council for approval a reprogramming request that individually or on a cumulative basis would result in a change to the original appropriated authority, along with certification by the Chief Financial Officer of the availability of funds for the reprogramming. The request shall include an analysis of its effect on the budget and on the purposes for which the funds were originally appropriated.

(b)(1) Upon receipt of a reprogramming request, the Chairman of the Council shall cause a notice of the request to be published in the District of Columbia Register, together with a statement that the request shall be deemed approved 14 days from the date of its receipt, unless a proposed disapproval resolution is filed prior to that time by a Councilmember, and that if a proposed disapproval resolution is filed, the request shall be deemed approved 30 days from the date of the receipt of the reprogramming request, unless prior to the end of the 30-day review period the Council adopts a resolution of disapproval or approval.

(2) The publication of a notice of a reprogramming request shall satisfy the public notice requirements of this section and the rules of the Council and no further notice shall be necessary for the Council to adopt a resolution affecting the request.

(3) The Council shall consider the request according to its rules. No request may be submitted to the Chairman of the Council under this subsection during such time as the Council is on recess, according to its rules, nor shall any time period provided in this subsection or in the Council’s rules with respect to the requests continue to run during such time as the Council is on recess.

(c)(1) If no proposed disapproval resolution of a reprogramming request is filed with the Secretary to the Council (“Secretary”) within 14 days of the receipt of the request from the Mayor, the request shall be deemed approved.

(2) If a proposed disapproval resolution is filed with the Secretary within 14 days of receipt of the request from the Mayor, the Council may approve or disapprove the reprogramming request by resolution within 30 days of the receipt of the request from the Mayor. If the Council neither affirmatively approves or disapproves the request within 30 days of the receipt of the request, the request shall be deemed approved.

(d) At any time prior to final action by the Council on a reprogramming request, or prior to the date the reprogramming request is deemed approved pursuant to subsection (c) of this section, the Mayor may withdraw the reprogramming request.

(e)(1) An operating budget reprogramming request shall include for each budget category from or to which funds are being transferred a list of the funding reductions or additions by:

(A) Agency;

(B) Program;

(D) Object class; and

(E) Funding sources.

(2) A capital reprogramming request shall include for each project or subproject from or to which funds are being transferred a list of the funding reductions or additions by:

(A) Agency;

(B) Project and subproject; and

(f)(1) A reverse Paygo action done for the purpose of paying non-capital-eligible expenses, including furniture, fixtures, and equipment, of the same capital project for which Paygo capital funds have been authorized shall not require Council approval; provided, that the Chief Financial Officer shall notify the Budget Director of the Council of the District of Columbia in writing no later than 3 business days after the reverse Paygo action occurs. The notice shall set forth the capital project, amount, and purpose of the reverse Paygo action.

(2) All other reverse Paygo actions shall require Council approval pursuant to this section.

(g) A reprogramming from the Transportation Infrastructure Project Review Fund established by [§ 50-921.17] to a capital project shall not require Council approval; provided, that the reprogramming shall not modify the purposes for which the reprogrammed funds may be expended.

(h)(1) This subchapter shall not apply to a reprogramming from a master capital project in the Highway Trust Fund portion of the District's capital improvements plan to another master capital project in the Highway Trust Fund portion of the District's capital improvements plan, other than as provided in this subsection.

(2) At the request of the Mayor, the Chief Financial Officer of the District of Columbia ("CFO") shall reprogram funds between master capital projects in the Highway Trust Fund portion of the District's capital improvements plan; provided, that the reprogramming of funds is consistent with the State Transportation Improvement Plan included in the Transportation Improvement Plan prepared and approved by the Metropolitan Washington Council of Governments National Capital Region Transportation Planning Board; provided further, that the CFO determines that the funds are available for reprogramming.

(3) After funds are reprogrammed pursuant to paragraph (2) of this subsection, the director of the implementing agency for the project may obligate and expend the reprogrammed funds.

(Sept. 16, 1980, D.C. Law 3-100, § 4, 27 DCR 3617; Apr. 30, 1982, D.C. Law 4-106, § 2, 29 DCR 1407; Apr. 3, 1984, D.C. Law 5-70, § 2(b), 31 DCR 628; Apr. 30, 1988, D.C. Law 7-104, § 34, 35 DCR 147; Apr. 18, 1996, D.C. Law 11-110, § 52, 43 DCR 530; enacted, Apr. 9, 1997, D.C. Law 11-254,§ 2, 44 DCR 1575; Aug. 5, 1997, 111 Stat. 754, Pub. L. 105-33, § 11245(b); Apr. 20, 1999, D.C. Law 12-264, § 52(e), 46 DCR 2118; Oct. 1, 2002, D.C. Law 14-190, § 102(b), 49 DCR 6968; Feb. 20, 2003, 117 Stat. 129, Pub. L. 108-7, Div. C, title III, § 136; Nov. 13, 2003, D.C. Law 15-39,§ 102, 50 DCR 5668; Mar. 13, 2004, D.C. Law 15-105, § 78, 51 DCR 881; Oct, 20, 2005, D.C. Law 16-33, § 1132, 52 DCR 7503; Mar. 2, 2007, D.C. Law 16-192, § 1002, 53 DCR 6899; Mar. 25, 2009, D.C. Law 17-353, § 209, 56 DCR 1117; Mar. 3, 2010, D.C. Law 18-111, § 1131(c), 57 DCR 181; Apr. 8, 2011, D.C. Law 18-370, § 122(c), 58 DCR 1008; Dec. 13, 2017, D.C. Law 22-33, § 8042(b), 64 DCR 7652; Oct. 30, 2018, D.C. Law 22-168, § 8022, 65 DCR 9388; Nov. 13, 2021, D.C. Law 24-45, § 6002, 68 DCR 010163.)

Prior Codifications

1981 Ed., § 47-363.

Effect of Amendments

D.C. Law 14-105, in subsec. (a-1)(2), purported to substitute “section, § 47-363.01, and” for “section and” and added a new § 47-363.01.

D.C. Law 14-190 added subsec. (i).

Section 136 of Public Law 108-7, in subsec. (a-1), added par. (3).

D.C. Law 15-39, in subsec. (h), substituted “the thresholds established pursuant to section 109 of the District of Columbia Appropriations Act, 2003, approved February 20, 2003 (Pub. L. 108-7; 117 Stat. 11)” for “$50,000 at the control center level”.

D.C. Law 15-105, in subsec. (i)(1), validated a previously made technical correction.

D.C. Law 16-33, in subsec. (c), substituted, “$860,000” for “$25,000”.

D.C. Law 16-192, in subsec. (c), substituted “$1 million” for “$860,000”.

D.C. Law 17-353, in subsec. (e)(1), deleted “and requests pursuant to § 47-364(a)” following “section”; and, in subsec. (h), deleted “and the D.C. General Hospital Commission” preceding “for estimated”.

D.C. Law 18-111, in subsec. (a), substituted “any responsibility center, or, in a performance-based agency, of any program or activity of $500,000 or more” for “any responsibility center of more than $400,000”; and rewrote subsec. (c), which had read as follows: “(c) The Mayor shall submit to the Council for approval any reprogramming request(s) which individually or considered on a cumulative basis would result in a movement of funds from 1 capital project to another of more than $1 million in any fiscal year.”

D.C. Law 18-370 rewrote the section, which formerly read:

“(a) The Mayor shall submit to the Council for approval any reprogramming request(s) which individually or on a cumulative basis would result in a change to the original appropriated or estimated non-appropriated authority of any responsibility center, or, in a performance-based agency, of any program or activity of $500,000 or more or 10% (whichever is less) of the original appropriated or estimated non-appropriated authority in any fiscal year; provided, however, that Council approval shall not be required for any reprogramming of up to $25,000. Council approval is required for any subsequent reprogrammings which individually or considered on a cumulative basis would result in additional changes of more than $100,000 or 10% (whichever is less) of the original appropriated or estimated non-appropriated authority of any responsibility center.

“(a-1)(1) The Mayor shall also submit reprogramming requests to the District of Columbia Financial Responsibility and Management Assistance Authority as required by § 47-392.03(c)(1).

“(2) The Council may only approve a reprogramming submitted by the Mayor to the Council pursuant to the provisions of this section and § 47-392.03(c)(2).

“(3)(A) After the adoption of the annual budget for a fiscal year that is not a control year, no reprogramming of amounts in the budget may occur unless;

“(i) The Mayor submits a request for such reprogramming to the Council and the Chief Financial Officer of the District of Columbia;

“(ii) The Chief Financial Officer transmits to the Council a statement certifying the availability of funds for the reprogramming and containing an analysis of the effect of the reprogramming on the financial plan and budget for the fiscal year; and

“(iii) The Council approves the request after receiving the statement described in sub-sub-paragraph (ii) of this paragraph, but only if any additional expenditures provided under the request are offset by reductions in expenditures for another activity.

“(B) If the Chief Financial Officer does not transmit to the Council the statement described in subparagraph (A)(ii) of this paragraph during the 15-day period which begins on the date the Chief Financial Officer receives the request for the reprogramming from the Mayor, the Chief Financial Officer shall be deemed to have transmitted the statement to the Council. Upon written notice to the Mayor and Council, the Chief Financial Officer may extend the time period to transmit the statement and analysis to the Council, not to exceed 10 additional days.

“(C) In this paragraph, the term ‘control year’ has the meaning given such term in § 47-393(4).

“(b) The Mayor shall submit to the Council for approval any shift(s) in funding among object categories within the same responsibility center which individually exceed $50,000 in any fiscal year. Council approval is required for any subsequent actions which individually would move funds in excess of $50,000 among object categories within the same responsibility center in any fiscal year.

“(c) The Mayor shall submit to the Council for approval a reprogramming request when an agency proposes to:

“(1) Transfer funds of $500,000 or more in any fiscal year from one capital project or sub-project to another capital project or sub-project;

“(2) Transfer funds of $500,000 or more in any fiscal year from one agency to another agency;

“(3) Establish a new capital project or sub-project; or

“(4) Change the capital project or sub-project description to alter the:

“(A) Scope;

“(B) Purpose; or

“(C) Location.

“(d) Notwithstanding the provisions of subsections (a) through (c) of this section, the Mayor shall submit to the Council for approval any reprogramming request(s) which individually or considered on a cumulative basis would result in change to the original appropriated or estimated non-appropriated authority of any responsibility or control centers within the Department of Human Services, by more than $50,000 in any fiscal year. Additional Council approval shall be required for additional reprogrammings which individually or considered on a cumulative basis would result in additional changes of more than $50,000 to the original appropriated or estimated non-appropriated authority of any responsibility centers within the Department of Human Services.

“(e)(1) The Mayor shall transmit reprogramming requests as provided in subsections (a), (b), (c), and (d) of this section to the Chairman of the Council, who shall immediately circulate the requests to the members of the Council.

“(2) The Council shall consider the request(s) according to its rules. Should no written notice of disapproval of such request(s) be filed with the Secretary to the Council within 14 calendar days of the receipt of a request from the Mayor, or no oral notice of disapproval is given during a meeting of the Council during such 14 calendar day period, the request shall be deemed to be approved. Should notice of disapproval be given during such initial 14-calendar day period, the Council may approve or disapprove the reprogramming request by resolution within 30 calendar days of the initial receipt of the request from the Mayor, or such request shall be deemed to be approved.

“(3) No request may be submitted to the Chairman of the Council under this subsection during such time as the Council is on recess, according to its rules, nor shall any time period provided in this subsection or in the Council’s rules with respect to the requests continue to run during such time as the Council is on recess.

“(4)(A) Upon receipt of a reprogramming request submitted pursuant to this subchapter, the Chairman of the Council shall cause a ‘notice of a reprogramming request’ to be published in the District of Columbia Register, together with a statement that the request will be deemed approved 14 days from the date of its receipt unless a ‘notice of disapproval’ has been filed prior to that time by any member of the Council, and if such ‘notice of disapproval’ has been filed, that the request will be deemed approved 30 days from the date of the receipt of the reprogramming request unless prior to that time the Council has adopted a resolution of disapproval or approval.

“(B) The publication of the ‘notice of a reprogramming request’ pursuant to subparagraph (A) of this paragraph shall satisfy the public notice requirements of this section and the rules of the Council and no further notice shall be necessary for the Council to adopt a resolution affecting the reprogramming request.

“(5) At any time prior to final action by the Council on a reprogramming request submitted pursuant to this subchapter, or prior to a reprogramming becoming effective without Council action as provided in this subchapter, the Mayor may withdraw the reprogramming request.

“(e-1) Reprogrammings transmitted to the Council pursuant to subsections (a), (b), (c), and (e) of this section shall include a specific listing of responsibility centers and control centers, or both, from which funds are being reduced and a specific listing of responsibility centers and control centers, or both, to which funds are being added. Each separate reprogramming request shall be for the total net sum of zero dollars.

“(f) If the Council disapproves a reprogramming request the Mayor may, on a clear showing of changed circumstances, new information, or additional administrative hardship, ask for a reconsideration of the previous action of the Council. The Council may at its discretion reconsider its previous action.

“(g) All reprogrammings which occur, regardless of amount, shall be reported by the Mayor to the Council on a monthly basis. A monthly reprogramming summary shall set forth clearly and concisely each reprogramming activity by original object category and new object category. It shall specify the amount of funds shifted and other consequences where appropriate (such as personnel shifts, equipment transfers, etc.). The monthly reprogramming summary shall also include a brief explanation of the administrative necessity that was served by the reprogramming activity. The Mayor shall be responsible for assembling and transmitting the monthly reprogramming summary. The Council committee staff responsible for the budget process shall receive and analyze the monthly reprogramming summary.

“(h) The District of Columbia Board of Education, and the Board of Trustees of the University of the District of Columbia shall be excluded for appropriated authority and the District of Columbia Board of Education, the Board of Trustees of the University of the District of Columbia for estimated nonappropriated authority shall be excluded from the provisions of this section; provided, that reprogramming requests in excess of the thresholds established pursuant to section 109 of the District of Columbia Appropriations Act, 2003, approved February 20, 2003 (Pub. L. 108-7; 117 Stat. 122 ), shall be submitted to the Mayor and the Council for review and comment prior to their transmittal to the Congress.

“(i)(1) Notwithstanding any other provision in this section, a reprogramming request made as part of performance-based budgeting shall be approved by the Mayor and Council pursuant to § 47-308.01 and this subsection.

“(2) A reprogramming for performance-based budgeting shall be made at the program level; provided, that the Office of the Chief Financial Officer shall submit to the Council for approval any performance-based budgeting reprogramming request that moves funds between programs in excess of $840,000 in any fiscal year.”

Emergency Legislation

For temporary (90 days) amendment of this section, see § 6002 of Fiscal Year 2022 Budget Support Emergency Act of 2021 (D.C. Act 24-159, Aug. 23, 2021, 68 DCR 008602).

For temporary (90 days) amendment of this section, see § 2 of Recess Reprogramming Emergency Amendment Act of 2021 (D.C. Act 24-158, Aug. 5, 2021, 68 DCR 008014).

For temporary (90 days) amendment of this section, see § 8022 of Fiscal Year 2019 Budget Support Congressional Review Emergency Act of 2018 (D.C. Act 22-458, Oct. 3, 2018, 65 DCR 11212).

For temporary (90 days) amendment of this section, see § 8022 of Fiscal Year 2019 Budget Support Emergency Act of 2018 (D.C. Act 22-434, July 30, 2018, 65 DCR 8200).

For temporary (90 days) amendment of this section, see § 8042(b) of Fiscal Year 2018 Budget Support Congressional Review Emergency Act of 2017 (D.C. Act 22-167, Oct. 24, 2017, 64 DCR 10802).

For temporary (90 days) amendment of this section, see § 8042(b) of Fiscal Year 2018 Budget Support Emergency Act of 2017 (D.C. Act 22-104, July 20, 2017, 64 DCR 7032).

For purported temporary (90 day) amendment of section, see § 2(b) of Chief Financial Officer Establishment Reprogramming During Non-Control Years Technical Emergency Amendment Act of 2001 (D.C. Act 14-161, November 2, 2001, 48 DCR 10399).

For purported temporary (90 day) amendment of section, see § 2 of Chief Financial Officer Establishment Reprogramming During Non-control Years Technical Congressional Review Emergency Amendment Act of 2002 (D.C. Act 14-243, January 28, 2002, 49 DCR 1032).

For temporary (90 day) amendment of section, see § 102(b) of Fiscal Year 2003 Budget Support Emergency Act of 2002 (D.C. Act 14-453, July 23, 2002, 49 DCR 8026).

For temporary (90 day) amendment of section, see § 102 of Fiscal Year 2004 Budget Support Emergency Act of 2003 (D.C. Act 15-105, June 20, 2003, 50 DCR 5613).

For temporary (90 day) amendment of section, see § 102 of Fiscal Year 2004 Budget Support Congressional Review Emergency Act of 2003 (D.C. Act 15-149, September 22, 2003, 50 DCR 8360).

For temporary (90 day) amendment of section, see § 3 of Council Review Extension Emergency Amendment Act of 2004 (D.C. Act 15-514, August 2, 2004, 51 DCR 8981).

For temporary (90 day) amendment of section, see § 1132 of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).

For temporary (90 day) amendment of section, see § 1002 of Fiscal Year 2007 Budget Support Emergency Act of 2006 (D.C. Act 16-477, August 8, 2006, 53 DCR 7068).

For temporary (90 day) amendment of section, see § 1002 of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2006 (D.C. Act 16-499, October 23, 2006, 53 DCR 8845).

For temporary (90 day) amendment of section, see § 1002 of Fiscal Year 2007 Budget Support Congressional Review Emergency Act of 2007 (D.C. Act 17-1, January 16, 2007, 54 DCR 1165).

For temporary (90 day) amendment of section, see § 1002(c) of Fiscal Year 2010 Budget Support Emergency Act of 2009 (D.C. Act 18-187, August 26, 2009, 56 DCR 7374).

For temporary (90 day) amendment of section, see § 1131(c) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) amendment of section, see § 1131(c) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

For temporary (90 day) amendment of section, see § 122(c) of Fiscal Year 2011 Supplemental Budget Support Emergency Act of 2010 (D.C. Act 18-694, January 19, 2011, 58 DCR 662).

Temporary Legislation

For temporary (225 days) amendment of this section, see § 2 of Recess Reprogramming Temporary Amendment Act of 2021 (D.C. Law 24-42, Oct. 27, 2021, 68 DCR 009521).

For temporary (225 day) amendment of section, see § 2(b) of Chief Financial Officer Establishment Reprogramming During Non-Control Years Technical Temporary Amendment Act of 2001 (D.C. Law 14-67, February 27, 2001, law notification 49 DCR 2277).

Short Title

Short title of title I of Law 15-39: Section 101 of D.C. Law 15-39 provided that title I of the act may be cited as the Reprogramming Policy Amendment Act of 2003.

Short title of subtitle R of title I of Law 16-33: Section 1131 of D.C. Law 16-33 provided that subtitle R of title I of the act may be cited as the Reprogramming Act of 2005.

Short title: Section 1001 of D.C. Law 16-192 provided that subtitle A of title I of the act may be cited as the Reprogramming Policy Act of 2006.

References in Text

Section 47-364(a), which is referred to in (e)(1), was repealed by 109 Stat. 142, Pub. L. 104-8, § 301(b)(2), approved April 17,

Effective Dates

D.C. Law 14-105 amended D.C. Act 14-89, section 17 of which states the following:

“Sec. 17. Effective date. This act shall take effect on the later of:

“(1) completion of a 30-day period of Congressional review, as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), approval by the Financial Responsibility and Management Assistance Authority as provided in section 203(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995 (109 Stat. 116; D.C. Official Code § 47-392.03(a)), and publication in the District of Columbia Register; or

“(2) enactment by Congress of a repeal of section 424 of the District of Columbia Home Rule Act and a repeal of the provisions in sections 448 and 449 of the District of Columbia Home Rule Act which conflict with section 6 of the Independence of the Chief Financial Officer Establishment Act of 2001, passed on 2nd reading on July 10, 2001 (Enrolled version of Bill 14-354).”

As of the printing of this supplement, Act 14-89 has not become law. Therefore, the amendments made to Act 14-89 by Law 14-105 have not been given effect.

Editor's Notes

Allocation of Funds from the Rainy Day Fund to the Washington Convention Center Fund and the Starplex Fund Conditional Approval Resolution of 1994: Pursuant to Resolution 10-453, effective November 1, 1994, the Council conditionally approved the transfer of funds from the Rainy Day Fund to the Washington Convention Center Fund and the Starplex Fund.

Approval of Reprogramming from Governmental Direction and Support Agencies to the Department of Administrative Services Emergency Resolution of 1995: Pursuant to Resolution 11-82, effective June 6, 1995, the Council approved, on an emergency basis, the reprogramming, within the Congressionally-approved Fiscal Year 1995 appropriation for Governmental Direction and Support, of $2.9 million from the Offices of the City Administrator, Secretary, Communications, Intergovernmental Relations, Deputy Mayor for Finance and Budget, the Department of Finance and Revenue, within the Department of Administrative Services, and the Board of Elections and Ethics, to the Department of Administrative Services.

Resolutions

Resolution 14-99, the “Reprogramming of $1,259,000 from the Taxicab Commission and the Department of Motor Vehicles to the Department of Public Works Disapproval Resolution of 2001”, was approved effective May 1, 2001.

§ 47–364. Council approval of non-offsetting budget modifications; exclusions. [Repealed]

Repealed.

§ 47–365. Reprogrammings of appropriated funds.

(a) Funds appropriated pursuant to an appropriations act that remain available for obligation or expenditure, or provided from any accounts in the Treasury of the United States derived by the collection of fees available to the agencies funded in an appropriations act, shall be available for obligation or expenditure for an agency through a reprogramming of funds which:

(1) Creates new programs;

(2) Eliminates a program, project, or responsibility center;

(3) Establishes or changes allocations specifically denied, limited, or increased by Congress;

(4) Increases funds or personnel by any means for any program, project, or responsibility center for which funds have been denied or restricted;

(5) Reestablishes through reprogramming any program or project previously deferred through reprogramming;

(6) Augments existing programs, projects, or responsibility centers through a reprogramming of funds in excess of $3 million or 10%, whichever is less; or

(7) Increases by 20% or more personnel assigned to a specific program, project or responsibility center.

(b) Such funds shall be available for obligation or expenditure for an agency through a reprogramming of funds as described in subsection (a) of this section; provided, that the appropriations committees of both the Senate and House of Representatives are notified in writing 30 days in advance of any reprogramming as set forth in this section.

(Oct. 19, 2000, D.C. Law 13-172, § 4502, 47 DCR 6308; June 12, 2003, D.C. Law 14-310, § 11(a), 50 DCR 1092; Apr. 8, 2011, D.C. Law 18-370, § 122(d), 58 DCR 1008.)

Effect of Amendments

D.C. Law 14-310, in the section name line, deleted “Fiscal Year 2001 and beyond” following “funds”; redesignated the existing text as subsection (a); in the newly designated subsec. (a), deleted “in fiscal year 2001, or any subsequent fiscal year” following “expenditure”; made a nonsubstantive change, and deleted “provided that the appropriations committees of both the Senate and House of Representatives are notified in writing 30 days in advance of any reprogramming as set forth in this section” from the end of par. (7); and added subsec. (b).

D.C. Law 18-370, in par. (6), substituted “$3 million” for “$1,000,000”.

Emergency Legislation

For temporary (90 day) amendment of section, see § 122(d) of Fiscal Year 2011 Supplemental Budget Support Emergency Act of 2010 (D.C. Act 18-694, January 19, 2011, 58 DCR 662).

§ 47–366. Non-Departmental Fund Transfer Notification.

The Chief Financial Officer shall notify the Budget Director of the Council of the District of Columbia in writing within 3 business days whenever a reprogramming, transfer, or budget modification of any amount is made involving the Non-Departmental account. The notice shall set forth the amount and purpose of the reprogramming, transfer, or budget modification.

Subchapter IV-A. Special Budget Provisions.

§ 47–368.01. Transfer of dedicated funds to the General Fund. [Repealed]

[Repealed].

(June 5, 2003, D.C. Law 14-307, § 1202, 49 DCR 11664; Nov. 13, 2003, D.C. Law 15-39, § 1902, 50 DCR 5668; Mar. 13, 2004, D.C. Law 15-105, § 12(d), 51 DCR 881; Dec. 7, 2004, D.C. Law 15-205, § 5402, 51 DCR 8441; Apr. 13, 2005, D.C. Law 15-354, § 73(a)(2), 52 DCR 2638; Oct, 20, 2005, D.C. Law 16-33, § 1072(c), 52 DCR 7503; Mar. 3, 2010, D.C. Law 18-111, § 2082(o)(1), 57 DCR 181; Oct. 8, 2016, D.C. Law 21-160, § 7152(b), 63 DCR 10775.)

