Code of the District of Columbia

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.

(C) Removal. — The President may remove any member of the Authority only for cause.

(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.

(c) Inapplicability of certain employment and procurement laws. —

(1) Civil service laws. — The Executive Director and staff of the Authority may be appointed without regard to the provisions of Title 5, United States Code, governing appointments in the competitive service, and paid without regard