Section References

This section is referenced in § 47-368.02.

Effect of Amendments

D.C. Law 15-39, in subsec. (a), substituted “from which the transfer of funds requested under subsection (c) of this section may be obtained” for “from which a total of $9.5 million may be obtained”; rewrote subsec. (b); and in subsec. (c), par. (1), substituted “shall submit” for “may submit” in the introductory language, rewrote subpar. (A), and added subpar. (C-i). Prior to amendment, subsec. (b) and subpar. (A) of par. (1) of subsec. (c) had read as follows:

D.C. Law 15-105, in subsec. (a), substituted “Other-Type” for “Other-Type O-type”, and validated previously made technical corrections.

“(b) Notwithstanding any other provision of law, including the dedication of funds to a particular use, all or part of the balance in an Other-Type Fund up to the total amount of $9.5 million in fiscal year 2003 of Other-Type Funds in fiscal year 2003 may be transferred to the General Fund of the District of Columbia in accordance with the procedure set forth in subsection (c) of this section. To the extent that these funds are needed, and it has been certified by the Chief Financial Officer that they are needed, in fiscal years subsequent to fiscal year 2003, the Mayor shall submit an approval resolution to the Council.”

“(A) The Chief Financial Officer’s certification that the proposed transfer of funds is not prohibited by federal action, court order, or settlement and that funds have not been properly identified as deferred revenue or restricted fund balance;”

D.C. Law 15-205, in subsec. (b), substituted “subsections (c) and (d)” for “subsection (c)”; and added subsec. (d).

D.C. Law 15-354, in subsec. (a), validated previously made technical changes.

D.C. Law 16-33, in subsec. (a), substituted “Alcoholic Beverage Regulation Administration; and Compliance and Real Property Tax Administration Fund” for “and Alcoholic Beverage Regulation Administration”.

D.C. Law 18-111, in subsec. (a), substituted “Washington Convention and Sports Authority” for “Sports and Entertainment Commission; Washington Convention Center Authority”.

Emergency Legislation

For temporary (90 day) addition of section, see § 2(b) of Other-Type Funds Emergency Act of 2002 (D.C. Act 14-449, July 23, 2002, 49 DCR 7868).

For temporary addition of section, see § 2(b) of Other-Type Funds Congressional Review Emergency Act of 2002 (D.C. Act 14-501, October 23, 2002, 49 DCR 10030).

For temporary (90 day) addition of section, see §§ 1202(b) of Fiscal Year 2003 Budget Support Amendment Emergency Act of 2002 (D.C. Act 14-544, December 4, 2002, 49 DCR 11700).

For temporary (90 day) addition of section, see § 1202(b) of the Fiscal Year 2003 Budget Support Amendment Congressional Review Emergency Act of 2003 (D.C. Act 15-27, February 24, 2003, 50 DCR 2151).

For temporary (90 day) amendment of section, see § 202 of Fiscal Year 2003 Budget Support Emergency Act of 2003 (D.C. Act 15-51, March 31, 2003, 50 DCR 2954).

For temporary (90 day) amendment of section, see § 202 of Fiscal Year 2003 Budget Support Congressional Review Emergency Act of 2003 (D.C. Act 15-97, June 20, 2003, 50 DCR 5472).

For temporary (90 day) amendment of section, see § 1202(b) of Fiscal Year 2003 Budget Support Amendment Second Congressional Review Emergency Act of 2003 (D.C. Act 15-103, June 20, 2003, 50 DCR 5499).

For temporary (90 day) amendment of section, see § 1902 of Fiscal Year 2004 Budget Support Emergency Act of 2003 (D.C. Act 15-105, June 20, 2003, 50 DCR 5613).

For temporary (90 day) amendment of section, see § 1902 of Fiscal Year 2004 Budget Support Congressional Review Emergency Act of 2003 (D.C. Act 15-149, September 22, 2003, 50 DCR 8360).

For temporary (90 day) amendment of section, see § 5402 of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).

For temporary (90 day) amendment of section, see § 5402 of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR 11725).

For temporary (90 day) amendment of section, see § 1072(c) of Fiscal Year 2006 Budget Support Emergency Act of 2005 (D.C. Act 16-168, July 26, 2005, 52 DCR 7667).

For temporary (90 day) amendment of section, see § 2082(o)(1) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) amendment of section, see § 2082(o)(1) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

Temporary Legislation

For temporary (225 day) addition of section, see § 2(b) of Other-Type Funds Temporary Act of 2002 (D.C. Law 14-219, March 25, 2003, law notification 50 DCR 2732).

For temporary (225 day) amendment of section, see § 202 of Fiscal Year 2003 Budget Support Temporary Act of 2003 (D.C. Law 15-25, July 22, 2003, law notification 50 DCR 6095).

§ 47–368.02. Increase in funds and fees and charges. [Repealed]

[Repealed].

(June 5, 2003, D.C. Law 14-307, § 1202, 49 DCR 11664; Oct. 8, 2016, D.C. Law 21-160, § 7152(c), 63 DCR 10775.)

Emergency Legislation

For temporary (90 day) addition of section, see §§ 1202(b) of Fiscal Year 2003 Budget Support Amendment Emergency Act of 2002 (D.C. Act 14-544, December 4, 2002, 49 DCR 11700).

References in Text

Fiscal Year 2003 Budget Support Amendment Act of 2002, referred to in subsec. (b), is D.C. Law 14-307.

§ 47–368.03. Reduction in rates for certain excise taxes. [Repealed]

[Repealed].

(June 5, 2003, D.C. Law 14-307, § 1802(b), 49 DCR 11664; Dec. 7, 2004, D.C. Law 15-205, § 1233(a)(1), 51 DCR 8441; Apr. 8, 2005, D.C. Law 15-320, § 110(b), 52 DCR 1757; Apr. 13, 2005, D.C. Law 15-354, § 100, 52 DCR 2638; Sept. 19, 2006, D.C. Law 16-161, § 201(a), 53 DCR 5392; Oct. 8, 2016, D.C. Law 21-160, § 7152(d), 63 DCR 10775.)

Section References

This section is referenced in § 47-3902.

Effect of Amendments

D.C. Law 15-205 purported to repeal this section.

D.C. Law 15-320 repealed subsec. (d)(1) which had read as follows: “(d)(1) The rate of tax imposed under §§ 47-2501 and 47-3902 shall be reduced from 11% to 10%, if the annual revenue estimate made in the 4th quarter of a fiscal year exceeds the annual revenue estimate incorporated in the approved financial and budget plan for that fiscal year by at least $105 million.”

D.C. Law 15-354 corrected D.C. Law 15-205 to repeal subsecs. (b) and (c).

D.C. Law 16-161 repealed subsec. (d)(2) which had read as follows: “(2) The rate of tax imposed under § 47-2501(d-1) shall be reduced from $0.0077 to $0.007, if the annual revenue estimate made in the 4th quarter of a fiscal year exceeds the annual revenue estimate incorporated in the approved financial plan and budget for that fiscal year by at least $105 million.”

Emergency Legislation

For temporary (90 day) addition of section, see § 1802(b) of Fiscal Year 2003 Budget Support Amendment Emergency Act of 2002 (D.C. Act 14-544, December 4, 2002, 49 DCR 11700).

For temporary (90 day) addition of section, see § 1802(b) of the Fiscal Year 2003 Budget Support Amendment Congressional Review Emergency Act of 2003 (D.C. Act 15-27, February 24, 2003, 50 DCR 2151).

For temporary (90 day) amendment of section, see § 1802 of Fiscal Year 2003 Budget Support Amendment Second Congressional Review Emergency Act of 2003 (D.C. Act 15-103, June 20, 2003, 50 DCR 5499).

For temporary (90 day) repeal of section, see § 1233(a)(2) of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).

For temporary (90 day) allocation of additional revenue in fiscal year 2005, see § 1234 of Fiscal Year 2005 Budget Support Emergency Act of 2004 (D.C. Act 15-486, August 2, 2004, 51 DCR 8236).

For temporary (90 day) repeal of section, see § 1233(a)(2) of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR 11725).

For temporary (90 day) allocation of additional revenue in fiscal year 2005, see § 1234 of Fiscal Year 2005 Budget Support Congressional Review Emergency Act of 2004 (D.C. Act 15-594, October 26, 2004, 51 DCR 11725).

For temporary (90 day) amendment of section, see § 2 of Telecommunications Taxes Reduction Emergency Act of 2004 (D.C. Act 15-729, January 19, 2005, 52 DCR 1956).

For temporary (90 day) amendment of section, see § 2(a) of Utility Taxes Technical Corrections Emergency Act of 2005 (D.C. Act 16-86, May 18, 2005, 52 DCR 5265).

For temporary (90 day) amendment of section, see § 2(a) of Utility Technical Corrections Congressional Review Emergency Act of 2005 (D.C. Act 16-177, October 4, 2005, 52 DCR 9074).

For temporary (90 day) amendment of section, see § 2(a) of Finance and Revenue Technical Amendments Emergency Amendment Act of 2006 (D.C. Act 16-260, January 26, 2006, 53 DCR 780).

For temporary (90 day) amendment of section, see § 2(a) of Finance and Revenue Technical Amendments Congressional Review Emergency Amendment Act of 2006 (D.C. Act 16-361, April 27, 2006, 53 DCR 3619).

For temporary (90 day) amendment of section, see §§ 201(a), 202 of Natural Gas and Home Heating Oil Taxation Relief and Ratepayer Clarification Emergency Act of 2006 (D.C. Act 16-376, May 19, 2006, 53 DCR 4392).

For temporary (90 day) amendment of section, see §§ 201(a) and 202(a)of Natural Gas and Home Heating Oil Taxation Relief and Ratepayer Clarification Congressional Review Emergency Amendment Act of 2006 (D.C. Act 16-443, July 21, 2006, 53 DCR 6436).

Temporary Legislation

Section 2(a) of D.C. Law 16-29, in subsec. (d), rewrote par. (1) and added a sentence to par. (2). Par. (1) reads as follows:

“(1) The rate of tax imposed under § 47-3902 shall be reduced from 11% to 10%, if the annual revenue estimate made in the 4th quarter of a fiscal year exceeds the annual revenue estimate incorporated in the approved financial plan and budget for that fiscal year by at least $ 105 million. This paragraph shall apply as of January 1, 2005 and shall expire on April 8, 2005.”

The new sentence in par. (2) reads as follows: “This paragraph shall expire on January 1, 2005.”.

Section 4(b) of D.C. Law 16-29 provided that the act shall expire after 225 days of its having taken effect.

Section 2(a) of D.C. Law 16-102 repealed par. (d)(2).

Section 11(b) of D.C. Law 16-102 provided that the act shall expire after 225 days of its having taken effect.

Effective Dates

Section 1233(a)(2) of D.C. Law 15-205, as amended by D.C. Law 15-354, § 100(b), provided: “This subsection shall apply as of August 2, 2004.”

§ 47–368.04. Commodities Cost Reserve Fund. [Repealed]

[Repealed].

§ 47–368.05. Deposit of revenues dedicated to debt service.

Notwithstanding any other law, excluding funds expressly exempted by the Chief Financial Officer, revenues dedicated by law to specific funds, shall, whenever a portion of those funds is budgeted to pay debt service, first be deposited into the General Fund of the District of Columbia to pay such debt service. After sufficient revenues have been deposited for debt service, any additional revenues shall then be deposited into the specific funds. Any revenues deposited, but unexpended for debt service shall be deposited in the specific funds at the end of the fiscal year.

§ 47–368.06. Limitation on grant-making authority.

(a) An agency with grant-making authority shall not issue grants using any funds it receives through a memorandum of understanding or a reprogramming from any agency that does not have grant-making authority.

(b) Notwithstanding subsection (a) of this section, an agency with grant-making authority may issue grants using any funds it receives through an intra-District transfer, a memorandum of understanding, or a reprogramming from an agency that does not have grant-making authority for purposes of the following:

(1) Effectuating the Hospital and Medical Services Corporation Regulatory Amendment Act of 2009, passed on 4th reading on September 22, 2009 (Enrolled version of Bill 18-203) [Subtitle N of D.C. Law 18-111, which added § 31-3514.02(d)]; and

(2) Implementing projects and programs funded by the Nursing Facility Quality of Care Fund, established by § 47-1262.

(Mar. 3, 2010, D.C. Law 18-111, § 1121(b), 57 DCR 181; Sept. 21, 2022, D.C. Law 24-167, § 7002(c), 69 DCR 009223.)

Section References

This section is referenced in § 1-328.02 and § 1-328.05.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7002(c) of Fiscal Year 2023 Budget Support Emergency Act of 2022 (D.C. Act 24-470, July 13, 2022, 69 DCR 008707).

For temporary (90 days) creation of § 47-368.07, see § 202(b) of Fiscal Year 2018 Budget Support Clarification Emergency Amendment Act of 2017 (D.C. Act 22-163, Oct. 23, 2017, 64 DCR 10778).

For temporary (90 day) addition, see § 1121(b) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) addition, see § 1121(b) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

For temporary (90 day) additions, see §§ 2 to 4 of Executive Grant-Making Authority Limitation Emergency Act of 2009 (D.C. Act 18-280, January 13, 2010, 57 DCR 945).

For temporary (90 day) addition of section, see § 7063 of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).

Temporary Legislation

For temporary (225 days) addition of section § 47-368.07, see § 202(b) of Fiscal Year 2018 Budget Support Clarification Temporary Amendment Act of 2017 (D.C. Law 22-44, Jan. 25, 2018, 64 DCR 12387).

Section 2 of D.C. Law 18-120 provided clarification of the fiscal year 2010 limited grant-making authority.

Sections 2 through 4 of D.C. Law 18-138 provided limitations on the Mayor’s grant-making authority, including limitations on Executive agencies and independent Executive branch agencies.

Short Title

Short title: Section 1120 of D.C. Law 18-111 provided that subtitle M of title I of the act may be cited as the “Grant-Making Authority Act of 2009”.

Short title: Section 7061 of D.C. Law 18-223 provided that subtitle G of title VII of the act may be cited as the “FY 2011 Capital Projects Modification Act of 2010”.

References in Text

The Hospital and Medical Services Corporation Regulatory Amendment Act of 2009, referred to in subsec. (b)(1), is subtitle N of title V of D.C. Law 18-111, §§ 5130, 5131, which amended § 31-3514.02.

Editor's Notes

Section 7063 of D.C. Law 18-223 provided: “Sec. 7063. Grant-making authority for Ft. Lincoln and Lincoln Theater capital projects.

“The Deputy Mayor for Planning and Economic Development shall have grant-making authority for the purpose of providing funds to implement capital projects for the Ft. Lincoln and the Lincoln Theater capital projects.”

§ 47–368.07. Workforce Investments account.

(a) The Workforce Investments account ("Account") shall be administered by the Mayor in accordance with subsections (b) and (c) of this section.

(b) Money in the Account shall be used for the following purposes only:

(1) Costs related to financial, developmental, and other investments in the District government workforce, including salary increases or other items required by the terms of collective bargaining agreements and cost-of-living adjustments to salaries and hourly wages;

(2) Payments to public charter schools authorized to be paid from the Account by other District law; and

(3) For such other expressed purposes for which funds previously may have been deposited into the account.

(c)(1) The money deposited into the Account shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time.

(2) Subject to authorization in an approved budget and financial plan, any funds appropriated in the Account shall be continually available without regard to fiscal year limitation.

(July 3, 2018, D.C. Law 22-124, § 202(b), 65 DCR 5091; Sept. 6, 2023, D.C. Law 25-50, § 4063, 70 DCR 10366.)

Applicability

Section 4064 of D.C. Law 25-50 provided that the amendments to this section by § 4063 of D.C. Law 25-50 shall apply as of July 1, 2023.

Section 4064 of D.C. Act 25-172 provided that the amendments to this section by § 4063 of D.C. Act 25-172 shall apply as of July 1, 2023.

Section 301 of D.C. Law 22-124 provided that the changes made to this section by D.C. Law 22-124 shall apply as of October 1, 2017.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 4063 of Fiscal Year 2024 Budget Support Emergency Act of 2023 (D.C. Act 25-172, July 14, 2023, 70 DCR 9933).

Subchapter IV-B. Adjustments to Appropriations.

§ 47–369.01. General Fund surplus.

Beginning in fiscal year 2009 and each fiscal year thereafter, the amount appropriated to the District of Columbia may be increased by no more than $100,000,000 from funds identified in the annual comprehensive annual financial report as the District’s immediately preceding fiscal year’s unexpended general fund surplus. The District may obligate and expend these amounts only in accordance with the following conditions:

(1) The Chief Financial Officer of the District of Columbia shall certify that the use of any such amounts is not anticipated to have a negative impact on the District’s long-term financial, fiscal, and economic vitality.

(2) The District of Columbia may only use these funds for the following expenditures:

(A) One-time expenditures.

(B) Expenditures to avoid deficit spending.

(D) Program needs.

(E) Expenditures to avoid revenue shortfalls.

(3) The amounts shall be obligated and expended in accordance with laws enacted by the Council in support of each such obligation or expenditure.

(4) The amounts may not be used to fund the agencies of the District of Columbia government under court ordered receivership.

(5) The amounts may not be obligated or expended unless the Mayor notifies the Committees on Appropriations of the House of Representatives and the Senate not fewer than 30 days in advance of the obligation or expenditure.

(Mar. 11, 2009, 123 Stat. 698, Pub. L. 111-8, § 816; Sept. 26, 2012, D.C. Law 19-171, § 301, 59 DCR 6190.)

Emergency Legislation

For temporary (90 days) FY 2013 Revised Budget Request adjustment, see § 2 of the Fiscal Year 2013 Revised Budget Request Emergency Adjustment Act of 2013 (D.C. Act 20-74, May 23, 2013, 60 DCR 7592, 20 DCSTAT 1424).

Temporary Legislation

For temporary (225 days) FY 2013 Revised Budget Request adjustment, see § 2 of the Fiscal Year 2013 Revised Budget Request Temporary Adjustment Act of 2013 (D.C. Law 20-14, September 19, 2013, 60 DCR 9554, 20 DCSTAT 1764).

Editor's Notes

Section 301 of D.C. Law 19-171 enacted this subchapter into law.

§ 47–369.02. Increases to appropriations.

(a) Beginning in fiscal year 2009 and each fiscal year thereafter, consistent with revenue collections, the amount appropriated as District of Columbia Funds may be increased—

(1) by an aggregate amount of not more than 25 percent, in the case of amounts proposed to be allocated as “Other-Type Funds” in the annual Proposed Budget and Financial Plan submitted to Congress by the District of Columbia; and

(2) by an aggregate amount of not more than 6 percent, in the case of any other amounts proposed to be allocated in such Proposed Budget and Financial Plan.

(b) The District of Columbia may obligate and expend any increase in the amount of funds authorized under this section only in accordance with the following conditions:

(1) The Chief Financial Officer of the District of Columbia shall certify—

(A) the increase in revenue; and

(B) that the use of the amounts is not anticipated to have a negative impact on the long-term financial, fiscal, or economic health of the District.

(2) The amounts shall be obligated and expended in accordance with laws enacted by the Council of the District of Columbia in support of each such obligation and expenditure, consistent with the requirements of this subchapter.

(3) The amounts may not be used to fund any agencies of the District government operating under court-ordered receivership.

(4) The amounts may not be obligated or expended unless the Mayor has notified the Committees on Appropriations of the House of Representatives and the Senate not fewer than 30 days in advance of the obligation or expenditure.

(Mar. 11, 2009, 123 Stat. 699, Pub. L. 111-8, § 817; Sept. 26, 2012, D.C. Law 19-171, § 301, 59 DCR 6190.)

Budget Legislation

For an temporary (225-day) adjustment of certain approriationsons in the Fiscal Year 2024 Local Budget Act of 2023 to maintain a balanced budget for the fiscal year ending September 30, 2024, see the Fiscal Year 2024 Revised Local Budget Adjustment Temporary Act of 2024, D.C. Law 25-208, September 18, 2024, 71 DCR 9914.

For an temporary (90-day) adjustment of certain approriationsons in the Fiscal Year 2024 Local Budget Act of 2023 to maintain a balanced budget for the fiscal year ending September 30, 2024, see the Fiscal Year 2024 Revised Local Budget Adjustment Emergency Act of 2024, D.C. Act 25-499, July 8, 2024, 71 DCR 7957.

For an emergency (90-day) adjustment, on an emergency basis, of certain allocations in the Fiscal Year 2023 Local Budget Act of 2022 to maintain a balanced budget for the fiscal year ending September 30, 2023, see the Fiscal Year 2023 Revised Local Budget Adjustment Emergency Act of 2023, D.C. Act 25-134, June 27, 2023, 70 DCR 9048.

For an temporary (90-day) adjustment of certain allocations in the Fiscal Year 2022 Local Budget Act of 2021 to maintain a balanced budget for the fiscal year ending September 30, 2022, see the Fiscal Year 2022 Second Revised Local Budget Congressional Review Adjustment Emergency Act of 2022, D.C. Law 24-162, September 9, 2022, 69 DCR 8833.

For an emergency (90-day) adjustment of certain allocations in the Fiscal Year 2022 Local Budget Act of 2021 to maintain a balanced budget for the fiscal year ending September 30, 2022, see the Fiscal Year 2022 Second Revised Local Budget Congressional Review Adjustment Emergency Act of 2022, D.C. Act 24-541, July 27, 2022, 69 DCR 9963.

For an emergency (90-day) adjustment, on an emergency basis, of certain allocations in the Fiscal Year 2022 Local Budget Act of 2021 to maintain a balanced budget for the fiscal year ending September 30, 2022, see the Fiscal Year 2022 Revised Local Budget Adjustment Congressional Review Emergency Act of 2022, D.C. Act 24-540, July 27, 2022, 69 DCR 9960.

For a temporary (225-day) adjustment, on a temporary basis, of certain allocations in the Fiscal Year 2022 Local Budget Act of 2021 to maintain a balanced budget for the fiscal year ending September 30, 2022, see the Fiscal Year 2022 Revised Local Budget Adjustment Temporary Act of 2022, D.C. Law 24-146, July 22, 2022, 69 DCR 6258.

For an emergency (90-day) adjustment, on an emergency basis, of certain allocations in the Fiscal Year 2022 Local Budget Act of 2021 to maintain a balanced budget for the fiscal year ending September 30, 2022, see the Fiscal Year 2022 Second Revised Local Budget Adjustment Emergency Act of 2022, D.C. Act 24-437, June 13, 2022, 69 DCR _____.

For an emergency (90-day) adjustment, on an emergency basis, of certain allocations in the Fiscal Year 2022 Local Budget Act of 2021 to maintain a balanced budget for the fiscal year ending September 30, 2022, see the Fiscal Year 2022 Revised Local Budget Adjustment Emergency Act of 2022, D.C. Act 24-388, April 25, 2022, 69 DCR 4049.

For an emergency (90-day) adjustment, on an emergency basis, of certain allocations in the Fiscal Year 2020 Local Budget Act of 2019 to maintain a balanced budget for the fiscal year ending September 30, 2020, see the Fiscal Year 2020 Revised Local Budget Adjustment Emergency Act of 2020, D.C. Act 23-351, August 5, 2020, 67 DCR 9638.

For an temporary (225-day) adjustment to certain allocations requested in the Fiscal Year 2019 Local Budget Act of 2018, see the Fiscal Year 2019 Revised Local Budget Temporary Adjustment Act of 2019, D.C. Law 23-10, August 24, 2019, 66 DCR 8069.

For an emergency (90-day) adjustment to certain allocations requested in the Fiscal Year 2019 Local Budget Act of 2018, see D.C. Act 23-75, July 8, 2019, 66 DCR 8078.

For an temporary (225-day) adjustment to certain allocations requested in the Fiscal Year 2018 Local Budget Act of 2017, see the Fiscal Year 2018 Revised Local Budget Temporary Adjustment Act of 2018, D.C. Law 22-169, September 5, 2018, 65 DCR 9528.

For an emergency (90-day) adjustment to certain allocations requested in the Fiscal Year 2018 Local Budget Act of 2017, see D.C. Act 22-457, October 3, 2018, 65 DCR 11204.

For an emergency (90-day) adjustment to certain allocations requested in the Fiscal Year 2018 Local Budget Act of 2017, see D.C. Act 22-394, July 2, 2018, 65 DCR 7151.

For an temporary (225-day) adjustment to certain allocations requested in the Fiscal Year 2017 Local Budget Act of 2016, see the Fiscal Year 2017 Revised Local Budget Temporary Adjustment Act of 2017, D.C. Law 22-15, August 25, 2017, 64 DCR 6568.

For an emergency (90-day) adjustment to certain allocations in the Fiscal Year 2017 Local Budget Act of 2016, see the Fiscal Year 2017 Revised Local Budget Emergency Adjustment Act of 2017, D.C. Act 22-96, July 10, 2017, 64 DCR 6560.

For an emergency (90-day) adjustment to certain allocations in the Fiscal Year 2016 Budget Request Act of 2015 pursuant to the Omnibus Appropriations Act, 2009, see D.C. Act 21-478, July 21, 2016, 63 DCR 10188.

For an temporary (90-day) adjustment to certain allocations requested in the Fiscal Year 2015 Budget Request Act of 2014, see the Fiscal Year 2015 and Fiscal Year 2016 Revised Budget Request Adjustment Emergency Act of 2015, D.C. Act 21-153, October 6, 2015, 62 DCR 13178.

For temporary (225 days) increase in dedicated tax appropriations for the Housing Production Trust Fund, see § 2 of the Housing Production Trust Fund Dedicated Tax Appropriations Authorization Temporary Act of 2011 (D.C. Law 19-14, Aug. 17, 2011, 58 DCR 5383).

For temporary (90 day) addition of section, see § 2 of Housing Production Trust Fund Dedicated Tax Appropriations Authorization Emergency Act of 2011 (D.C. Act 19-66, May 13, 2011, 58 DCR 4250).

Editor's Notes

Section 301 of D.C. Law 19-171 enacted this subchapter into law.

§ 47–369.03. Short-term borrowing from certain funds.

Beginning in fiscal year 2009 and each fiscal year thereafter, the Chief Financial Officer for the District of Columbia may, for the purpose of cash flow management, conduct short-term borrowing from the emergency reserve fund and from the contingency reserve fund established under § 1-204.50a: Provided, That the amount borrowed shall not exceed 50 percent of the total amount of funds contained in both the emergency and contingency reserve funds at the time of borrowing: Provided further, That the borrowing shall not deplete either fund by more than 50 percent: Provided further, That 100 percent of the funds borrowed shall be replenished within 9 months of the time of the borrowing or by the end of the fiscal year, whichever occurs earlier: Provided further, That in the event that short-term borrowing has been conducted and the emergency or the contingency reserve funds are later depleted below 50 percent as a result of an emergency or contingency, an amount equal to the amount necessary to restore reserve levels to 50 percent of the total amount of funds contained in both the emergency and contingency reserve fund must be replenished from the amount borrowed within 60 days.

Subchapter V. Fund Accounting.

§ 47–371. Findings.

The Council of the District of Columbia finds that:

(1) The diversity of governmental functions, activities, and programs requires that they be accounted for in several different funds and that the funds represent separate accounting entities;

(2) The number of funds should be kept to the minimum necessary for sound financial administration;

(3) The financial information and reporting needs can vary depending on the specific requirements of agency management, the Mayor, the Council, grantors, and the public;

(4) Change is increasingly a major factor in governmental accounting and reporting and the District must be capable of responding to these changes;

(5) Control and accountability over District resources is a primary function of all public officials and employees; and that the Mayor under § 1-204.48(a)(2) has the authority and responsibility for monitoring systems of accounting;

(6) The financial accounting of the District and the systems supporting this accounting must provide for timely, accurate, and full and complete financial disclosure;

(7) The fund structure and the financial systems and related accounting policies, practices, and procedures must provide information to demonstrate compliance with applicable laws and administrative regulations and enable the District to report its financial activities in accordance with generally accepted accounting principles;

(8) Section 47-119(a) requires that for the fiscal year beginning October 1, 1979, that financial statements should be prepared in accordance with generally accepted accounting principles;

(9) As an outgrowth of the study and activities of the Temporary Commission on Financial Oversight of the District of Columbia, a proposed fund structure for the District has been recommended that will provide a modern financial systems base for sound financial management of the District, and preparation of financial statements in accordance with generally accepted accounting principles;

(10) The said system requires certain changes in the current fund structure of the District of Columbia; and

(11) The Council intends to adopt said fund structure and policies in order to respond to change and meet the information needs of the various users of financial information to assist the Mayor to design, implement and operate the financial systems and policies, procedures, practices and controls necessary for the sound financial management and administration of the District in a manner consistent with generally accepted accounting principles.

§ 47–372. Definitions.

For purposes of this subchapter:

(1) The term “Mayor” means the Mayor of the District of Columbia.

(2) The term “Council” means the Council of the District of Columbia.

(3) The term “fund” means a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.

(4) The term “fund type” means grouping or classification of funds of similar character or purpose.

(5) The term “fund category” means groupings or classifications of fund types of similar character or purpose.

(6) The term “account group” means a grouping of accounts as provided in § 47-373(3).

(7) The term “fixed asset” means capitalized, tangible, long-lived assets which are of significant value. General fixed assets are District fixed assets not recorded in a specific fund.

(8) The term “generally accepted accounting principles” (GAAP) means uniform minimum standards of or guidelines to financial accounting and reporting which are promulgated by recognized authoritative accounting organizations or entities, such as, but not limited to, the Financial Accounting Standards Board (FASB) and predecessor organizations, the American Institute of Certified Public Accountants (AICPA), the National Council on Government Accounting (NCGA), the Securities and Exchange Commission (SEC) and the Comptroller General of the United States.

§ 47–373. Organization of fund structure.

Effective October 1, 1979, for purposes of accounting and financial reporting the District of Columbia shall utilize a fund structure organized into the following fund categories, fund types, and account groups:

(1) Fund categories. — All funds of the District of Columbia shall be classified and maintained by the Mayor into 1 of the following 3 categories:

(A) Governmental funds. — These funds shall be composed of accounts for the acquisition, use, and balance of the District’s expendable financial resources and the related current liabilities except those funds accounted for in proprietary funds. The governmental fund category shall include the following fund types:

(i) General;

(ii) Capital projects; and

(iii) Debt service;

(B) Proprietary funds. — These funds shall be composed of activities which are intended to be monitored in a manner similar to those found in the private sector. The assets, liabilities, equities, revenues, expenses, and transfers shall be separately accounted for in such fund and be maintained separately from the General Fund of the District of Columbia in accordance with the legal requirements applicable to such fund or in accordance with generally accepted accounting principles applicable to such funds. The following fund types shall be considered proprietary funds:

(i) Enterprise funds;

(ii) Municipal University Fund;

(iii) Internal services funds;

(iv) Hospital Fund;

(v) Material fund;

(vi) Antitrust fund; and

(vii) Tenant Assistance Program;

(C) Fiduciary funds. — These funds shall consist of assets held by the District of Columbia in a trustee capacity or as an agent for individuals, private organizations, other governmental units or for similar types of purposes. This category shall include the following fund types:

(i) Trust funds; and

(ii) Agency funds.

(2) Fund types. — The Mayor shall maintain 9 fund types within the fund categories established in paragraph (1) of this section as follows:

(A) General Fund to account for all financial resources except those required to be accounted for in another fund;

(B) Capital projects funds to account for financial resources used for the acquisition or construction of major capital facilities other than those financed by proprietary or fiduciary funds;

(C) Debt service funds to account for the accumulation of resources for, and the payment of, interest and principal on general long-term debt;

(D) Enterprise funds to account for operations that are financed and operated in a manner similar to private business enterprises; or where it has been determined that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance public policy, management control, accountability, or other purposes;

(E) Internal service funds to account for the financing of goods or services provided by the fund to other departments, agencies or funds of the District, or to other governmental units, on a cost-reimbursement or fee for services basis;

(F) Municipal University Fund to account for the functions and activities of the University of the District of Columbia and its constituent funds;

(G) Hospital Fund to account for the function and activities of the D.C. General Hospital;

(H) Trust funds to account for assets held by the District in a trustee capacity or as an agent for individuals, private organizations, other government units, and/or other funds of a similar nature;

(I) Agency funds to account for assets held by the District in a custodial capacity as an agent for individuals, private organizations, other government units, and/or funds of a similar nature; and

(J) Antitrust fund to account for the investigation, preparation, institution, and maintenance of antitrust actions by the District of Columbia government.

(3) Account groups. — The Mayor shall maintain 2 account groups, the general fixed asset group of accounts and the general long-term debt group of accounts, to establish account control and accountability for the District’s general fixed assets not accounted for in a specific fund and the unmatured principal of its general obligation long-term debt and any other non-current liabilities of the District not accounted for in a specific fund:

(A) The general fixed asset group of accounts shall be used to record the District’s capitalized general fixed assets which are not recorded in proprietary or fiduciary funds. Fixed assets related to specific proprietary funds or fiduciary funds will be accounted for through those funds; and

(B) The general long-term debt group of accounts shall be used to record the unmatured principal of general obligations long-term debt and any other non-current general long-term liabilities which are not recorded in another proprietary or fiduciary fund. Non-current liabilities of proprietary funds and fiduciary funds will be accounted for through those funds.

(June 14, 1980, D.C. Law 3-70, § 4, 27 DCR 1776; Aug. 22, 1980, D.C. Law 3-82, § 4, 27 DCR 2647; Mar. 5, 1981, D.C. Law 3-169, § 3(b), 27 DCR 5368; Oct. 2, 1987, D.C. Law 7-30, § 6, 34 DCR 5304; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-373.

Section References

This section is referenced in § 2-1210.02, § 6-202, § 7-733, § 7-733.02, § 8-2131.07, § 29-102.13, § 37-103, § 42-1214, § 44-234, § 44-420.01, § 47-372, and § 47-2851.13.

Cross References

Driver education program, trust fund, see § 50-1405.01.

Eastern market enterprise fund, see § 37-103.

License law, establishment of basic business license fund, see § 47-2851.13.

Recorder of deeds, automation and infrastructure improvement fund, see § 42-1214.

Sale of public lands, expenses and proceeds of sale, board of education real property improvement and maintenance fund, see §

Editor's Notes

Restriction on moneys borrowed for capital projects: Section 120 of Pub. L. 101-168, the District of Columbia Appropriations Act, 1990, provided that the Mayor shall not expend any moneys borrowed for capital projects for the operating expenses of the District of Columbia government.

§ 47–374. Accepted accounting principles to be followed.

(a) Beginning October 1, 1979, the District will account for and report on, unless specifically noted in financial reports, its financial transactions in accordance with generally accepted accounting principles.

(b) The systems, procedures, and controls established by the Mayor shall permit the District to demonstrate and report on compliance with legal requirements and contractual agreements as well as generally accepted accounting principles.

§ 47–375. Duties of Mayor.

(a) The Mayor shall be responsible for the future classification of any funds and accounts within the appropriate fund types and fund categories as set forth in this subchapter.

(b) Classification by the Mayor shall be consistent with generally accepted accounting principles.

(c) The Mayor shall furnish the Council notice of his or her classification at the time of the submission of the annual budget for the District of Columbia government as provided in § 1-204.42(a).

(d) The Mayor, pursuant to §§ 1-204.47, 1-204.48, and 1-204.49, shall be responsible for developing and implementing appropriate accounting policies and procedures to carry out the purposes of this subchapter, including all steps necessary to establish the systems and internal procedures and controls necessary to assure proper application of the policies and procedures and appropriate proceedings for monitoring such system.

(e) The financial statement submitted by the Mayor to the Council pursuant to § 1-204.48(a)(4) shall identify any changes in accounting principles and policies followed by the District, the reasons therefore, and the practical effect of the changes.

(f) To the maximum extent possible, common terminology and classifications will be used in the budgeting, accounting and reporting process.

(g) The Mayor is authorized to establish for accounting and financial reporting purposes a Water and Sewer Enterprise Fund in accordance with generally accepted accounting principles.

(h) The enumeration contained in this section shall not be construed so as to limit the Mayor’s authority with respect to classification and establishment of appropriate accounting procedures for other funds or accounts not specifically referenced.

(i) Nothing contained in the Revenue Funds Availability Act of 1975 shall prevent the Mayor from accounting for revenues and expenditures in accordance with generally accepted accounting principles.

(June 14, 1980, D.C. Law 3-70, §§ 6, 7(h)-(j), 27 DCR 1776; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-375.

Section References

This section is referenced in § 31-2408.01, § 34-2202.07, and § 34-2407.02.

Cross References

Insurance, uninsured motorist fund, see § 31-2408.01.

Water and sewer enterprise fund, establishment, see § 34-2202.07.

Water supply, sale of property in satisfaction of unpaid service charges, water and sewer enterprise fund, see § 34-2407.02.

References in Text

The Revenue Funds Availability Act of 1975, referred to in subsection (i) of this section, is D.C. Law 1-42.

§ 47–376. Construction of subchapter.

(a) Nothing in this subchapter shall be construed as impinging upon or otherwise superseding the authority otherwise vested by law in independent agencies or instrumentalities of the District of Columbia.

(b) Nothing in this subchapter shall be construed to prohibit the Mayor from establishing accounts within funds, to the same extent that he or she was authorized prior to the passage of this subchapter.

(c) The Mayor shall promptly advise the Council on any changes in the financial management system required pursuant to § 2 of an Act to provide for an independent audit of the financial condition of the government of the District of Columbia.

§ 47–377. Financial obligations of District.

The Mayor is authorized to establish such systems as may be required for the accounting and certification of financial obligations of the District of Columbia government and may, through delegations and designations of District government officials and agencies (identified by name in the District of Columbia Register prior to such delegation or designation), provide for the decentralized audit and approval before payment of bills, invoices, payrolls, and other evidence of claims, demands, or charges against the District of Columbia government.

Subchapter VI. Funds Control.

§ 47–381. Findings.

The Council of the District of Columbia finds:

(1) That there exists a public perception that the District budget approved by the Council, after considerable careful public examination, is the plan which determines the manner in which District funds will be spent;

(2) That the District’s new financial management system, which became operative in fiscal year 1980, provides the Council a new level of budget information;

(3) That questions remain in regard to the role of the Council with respect to ongoing oversight and control of the District budget;

(4) That a large portion of the District’s annual expenditures are funded by grants from the federal government and private sources. Although these grant funds are a major portion of the District’s program process, to a great extent, planning and allocation of these funds are without public participation through the legislative process;

(5) That under the District’s new financial management system, the Council will be excluded from approval or review of federal grant funds to District agencies;

(6) That the District does not have a legislative process to address and control all city expenditures from all revenue sources; and

(7) That there is a need to clearly define the continuing role of the Council in the budget process in order to resolve those questions critical to the shaping of public policy and the prudent management of publicly entrusted tax dollars.

§ 47–382. Definitions.

For the purposes of this subchapter, the term:

(1) “Agency” means the highest organizational structure of the District at which budgeting data is aggregated, but shall not include the District of Columbia Courts.

(2) “Control budget” means the mechanism for the implementation and execution of the District obligational and revenue activities for any given fiscal year.

(3) “Control center” means 1 or more responsibility centers aggregated for financial controls purposes.

(4) “Council” means the Council of the District of Columbia.

(5) “Days” means calendar days.

(6) “District” means the District of Columbia government.

(7) “Formula grant” means any grant which allocates federal funds to the District in accordance with distribution formulas prescribed by law for activities of a continuing nature not confined to a specific project.

(8) “Grant” or “grant funds” means all grants-in-aid, block grants, reimbursements, including reimbursement for indirect costs, or other similar programs, the funds, or budgetary authority for which are provided by the federal government, other than through appropriation of revenue funds or any fund required by act of Congress to be treated as a local revenue. The term “grant funds” also includes any private funds voluntarily donated to the District and accepted by it for a specific purpose not connected with the payment of a tax, fee, charge, or other similar legal obligation.

(9) “Grant-making agency” means the federal government or private source of grant funds.

(10) “Gross planning budget” means the planning budget of the District including all anticipated revenue irrespective of source, and all planned expenditures presented at the responsibility center level of detail.

(11) “Non-appropriated budget authority” means the authority of the District to incur obligations and make payments for specified purposes against funds which are not subject to approval by the Congress in the annual appropriations act for the District.

(12) “Responsibility center” means the primary level at which a budget is established for financial control purposes.

(13) “Revenue funds” means all funds derived from taxes, fees, charges, miscellaneous receipts, annual federal payments to the District authorized by law, funds derived from the sale of bonds which are general obligations of the District, general revenue sharing funds, or any other funds which are not grant funds as defined by this subchapter.

(14) “State plan” means any plan or revision thereto other than an application to be filed with and approved by a grantor as a condition of receiving grant funds.

§ 47–383. Grant application procedure.

(a) All grant applications shall be prepared in the name of the government of the District of Columbia. Any agency, other than those referred to in subsection (b) of this section, which desires to receive grant funds or submit a state plan shall request approval by the Mayor subject to regulations issued by the Mayor in accordance with the provisions of § 2-505.

(b) The Trustees of the University of the District of Columbia, the Board of Education, and the D.C. General Hospital Commission shall submit to the Mayor two copies of the application and completed approval form, as an advisory notice, concurrent with submitting the application and completed approval form to a grant-making agency in accordance with rules and regulations issued pursuant to subsection (c) of this section.

(c) Those agencies identified in subsection (b) of this section shall, within 180 days of September 16, 1980, develop rules and regulations for grant applications review and approval consistent with the responsibilities of the governing bodies of those agencies, and such rules and regulations shall be issued in accordance with the provisions of § 2-505.

§ 47–384. Notice of application for grant funds.

(a) The Mayor shall monthly give notice to the Council of every proposed application for grant funds or state plan approved by the Mayor. In giving notice to the Council, the Mayor shall provide a summary of a grant application’s major provisions including, but not limited to:

(1) The grant-making agency to whom the application is made;

(2) The period of the proposed grant;

(3) Whether the proposed grant is new or a request for a renewal or revision of an existing grant;

(4) A statement summarizing the purpose of the grant, and indicating its relationship to any proposed or adopted state plan, if appropriate;

(5) A statement as to whether or not the function for which the grant is sought is already being performed by the District or within the private sector and, if so, how the grant will affect service delivery;

(6) The amount to be received by fiscal year;

(7) The amount of District appropriated funds, by fiscal year, to be used as a match, or the dollar equivalent and type of in-kind services to be used as a match by fiscal year and the impact on the agency budget providing the match;

(8) A statement indicating the agency which shall administer the grant and any subgrantees including other District agencies, private organizations, or individuals;

(9) A planning budget at the control center level for the grant, and the match, if any, including the number of employees by program structures, grade, position, and title who may be employed as a result of the grant;

(10) A statement setting forth the quantitative and qualitative measures to be employed, if any, to judge the effectiveness and efficiency of the program in meeting its stated goals;

(11) A statement describing the public participation, if any, in the formulation of the grant request;

(12) A statement indicating whether or not an audit is to be made during the life of the grant or at its expiration, and if so, by whom and the scope of the audit to be performed;

(13) A statement as to whether or not an environmental impact statement is required or planned;

(14) A statement as to how the objectives of the grant will be performed or funded, if at all, when the grant expires, and any proposed commitment to continue meeting the objectives at the end of the grant period with District appropriated funds or other grant funds, including an estimate of the annual cost of that commitment; and

(15) A statement of the amount of indirect cost charged to the grant, and where appropriate, a statement of grant-making agency policy or legislation for indirect costs recoveries which are different from negotiated agreements; and the proposed allocation of indirect costs recovered on the grant.

(b) The Mayor shall monthly provide public notice of grant applications in the D.C. Register in accordance with the provisions of the District of Columbia Administrative Procedure Act (§ 2-505); and such public notice shall also be provided by the presiding officer of the governing bodies of those agencies identified in § 47-383(b); and such notice shall include, but not be limited to, a summary of the information required pursuant to subsection (a) of this section.

§ 47–385. Procedure for Council consent to certain grant applications and state plans.

(a) Applications and state plans requiring Council consent. — In addition to the notice required by § 47-384, the terms and conditions of each grant application or state plan which provides for or requests any of the following shall be approved by consent of the Council prior to submission to the federal grant-making agency:

(1) Any formula grant of more than $5,000,000;

(2) Any grant or state plan requiring the obligation of more than $100,000 in matching funds or in-kind contributions in any fiscal year; or

(3) Any other grant funded program which, in the Mayor’s reasonable expectation, will require future annual funding of $100,000 or more out of District revenue funds after the termination of the proposed grant.

(b) Submission to and consent by Council. —

(1) The Mayor, 5 days before approving any grant application or state plan meeting any of the criterion of subsection (a) of this section, shall submit a copy of such application or state plan to the Chairman of the Council, along with such information as required by § 47-384(a) and including copies of any state plans which are required as a condition of a grant.

(2) The Chairman of the Council shall circulate such application or state plan to the members of the Council with a notice labeling it as requiring Council consent for submission to a grant-making agency.

(3) The Mayor shall cause to be published in the D.C. Register public notice of such submission. The notice shall include a statement that Council consent is required pursuant to this section.

(4) The Council shall consider such application or state plan according to its rules. Should no written notice of disapproval of such application or state plan be filed by any member of the Council within 14 days of the receipt of such application from the Mayor, the consent of the Council to the application shall be deemed to be given. Should notice of disapproval be filed during such initial 14-day period, the Council shall dispose of such notice of disapproval within 30 days of the initial receipt of the application from the Mayor, or Council consent to the application shall be deemed to be given; provided, that nothing in this paragraph shall be construed to waive any requirement for affirmative Council approval by the grant-making agency.

(5) No applications or state plans may be submitted to the Chairman of the Council during such time as the Council is on recess, according to its rules, nor shall any time period provided in this section continue to run during such time as the Council is on recess.

(c) Reconsideration by Council. — If the Council withholds its consent to a grant application, the Mayor may, on a clear showing of changed circumstances, new information, or additional administrative hardship, ask for a reconsideration of the previous action of the Council. The Council may at its discretion reconsider its previous action.

(d) Exemptions. — The grants submitted by agencies identified in § 47-383(b) are exempt from the provisions of this section.

Subchapter VI-A. Certification of Accumulated General Fund Balance.

§ 47–387.01. Certification by the CFO of minimum 5% accumulated general fund balance. [Repealed]

[Repealed].

(Oct. 20, 1999, D.C. Law 13-38, § 2702(a)(2), 46 DCR 6373; Oct. 1, 2002, D.C. Law 14-190, § 802(a), 49 DCR 6968; Oct. 30, 2018, D.C. Law 22-168, § 7192(b), 65 DCR 9388.)

Section References

This section is referenced in § 47-812 and § 47-1806.03.

Effect of Amendments

D.C. Law 14-190, in the introductory paragraph, deleted “for fiscal years 1999, 2000, 2001, and 2002” from the first sentence.

Cross References

Establishment of real property tax rates, see § 47-812.

Income and franchise taxes, residents and nonresidents, imposition and rates, see § 47-1806.03.

Real property tax rates, property classes, see § 47-813.

Tax on corporations and financial institutions, levy and rates, see § 47-1807.02.

Tax on unincorporated businesses, levy and rates, see § 47-1808.03.

Emergency Legislation

For temporary (90 days) repeal of this section, see § 7192(b) of Fiscal Year 2019 Budget Support Congressional Review Emergency Act of 2018 (D.C. Act 22-458, Oct. 3, 2018, 65 DCR 11212).

For temporary (90 days) repeal of this section, see § 7192(b) of Fiscal Year 2019 Budget Support Emergency Act of 2018 (D.C. Act 22-434, July 30, 2018, 65 DCR 8200).

For temporary (90 day) amendment of section, see § 802(a) of Fiscal Year 2003 Budget Support Emergency Act of 2002 (D.C. Act 14-453, July 23, 2002, 49 DCR 8026).

Short Title

Short title of subtitle A of title VIII of Law 14-190: Section 801 of D.C. Law 14-190 provided that subtitle A of title VIII of the act may be cited as the Tax Rate Revision Amendment Act of 2002.

Subchapter VI-B. Certifications for Maintenance of Effort and Matching Funds.

§ 47–387.51. Maintenance of Effort and Matching funds inclusion in budget.

Beginning with the Fiscal Year 2003 Proposed Budget and Financial Plan, the Chief Financial Officer shall certify to the Council that the Mayor has included in the proposed budget and financial plan the amounts necessary to meet and maintain the local requirements for Maintenance of Effort and Matching funds and the certification shall be included in the proposed budget and financial plan submitted by the Mayor to the Council.

§ 47–387.52. Effect of reprogrammings on Maintenance of Effort and Matching funds.

Beginning in Fiscal Year 2002, the Chief Financial Officer shall certify that any proposed reprogramming by the Mayor will not affect the amounts necessary to meet and maintain the local requirements for Maintenance of Effort and Matching funds and the certification shall be included in the proposed reprogramming request submitted by the Mayor to the Council.

Subchapter VII. Financial Responsibility and Management Assistance.

Part A. Establishment and Organization of Authority.

§ 47–391.01. District of Columbia Financial Responsibility and Management Assistance Authority.

(a) Establishment. — Pursuant to Article I, section 8, clause 17 of the Constitution of the United States, there is hereby established the District of Columbia Financial Responsibility and Management Assistance Authority, consisting of members appointed by the President in accordance with subsection (b) of this section. Subject to the conditions described in § 47-391.08 and except as otherwise provided in this Act, the Authority is established as an entity within the government of the District of Columbia, and is not established as a department, agency, establishment, or instrumentality of the United States Government.

(b) Membership. —

(1) In general. — The Authority shall consist of 5 members appointed by the President who meet the qualifications described in subsection (c) of this section, except that the Authority may take any action under this Act (or any amendments made by this Act) at any time after the President has appointed 3 of its members.

(2) Consultation with Congress. — The President shall appoint the members of the Authority after consulting with the Chair of the Committee on Appropriations and the Chair of the Committee on Government Reform and Oversight of the House of Representatives, the Chair of the Committee on Appropriations and the Chair of the Committee on Governmental Affairs of the Senate, and the Delegate to the House of Representatives from the District of Columbia.

(3) Chair. — The President shall designate one of the members of the Authority as the Chair of the Authority.

(4) Sense of Congress regarding deadline for appointment. — It is the sense of Congress that the President should appoint the members of the Authority as soon as practicable after April 17, 1995, but in no event later than 25 days after April 17, 1995.

(5) Term of service. —

(A) In general. — Except as provided in subparagraph (B) of this paragraph, each member of the Authority shall be appointed for a term of 3 years.

(B) Appointment for term following initial term. — As designated by the President at the time of appointment for the term immediately following the initial term, of the members appointed for the term immediately following the initial term:

(i) 1 member shall be appointed for a term of 1 year;

(ii) 2 members shall be appointed for a term of 2 years; and

(iii) 2 members shall be appointed for a term of 3 years.

(D) Continuation of service until successor appointed. — Upon the expiration of a term of office, a member of the Authority may continue to serve until a successor has been appointed.

(c) Qualifications for membership. — An individual meets the qualifications for membership on the Authority if the individual:

(1) Has knowledge and expertise in finance, management, and the organization or operation of business or government;

(2) Does not provide goods or services to the District government (and is not the spouse, parent, child, or sibling of an individual who provides goods and services to the District government);

(3) Is not an officer or employee of the District government; and

(4) Maintains a primary residence in the District of Columbia or has a primary place of business in the District of Columbia.

(d) No compensation for service. — Members of the Authority shall serve without pay, but may receive reimbursement for any reasonable and necessary expenses incurred by reason of service on the Authority.

(e) Adoption of by-laws for conducting business of Authority. —

(1) In general. — As soon as practicable after the appointment of its members, the Authority shall adopt by-laws, rules, and procedures governing its activities under this Act, including procedures for hiring experts and consultants. Such by-laws, rules, and procedures shall be public documents, and shall be submitted by the Authority upon adoption to the Mayor, the Council, the President, and Congress.

(2) Certain activities requiring approval of majority of members. — Under the by-laws adopted pursuant to paragraph (1) of this subsection, the Authority may conduct its operations under such procedures as it considers appropriate, except that an affirmative vote of a majority of the members of the Authority shall be required in order for the Authority to:

(A) Approve or disapprove a financial plan and budget under part B of this subchapter [§ 47-392.01 et seq.];

(B) Implement recommendations on financial stability and management responsibility under § 47-392.07;

(C) Give consent to the appointment of the Chief Financial Officer of the District of Columbia under part Bi of subchapter IV of Chapter 2 of Title 1 [§ 1-204.24a et seq.]; and

(D) Give consent to the appointment of the Inspector General of the District of Columbia under § 2-302.08(a) [§ 1-301.115a(a)].

(3) Adoption of rules and regulations of District of Columbia. — The Authority may incorporate in its by-laws, rules, and procedures under this subsection such rules and regulations of the District government as it considers appropriate to enable it to carry out its activities under this Act with the greatest degree of independence practicable.

(Apr. 17, 1995, 109 Stat. 100, Pub. L. 104-8, § 101; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Oct. 21, 1998, 112 Stat. 2681-149, Pub. L. 105-277, § 164.)

Prior Codifications

1981 Ed., § 47-391.1.

Section References

This section is referenced in § 1-204.24f, § 1-204.53, § 1-204.56e, § 1-206.02, § 1-301.115a, § 9-109.03, § 38-1800.02, § 47-317.03a, § 47-393, and § 47-3401.05.

Cross References

Chief financial officer, powers during control periods, see § 47-317.03a.

Council, limitations on authority, see § 1-206.02.

Mayor’s authority to reduce budgets of independent agencies, see § 1-204.53.

Performance and financial accountability of departments, Mayor’s submission of reports, see § 1-204.56b.

Procurement, office of the inspector general, powers and duties, reports, see § 2-302.08.

References in Text

“This Act,” referred to in subsections (a), (b)(1), (e)(1) and (e)(3) is the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995, 109 Stat. 97, Pub. L. 104-8.

Editor's Notes

Management reform: Section 161 of Pub. L. 105-277 provided that notwithstanding any other provisions of law, funds allocated to management reform by the District of Columbia Financial Responsibility and Management Assistance Authority under Pub. L. 105-200 (111 Stat. 2159), as contained in the Authority’s notification of June 24, 1998, shall remain available for management reform until September 30, 1999, provided that said funds shall not exceed $3,200,000.

§ 47–391.02. Executive Director and staff of Authority.

(a) Executive Director. — The Authority shall have an Executive Director who shall be appointed by the Chair with the consent of the Authority. The Executive Director shall be paid at a rate determined by the Authority, except that such rate may not exceed the rate of basic pay payable for level IV of the Executive Schedule.

(b) Staff. — With the approval of the Chair, the Executive Director may appoint and fix the pay of additional personnel as the Executive Director considers appropriate, except that no individual appointed by the Executive Director may be paid at a rate greater than the rate of pay for the Executive Director.

(1) Civil service laws. — The Executive Director and staff of the Authority may be appointed without regard to the provisions of Title 5, United States Code, governing appointments in the competitive service, and paid without regard to the provisions of Chapter 51 and subchapter III of Chapter 53 of that title relating to classification and General Schedule pay rates.

(2) District employment and procurement laws. — The Executive Director and staff of the Authority may be appointed and paid without regard to the provisions of the District of Columbia Official Code governing appointments and salaries. The provisions of the District of Columbia Official Code governing procurement shall not apply to the Authority.

(d) Staff of Federal agencies. — Upon request of the Chair, the head of any Federal department or agency may detail, on a reimbursable or nonreimbursable basis, any of the personnel of that department or agency to the Authority to assist it in carrying out its duties under this Act.

(e) Preservation of retirement and certain other rights of federal employees who become employed by the Authority. —

(1) In general. — Any federal employee who becomes employed by the Authority:

(A) May elect, for purposes set forth in paragraph (2)(A) of this subsection, to be treated, for so long as that individual remains continuously employed by the Authority, as if such individual had not separated from service with the federal government, subject to paragraph (3) of this subsection; and

(B) Shall, if such employee subsequently becomes reemployed by the federal government, be entitled to have such individual’s service with the Authority treated, for purposes of determining the appropriate leave accrual rate, as if it had been service with the federal government.

(2) Effect of an election. — An election made by an individual under the provisions of paragraph (1)(A) of this subsection:

(A) Shall qualify such individual for the treatment described in such provisions for purposes of:

(i) Chapter 83 or 84 of Title 5, United States Code, as appropriate (relating to retirement), including the Thrift Savings Plan;

(ii) Chapter 87 of such title (relating to life insurance); and

(iii) Chapter 89 of such title (relating to health insurance); and

(B) Shall disqualify such individual, while such election remains in effect, from participating in the programs offered by the government of the District of Columbia (if any) corresponding to the respective programs referred to in subparagraph (A) of this paragraph.

(3) Conditions for an election to be effective. — An election made by an individual under paragraph (1)(A) of this subsection shall be ineffective unless:

(A) It is made before such individual separates from service with the federal government; and

(B) Such individual’s service with the Authority commences within 3 days after so separating (not counting any holiday observed by the government of the District of Columbia).

(4) Contributions. — If any individual makes an election under paragraph (1)(A) of this subsection, the Authority shall, in accordance with applicable provisions of law referred to in paragraph (2)(A) of this subsection, be responsible for making the same deductions from pay and the same agency contributions as would be required if it were a federal agency.

(5) Regulations. — Any regulations necessary to carry out this subsection shall be prescribed in consultation with the Authority by:

(A) The Office of Personnel Management, to the extent that any program administered by the office is involved;

(B) The appropriate office or agency of the government of the District of Columbia, to the extent that any program administered by such office or agency is involved; and

(C) The Executive Director referred to in § 8474 of Title 5, United States Code, to the extent that the Thrift Savings Plan is involved.

(f) Federal benefits for others. —

(1) In general. — The Office of Personnel Management, in conjunction with each corresponding office or agency of the government of the District of Columbia and in consultation with the Authority, shall prescribe regulations under which any individual who becomes employed by the Authority (under circumstances other than as described in subsection (e)) may elect either:

(A) To be deemed a Federal employee for purposes of the programs referred to in subsection (e)(2)(A)(i) through (iii) of this section; or

(B) To participate in 1 or more of the corresponding programs offered by the government of the District of Columbia.

(2) Effect of an election. — An individual who elects the option under paragraph (1)(A) and (B) of this subsection shall be disqualified, while such election remains in effect, from participating in any of the programs referred to in the other such subparagraph.

(3) Definition of corresponding office or agency. — For purposes of paragraph (1), the term “corresponding office or agency of the government of the District of Columbia” means, with respect to any program administered by the Office of Personnel Management, the office or agency responsible for administering the corresponding program (if any) offered by the government of the District of Columbia.

(4) Thrift Savings Plan. — To the extent that the Thrift Savings Plan is involved, the preceding provisions of this subsection shall be applied by substituting “the Executive Director referred to in section 8474 of Title 5, United States Code” for “the Office of Personnel Management”.

(g)(1) Additional election for former federal employees serving on date of enactment; election for employees appointed during interim period. —

(A) In general. — Any former federal employee employed by the Authority on the effective date of the regulations referred to in subsection (h)(1)(A) of this section may, within such period as may be provided for under those regulations, make an election similar, to the maximum extent practicable, to the election provided for under subsection (e) of this section. Such regulations shall be prescribed jointly by the Office of Personnel Management and each corresponding office or agency of the government of the District of Columbia in the same manner as provided for in subsection (f) of this section.

(B) Exception. — An election under this paragraph may not be made by any individual who:

(i) Is not then participating in a retirement system for federal employees (disregarding Social Security); or

(ii) Is then participating in any program of the government of the District of Columbia referred to in subsection (e)(2)(B) of this section.

(2) Election for employees appointed during interim period. —

(A) From the federal government. — Subsection (e) of this section (as last in effect before April 24, 1996) shall be deemed to have remained in effect for purposes of any federal employee who becomes employed by the District of Columbia Financial Responsibility and Management Assistance Authority during the period beginning on such date of enactment and ending on the day before the effective date of the regulations prescribed to carry out paragraph (1) of this subsection.

(B) Other individuals. — The regulations prescribed to carry out subsection (f) of this section shall include provisions under which an election under subsection (f) of this section shall be available to any individual who:

(i) Becomes employed by the District of Columbia Financial Responsibility and Management Assistance Authority during the period beginning on April 24, 1996, and ending on the day before the effective date of such regulations;

(ii) Would have been eligible to make an election under such regulations had those regulations been in effect when such individual became so employed; and

(iii) Is not then participating in any program of the government of the District of Columbia referred to in subsection (f)(1)(B) of this section.

(h) Effective date. — Not later than 6 months after April 24, 1996, there shall be prescribed in consultation with the Authority (and take effect):

(1) Regulations to carry out subsections (e), (f), and (g) of this section; and

(2) Any other regulations necessary to carry out subsections (e), (f), and (g) of this section.

§ 47–391.03. Powers of Authority.

(a) Hearings and sessions. — The Authority may, for the purpose of carrying out this Act, hold hearings, sit and act at times and places, take testimony, and receive evidence as the Authority considers appropriate. The Authority may administer oaths or affirmations to witnesses appearing before it.

(b) Powers of members and agents. — Any member or agent of the Authority may, if authorized by the Authority, take any action which the Authority is authorized to take by this section.

(1) From Federal government. — Notwithstanding sections 552 (commonly known as the Freedom of Information Act), 552a (the Privacy Act of 1974), and 552b (the Government in the Sunshine Act) of Title 5, United States Code, the Authority may secure directly from any department or agency of the United States information necessary to enable it to carry out this Act, with the approval of the head of that department or agency.

(2) From District government. — Notwithstanding any other provision of law, the Authority shall have the right to secure copies of such records, documents, information, or data from any entity of the District government necessary to enable the Authority to carry out its responsibilities under this Act. At the request of the Authority, the Authority shall be granted direct access to such information systems, records, documents or information or data as will enable the Authority to carry out its responsibilities under this Act. The head of the entity of the District government responsible shall provide the Authority with such information and assistance (including granting the Authority direct access to automated or other information systems) as the Authority requires under this paragraph.

(d) Gifts, bequests, and devises. — The Authority may accept, use, and dispose of gifts, bequests, or devises of services or property, both real and personal, for the purpose of aiding or facilitating the work of the Authority. Gifts, bequests, or devises of money and proceeds from sales of other property received as gifts, bequests, or devises shall be deposited in such account as the Authority may establish and shall be available for disbursement upon order of the Chair.

(e) Subpoena power. —

(1) In general. — The Authority may issue subpoenas requiring the attendance and testimony of witnesses and the production of any evidence relating to any matter under investigation by the Authority. The attendance of witnesses and the production of evidence may be required from any place within the United States at any designated place of hearing within the United States.

(2) Failure to obey a subpoena. — If a person refuses to obey a subpoena issued under paragraph (1) of this subsection, the Authority may apply to a United States district court for an order requiring that person to appear before the Authority to give testimony, produce evidence, or both, relating to the matter under investigation. The application may be made within the judicial district where the hearing is conducted or where that person is found, resides, or transacts business. Any failure to obey the order of the court may be punished by the court as civil contempt.

(3) Service of subpoenas. — The subpoenas of the Authority shall be served in the manner provided for subpoenas issued by United States district court under the Federal Rules of Civil Procedure for the United States district courts.

(4) Service of process. — All process of any court to which application is made under paragraph (2) of this subsection may be served in the judicial district in which the person required to be served resides or may be found.

(f) Administrative support services. — Upon the request of the Authority, the Administrator of General Services shall promptly provide to the Authority, on a reimbursable basis, the administrative support services necessary for the Authority to carry out its responsibilities under this Act.

(g) Authority to enter into contracts. — The Executive Director may enter into such contracts as the Executive Director considers appropriate (subject to the approval of the Chair) to carry out the Authority’s responsibilities under this Act.

(h) Civil actions to enforce powers. — The Authority may seek judicial enforcement of its authority to carry out its responsibilities under this Act.

(i) Penalties. —

(1) Acts prohibited. — Any officer or employee of the District government who:

(A) Takes any action in violation of any valid order of the Authority or fails or refuses to take any action required by any such order; or

(B) Prepares, presents, or certifies any information (including any projections or estimates) or report for the Board or any of its agents that is false or misleading, or, upon learning that any such information is false or misleading, fails to immediately advise the Board or its agents thereof in writing, shall be guilty of a misdemeanor, and shall be fined not more than the amount set forth in [§ 22-3571.01], imprisoned for not more than 1 year, or both.

(2) Administrative discipline. — In addition to any other applicable penalty, any officer or employee of the District government who knowingly and willfully violates paragraph (1) of this subsection shall be subject to appropriate administrative discipline, including (when appropriate) suspension from duty without pay or removal from office by order of either the Mayor or Authority.

(3) Report by Mayor on disciplinary actions taken. — In the case of a violation of paragraph (1) of this subsection by an officer or employee of the District government, the Mayor shall immediately report to the Board all pertinent facts together with a statement of the action taken thereon.

(Apr. 17, 1995, 109 Stat. 103, Pub. L. 104-8, § 103; Apr. 26, 1996, 110 Stat. 1321 221, Pub. L. 104-134, § 153(a); Sept. 30, 1996, 110 Stat. 3009 1455, 1456, Pub. L. 104-208, §§ 5203(b), (c); enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; June 11, 2013, D.C. Law 19-317, § 286(b), 60 DCR 2064.)

Prior Codifications

1981 Ed., § 47-391.3.

Section References

This section is referenced in § 47-391.05.

Effect of Amendments

The 2013 amendment by D.C. Law 19-317 substituted “not more than the amount set forth in [§ 22-3571.01]” for “not more than $1,000” in (i)(1)(B).

Emergency Legislation

For temporary (90 days) amendment of this section, see § 286(b) of the Criminal Fine Proportionality Emergency Act of 2013 (D.C. Act 20-45, April 1, 2013, 60 DCR 5400, 20 DCSTAT 1300).

References in Text

“This Act,” referred to in subsections (a), (c)(1), (c)(2), (f), (g), and (h), is the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995, 109 Stat. 97, Pub. L. 104.8.

Editor's Notes

Applicability of D.C. Law 19-317: Section 401 of D.C. Law 19-317 provided that the act shall apply only to offenses committed on or after June 11, 2013.

§ 47–391.04. Exemption from liability for claims for authority employees.

The Authority, its members, and its employees may not be liable for any obligation of or claim against the Authority or its members or employees or the District of Columbia resulting from actions taken to carry out this Act.

§ 47–391.05. Treatment of actions arising from act.

(a) Jurisdiction established in District Court for District of Columbia. — Except as provided in § 47-391.03(e)(2) (relating to the issuance of an order enforcing a subpoena), any action against the Authority or any action otherwise arising out of this Act, in whole or in part, shall be brought in the United States District Court for the District of Columbia.

(b) Prompt appeal. —

(1) Court of appeals. — Notwithstanding any other provision of law, any order of the United States District Court for the District of Columbia which is issued pursuant to an action brought under subsection (a) of this section shall be reviewable only pursuant to a notice of appeal to the United States Court of Appeals for the District of Columbia Circuit.

(2) Supreme Court. — Notwithstanding any other provision of law, review by the Supreme Court of the United States of a decision of the Court of Appeals which is issued pursuant to paragraph (1) of this subsection may be had only if the petition for such review is filed within 10 days after the entry of such decision.

(c) Timing of relief. — No order of any court granting declaratory or injunctive relief against the Authority, including relief permitting or requiring the obligation, borrowing, or expenditure of funds, shall take effect during the pendency of the action before such court, during the time appeal may be taken, or (if appeal is taken) during the period before the court has entered its final order disposing of such action.

(d) Expedited consideration. — It shall be the duty of the United States District Court for the District of Columbia, the United States Court of Appeals for the District of Columbia Circuit, and the Supreme Court of the United States to advance on the docket and to expedite to the greatest possible extent the disposition of any matter brought under subsection (a) of this section.

§ 47–391.06. Funding for operation of Authority.

(a) Annual budgeting process. —

(1) Submission of budget. — The Authority shall submit a proposed budget for each fiscal year to the President for inclusion in the annual budget for the District of Columbia under part D of title IV of the District of Columbia Home Rule Act not later than the May 1 prior to the first day of the fiscal year. In the case of the budget for fiscal year 1996, the Authority shall submit its proposed budget not later than July 15, 1995.

(2) Contents of budget. — The budget shall describe:

(A) Expenditures of the Authority by each object class, including expenditures for staff of the Authority;

(B) Services of personnel and other services provided by or on behalf of the Authority for which the Authority made no reimbursement; and

(3) Appropriations required. — No amount may be obligated or expended by the Authority for a fiscal year (beginning with fiscal year 1996) unless such amount has been approved by Act of Congress, and then only according to such Act.

(b) Special rule for funding of operations during fiscal year 1995. — As soon as practicable after the appointment of its members, the Authority shall submit to the Mayor and the President:

(1) A request for reprogramming of funds under subsection (c)(1) of this section; and

(2) A description of anticipated expenditures of the Authority for fiscal year 1995 (which shall be transmitted to Congress).

(1) Use of previously appropriated funds in District budget. — The Mayor shall transfer funds previously appropriated to the District government for a fiscal year for auditing and consulting services to the Authority (in such amounts as are provided in the budget request of the Authority under subsection (a) of this section or, with respect to fiscal year 1995, the request submitted under subsection (b)(1) of this section) for the purpose of carrying out the Authority’s activities during the fiscal year.

(2) Other sources of funds. — For provisions describing the sources of funds available for the operations of the Authority during a fiscal year (in addition to any interest earned on accounts of the Authority during the year), see § 47-392.04(b)(1)(A) (relating to the set-aside of amounts requisitioned from the Treasury by the Mayor) and § 47-392.13(b)(3) (relating to the use of interest accrued from amounts in a debt service reserve fund of the Authority).

(d) Use of interest on accounts for the District. —

(1) In general. — Notwithstanding any other provision of this act, the Authority may transfer or otherwise expend any amounts derived from interest earned on accounts held by the Authority on behalf of the District of Columbia for such purposes as it considers appropriate to promote the economic stability and management efficiency of the District government.

(2) Spending not subject to appropriation by Congress. — Notwithstanding subsection (a)(3) of this section, any amounts transferred or otherwise expended pursuant to paragraph (1) of this subsection may be obligated or expended without approval by Act of Congress.

(Apr. 17, 1995, 109 Stat. 105, Pub. L. 104-8, § 106; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Aug. 5, 1997, 111 Stat. 782, Pub. L. 105-33, § 11711(a); Apr. 20, 1999, D.C. Law 12-264, § 52(f), 46 DCR 2118.)

Prior Codifications

1981 Ed., § 47-391.6.

Section References

This section is referenced in § 47-392.04 and § 47-392.13.

References in Text

“Part D of title IV of the District of Columbia Home Rule Act,” referred to in (a)(1), is part D, §§ 441 to 456, of Title IV of Pub. L. 93-198, 87 Stat. 774, approved December 24, 1973, which are codified as §§ 1-204.51, 1-204.52, 1-204.41, 1-204.55, 1-204.50, 1-204.56a to 1-204.56e, 1-204.42 to 1-204.47, 1-204.48 and 1-204.49.

“This act,” referred to in (d)(1), is title XI of Pub. L. 105-33, 111 Stat. 712, the National Capital Revitalization and Self-Government Improvement Act of 1997.

§ 47–391.07. Suspension of activities.

(a) Suspension upon payment of Authority obligations. —

(1) In general. — Upon the expiration of the 12-month period which begins on the date that the Authority certifies that all obligations arising from the issuance by the Authority of bonds, notes, or other obligations pursuant to part C of this subchapter have been discharged, and that all borrowings by or on behalf of the District of Columbia pursuant to §§ 47-3401 through 47-3401.04, have been repaid, the Authority shall suspend any activities carried out under this Act and the terms of the members of the Authority shall expire.

(2) No suspension during control year. — The Authority may not suspend its activities pursuant to paragraph (1) of this subsection at any time during a control year.

(b) Reactivation upon initiation of control period. — Upon receiving notice from the Chairs of the Appropriations Committees of the House of Representatives and the Senate that a control period has been initiated (as described in § 47-392.09) at any time after the Authority suspends its activities under subsection (a) of this section, the President shall appoint members of the Authority, and the Authority shall carry out activities under this Act, in the same manner as the President appointed members and the Authority carried out activities prior to such suspension.

§ 47–391.08. Application of laws of District of Columbia to Authority.

(a) In general. — The following laws of the District of Columbia (as in effect on April 17, 1995) shall apply to the members and activities of the Authority:

(1) § 1-207.42;

(2) §§ 2-531 through 2-536; and

(3) § 1-1162.23.

(b) No control, supervision, oversight, or review by Mayor or Council. — Neither the Mayor nor the Council may exercise any control, supervision, oversight, or review over the Authority or its activities.

(c) Authority not subject to representation by Attorney General for the District of Columbia. — In any action brought by or on behalf of the Authority, and in any action brought against the Authority, the Authority shall be represented by such counsel as it may select, but in no instance may the Authority be represented by the Attorney General for the District of Columbia.

(Apr. 17, 1995, 109 Stat. 107, Pub. L. 104-8, § 108; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Apr. 13, 2005, D.C. Law 15-354, § 73(a)(3), 52 DCR 2638; Mar. 2, 2007, D.C. Law 16-191, § 48(h)(1), 53 DCR 6794; Apr. 27, 2012, D.C. Law 19-124, § 501(n)(1), 59 DCR 1862.)

Prior Codifications

1981 Ed., § 47-391.8.

Section References

This section is referenced in § 47-391.01.

Effect of Amendments

D.C. Law 15-354 substituted “Attorney General for the District of Columbia” for “Corporation Counsel”.

D.C. Law 16-191, in subsec. (c), validated a previously made technical correction.

D.C. Law 19-124, in subsec. (a)(3), substituted “ § 1-1162.23 ” for “§ 1-1106.01”.

Emergency Legislation

For temporary (90 day) amendment of section, see § 401(n)(1) of Board of Ethics and Government Accountability Establishment and Comprehensive Ethics Reform Emergency Amendment Act of 2012 (D.C. Act 19-298, January 29, 2012, 59 DCR 683).

§ 47–391.09. Chief Management Officer.

(a) The Authority may employ a Chief Management Officer of the District of Columbia, who shall be appointed by the Chair with the consent of the Authority. The Chief Management Officer shall assist the Authority in the fulfillment of its responsibilities under the District of Columbia Management Reform Act of 1997, subtitle B of the National Capital Revitalization and Self-Government Improvement Act of 1997, title XI of Public Law 105-33, to improve the effectiveness and efficiency of the District of Columbia Government. The Authority may delegate to the Chief Management Officer responsibility for oversight and supervision of departments and functions of the District of Columbia Government, or successor departments and functions, consistent with the District of Columbia Management Reform Act of 1997, subtitle B of the National Capital Revitalization and Self-Government Improvement Act of 1997, title XI of Public Law 105-33. The Chief Management Officer shall report directly to the Authority, through the Chair of the Authority, and shall be directed in his or her performance by a majority of the Authority. The Chief Management Officer shall be paid at an annual rate determined by the Authority sufficient in the judgment of the Authority to obtain the services of an individual with the skills and experience required to discharge the duties of the office.

(b) Employment contract. — Notwithstanding any other provision of law, the employment agreement entered into as of January 15, 1998, between the Chief Management Officer and the District of Columbia Financial Responsibility and Management Assistance Authority shall be valid in all respects.

Part B. Establishment and Enforcement of Financial Plan and Budget for District Government.

§ 47–392.01. Development of financial plan and budget for District of Columbia.

(a) Development of financial plan and budget. — For each fiscal year for which the District government is in a control period, the Mayor shall develop and submit to the Authority a financial plan and budget for the District of Columbia in accordance with this section.

(b) Contents of financial plan and budget. — A financial plan and budget for the District of Columbia for a fiscal year shall specify the budgets for the District government under part D of title IV of the District of Columbia Home Rule Act [§§ 1-204.41 through 1-204.56e] for the applicable fiscal year and the next 3 fiscal years (including the projected revenues and expenditures of each fund of the District government for such years), in accordance with the following requirements:

(1) The financial plan and budget shall meet the standards described in subsection (c) of this section to promote the financial stability of the District government.

(2) The financial plan and budget shall provide for estimates of revenues and expenditures on a modified accrual basis.

(3) The financial plan and budget shall:

(A) Describe lump sum expenditures by department by object class;

(B) Describe capital expenditures (together with a schedule of projected capital commitments of the District government and proposed sources of funding);

(D) Contain cash flow forecasts for each fund of the District government at such intervals as the Authority may require.

(4) The financial plan and budget shall include a statement describing methods of estimations and significant assumptions.

(5) The financial plan and budget shall include any other provisions and shall meet such other criteria as the Authority considers appropriate to meet the purposes of this Act, including provisions for changes in personnel policies and levels for each department or agency of the District government, changes in the structure and organization of the District government, and management initiatives to promote productivity, improvement in the delivery of services, or cost savings.

(1) In general. — The standards to promote the financial stability of the District government applicable to the financial plan and budget for a fiscal year are as follows:

(A) In the case of the financial plan and budget for fiscal year 1996, the expenditures of the District government for each fiscal year (beginning with fiscal year 1998) may not exceed the revenues of the District government for each such fiscal year.

(B) During fiscal years 1996 and 1997, the District government shall make continuous, substantial progress towards equalizing the expenditures and revenues of the District government for such fiscal years (in equal annual installments to the greatest extent possible).

(C) The District government shall provide for the orderly liquidation of the cumulative fund balance deficit of the District government, as evidenced by financial statements prepared in accordance with generally accepted accounting principles.

(D) If funds in accounts of the District government which are dedicated for specific purposes have been withdrawn from such accounts for other purposes, the District government shall fully restore the funds to such accounts.

(E) The financial plan and budget shall assure the continuing long-term financial stability of the District government, as indicated by factors including access to short-term and long-term capital markets, the efficient management of the District government’s workforce, and the effective provision of services by the District government.

(2) Application of sound budgetary practices. — In meeting the standards described in paragraph (1) of this subsection with respect to a financial plan and budget for a fiscal year, the District government shall apply sound budgetary practices, including reducing costs and other expenditures, improving productivity, increasing revenues, or combinations of such practices.

(3) Assumptions based on current law. — In meeting the standards described in paragraph (1) of this subsection with respect to a financial plan and budget for a fiscal year, the District government shall base estimates of revenues and expenditures on Federal law as in effect at the time of the preparation of the financial plan and budget.

(Apr. 17, 1995, 109 Stat. 108, Pub. L. 104-8, § 201; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Aug. 5, 1997, 111 Stat. 779, Pub. L. 105-33, § 11602(a).)

Prior Codifications

1981 Ed., § 47-392.1.

Section References

This section is referenced in § 2-352.02, § 38-1801.01, § 47-392.02, § 47-392.22, and § 47-393.

Cross References

Budget and financial management, control years, forwarding budgets consistent with financial plan and budget established under this chapter, see § 1-206.03.

D.C. charter schools, long-term reform plan, see § 38-1801.01.

Emergency Legislation

For temporary (90 day) multiyear budget plans for specific programs, see §§ 4002 to 4007 of Fiscal Year 2002 Budget Support Emergency Act of 2001 (D.C. Act 14-124, August 3, 2001, 48 DCR 7861).

References in Text

“This Act,” referred to in subsection (b)(5), is the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995, 109 Stat. 97, Pub. L. 104-8.

Editor's Notes

Sections 4402 to 4407 of D.C. Law 14-28 provided:

“Sec. 4402. No later than September 30, 2001, the following agencies and agencies responsible for the following programs, shall submit to the Council of the District of Columbia and to the Chief Financial Officer a multiyear financial plan as required by this title:

“(1) Risk Management programs administered by the Mayor;

“(2) Department of Mental Health; and

“(3) Settlements and Judgments Fund administered by the Corporation Counsel.

“Sec. 4403. The multiyear financial plan required by this title shall detail the projected cost of services for that agency or program for fiscal years 2002 through 2005, and shall be based on a performance plan for the same fiscal years. The multiyear financial plan shall specify reasonable assumptions for inflation, personal service levels, and wage increases, and identify all budgetary assumptions being used. The multiyear financial plan shall calculate and specify the cost per fiscal year to achieve the objectives and goals set forth in the performance plan.

“Sec. 4404. (a) For the purposes of this title, ‘performance plan’ is a detailed statement that includes:

“(1) A mission statement—a broad statement of central purpose;

“(2) Objectives—less broad statements of desired outcomes resulting from accomplishing the mission; and

“(3) Goals—target levels of performance expressed in tangible, measurable terms, against which actual achievement of objectives can be compared; a goal may be expressed as a population target, or as a quantitative standard, value, or rate.

“(b) The performance plan shall describe the strategy for how the mission (including its objectives and goals) will be accomplished. This description of strategy shall include all of the functions, activities, operations, and projects required for effective implementation of the performance plan. There shall be one or more measures of performance, that address both quantity and quality, for each goal. The performance plan shall state measurable or objective performance goals and objectives for all significant activities of the agency or program. The plan shall identify(describe and quantify) the classes of persons to be served and how(qualitatively and quantitatively) those classes will change as a result of the mission, objectives, and goals.

“(c) The performance plan shall also provide national norms, industry standards, typical benchmarks, performance measures from other cities, or other relevant comparative data.

“(d) An agency which prepared a performance plan pursuant to Title XLIV of the Fiscal Year 2001 Budget Support Act of 2000, effective October 19, 2000 (D.C. Law 13-172; 47 DCR 6308), in the previous fiscal year shall also provide an analysis of the agency’s performance vis-à-vis its performance plan.

“Sec. 4405. The multiyear financial plan shall include all funds, including local and federal funds.

“Sec. 4406. For each of the agencies specified in section 4402, the performance plan shall detail how the agency or program will provide improved service delivery that:

“(1) Fulfills its mission (including objectives and goals);

“(2) Reduces expenditures, especially from local funds; and

“(3) Creates operational efficiencies to accomplish this.

“Sec. 4407. The Chief Financial Officer shall have the authority to require greater specificity in the multiyear plan prior to submission, and to work with agencies to improve their submission.”

§ 47–392.02. Process for submission and approval of financial plan and annual District budget.

(a) Submission of preliminary financial plan and budget by Mayor. — Not later than the February 1 preceding a fiscal year for which the District government is in a control period, the Mayor shall submit to the Authority and the Council a financial plan and budget for the fiscal year which meets the requirements of § 47-392.01.

(b) Review by authority. — Upon receipt of the financial plan and budget for a fiscal year from the Mayor under subsection (a) of this section, the Authority shall promptly review the financial plan and budget. In conducting the review, the Authority may request any additional information it considers necessary and appropriate to carry out its duties under this part.

(1) Certification to Mayor. —

(A) In general. — If the Authority determines that the financial plan and budget for the fiscal year submitted by the Mayor under subsection (a) of this section meets the requirements applicable under § 47-392.01:

(i) The Authority shall approve the financial plan and budget and shall provide the Mayor, the Council, the President, and Congress with a notice certifying its approval; and

(ii) The Mayor shall promptly submit the financial plan and budget to the Council pursuant to § 1-204.42.

(B) Deemed approval after 30 days. —

(i) In general. — If the Authority has not provided the Mayor, the Council, and Congress with a notice certifying approval under subparagraph (A)(i) of this paragraph or a statement of disapproval under subsection (d)(1) of this section upon the expiration of the 30-day period which begins on the date the Authority receives the financial plan and budget from the Mayor under subsection (a) of this section, the Authority shall be deemed to have approved the financial plan and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (A)(i) of this paragraph.

(ii) Explanation of failure to respond. — If sub-subparagraph (i) of this subparagraph applies with respect to a financial plan and budget, the Authority shall provide the Mayor, the Council, the President and Congress with an explanation for its failure to provide the notice certifying approval or the statement of disapproval during the 30-day period described in sub-subparagraph (i) of this subparagraph.

(2) Adoption of financial plan and budget by Council after receipt of approved financial plan and budget. — Notwithstanding the first sentence of § 1-204.46, not later than 30 days after receiving the financial plan and budget for the fiscal year from the Mayor under paragraph (1)(A)(ii) of this subsection, the Council shall by Act adopt a financial plan and budget for the fiscal year which shall serve as the adoption of the budgets of the District government for the fiscal year under such section, and shall submit such financial plan and budget to the Mayor and the Authority.

(3) Review of Council financial plan and budget by Authority. — Upon receipt of the financial plan and budget for a fiscal year from the Council under paragraph (2) of this subsection (taking into account any items or provisions disapproved by the Mayor or disapproved by the Mayor and reenacted by the Council under § 1-204.04(f)), the Authority shall promptly review the financial plan and budget. In conducting the review, the Authority may request any additional information it considers necessary and appropriate to carry out its duties under this part.

(4) Results of Authority review of Council’s initial financial plan and budget. —

(A) Approval of Council’s initial financial plan and budget. — If the Authority determines that the financial plan and budget for the fiscal year submitted by the Council under paragraph (2) of this subsection meets the requirements applicable under § 47-392.01:

(i) The Authority shall approve the financial plan and budget and shall provide the Mayor, the Council, the President, and Congress with a notice certifying its approval; and

(ii) The Council shall promptly submit the financial plan and budget to the Mayor for transmission to the President and Congress under § 1-204.46.

(B) Disapproval of Council’s initial budget. — If the Authority determines that the financial plan and budget for the fiscal year submitted by the Council under paragraph (2) of this subsection does not meet the requirements applicable under § 47-392.01, the Authority shall disapprove the financial plan and budget, and shall provide the Mayor, the Council, the President, and Congress with a statement containing:

(i) The reasons for such disapproval;

(ii) The amount of any shortfall in the budget or financial plan; and

(iii) Any recommendations for revisions to the budget the Authority considers appropriate to ensure that the budget is consistent with the financial plan and budget.

(i) In general. — If the Authority has not provided the Mayor, the Council, the President, and Congress with a notice certifying approval under subparagraph (A)(i) of this paragraph or a statement of disapproval under subparagraph (B) of this paragraph upon the expiration of the 15-day period which begins on the date the Authority receives the financial plan and budget from the Council under paragraph (2) of this subsection, the Authority shall be deemed to have approved the financial plan and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (A)(i) of this paragraph.

(ii) Explanation of failure to respond. — If sub-subparagraph (i) of this subparagraph applies with respect to a financial plan and budget, the Authority shall provide the Mayor, the Council, the President and Congress with an explanation for its failure to provide the notice certifying approval or the statement of disapproval during the 15-day period described in sub-subparagraph (i) of this subparagraph.

(5) Authority review of Council’s revised financial plan and budget. —

(A) Submission of Council’s revised financial plan and budget. — Not later than 15 days after receiving the statement from the Authority under paragraph (4)(B) of this subsection, the Council shall promptly by Act adopt a revised financial plan and budget for the fiscal year which addresses the reasons for the Authority’s disapproval cited in the statement, and shall submit such financial plan and budget to the Mayor and the Authority.

(B) Approval of Council’s revised financial plan and budget. — If, after reviewing the revised financial plan and budget for a fiscal year submitted by the Council under subparagraph (A) of this paragraph in accordance with the procedures described in this subsection, the Authority determines that the revised financial plan and budget meets the requirements applicable under § 47-392.01:

(i) The Authority shall approve the financial plan and budget and shall provide the Mayor, the Council, the President, and Congress with a notice certifying its approval; and

(ii) The Council shall promptly submit the financial plan and budget to the Mayor for transmission to the President and Congress under § 1-204.46.

(i) In general. — If, after reviewing the revised financial plan and budget for a fiscal year submitted by the Council under subparagraph (A) of this paragraph in accordance with the procedures described in this subsection, the Authority determines that the revised financial plan and budget does not meet the applicable requirements under § 47-392.01, the Authority shall:

(I) Disapprove the financial plan and budget;

(II) Provide the Mayor, the Council, the President, and Congress with a statement containing the reasons for such disapproval and describing the amount of any shortfall in the financial plan and budget; and

(III) Approve and recommend a financial plan and budget for the District government which meets the applicable requirements under § 47-392.01, and submit such financial plan and budget to the Mayor, the Council, the President, and Congress.

(ii) Transmission of rejected financial plan and budget. — The Council shall promptly submit the revised financial plan and budget disapproved by the Authority under this subparagraph to the Mayor for transmission to the President and Congress under § 1-204.46.

(D) Deemed approval after 15 days. —

(i) In general. — If the Authority has not provided the Mayor, the Council, the President, and Congress with a notice certifying approval under subparagraph (B)(i) of this paragraph or a statement of disapproval under subparagraph (C) of this paragraph upon the expiration of the 15-day period which begins on the date the Authority receives the revised financial plan and budget submitted by the Council under subparagraph (A) of this paragraph, the Authority shall be deemed to have approved the revised financial plan and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (B)(i) of this paragraph.

(ii) Explanation of failure to respond. — If sub-subparagraph (i) of this subparagraph applies with respect to a financial plan and budget, the Authority shall provide the Mayor, the Council, the President and Congress with an explanation for its failure to provide the notice certifying approval or the statement of disapproval during the 15-day period described in sub-subparagraph (i) of this subparagraph.

(6) Deadline for transmission of financial plan and budget by Authority. — Notwithstanding any other provision of this section, not later than the June 15 preceding each fiscal year which is a control year, the Authority shall:

(A) Provide Congress with a notice certifying its approval of the Council’s initial financial plan and budget for the fiscal year under paragraph (4)(A) of this subsection;

(B) Provide Congress with a notice certifying its approval of the Council’s revised financial plan and budget for the fiscal year under paragraph (5)(B) of this subsection; or

(C) Submit to Congress an approved and recommended financial plan and budget of the Authority for the District government for the fiscal year under paragraph (5)(C) of this subsection.

(d) Action upon disapproval of Mayor’s preliminary financial plan and budget. —

(1) Statement of disapproval. — If the Authority determines that the financial plan and budget for the fiscal year submitted by the Mayor under subsection (a) of this section does not meet the requirements applicable under § 47-392.01, the Authority shall disapprove the financial plan and budget, and shall provide the Mayor and the Council with a statement containing:

(A) The reasons for such disapproval;

(B) The amount of any shortfall in the financial plan and budget; and

(C) Any recommendations for revisions to the financial plan and budget the Authority considers appropriate to ensure that the financial plan and budget meets the requirements applicable under § 47-392.01.

(2) Authority review of Mayor’s revised financial plan and budget. —

(A) Submission of Mayor’s revised financial plan and budget. — Not later than 15 days after receiving the statement from the Authority under paragraph (1) of this subsection, the Mayor shall promptly submit to the Authority and the Council a revised financial plan and budget for the fiscal year which addresses the reasons for the Authority’s disapproval cited in the statement.

(B) Approval of Mayor’s revised financial plan and budget. — If the Authority determines that the revised financial plan and budget for the fiscal year submitted by the Mayor under subparagraph (A) of this paragraph meets the requirements applicable under § 47-392.01:

(i) The Authority shall approve the financial plan and budget and shall provide the Mayor, the Council, the President, and Congress with a notice certifying its approval; and

(ii) The Mayor shall promptly submit the financial plan and budget to the Council pursuant to § 1-204.42.

(i) In general. — If the Authority determines that the revised financial plan and budget for the fiscal year submitted by the Mayor under subparagraph (A) of this paragraph does not meet the requirements applicable under § 47-392.01, the Authority shall:

(I) Disapprove the financial plan and budget;

(II) Shall provide the Mayor, the Council, the President, and Congress with a statement containing the reasons for such disapproval; and

(III) Recommend a financial plan and budget for the District government which meets the requirements applicable under § 47-392.01 and submit such financial plan and budget to the Mayor and the Council.

(ii) Submission of rejected financial plan and budget. — The Mayor shall promptly submit the revised financial plan and budget disapproved by the Authority under this subparagraph to the Council pursuant to § 1-204.42.

(D) Deemed approval after 15 days. —

(i) In general. — If the Authority has not provided the Mayor, the Council, the President, and Congress with a notice certifying approval under subparagraph (B)(i) of this paragraph or a statement of disapproval under subparagraph (C) of this paragraph upon the expiration of the 15-day period which begins on the date the Authority receives the revised financial plan and budget submitted by the Mayor under subparagraph (A) of this paragraph, the Authority shall be deemed to have approved the revised financial plan and budget and to have provided the Mayor, the Council, the President, and Congress with the notice certifying approval described in subparagraph (B)(i) of this paragraph.

(ii) Explanation of failure to respond. — If sub-subparagraph (i) of this subparagraph applies with respect to a financial plan and budget, the Authority shall provide the Mayor, the Council, the President and Congress with an explanation for its failure to provide the notice certifying approval or the statement of disapproval during the 15-day period described in sub-subparagraph (i) of this subparagraph.

(3) Action by Council. —

(A) Adoption of financial plan and budget. — Notwithstanding the first sentence of § 1-204.46, not later than 30 days after receiving the Mayor’s approved revised financial plan and budget for the fiscal year under paragraph (2)(B) of this subsection or (in the case of a financial plan and budget disapproved by the Authority) the financial plan and budget recommended by the Authority under paragraph (2)(C)(i)(III) of this subsection, the Council shall by Act adopt a financial plan and budget for the fiscal year which shall serve as the adoption of the budgets of the District government for the fiscal year under such section, and shall submit the financial plan and budget to the Mayor and the Authority.

(B) Review by Authority. — The financial plan and budget submitted by the Council under subparagraph (A) of this paragraph shall be subject to review by the Authority and revision by the Council in the same manner as the financial plan and budget submitted by the Council after an approved preliminary financial plan and budget of the Mayor under paragraphs (3), (4), (5), and (6) of subsection (c) of this section.

(e) Revisions to financial plan and budget. —

(1) Permitting Mayor to submit revisions. — The Mayor may submit proposed revisions to the financial plan and budget for a control year to the Authority at any time during the year.

(2) Process for review, approval, disapproval, and Council action. — Except as provided in paragraph (3) of this subsection, the procedures described in subsections (b), (c), and (d) of this section shall apply with respect to a proposed revision to a financial plan and budget in the same manner as such procedures apply with respect to the original financial plan and budget, except that subparagraph (B) of subsection (c)(1) (relating to deemed approval by the Authority of a preliminary financial plan and budget of the Mayor) shall be applied as if the reference to the term “30-day period” were a reference to “20-day period”.

(3) Exception for revisions not affecting appropriations. — To the extent that a proposed revision to a financial plan and budget adopted by the Council pursuant to this subsection does not increase the amount of spending with respect to any account of the District government, the revision shall become effective upon the Authority’s approval of such revision (subject to review by Congress under § 1-206.02(c)).

(f) Inclusion of operating funds in the capital improvements plan. —

(1) Each year's approved budget and financial plan shall include operating funds in the capital improvements plan at one of the following minimum levels:

(A) In each fiscal year included in the capital improvements plan, at least the amount reported for additions to total accumulated depreciation of capital assets (not including additions due to right-to-use assets) in the most recent annual comprehensive financial report for the District;

(B) Cumulatively in all fiscal years included in the capital improvements plan, at least 6 times the amount reported for additions to total accumulated depreciation of capital assets (not including additions due to right-to-use assets) in the most recent annual comprehensive financial report for the District; or

(i) Five times the amount reported for additions to total accumulated depreciation of capital assets (not including additions due to right-to-use assets) in the most recent annual comprehensive financial report for the District of Columbia; plus

(ii) $206 million.

(2) For the purposes of this subsection, the term operating funds means local funds, dedicated funds, special purpose revenue (other) funds, or enterprise funds, or federal funds received by the District government pursuant to the Infrastructure Investment and Jobs Act, approved November 15, 2021 (Pub. L. No. 117-58; 135 Stat. 429).

(g) [Omitted]

(h) [Omitted]

(i) Expedited submission and approval of consensus budget and financial plan. — Notwithstanding any other provision of this section, if the Mayor, the Council, and the Authority jointly develop a financial plan and budget for the fiscal year which meets the requirements applicable under § 47-392.01 and which the Mayor, Council, and Authority certify reflects a consensus among them:

(1) Such financial plan and budget shall serve as the budget of the District government for the fiscal year adopted by the Council under § 1-204.46; and

(2) The Mayor shall transmit the financial plan and budget to the President and Congress under such section.

(j) Reserve funds. —

(1) Budget reserve. —

(A) In general. — For each of the fiscal years 2002 and 2003, the budget of the District government for the fiscal year shall contain a budget reserve in the following amounts:

(i) $120,000,000, in the case of fiscal year 2002.

(ii) $70,000,000, in the case of fiscal year 2003.

(B) Availability of funds. — Any amount made available from the budget reserve described in subparagraph (A) shall remain available until expended.

(C) Availability of fiscal year 2001 budget reserve funds. — For fiscal year 2001, any amount in the budget reserve shall remain available until expended.

(2) Cumulative cash reserve. — In addition to any other cash reserves required under [§ 1-204.50a], for each of the fiscal years 2004 and 2005, the budget of the District government for the fiscal year shall contain a cumulative cash reserve of $50,000,000.

(3) Conditions on use. — The District of Columbia may obligate or expend amounts in the budget reserve under paragraph (1) or the cumulative cash reserve under paragraph (2) only in accordance with the following conditions:

(A) The Chief Financial Officer of the District of Columbia shall certify that the amounts are available.

(B) The amounts shall be obligated or expended in accordance with laws enacted by the Council in support of each such obligation or expenditure.

(C) The amounts may not be used to fund the agencies of the District of Columbia government under court ordered receivership.

(D) The amounts may be obligated or expended only if the Mayor notifies the Committees on Appropriations of the House of Representatives and Senate in writing 30 days in advance of any obligation or expenditure.

(4) Replenishment. — Any amount of the budget reserve under paragraph (1) or the cumulative cash reserve under paragraph (2) which is expended in 1 fiscal year shall be replenished in the following fiscal year appropriations to maintain the required balance.

(j-1) Fiscal Stabilization Reserve Account. —

(1) The Chief Financial Officer shall create a segregated nonlapsing account within the cumulative General Fund of the District of Columbia (“General Fund”) balance to be designated the Fiscal Stabilization Reserve Account.

(2) The Fiscal Stabilization Reserve Account may be used by the Mayor for the following purposes:

(A) Those purposes permitted for use of the Contingency Reserve Fund, specified in § 1-204.50a(b)(4), as certified by the Chief Financial Officer, with approval of the Council by act;

(B) Funding for locally approved expenditures during a lapse in regular appropriations; provided, that any amounts used must be replenished immediately at the conclusion of the lapse;

(C) Funding for the appropriations advance to District of Columbia Public Schools and District of Columbia Public Charter Schools as authorized by the annual budget and financial plan; provided, that any amounts used must be replenished immediately upon the approval of the District's annual budget for that year; and

(D) Funding for locally appropriated expenditures in Fiscal Year 2023.

(2A) The Fiscal Stabilization Reserve Account may be used by the Chief Financial Officer to cover cash flow needs; provided, that any amounts used shall be replenished to the Fiscal Stabilization Reserve Account in the same fiscal year.

(3) At full funding, the Fiscal Stabilization Reserve Account shall be equal to 2.34% of the District’s General Fund operating expenditures for each fiscal year.

(j-2) Cash Flow Reserve Account. —

(1) The Chief Financial Officer shall create a segregated nonlapsing account within the cumulative General Fund balance to be designated the Cash Flow Reserve Account.

(2) The Cash Flow Reserve Account may be used by the Chief Financial Officer to cover the following:

(A) Cash-flow needs; provided, that any amounts used must be replenished to the Cash Flow Reserve Account in the same fiscal year; and

(B) Funding for locally approved expenditures during a lapse in regular appropriations; provided, that any amounts used must be replenished immediately at the conclusion of the lapse.

(3) At full funding, the Cash Flow Reserve Account shall be equal to 10% of the General Fund operating budget for each fiscal year.

(4) [Repealed].

(j-3)(1) Fund Balance Deposit Requirements. — If either of the Fiscal Stabilization Reserve Account or the Cash Flow Reserve Account are below full funding, as specified in, respectively, subsections (j-1) and (j-2) of this section, immediately upon issue of the Annual Comprehensive Financial Report, the Chief Financial Officer shall deposit 50% of the undesignated end-of-year fund balance into each account, or 100% of the end-of-year fund balance into the remaining account that has not reached capacity, to fully fund these accounts to the extent that the undesignated end-of-year fund balance allows.

(2) If, upon the issuance of the Fiscal Year 2025 Annual Comprehensive Financial Report, the Fiscal Stabilization Reserve Account is not fully funded as specified in subsection (j-1)(3) of this section, the Fiscal Year 2027 budget shall allocate a sufficient amount to achieve full funding.

(j-4) [Increase in Fiscal Stabilization Reserve Account]. — If amounts required for the Emergency Cash Reserve Fund or the Contingency Reserve Fund pursuant to § 1-204.50a are reduced, the amount required to be deposited in Fiscal Stabilization Reserve Account shall be increased by a like amount.

(j-5) [Use of Remaining Unrestricted Fund Balance]. — If at the close of a fiscal year, the District has fully funded the Emergency, Contingency, Fiscal Stabilization, and Cash Flow Reserves, all additional uncommitted amounts in the unrestricted fund balance of the General Fund of the District of Columbia as certified by the Annual Comprehensive Financial Report shall be used for the following purposes; except, that at the close of Fiscal Year 2022, $113 million of such additional uncommitted amounts instead shall be transferred to the District Unemployment Fund, established by § 51-102:

(1) 50% shall be deposited in the Housing Production Trust Fund; and

(2) 50% shall be committed in the General Fund balance for Pay-As-You-Go Capital, to be transferred to the General Capital Improvements Fund upon appropriation to specific capital projects.

(k) Positive fund balance. — [Repealed].

(l) [DC Streetcar and Integrated Premium Transit System defined]. — [Repealed].

(Apr. 17, 1995, 109 Stat. 109, Pub. L. 104-8, § 202; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Aug. 5, 1997, 111 Stat. 779, Pub. L. 105-33, § 11603(b); Oct. 21, 1998, 112 Stat. 2681, Pub. L. 105-277, § 155; Apr. 20, 1999, D.C. Law 12-264, § 52(g), 46 DCR 2118; Nov. 29, 1999, 113 Stat. 1523, Pub. L. 106-113, § 148; Nov. 22, 2000, 114 Stat. 2440, Pub. L. 106-522, § 159(b); Dec. 21, 2001, 115 Stat. 923, Pub. L. 107-96,§ 133(a); Mar. 25, 2009, D.C. Law 17-360, § 2(d), 56 DCR 1200; Mar. 3, 2010, D.C. Law 18-111, § 7211(c), 57 DCR 181; Sept. 24, 2010, D.C. Law 18-223, § 7162, 57 DCR 6242; Apr. 8, 2011, D.C. Law 18-370, § 792, 58 DCR 1008; Sept. 14, 2011, D.C. Law 19-21, § 7012(a)(3), 58 DCR 6226; Sept. 20, 2012, D.C. Law 19-168, § 8008, 59 DCR 8025; Dec. 24, 2013, D.C. Law 20-61, § 8022, 60 DCR 12472; Feb. 26, 2015, D.C. Law 20-155, §§ 1042, 6033, 61 DCR 9990; Oct. 22, 2015, D.C. Law 21-36, § 8032, 62 DCR 10905; Oct. 8, 2016, D.C. Law 21-160, §§ 6053, 7142, 63 DCR 10775; Dec. 13, 2017, D.C. Law 22-33, § 8052, 64 DCR 7652; Mar. 19, 2020, D.C. Law 23-68, § 12(a), 67 DCR 743; Nov. 13, 2021, D.C. Law 24-45, § 7102, 68 DCR 010163; Sept. 21, 2022, D.C. Law 24-167, §§ 7022, 7032, 69 DCR 009223; Sept. 6, 2023, D.C. Law 25-50, § 7032, 70 DCR 10366; Sept. 18, 2024, D.C. Law 25-217, §§ 7092, 7233, 71 DCR 9990.)

Prior Codifications

1981 Ed., § 47-392.2.

Section References

This section is referenced in § 2-352.02, § 39-205.01, § 47-392.03, § 47-392.04, § 47-392.06, § 47-392.08, § 47-393, and § 47-2402.

Effect of Amendments

Public Law 105-33 added (i).

Public Law 105-33 added a second subsection (i).

Public Law 106-113 redesignated the second subsection (i) as subsection (j); and added (k).

Public Law 106-522 rewrote (j)(1); added (j)(4); and repealed (k).

Public Law 107-96 rewrote (j).

D.C. Law 17-360 added subsec. (j-1).

D.C. Law 18-111 substituted “that not less than $25 million” for “that $25 million” in (j-1)(3)(A); and substituted “Cash Reserve, including the $25 million specified in paragraph 3(A) of this subsection,” for “Cash Reserve” in (j-1)(4).

D.C. Law 18-223 rewrote (f) and (j-1); and added (j-2), (j-3), and (j-4).

D.C. Law 18-370 substituted “December 7, 2010” for “May 26, 2010” in (f)(3).

D.C. Law 19-21 substituted “2013” for “2012”; and, in subsec. (f)(3), substituted “May 24, 2011” for “May 26, 2010” in (f)(2).

The 2012 amendment by D.C. Law 19-168 substituted “fiscal year 2016” for “fiscal year 2013” in (f)(2); and substituted “May, 2015” for “May 24, 2011” in (f)(3).

The 2013 amendment by D.C. Law 20-61 added “Beginning in the fiscal year following the completion of the capital construction of the Streetcar Project” in (f)(5)(A); and added (f)(6).

The 2015 amendment by D.C. Law 20-155 rewrote (f)(2); substituted “in May of the previous year” for “May, 2015” in (f)(3); rewrote (j-1)(2) and (j-2)(2); added (j-2)(4); substituted “Fiscal Year 2045” for “the fiscal year following the completion of the capital construction of the Streetcar Project” in (f)(5)(A); rewrote (f)(6); and added (l).

The 2015 amendment by D.C. Law 21-36 substituted “Fiscal Year 2019” for “Fiscal Year 2017” in (f)(2).

Applicability

Section 7033 of D.C. Law 25-50 provided that the amendments to this section by § 7032 of D.C. Law 25-50 shall apply as of June 27, 2023.

Section 7033 of D.C. Act 25-172 provided that the amendments to this section by § 7032 of D.C. Act 25-172 shall apply as of June 27, 2023.

Section 16 of D.C. Law 23-68 provided that the changes made to this section by D.C. Law 23-68 shall apply as of October 1, 2019.

Emergency Legislation

For temporary (90 days) amendment of this section, see § 7233 of Fiscal Year 2025 Budget Support Emergency Act of 2024 (D.C. Act 25-506, July 15, 2024, 71 DCR 8406).

For temporary (90 days) amendment of this section, see § 7092 of Fiscal Year 2025 Budget Support Emergency Act of 2024 (D.C. Act 25-506, July 15, 2024, 71 DCR 8406).

For temporary (90 days) amendment of this section, see § 7032 of Fiscal Year 2024 Budget Support Emergency Act of 2023 (D.C. Act 25-172, July 14, 2023, 70 DCR 9933).

For temporary (90 days) amendment of this section, see § 7032 of Fiscal Year 2023 Budget Support Emergency Act of 2022 (D.C. Act 24-470, July 13, 2022, 69 DCR 008707).

For temporary (90 days) amendment of this section, see § 7022 of Fiscal Year 2023 Budget Support Emergency Act of 2022 (D.C. Act 24-470, July 13, 2022, 69 DCR 008707).

For temporary (90 days) amendment of this section, see § 7102 of Fiscal Year 2022 Budget Support Emergency Act of 2021 (D.C. Act 24-159, Aug. 23, 2021, 68 DCR 008602).

For temporary (90 days) amendment of this section, see § 12(a) of Fiscal Year 2020 Budget Support Clarification Second Emergency Amendment Act of 2019 (D.C. Act 23-201, Jan. 22, 2020, 67 DCR 731).

For temporary (90 days) amendment of this section, see § 8052 of Fiscal Year 2018 Budget Support Congressional Review Emergency Act of 2017 (D.C. Act 22-167, Oct. 24, 2017, 64 DCR 10802).

For temporary (90 days) amendment of this section, see § 8052 of Fiscal Year 2018 Budget Support Emergency Act of 2017 (D.C. Act 22-104, July 20, 2017, 64 DCR 7032).

For temporary (90 day) detail of expenditures, see §§ 2 to 4 of Use of the Reserve Funds Omnibus Emergency Act of 2002 (D.C. Act 14-360, April 30, 2002, 49 DCR 4724).

For temporary (90 day) detail of purpose of expenditures, see § 2 of Use of the Fiscal Year 2002 Reserve Funds Emergency Act of 2002 (D.C. Act 14-393, June 25, 2002, 49 DCR 6091).

For the temporary (90 day) reallocation of prior budgeted reserve funds, see § 302 of the Fiscal Year 2003 Budget Support Congressional Review Emergency Act of 2003 (D.C. Act 15-97, June 20, 2003, 50 DCR 5472).

For temporary (90 day) funding allocation for youth development strategy and public safety purposes, see § 401 of Crime Reduction Initiative Emergency Amendment Act of 2006 (D.C. Act 16-491, October 19, 2006, 53 DCR 8818).

For temporary (90 day) amendment of section, see § 7081(c) of Fiscal Year 2010 Budget Support Emergency Act of 2009 (D.C. Act 18-187, August 26, 2009, 56 DCR 7374).

For temporary (90 day) amendment of section 3a of D.C. Law 17-360, see § 7031 of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) amendment of section, see § 7211(c) of Fiscal Year 2010 Budget Support Second Emergency Act of 2009 (D.C. Act 18-207, October 15, 2009, 56 DCR 8234).

For temporary (90 day) amendment of section 3a of D.C. Law 17-360, see § 7031 of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

For temporary (90 day) amendment of section, see § 7211(c) of Fiscal Year Budget Support Congressional Review Emergency Amendment Act of 2009 (D.C. Act 18-260, January 4, 2010, 57 DCR 345).

For temporary (90 day) amendment of section, see § 7162 of Fiscal Year 2011 Budget Support Emergency Act of 2010 (D.C. Act 18-463, July 2, 2010, 57 DCR 6542).

For temporary (90 day) amendment of section, see § 791 of Fiscal Year 2011 Supplemental Budget Support Emergency Act of 2010 (D.C. Act 18-694, January 19, 2011, 58 DCR 662).

For temporary (90 day) amendment of section, see § 7012(a)(3) of Fiscal Year 2012 Budget Support Emergency Act of 2011 (D.C. Act 19-93, June 29, 2011, 58 DCR 5599).

For temporary (90 day) amendment of section, see § 8008 of Fiscal Year 2013 Budget Support Emergency Act of 2012 (D.C. Act 19-383, June 19, 2012, 59 DCR 7764).

For temporary (90 day) amendment of section, see § 8008 of Fiscal Year 2013 Budget Support Congressional Review Emergency Act of 2012 (D.C. Act 19-413, July 25, 2012, 59 DCR 9290).

For temporary (90 days) amendment of this section, see § 8022 of the Fiscal Year 2014 Budget Support Emergency Act of 2013 (D.C. Act 20-130, July 30, 2013, 60 DCR 11384, 20 DCSTAT 1827).

For temporary (90 days) amendment of this section, see § 8022 of the Fiscal Year 2014 Budget Support Congressional Review Emergency Act of 2013 (D.C. Act 20-204, October 17, 2013, 60 DCR 15341, 20 DCSTAT 2311).

For temporary (90 days) amendment of this section, see §§ 1042 and 6043 of the Fiscal Year 2015 Budget Support Emergency Act of 2014 (D.C. Act 20-377, July 14, 2014, 61 DCR 7598, 20 STAT 3696).

For temporary (90 days) amendment of this section, see §§ 1042 and 6033 of the Fiscal Year Budget Support Congressional Review Emergency Act of 2014 (D.C. Act 20-449, October 10, 2014, 61 DCR 10915, 20 STAT 4188).

For temporary (90 days) amendment of this section, see §§ 1042 and 6033 of the Fiscal Year Budget Support Second Congressional Review Emergency Act of 2014 (D.C. Act 20-566, January 9, 2015, 62 DCR 884, 21 STAT 541).

For temporary (90 days) amendment of this section, see § 8032 of the Fiscal Year 2016 Budget Support Emergency Act of 2015 (D.C. Act 21-127, July 27, 2015, 62 DCR 10201).

Temporary Legislation

For temporary (225 day) addition, see § 302 of Fiscal Year 2003 Budget Support Temporary Act of 2003 (D.C. Law 15-25, July 22, 2003, law notification 50 DCR 6095).

Short Title

Short title: Section 7161 of D.C. Law 18-223 provided that subtitle Q of title VII of the act may be cited as the “Sustainable Capital Investment and Fund Balance Restoration Act of 2010”.

Short title: Section 791 of D.C. Law 18-370 provided that subtitle J of title VII of the act may be cited as “Budget Support Act Technical Amendment Act of 2010 Emergency Amendment Act of 2010”.

Section 8021 of D.C. Law 20-61 provided that Subtitle C of Title VIII of the act may be cited as the “Pay-as-you-go Capital Account and Streetcar Funding Dedication Act of 2013”.

References in Text

Section 450A of the District of Columbia Home Rule Act, referred to in subsec. (j)(2), is Pub. L. 93-198, title IV, § 450A, which is classified to § 1-204.50a.

Editor's Notes

Section 133(b) and (c) of Pub. L. 107-96 provided:

“(b) Effective date.—The amendment made by subsection (a) shall take effect October 1, 2001.

Section 794 of D.C. Law 18-370 provided: “Sec. 794. This subtitle shall apply as of January 3, 2011.”

“(c) Conforming amendments.—Section 159(c) of the District of Columbia Appropriations Act, 2001 (Public Law 106-522; 114 Stat. 2482) is amended to read as follows:

“(c) Effective Date. —

“(1) In general.—Except as provided in paragraph (2), this section and the amendments made by this section shall take effect on October 1, 2000.

“(2) Repeal of positive fund balance requirement.—The amendment made by subsection (b)(2) shall take effect October 1, 1999.

“(3) Transfer of funds.—All funds identified by the District government pursuant to section 148 of Public Law 106-113, as reflected in the certified annual financial report for fiscal year 2000, shall be deposited during fiscal year 2002 into the Emergency and Contingency Reserve Funds established pursuant to section 159 of Public Law 106-522, during fiscal year 2002.”

Prior to the addition of (i) by Pub. L. 105-33, (e) was the last subsection of this section. Public Law 105-33 made no disposition with respect to (f), (g), and (h), so those subsections have been set out as “Omitted.”

Application of § 11603(b) of Pub. L. 105-33: Section 11603(c) of title XI of Pub. L. 105-33, 111 Stat. 779, the National Capital Revitalization and Self-Government Improvement Act of 1997, provided that the amendment made by § 11603(b) shall apply with respect to fiscal years beginning with fiscal year 1998.

Section 2002 of D.C. Law 13-38 provided:

“(a) Pursuant to section 155 of the District of Columbia Appropriations Act, 1999, approved October 21, 1998 (Pub. L. No. 105-277; 112 Stat. 2681 171), the District shall have a reserve in the amount of $150 million (‘Reserve’).

“(b) The criteria for spending from this Reserve are to ensure budget balance in case of a shortfall in revenue, or to provide flexibility to fund such expenditures as nonrecurring initiatives that support sustainable and measurable increases in revenues through enhanced service delivery, that reduce costs, that are unforeseen demands on District spending, or that constitute an investment in fostering the District’s economic well-being. The District shall spend the funds from the Reserve in such a way that an appropriate balance is available in the 1st, 2nd, and 3rd quarters to ensure balance between revenues and expenditures at year end. Under no circumstances should the budgeted Reserve serve to provide resources to agencies to allow them to overspend their budget.

“(c) In accordance with the criteria set forth in subsection (b) of this section, funds from the Reserve shall be applied in the following order:

“(1) To ensure budget balance in case of a shortfall in revenue;

“(2) To expenditures that are identified in subsection (d) of this section;

“(3) To expenditures that reduce the District’s long-term debt; and

“(4) To other expenditures that meet the criteria set forth in subsection (b) of this section.

“(d) The following expenditures shall be funded from the reserve in Fiscal Year 2000:

“(1) $60,000 to the Council, to hire an independent consultant to negotiate a contract between the District and the Health and Hospitals Public Benefit Corporation for services for uninsured residents;

“(2) $1,000,000 to the Office of the Mayor, to fund one-time program enhancements;

“(3) $4,100,000 to the Office of the City Administrator, including $1 million in one-time program enhancements and $3.1 million for non-personal services expenditures, to support planning for managed competition, including activity-based costing;

“(4) $3,700,000 to the Department of Employment Services, to fund youth-related programs;

“(5) $5,833,000 to the Department of Consumer and Regulatory Affairs, to fund one-time neighborhood stabilization programs;

“(6) $850,000 to the Department of Corrections, to fund one-time funding for a physical plant;

“(7) $18,000,000 to District of Columbia Public Schools, to fund selected special education placements and the LaShawn Receivership;

“(8) $3,000,000 to the University of the District of Columbia, to fund one-time technology enhancements;

“(9) $1,227,000 to the Public Library, to fund one-time non-personal service increases;

“(10) $1,246,000 to the Department of Human Services, to fund one-time expenditures;

“(11) $996,000 to the Department of Health, to fund one-time expenditures;

“(12) $15,000,000 to the Children and Youth Initiative, to fund one-time program enhancements;

“(13) $5,257,000 to the LaShawn Receiver, including $3,100,000 to fund one-time youth programs, and $2,157,000 to bring it to full funding;

“(14) $1,000,000 to the Mental Health Receiver, to fund one-time expenditures;

“(15) $11,540,000 to the Department of Public Works, to fund one-time program enhancements;

“(16) $1,542,000 to the Department of Motor Vehicles, to fund one-time motor vehicle information system enhancements; and

“(17) $16,050,000 to the Tobacco Settlement Trust Fund, reflecting a transfer to create the Trust Fund.”

Section 3a of D.C. Law 17-360, as added by section 7031 of D.C. Law 18-111, provided:

“Sec. 3a. Applicability.

“Section 2(d) of D.C. Law 17-360 shall take effect subject to the inclusion of its fiscal effect in an approved budget and financial plan.”.

Applicability of D.C. Law 20-61: Section 11001 of D.C. Law 20-61 provided that, except as otherwise provided, the act shall apply as of October 1, 2013.

§ 47–392.03. Review of activities of district government to ensure compliance with approved financial plan and budget.

(a) Review of Council acts. —

(1) Submission of acts to Authority. — The Council shall submit to the Authority each act passed by the Council and signed by the Mayor during a control year or vetoed by the Mayor and repassed by two-thirds of the Council present and voting during a control year, and each act passed by the Council and allowed to become effective without the Mayor’s signature during a control year, together with the estimate of costs accompanying such act required under § 1-206.02(c)(3).

(2) Prompt review by Authority. — Upon receipt of an act from the Council under paragraph (1) of this subsection, the Authority shall promptly review the act to determine whether it is consistent with the applicable financial plan and budget approved under this part and with the estimate of costs accompanying the act (described in paragraph (1) of this subsection).

(3) Actions by Authority. —

(A) Approval. — If the Authority determines that an act is consistent with the applicable financial plan and budget, the Authority shall notify the Council that it approves the act, and the Council shall submit the act to Congress for review in accordance with § 1-206.02(c).

(B) Finding of inconsistency. — If the Authority determines that an act is significantly inconsistent with the applicable financial plan and budget, the Authority shall:

(i) Notify the Council of its finding;

(ii) Provide the Council with an explanation of the reasons for its finding; and

(iii) To the extent the Authority considers appropriate, provide the Council with recommendations for modifications to the act.

(4) Effect of finding. — If the Authority makes a finding with respect to an act under paragraph (3)(B) of this subsection, the Council may not submit the act to Congress for review in accordance with § 1-206.02(c).

(5) Deemed approval. — If the Authority does not notify the Council that it approves or disapproves an act submitted under this subsection during the 7-day period (excluding Saturdays, Sundays, and legal holidays) which begins on the first day (excluding Saturdays, Sundays, and legal holidays) after the Authority receives the act from the Council, the Authority shall be deemed to have approved the act in accordance with paragraph (3)(A) of this subsection. At the option of the Authority, the previous sentence shall be applied as if the reference to “7-day period” were a reference to “14-day period” if during such 7-day period the Authority so notifies the Council and the Mayor.

(6) Preliminary review of proposed acts. — At the request of the Council, the Authority may conduct a preliminary review of proposed legislation before the Council to determine whether the legislation as proposed would be consistent with the applicable financial plan and budget approved under this part, except that any such preliminary review shall not be binding on the Authority in reviewing any act subsequently submitted under this subsection.

(b) Effect of approved financial plan and budget on contracts and leases. —

(1) Mandatory prior approval for certain contracts and leases. —

(A) In general. — In the case of a contract or lease described in subparagraph (B) of this paragraph, which is proposed to be entered into by the District government during a control year, the Mayor (or the appropriate officer or agent of the District government) shall submit the proposed contract or lease to the Authority. The Authority shall review each contract or lease submitted under this subparagraph, and the Mayor (or the appropriate officer or agent of the District government) may not enter into the contract or lease unless the Authority determines that the proposed contract or lease is consistent with the financial plan and budget for the fiscal year.

(B) Contracts and leases described. — A contract or lease described in this subparagraph is:

(i) A labor contract entered into through collective bargaining; or

(ii) Such other type of contract or lease as the Authority may specify for purposes of this subparagraph.

(2) Authority to review other contracts and leases after execution. —

(A) In general. — In addition to the prior approval of certain contracts and leases under paragraph (1) of this subsection, the Authority may require the Mayor (or the appropriate officer or agent of the District government) to submit to the Authority any other contract (including a contract to carry out a grant) or lease entered into by the District government during a control year which is executed after the Authority has approved the financial plan and budget for the year under § 47-392.02(c) or (d), or any proposal of the District government to renew, extend, or modify a contract or lease during a control year which is made after the Authority has approved such financial plan and budget.

(B) Review by Authority. — The Authority shall review each contract or lease submitted under subparagraph (A) of this paragraph to determine if the contract or lease is consistent with the financial plan and budget for the fiscal year. If the Authority determines that the contract or lease is not consistent with the financial plan and budget, the Mayor shall take such actions as are within the Mayor’s powers to revise the contract or lease, or shall submit a proposed revision to the financial plan and budget in accordance with § 47-392.02, so that the contract or lease will be consistent with the financial plan and budget.

(3) Special rule for fiscal year 1995. — The Authority may require the Mayor to submit to the Authority any proposal to renew, extend, or modify a contract or lease in effect during fiscal year 1995 to determine if the renewal, extension, or modification is consistent with the budget for the District of Columbia under the District of Columbia Appropriations Act, 1995.

(4) Special rule for contracts subject to Council approval. — In the case of a contract or lease which is required to be submitted to the Authority under this subsection and which is subject to approval by the Council under the laws of the District of Columbia, the Mayor shall submit such contract or lease to the Authority only after the Council has approved the contract or lease.

(5) Application to rules and regulations. — The provisions of this subsection shall apply with respect to a rule or regulation issued or proposed to be issued by the Mayor (or the head of any department or agency of the District government) in the same manner as such provisions apply to a contract or lease.

(1) Submissions of requests to Authority. — If the Mayor submits a request to the Council for the reprogramming of any amounts provided in a budget for a fiscal year which is a control year after the budget is adopted by the Council, the Mayor shall submit such request to the Authority, which shall analyze the effect of the proposed reprogramming on the financial plan and budget for the fiscal year and submit its analysis to the Council not later than 15 days after receiving the request.

(2) No action permitted until analysis received. — The Council may not adopt a reprogramming during a fiscal year which is a control year, and no officer or employee of the District government may carry out any reprogramming during such a year, until the Authority has provided the Council with an analysis of a request for the reprogramming in accordance with paragraph (1) of this subsection.

§ 47–392.04. Restrictions on borrowing by District during control year.

(a) Prior approval required. —

(1) In general. — The District government may not borrow money during a control year unless the Authority provides prior certification that both the receipt of funds through such borrowing and the repayment of obligations incurred through such borrowing are consistent with the financial plan and budget for the year.

(2) Revisions to financial plan and budget permitted. — If the Authority determines that the borrowing proposed to be undertaken by the District government is not consistent with the financial plan and budget, the Mayor may submit to the Authority a proposed revision to the financial plan and budget in accordance with § 47-392.02(e) so that the borrowing will be consistent with the financial plan and budget as so revised.

(3) Borrowing described. — This subsection shall apply with respect to any borrowing undertaken by the District government, including borrowing through the issuance of bonds under part E of title IV of the District of Columbia Home Rule Act [§§ 1-204.61 through 1-204.90], the exercise of authority to obtain funds from the United States Treasury under title VI of the District of Columbia Revenue Act of 1939 (§§ 47-3401 through 47-3401.04), or any other means.

(4) Special rules for treasury borrowing during fiscal year 1995. —

(A) No prior approval required during initial period following appointment. — The District government may requisition advances from the United States Treasury under title VI of the District of Columbia Revenue Act of 1939 (§§ 47-3401 through 47-3401.04) without the prior approval of the Authority during the 45-day period which begins on the date of the appointment of the members of the Authority (subject to the restrictions described in such title, as amended by subsection (c) of this section).

(B) Criteria for approval during remainder of fiscal year. — The District government may requisition advances described in subparagraph (A) of this paragraph during the portion of fiscal year 1995 occurring after the expiration of the 45-day period described in such subparagraph if the Authority finds that:

(i) Such borrowing is appropriate to meet the needs of the District government to reduce deficits and discharge payment obligations; and

(ii) The District government is making appropriate progress toward meeting its responsibilities under this Act (and the amendments made by this Act).

(b) Deposit of funds obtained through treasury with Authority. —

(1) Automatic deposit during control year. — If the Mayor requisitions funds from the Secretary of the Treasury pursuant to title VI of the District of Columbia Revenue Act of 1939 (§§ 47-3401 through 47-3401.04) during a control year (beginning with Fiscal Year 1996), such funds shall be deposited by the Secretary into an escrow account held by the Authority, to be used as follows:

(A) The Authority shall expend a portion of the funds for its operations during the fiscal year in which the funds are requisitioned, in such amount and under such conditions as are established under the budget of the Authority for the fiscal year under § 47-391.06(a).

(B) The Authority shall allocate the remainder of such funds to the Mayor at such intervals and in accordance with such terms and conditions as it considers appropriate, consistent with the financial plan and budget for the year and with any other withholding of funds by the Authority pursuant to this Act.

(2) Optional deposit during fiscal year 1995. —

(A) During initial period following appointment. — If the Mayor requisitions funds described in paragraph (1) of this subsection during the 45-day period which begins on the date of the appointment of the members of the Authority, the Secretary of the Treasury shall notify the Authority, and at the request of the Authority shall deposit such funds into an escrow account held by the Authority in accordance with paragraph (1) of this subsection.

(B) During remainder of fiscal year. — If the Mayor requisitions funds described in paragraph (1) of this subsection during the portion of fiscal year 1995 occurring after the expiration of the 45-day period described in subparagraph (A) of this paragraph, the Secretary of the Treasury shall deposit such funds into an escrow account held by the Authority in accordance with paragraph (1) of this subsection at the request of the Authority.

(d) Deposit of borrowed funds with authority. — If the District government borrows funds during a control year, the funds shall be deposited into an escrow account held by the Authority, to be allocated by the Authority to the Mayor at such intervals and in accordance with such terms and conditions as it considers appropriate, consistent with the financial plan and budget for the year and with any other withholding of funds by the Authority pursuant to this Act.

(e) Expenditure of funds from account in accordance with authority instructions. — Any funds allocated by the Authority to the Mayor from the escrow account described in subsection (b)(1) of this section or the escrow amount described in subsection (d) of this section 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.

(f) Prohibition against borrowing while suit pending. — The Mayor may not requisition advances from the Treasury pursuant to §§ 47-3401 through 47-3401.04 if there is an action filed by the Mayor or the Council which is pending against the Authority challenging the establishment of or any action taken by the Authority.

(Apr. 17, 1995, 109 Stat. 119, Pub. L. 104-8, § 204; Sept. 30, 1996, 110 Stat. 3009 1456, 1457, Pub. L. 104-208, § 5203(e)(1), (e)(2)(A); enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.4.

Section References

This section is referenced in § 1-204.90, § 7-1831.03, § 47-391.06, § 47-392.06, § 47-3401, § 47-3401.01, and § 47-3401.02.

Cross References

Secretary of the Treasury, intermediate-term advances for liquidation of deficit, see § 47-3401.01.

Secretary of the Treasury, provision for short-term advances to District government, see § 47-3401.

Secretary of the Treasury, short-term advances for seasonal cash-flow management, see § 47-3401.02.

References in Text

“This Act,” referred to in subsections (a)(4)(B)(ii) and (b), is the District of Columbia financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995, 109 Stat. 97, Pub. L. 104-8.

§ 47–392.05. 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 § 47-3406.02(b) 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) of this subsection shall not apply with respect to any portion of the Federal contribution which is withheld by the Secretary of the Treasury in accordance with § 47-3401.03(b)(2) to reimburse the Secretary for advances made under §§ 47-3401 to 47-3401.04(b)(1).

(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 subsection (a)(1) of this section 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.

(Apr. 17, 1995, 109 Stat. 131, Pub. L. 104-8, § 205; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Aug. 5, 1997, 111 Stat. 777, Pub. L. 105-33, § 11601(b)(2)(A); Nov. 19, 1997, 111 Stat. 2186, Pub. L. 105-100, § 157(a)(1); Apr. 20, 1999, D.C. Law 12-264, § 52(h), 46 DCR 2118.)

Prior Codifications

1981 Ed., § 47-392.5.

Section References

This section is referenced in § 47-392.06.

Cross References

Security for advances, requirements, see § 47-3401.03.

Effective Dates

Section 157(a)(3) of Pub. L. 105-100, 111 Stat. 2186, the District of Columbia Appropriations Act, 1998, provided that the amendments made by § 157(a) shall take effect as if included in the enactment of Pub. L. 105-33, 111 Stat. 251, the Balanced Budget Act of 1997.

Editor's Notes

Section 11601(b)(2)(A) of Pub. L. 105-33, 111 Stat. 777, the Balanced Budget Act of 1997, repealed this section. However, § 157(a)(1) of Pub. L. 105-100, 111 Stat. 2160, the District of Columbia Appropriations Act, 1998, reenacted and amended this section, effective as if included in the enactment of Pub. L. 105-33.

§ 47–392.06. Effect of finding of non-compliance with financial plan and budget.

(a) Submission of reports. — Not later than 30 days after the expiration of each quarter of each fiscal year (beginning with Fiscal Year 1996), the Mayor shall submit reports to the Authority describing the actual revenues obtained and expenditures made by the District government during the quarter with its cash flows during the quarter, and comparing such actual revenues, expenditures, and cash flows with the most recent projections for these items.

(b) Demand for additional information. — If the Authority determines, based on reports submitted by the Mayor under subsection (a) of this section, independent audits, or such other information as the Authority may obtain, that the revenues or expenditures of the District government during a control year are not consistent with the financial plan and budget for the year, the Authority shall require the Mayor to provide such additional information as the Authority determines to be necessary to explain the inconsistency.

(1) In general. — After requiring the Mayor to provide additional information under subsection (b) of this section, the Authority shall certify to the Council, the President, the Secretary of the Treasury, and Congress that the District government is at variance with the financial plan and budget unless:

(A)(i) The additional information provides an explanation for the inconsistency which the Authority finds reasonable and appropriate; or

(ii) The District government adopts or implements remedial action (including revising the financial plan and budget pursuant to § 47-392.02(e)) to correct the inconsistency which the Authority finds reasonable and appropriate, taking into account the terms of the financial plan and budget; and

(B) The Mayor agrees to submit the reports described in subsection (a) of this section on a monthly basis for such period as the Authority may require.

(2) Special rule for inconsistencies attributable to acts of Congress. —

(A) Determination by Authority. — If the Authority determines that the revenues or expenditures of the District government during a control year are not consistent with the financial plan and budget for the year as approved by the Authority under § 47-392.02 as a result of the terms and conditions of the budget of the District government for the year as enacted by Congress or as a result of any other law enacted by Congress which affects the District of Columbia, the Authority shall so notify the Mayor.

(B) Certification. — In the case of an inconsistency described in subparagraph (A) of this paragraph, the Authority shall certify to the Council, the President, the Secretary of the Treasury, and Congress that the District government is at variance with the financial plan and budget unless the District government adopts or implements remedial action (including revising the financial plan and budget pursuant to § 47-392.02(e)) to correct the inconsistency which the Authority finds reasonable and appropriate, taking into account the terms of the financial plan and budget.

(d) Effect of certification. — If the Authority certifies to the Secretary of the Treasury that a variance exists:

(1) The Authority may withhold any funds deposited with the Authority under § 47-392.04(b), § 47-392.04(d) or § 47-392.05(a) which would otherwise be expended on behalf of the District government; and

(2) The Secretary shall withhold funds otherwise payable to the District of Columbia under such federal programs as the Authority may specify (other than funds dedicated to making entitlement or benefit payments to individuals), in such amounts and under such other conditions as the Authority may specify.

§ 47–392.07. Recommendations on financial stability and management responsibility.

(a) In general. — The Authority may at any time submit recommendations to the Mayor, the Council, the President, and Congress on actions the District government or the Federal Government may take to ensure compliance by the District government with a financial plan and budget or to otherwise promote the financial stability, management responsibility, and service delivery efficiency of the District government, including recommendations relating to:

(1) The management of the District government’s financial affairs, including cash forecasting, information technology, placing controls on expenditures for personnel, reducing benefit costs, reforming procurement practices, and placing other controls on expenditures;

(2) The relationship between the District government and the Federal Government;

(3) The structural relationship of departments, agencies, and independent agencies within the District government;

(4) The modification of existing revenue structures, or the establishment of additional revenue structures;

(5) The establishment of alternatives for meeting obligations to pay for the pensions of former District government employees;

(6) Modifications or transfers of the types of services which are the responsibility of and are delivered by the District government;

(7) Modifications of the types of services which are delivered by entities other than the District government under alternative service delivery mechanisms (including privatization and commercialization);

(8) The effects of District of Columbia laws and court orders on the operations of the District government;

(9) The establishment of a personnel system for employees of the District government which is based upon employee performance standards; and

(10) The improvement of personnel training and proficiency, the adjustment of staffing levels, and the improvement of training and performance of management and supervisory personnel.

(b) Response to recommendations for actions within authority of District government. —

(1) In general. — In the case of any recommendations submitted under subsection (a) of this section during a control year which are within the Authority of the District government to adopt, not later than 90 days after receiving the recommendations, the Mayor or the Council (whichever has the Authority to adopt the recommendation) shall submit a statement to the Authority, the President, and Congress which provides notice as to whether the District government will adopt the recommendations.

(2) Implementation plan required for adopted recommendations. — If the Mayor or the Council (whichever is applicable) notifies the Authority and Congress under paragraph (1) of this subsection that the District government will adopt any of the recommendations submitted under subsection (a) of this section, the Mayor or the Council (whichever is applicable) shall include in the statement a written plan to implement the recommendation which includes:

(A) Specific performance measures to determine the extent to which the District government has adopted the recommendation; and

(B) A schedule for auditing the District government’s compliance with the plan.

(3) Explanations required for recommendations not adopted. — If the Mayor or the Council (whichever is applicable) notifies the Authority, the President, and Congress under paragraph (1) of this subsection that the District government will not adopt any recommendation submitted under subsection (a) of this section which the District government has authority to adopt, the Mayor or the Council shall include in the statement explanations for the rejection of the recommendations.

(1) In general. — If the Mayor or the Council (whichever is applicable) notifies the Authority, the President, and Congress under subsection (b)(1) of this section that the District government will not adopt any recommendation submitted under subsection (a) of this section which the District government has authority to adopt, the Authority may by a majority vote of its members take such action concerning the recommendation as it deems appropriate, after consulting with the Committee on Government Reform and Oversight of the House of Representatives and the Committee on Governmental Affairs of the Senate.

(2) Effective date. — This subsection shall apply with respect to recommendations of the Authority made after the expiration of the 6-month period which begins April 17, 1995.

(d) Additional power to issue orders, rules, and regulations. —

(1) In general. — In addition to the authority described in subsection (c) of this section, the Authority may at any time issue such orders, rules, or regulations as it considers appropriate to carry out the purposes of this Act and the amendments made by this Act, to the extent that the issuance of such an order, rule, or regulation is within the authority of the Mayor or the head of any department or agency of the District government, and any such order, rule, or regulation shall be legally binding to the same extent as if issued by the Mayor or the head of any such department or agency.

(2) Notification. — Upon issuing an order, rule, or regulation pursuant to this subsection, the Authority shall notify the Mayor, the Council, the President, and Congress.

(3) No judicial review of decision to issue order. — The decision by the Authority to issue an order, rule, or regulation pursuant to this subsection shall be final and shall not be subject to judicial review.

(Apr. 17, 1995, 109 Stat. 133, Pub. L. 104-8, § 207; Sept. 30, 1996, 110 Stat. 3009 1457, Pub. L. 104-208, § 5203(f); enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.7.

Section References

This section is referenced in § 47-391.01 and § 47-395.

References in Text

“This Act,” referred to in subsection (d)(1), is the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995, 109 Stat. 97, Pub. L. 104-8.

Editor's Notes

Council Response to the District of Columbia Financial Responsibility and Management Assistance Authority Regulatory Reform Section 207 Recommendations Emergency Resolution of 1998: Pursuant to Resolution 12-673, effective August 24, 1998, the Council responded, on an emergency basis, to the regulatory reform section 207 recommendations made by the District of Columbia Financial Responsibility and Management Assistance Authority.

§ 47–392.08. Special rules for Fiscal Year 1996.

(a) Adoption of transition budget. — Notwithstanding any provision of § 47-392.02 to the contrary, in the case of Fiscal Year 1996, the following rules shall apply:

(1) Not later than 45 days after the appointment of its members, the Authority shall review the proposed budget for the District of Columbia for such fiscal year submitted to Congress under § 1-204.46 (taking into account any items or provisions disapproved by the Mayor or disapproved by the Mayor and reenacted by the Council under § 1-204.04(f) and the multiyear plan for the District of Columbia prepared pursuant to § 1-204.43, and shall submit any recommendations for modifications to such financial plan and budget to promote the financial stability of the District government to the Mayor, the Council, the President, and Congress.

(2) Not later than 15 days after receiving the recommendations of the Authority submitted under paragraph (1) of this subsection, the Council (in consultation with the Mayor) shall promptly adopt a revised budget for the fiscal year (in this section referred to as the “transition budget”), and shall submit the transition budget to the Authority, the President, and Congress.

(3) Not later than 15 days after receiving the transition budget from the Council under paragraph (2) of this subsection, the Authority shall submit a report to the Mayor, the Council, the President, and Congress analyzing the budget (taking into account any items or provisions disapproved by the Mayor or disapproved by the Mayor and reenacted by the Council under § 1-204.04(f), and shall include in the report such recommendations for revisions to the transition budget as the Authority considers appropriate to promote the financial stability of the District government during the fiscal year.

(b) Financial plan and budget. —

(1) Deadline for submission. — For purposes of § 47-392.02, the Mayor shall submit the financial plan and budget for Fiscal Year 1996 as soon as practicable after April 17, 1995 (in accordance with guidelines established by the Authority).

(2) Adoption by Council. — In accordance with the procedures applicable under § 47-392.02 (including procedures providing for review by the Authority):

(A) The Council shall adopt the financial plan and budget for the fiscal year (including the supplemental budget incorporated in the financial plan and budget) prior to the submission by the Mayor of the financial plan and budget for Fiscal Year 1997 under § 47-392.02(a); and

(B) The financial plan and budget adopted by the Council (and, in the case of a financial plan and budget disapproved by the Authority, together with the financial plan and budget approved and recommended by the Authority) shall be submitted to Congress (in accordance with the procedures applicable under such section) as a supplemental budget request for Fiscal Year 1996 (in accordance with § 1-204.46).

(3) Transition budget as temporary financial plan and budget. — Until the approval of the financial plan and budget for Fiscal Year 1996 by the Authority under this subsection, the transition budget established under subsection (a) of this section (as enacted by Congress) shall serve as the financial plan and budget adopted under this part for purposes of this Act (and any provision of law amended by this Act) for Fiscal Year 1996.

(1) Monthly determination of progress toward financial plan and budget. — During each month of Fiscal Year 1996 prior to the adoption of the financial plan and budget, the Authority shall determine whether the District government is making appropriate progress in preparing and adopting a financial plan and budget for the fiscal year under this part.

(2) Certification. — The Authority shall provide the President and Congress with a certification if the Authority finds that the District government is not making appropriate progress in developing the financial plan and budget for a month, and shall notify the President and Congress that the certification is no longer in effect if the Authority finds that the District government is making such progress after the certification is provided.

(3) Prohibition against allocation of advances if certification in effect. — At any time during which a certification under paragraph (2) of this subsection is in effect, the Authority may not allocate any funds obtained through advances to the Mayor under §§ 47-3401 through 47-3401.04 from the escrow account in which the funds are held.

§ 47–392.09. Control periods described.

(a) Initiation. — For purposes of this Act, a “control period” is initiated upon the occurrence of any of the following events (as determined by the Authority based upon information obtained through the Mayor, the Inspector General of the District of Columbia, or such other sources as the Authority considers appropriate):

(1) The requisitioning by the Mayor of advances from the Treasury of the United States under title VI of the District of Columbia Revenue Act of 1939 (§§ 47-3401 through 47-3401.04), or the existence of any unreimbursed amounts obtained pursuant to such authority;

(2) The failure of the District government to provide sufficient revenue to a debt service reserve fund of the Authority under part C of this subchapter;

(3) The default by the District government with respect to any loans, bonds, notes, or other form of borrowing;

(4) The failure of the District government to meet its payroll for any pay period;

(5) The existence of a cash deficit of the District government at the end of any quarter of the fiscal year in excess of the difference between the estimated revenues of the District government and the estimated expenditures of the District government (including repayments of temporary borrowings) during the remainder of the fiscal year or the remainder of the fiscal year together with the first 6 months of the succeeding fiscal year (as determined by the Authority in consultation with the Chief Financial Officer of the District of Columbia);

(6) The failure of the District government to make required payments relating to pensions and benefits for current and former employees of the District government; or

(7) The failure of the District government to make required payments to any entity established under an interstate compact to which the District of Columbia is a signatory.

(b) Termination. —

(1) In general. — A control period terminates upon the certification by the Authority that:

(A) The District government has adequate access to both short-term and long-term credit markets at reasonable interest rates to meet its borrowing needs; and

(B) For 4 consecutive fiscal years (occurring after April 17, 1995) the expenditures made by the District government during each of the years did not exceed the revenues of the District government during such years (as determined in accordance with generally accepted accounting principles, as contained in the comprehensive annual financial report for the District of Columbia under § 1-204.48(a)(4)).

(2) Consultation with Inspector General. — In making the determination under this subsection, the Authority shall consult with the Inspector General of the District of Columbia.

(c) Control period deemed to exist upon enactment. — For purposes of this part, a control period is deemed to exist beginning April 17, 1995.

(Apr. 17, 1995, 109 Stat. 136, Pub. L. 104-8, § 209; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.9.

Section References

This section is referenced in § 1-204.90, § 7-1831.03, § 47-391.07, § 47-392.21, and § 47-393.

Cross References

National capital revitalization corporation, evaluation, submission of reports, see § 1-1219.13.

References in Text

“This Act,” referred to in the introductory language of (a), is the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995, 109 Stat. 97, Pub. L. 104-8.

§ 47–392.10. [Reserved].

Part C. Issuance of Bonds.

§ 47–392.11. Authority to issue bonds.

(a) In general. —

(1) Request of Mayor. — Subject to the requirements of this part, the Authority may at the request of the Mayor pursuant to an act of the Council issue bonds, notes, or other obligations to borrow funds to obtain funds for the use of the District government, in such amounts and in such manner as the Authority considers appropriate.

(2) Special rule for instrumentalities with independent borrowing authority. — In the case of an agency or instrumentality of the District government which under law has the authority to issue bonds, notes, or obligations to borrow funds without the enactment of an act of the Council, the Authority may issue bonds, notes, or other obligations to borrow funds for the use or functions of such agency or instrumentality at the request of the head of the agency or instrumentality.

(b) Deposit of funds obtained through borrowing with Authority. — Any funds obtained by the District government through borrowing by the Authority pursuant to this part shall be deposited into an escrow account held by the Authority, which shall allocate such funds to the District government in such amounts and at such times as the Authority considers appropriate, consistent with the specified purposes of such funds and the applicable financial plan and budget under part B of this subchapter.

(c) Use of funds obtained through bonds. — Any funds obtained through the issuance of bonds, notes, or other obligations pursuant to this part may be used for any purpose (consistent with the applicable financial plan and budget) under part B of this subchapter for which the District government may use borrowed funds under the District of Columbia Home Rule Act and for any other purpose which the Authority considers appropriate.

§ 47–392.12. Pledge of security interest in revenues of District government.

(a) In general. — The Authority may pledge or grant a security interest in revenues to individuals or entities purchasing bonds, notes, or other obligations issued pursuant to this part.

(b) Dedication of revenue stream from District government. — The Authority shall require the Mayor:

(1) To pledge or direct taxes or other revenues otherwise payable to the District government (which are not otherwise pledged or committed), including payments from the Federal Government, to the Authority for purposes of securing repayment of bonds, notes, or other obligations issued pursuant to this part; and

(2) To transfer the proceeds of any tax levied for purposes of securing such bonds, notes, or other obligations to the Authority immediately upon collection.

§ 47–392.13. Establishment of debt service reserve fund.

(a) In general. — As a condition for the issuance of bonds, notes, or other obligations pursuant to this part, the Authority shall establish a debt service reserve fund in accordance with this section.

(b) Requirements for fund. —

(1) Fund described. — A debt service reserve fund established by the Authority pursuant to this subsection shall consist of such funds as the Authority may make available, and shall be a trust fund held for the benefit and security of the obligees of the Authority whose bonds, notes, or other obligations are secured by such fund.

(2) Use of funds. — Amounts in a debt service reserve fund may be used solely for the payment of the principal of bonds secured in whole or in part by such fund, the purchase or redemption of such bonds, the payment of interest on such bonds, or the payment of any redemption premium required to be paid when such bonds and notes are redeemed prior to maturity.

(3) Restrictions of withdrawals. —

(A) In general. — Amounts in a debt service reserve fund may not be withdrawn from the fund at any time in an amount that would reduce the amount of the fund to less than the minimum reserve fund requirement established for such fund in the resolution of the Authority creating such fund, except for withdrawals for the purpose of making payments when due of principal, interest, redemption premiums and sinking fund payments, if any, with respect to such bonds for the payment of which other moneys of the Authority are not available, and for the purpose of funding the operations of the Authority for a fiscal year (in such amounts and under such conditions as are established under the budget of the Authority for the fiscal year under § 47-391.06(a)).

(B) Use of excess funds. — Nothing in subparagraph (A) of this subsection may be construed to prohibit the Authority from transferring any income or interest earned by, or increments to, any debt service reserve fund due to the investment thereof to other funds or accounts of the Authority (to the extent such transfer does not reduce the amount of the debt service reserve fund below the minimum reserve fund requirement established for such fund) for such purposes as the Authority considers appropriate to promote the financial stability and management efficiency of the District government.

§ 47–392.14. Other requirements for issuance of bonds.

(a) Minimum debt service reserve fund requirement. — The Authority may not at any time issue bonds, notes, or other obligations pursuant to this part which are secured in whole or in part by a debt service reserve fund under § 47-392.13 if issuance of such bonds would cause the amount in the debt reserve fund to fall below the minimum reserve requirement for such fund, unless the Authority at the time of issuance of such bonds shall deposit in the fund an amount (from the proceeds of the bonds to be issued or from other sources) which when added to the amount already in such fund will cause the total amount on deposit in such fund to equal or exceed the minimum reserve fund requirement established by the Authority at the time of the establishment of the fund.

(b) Amounts included in aggregate limit on District borrowing. — Any amounts provided to the District government through the issuance of bonds, notes, or other obligations to borrow funds pursuant to this part shall be taken into account in determining whether the amount of funds borrowed by the District of Columbia during a fiscal year exceeds the limitation on such amount provided under § 1-206.03(b).

§ 47–392.15. No full faith and credit of the United States.

The full faith and credit of the United States is not pledged for the payment of any principal of or interest on any bond, note, or other obligation issued by the Authority pursuant to this part. The United States is not responsible or liable for the payment of any principal of or interest on any bond, note, or other obligation issued by the Authority pursuant to this part.

§ 47–392.16. Reserved

§ 47–392.17. Reserved

§ 47–392.18. Reserved

§ 47–392.19. Reserved

§ 47–392.20. Reserved

Part D. Other Duties of Authority.

§ 47–392.21. Duties of Authority during year other than control year.

(a) In general. — During the period beginning upon the termination of a control period pursuant to § 47-392.09(b) and ending with the suspension of its activities pursuant to § 47-391.07(a), the Authority shall conduct the following activities:

(1) The Authority shall review the budgets of the District government adopted by the Council under § 1-204.46 for each fiscal year occurring during such period.

(2) At such time prior to the enactment of such budget by Congress as the Authority considers appropriate, the Authority shall prepare a report analyzing the budget and submit the report to the Mayor, the Council, the President, and Congress.

(3) The Authority shall monitor the financial status of the District government and shall submit reports to the Mayor, the Council, the President, and Congress if the Authority determines that a risk exists that a control period may be initiated pursuant to § 47-392.09(a).

(4) The Authority shall carry out activities under part C of this subchapter with respect to bonds, notes, or other obligations of the Authority outstanding during such period.

(b) Requiring Mayor to submit budgets to Authority. — With respect to the budget for each fiscal year occurring during the period described in subsection (a) of this section, at the time the Mayor submits the budget of the District government adopted by the Council to the President under § 1-204.46, the Mayor shall submit such budget to the Authority.

§ 47–392.22. General assistance in achieving financial stability and management efficiency.

In addition to any other actions described in §§ 47-392.01 through 47-392.24, the Authority may undertake cooperative efforts to assist the District government in achieving financial stability and management efficiency, including:

(1) Assisting the District government in avoiding defaults, eliminating and liquidating deficits, maintaining sound budgetary practices, and avoiding interruptions in the delivery of services;

(2) Assisting the District government in improving the delivery of municipal services, the training and effectiveness of personnel of the District government, and the efficiency of management and supervision; and

(3) Making recommendations to the President for transmission to Congress on changes to this Act or other Federal laws, or other actions of the Federal Government, which would assist the District government in complying with an approved financial plan and budget under part B of this subchapter.

§ 47–392.23. Obtaining reports.

The Authority may require the Mayor, the Chair of the Council, the Chief Financial Officer of the District of Columbia, and the Inspector General of the District of Columbia, to prepare and submit such reports as the Authority considers appropriate to assist it in carrying out its responsibilities under this Act, including submitting copies of any reports regarding revenues, expenditures, budgets, costs, plans, operations, estimates, and other financial or budgetary matters of the District government.

§ 47–392.24. Reports and comments.

(a) Annual reports to Congress. — Not later than 30 days after the last day of each fiscal year which is a control year, the Authority shall submit a report to Congress describing:

(1) The progress made by the District government in meeting the objectives of this Act during the fiscal year;

(2) The assistance provided by the Authority to the District government in meeting the purposes of this Act for the fiscal year; and

(3) Any other activities of the Authority during the fiscal year.

(b) Review and analysis of performance and financial accountability reports. — The Authority shall review each report prepared and submitted by the Mayor under § 1-204.61, and shall submit a report to Congress analyzing the completeness and accuracy of such reports.

(c) Comments regarding activities of District government. — At any time during a control year, the Authority may submit a report to Congress describing any action taken by the District government (or any failure to act by the District government) which the Authority determines will adversely affect the District government’s ability to comply with an approved financial plan and budget under part B of this subchapter or will otherwise have a significant adverse impact on the best interests of the District of Columbia.

(d) Reports on effect of Federal laws on District government. — At any time during any year, the Authority may submit a report to the Mayor, the Council, the President, and Congress on the effect of laws enacted by Congress on the financial plan and budget for the year and on the financial stability and management efficiency of the District government in general.

(e) Making reports publicly available. — The Authority shall make any report submitted under this section available to the public, except to the extent that the Authority determines that the report contains confidential material.

§ 47–392.25. Disposition of certain school property.

(a) Power to dispose. — Notwithstanding any other provision of law relating to the disposition of a facility or property described in subsection (d) of this section, the Authority may dispose (by sale, lease, or otherwise) of any facility or property described in subsection (d) of this section.

(b) Preference for public charter school. — In disposing of a facility or property under this section, the Authority shall give preference to an eligible applicant (as defined in § 38-1800.02) whose petition to establish a public charter school has been conditionally approved under § 38-1802.03(d)(2), or a Board of Trustees (as defined in § 38-1800.02) of such a public charter school, if doing so will not result in a significant loss of revenue than might be obtained from other dispositions or uses of the facility or property.

(1) In general. — The Authority shall deposit any proceeds of the disposition of a facility or property under this section in the Board of Education Real Property Maintenance and Improvement Fund (as established by the Real Property Disposal Act of 1990), to be used for the construction, maintenance, improvement, rehabilitation, or repair of buildings and grounds which are used for educational purposes for public and public charter school students in the District of Columbia.

(2) Consultation. — In disposing of a facility or property under this section, the Authority shall consult with the Superintendent of Schools of the District of Columbia, the Mayor, the Council, the Administrator of General Services, and education and community leaders involved in planning for an agency or authority that will design and administer a comprehensive long-term program for repair and improvement of District of Columbia public school facilities (as described in § 38-1805.52(a)).

(3) Legal effect of sale. — The Authority may dispose of a facility or property under this section by executing a proper deed and any other legal instrument for conveyance of title to the facility or property, and such deed shall convey good and valid title to the purchaser of the facility or property.

(d) Facility or property described. — A facility or property described in this subsection is a facility or property which is described in § 38-1802.09(b)(1)(B) and with respect to which the Authority has made the following determinations:

(1) The property is no longer needed for purposes of operating a District of Columbia public school (as defined in § 38-1800.02).

(2) The disposition of the property is in the best interests of education in the District of Columbia.

(3) The Mayor (or any other department or agency of the District government) has failed to make substantial progress toward disposing the property during the 90-day period which begins on the date the Board of Education transfers jurisdiction over the property to the Mayor (or, in the case of property which is described in § 38-1802.09(b)(1)(B) as of September 30, 1996, during the 90-day period which begins on September 30, 1996).

(Apr. 17, 1995, 109 Stat. 140, Pub. L. 104-8, § 225; as added Sept. 30, 1996, 110 Stat. 3009-508, Pub. L. 104-208, title V, ch. 2, § 5206(a); enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Mar. 24, 1998, D.C. Law 12-81, § 59(a), 45 DCR 745.)

Prior Codifications

1981 Ed., § 47-392.25.

Cross References

Office of property management, purpose, see § 10-1002.

References in Text

The “Board of Education Real Property Disposal Act of 1990”, referred to in subsection (c)(1), is D.C. Law 8-158.

Mayor's Orders

Delegation of the Mayor’s Order Surplus Property Disposition Authority to the Director of the Office of Property Management to Dispose of Surplus School Properties on Behalf of the District of Columbia, see Mayor’s Order 2001-60, May 1, 2001 ( 48 DCR 4740).

§ 47–392.26. Prohibiting funding for terminated employees or contractors.

(a) In general. — Except as provided in subsection (b) of this section, none of the funds made available to the District of Columbia during any fiscal year (beginning with fiscal year 1996) may be used to pay the salary or wages of any individual whose employment by the District government is no longer required as determined by the District of Columbia Financial Responsibility and Management Assistant Authority, or to pay any expenses associated with a contractor or consultant of the District government whose contract or arrangement with the District government is no longer required as determined by the Authority,

(b) Exception for payments for services already provided. — Funds made available to the District of Columbia may be used to pay an individual for employment already performed at the time of the Authority’s determination, or to pay a contractor or consultant for services already provided at the time of the Authority’s determination, to the extent permitted by the District of Columbia Financial Responsibility and Management Assistance Authority.

(c) District government defined. — In this section, the term “District government” has the meaning given such term in § 47-393(5).

Part E. Definitions.

§ 47–393. Definitions.

In this Act, the following definitions apply:

(1) The term “Authority” means the District of Columbia Financial Responsibility and Management Assistance Authority established under § 47-391.01(a).

(2) The term “Council” means the Council of the District of Columbia.

(3) The term “control period” has the meaning given such term in § 47-392.09.

(4) The term “control year” means any fiscal year for which a financial plan and budget approved by the Authority under § 47-392.02(b) is in effect, and includes Fiscal Year 1996.

(5) The term “District government” means the government of the District of Columbia, including any department, agency or instrumentality of the government of the District of Columbia; any independent agency of the District of Columbia established under part F of title IV of the District of Columbia Home Rule Act or any other agency, board, or commission established by the Mayor or the Council; the Council of the District of Columbia; and any other agency, public authority, or public benefit corporation which has the authority to receive monies directly or indirectly from the District of Columbia (other than monies received from the sale of goods, the provision of services, or the loaning of funds to the District of Columbia), except that such term does not include the Authority.

(6) The term “financial plan and budget” means a financial plan and budget described in part B of this subchapter, and includes the budgets of the District government for the fiscal years which are subject to the financial plan and budget (as described in § 47-392.01(b)).

(7) The term “Mayor” means the Mayor of the District of Columbia.

(Apr. 17, 1995, 109 Stat. 152, Pub. L. 104-8, § 305; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575; Aug. 5, 1997, 111 Stat. 760, Pub. L. 105-33, § 11261(a).)

Prior Codifications

1981 Ed., § 47-393.

Section References

This section is referenced in § 1-204.04, § 1-204.22, § 1-204.24f, § 1-204.46, § 1-204.50a, § 1-204.50b, § 1-204.72, § 1-204.75, § 1-206.03, § 1-301.115a, § 1-611.21, § 1-619.03, § 1-801.02, § 2-1215.02, § 2-1217.01, § 2-1515.08, § 7-1131.12, § 44-921, § 47-351.02, § 47-392.26, and § 47-3401.05.

Cross References

Board of education, annual budget, allocations, see § 1-204.52.

Board of education, reports, estimates of expenses and expenditures, see § 38-103.

Board of education, submission of school-based budget, see § 38-2801.

Business improvement districts, “BID corporation” defined, see § 2-1215.02.

Council, powers and duties, see § 1-204.04.

Mayor, powers and duties, see § 1-204.22.

Mental health services, client enterprise program, establishment, see § 44-921.

Merit system, legal service, effect of control period, see § 1-608.62.

Personnel authority pilot programs, Mayor’s authority to implement during control period, see § 1-611.21.

Personnel authority pilot programs, Mayor’s authority to implement during control period, see § 1-619.03.

Police officers, fire fighters, and teachers retirement benefits, calculation of District payment to each separate fund, see § 1-907.03.

Procurement, office of the chief financial officer of the District, application of Chapter 11A during control year, see § 2-301.04.

References in Text

“This Act,” referred to in the introductory language of this section, is the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995, 109 Stat. 97, Pub. L. 104-8.

“Part F of title IV of the District of Columbia Home Rule Act,” referred to in (5), is part F of title IV of Pub. L. 93-198, 87 Stat. 774, approved December 24, 1973, codified as §§ 1-204.61 through 1-204.66.

Part F. Miscellaneous provisions.

§ 47–395. Review and revision of regulations; permit and application processes.

(a) Review of current regulations by Authority. —

(1) In general. — Not later than 6 months after the date of the enactment of this title, the District of Columbia Financial Responsibility and Management Assistance Authority shall complete a review of regulations of the District of Columbia in effect as of the date of the enactment of this title and analyze the extent to which such regulations unnecessarily and inappropriately impair economic development in the District of Columbia and the financial stability and management efficiency of the District of Columbia government. 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 (§ 3-3101 et seq.) [expired], together with specific findings and conclusions with respect to each such recommendation. The Authority shall transmit the findings of its review to the Mayor, Council, and Congress.

(b) Survey and revision of permit and application processes. —

(1) In general. — Not later than 6 months after the date of the enactment of this title, the Authority shall complete a review of the current processes of the District of Columbia for obtaining permits and applications of all types and analyze the extent to which such processes and their completion times vary from the processes applicable in other jurisdictions. To the greatest extent possible, such review shall take into account the work and recommendations of the Business Regulatory Reform Commission pursuant to the Business Regulatory Reform Commission Act of 1994 (§ 3-3101 et seq.) [expired] and other existing and ongoing public and private regulatory reform efforts. The Authority shall transmit the findings of its review to the Mayor, Council, and Congress.

(2) Revision. — Based on the review conducted under paragraph (1) of this subsection and taking into account actions by the Council and the Executive Branch of the District of Columbia government, the Authority shall take such additional actions as it considers appropriate to repeal or revise the permit and application processes (and their completion times) of the District of Columbia, in accordance with (and subject to the terms and conditions described in) § 47-392.07. In carrying out such repeals or revisions, the Authority shall seek to ensure that the average time required to obtain a permit or application from the District of Columbia is consistent with the average time for other similar jurisdictions in the United States.

(c) Reports to Congress. — Upon the expiration of the 6-month period which begins on the date of the enactment of this title and on a quarterly basis thereafter, the Authority shall submit a report to Congress describing the steps taken to carry out the requirements of this section and the effectiveness of the regulatory, permit, and application processes of the District of Columbia.

(Aug. 5, 1997, 111 Stat. 780, Pub. L. 105-33, § 11701; Nov. 19, 1997, 111 Stat. 780, Pub. L. 105-100, § 157(d); Apr. 20, 1999, D.C. Law 12-264, § 52(i), 46 DCR 2118.)

Prior Codifications

1981 Ed., § 47-395.

Effective Dates

Section 11721 of title XI of Pub. L. 105-33, 111 Stat. 786, the National Capital Revitalization and Self-Government Improvement Act of 1997, provided that except as otherwise provided in this title, the provisions of this title shall take effect on the later of October 1, 1997, or the day the District of Columbia Financial Responsibility and Management Assistance Authority certifies that the financial plan and budget for the District government for fiscal year 1998 meet the requirements of section 201(c)(1) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, as amended by this title.

Subchapter VII-A. Management Reform Plans. [Repealed].

§ 47–395.01. Management reform plans for District government. [Repealed]

Repealed.

§ 47–395.02. Procedures for development of plans. [Repealed]

Repealed.

§ 47–395.03. Implementation of plans. [Repealed]

Repealed.

(Aug. 5, 1997, 111 Stat. 732, Pub. L. 105-33, § 11104; Apr. 20, 1999, D.C. Law 12-264, § 52(k), 46 DCR 2118; Mar. 5, 1999, 113 Stat. 3, Pub. L. 106-1, § 3(a).)

Prior Codifications

1981 Ed., § 47-395.3.

Editor's Notes

Section 47-395.3 had been amended by § 52(k) of D.C. Law 12-264; however, effect was given to the repeal by Pub. L. 106-1.

Department heads report solely to Authority: Section 1604(f)(2)(B) of Pub. L. 105-34, 111 Stat. 1049, provided that notwithstanding § 11104(b)(3) of the Balanced Budget Act of 1997 (former paragraph (b)(3) of this section), in carrying out any of the management reform plans under such section, the head of a department of the government of the District of Columbia shall report solely to the District of Columbia Financial Responsibility and Management Assistance Authority.

§ 47–395.04. Reform of powers and duties of department heads. [Repealed]

Repealed.

(Aug. 5, 1997, 111 Stat. 732, Pub. L. 105-33, § 11105; Apr. 20, 1999, D.C. Law 12-264, § 52(l), 46 DCR 2118; Mar. 5, 1999, 113 Stat. 3, Pub. L. 106-1, § 3(a).)

Prior Codifications

1981 Ed., § 47-395.4.

Editor's Notes

Section 47-395.4 had been amended by § 52(l) of D.C. Law 12-264; however, effect was given to the repeal by Pub. L. 106-1.

Construction of Law

Construction of Law 12-124

Section 301 of D.C. Law 12-124 provided, in part, that nothing in the act shall be construed as superseding the provisions of the National Capital Revitalization and Self-Government Improvement Act of 1997, approved Aug. 5, 1997 (P.L. 105-33; 111 Stat. 712), except that § 47-395.04(b)(3) is expressly superseded.

§ 47–395.05. Powers of Financial Responsibility and Management Authority unaffected. [Repealed]

Repealed.

Subchapter VIII. District of Columbia Convention Center and Sports Arena Authorization.

§ 47–396.01. Expenditure of revenues for Convention Center activities.

The fourth sentence of § 1-204.46 shall not apply with respect to the expenditure or obligation of any revenues of the Washington Convention Center Authority for any purpose authorized under the Washington Convention Center Authority Act of 1994 (D.C. Law 10-188).

§ 47–398.01. Permitting designated authority to borrow funds for preconstruction activities relating to Gallery Place sports arena.

(a) Permitting borrowing. —

(1) In general. — The designated authority may borrow funds through the issuance of revenue bonds, notes, or other obligations which are secured by revenues pledged in accordance with paragraph (2) of this subsection to finance, refinance, or reimburse the costs of arena preconstruction activities described in § 47-398.04 if the designated authority is granted the authority to borrow funds for such purposes by the District of Columbia government.

(2) Revenue required to secure borrowing. — The designated authority may borrow funds under paragraph (1) of this subsection to finance, refinance, or reimburse the costs of arena preconstruction activities described in § 47-398.04 only if such borrowing is secured (in whole or in part) by the pledge of revenues of the District of Columbia which are attributable to the sports arena tax imposed as a result of the enactment of D.C. Law 10-128 (as amended by the Arena Tax Amendment Act of 1994 (D.C. Act 10-315)) and which are transferred by the Mayor of the District of Columbia to the designated authority pursuant to § 47-2752(a-1)(3).

(b) Treatment of debt created. — Any debt created pursuant to subsection (a) of this section shall not:

(1) Be considered general obligation debt of the District of Columbia for any purpose, including the limitation on the annual aggregate limit on debt of the District of Columbia under § 1-206.03(b);

(2) Constitute the lending the public credit for private undertakings for purposes of § 1-206.02(a)(2); or

(3) Be a pledge of or involve the full faith and credit of the District of Columbia.

(c) Designated authority defined. — The term “designated authority” means the Redevelopment Land Agency or such other District of Columbia government agency or instrumentality designated by the Mayor of the District of Columbia for purposes of carrying out any Arena preconstruction activities.

(Sept. 6, 1995, 109 Stat. 268, Pub. L. 104-28, § 201; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-398.1.

Section References

This section is referenced in § 47-398.02, § 47-398.03, and § 47-398.04.

Emergency Legislation

For temporary (90 days) limitation on the amount of borrowing to be financed by the Arena Tax for the purpose of construction and financing of the Arena, see § 4 of the Real Property Tax Rates for Tax Year 1996 Emergency Amendment Act of 1995 (D.C. Act 11-148, October 26, 1995, 42 DCR 6054).

References in Text

The reference in subsection (a)(2) to “D.C. Law 10-128 (as amended by the Arena Tax Amendment Act of 1994 (D.C. Act 10-315))” is reference to §§ 301 through 304 of D.C. Law 10-128 as amended by D.C. Law 10-189, which are codified as §§ 47-2751 through 47-2753 and notes to § 47-2751.

Mayor's Orders

Designation of Designated Authority Under P.L. 104-28, the District of Columbia Convention Center and Sports Arena Authorization Act of 1995: See Mayor’s Order 96-2, January 9, 1996 ( 43 DCR 315).

Delegation of Authority

Delegation of Authority Under P.L. 104-28, the District of Columbia Convention Center and Sports Arena Authorization Act of 1995, see Mayor’s Order 96-3, January 9, 1996 ( 43 DCR 317).

§ 47–398.02. Permitting certain District revenues to be pledged as security for borrowing.

(a) In general. — The District of Columbia (including the designated authority described in § 47-398.01(c)) may pledge as security for any borrowing undertaken pursuant to § 47-398.01(a) any revenues of the District of Columbia which are attributable to the sports arena tax imposed as a result of the enactment of D.C. Law 10-128 (as amended by the Arena Tax Amendment Act of 1994 (D.C. Act 10-315)), upon the transfer of such revenues by the Mayor of the District of Columbia to the designated authority pursuant to § 47-2752(a-1)(3).

(b) Exclusion of pledged revenues from calculation of annual aggregate limit on debt. — Any revenues pledged as security by the District of Columbia pursuant to subsection (a) of this section shall be excluded from the determination of the dollar amount equivalent to 14% of District revenues under § 1-206.03(b)(3)(A).

§ 47–398.03. No appropriation necessary for arena preconstruction activities.

The fourth sentence of section 446 of the District of Columbia Home Rule Act (§ 1-204.46) shall not apply with respect to any of the following obligations or expenditures:

(1) Borrowing conducted pursuant to § 47-398.01(a);

(2) The pledging of revenues as security for such borrowing pursuant to § 47-398.02(a);

(3) The payment of principal, interest, premium, debt servicing, contributions to reserves, or other costs associated with such borrowing; or

(4) Other obligations or expenditures made to carry out any arena preconstruction activity described in § 47-398.04.

§ 47–398.04. Arena preconstruction activities described.

The arena preconstruction activities described in this section are as follows:

(1) The acquisition of real property (or rights in real property) to serve as the site of the sports arena and related facilities;

(2) The clearance, preparation, grading, and development of the site of the sports arena and related facilities, including the demolition of existing buildings;

(3) The provision of sewer, water, and other utility facilities and infrastructure related to the sports arena;

(4) The financing of a Metrorail connection to the site and other Metrorail modifications related to the sports arena;

(5) The relocation of employees and facilities of the District of Columbia government displaced by the construction of the sports arena and related facilities;

(6) The use of environmental, legal, and consulting services (including services to obtain regulatory approvals) for the construction of the sports arena;

(7) The financing of administrative and transaction costs incurred in borrowing funds pursuant to § 47-398.01(a), including costs incurred in connection with the issuance, sale, and delivery of bonds, notes, or other obligations; and

(8) The financing of other activities of the District of Columbia government associated with the development and construction of the sports arena, including the reimbursement of the District of Columbia government or others for costs incurred prior to September 6, 1995, which were related to the sports arena, so long as the designated authority determines that such costs are adequately documented and that the incurring of such costs was reasonable.

§ 47–398.05. Limitation on amount of borrowing financed by arena tax.

Notwithstanding any other provision of law, the amount of borrowing associated with the arena development and construction costs, including, but not limited to, land acquisition, construction, predevelopment, off-site infrastructure, and financing for capital interest and principal, may not exceed $61 million, to be paid from proceeds of the arena tax, established pursuant to § 47-2751 et seq.

§ 47–398.06. Rule of construction regarding revenue bond requirements under Home Rule Act.

Nothing in the District of Columbia Convention Center and Sports Arena Authorization Act of 1995 may be construed to affect the application of section 490 of the District of Columbia Home Rule Act [§ 1-204.90] to any revenue bonds, notes, or other obligations issued by the Council of the District of Columbia or by any District instrumentality to which the Council delegates its authority to issue revenue bonds, notes, or other obligations under such section.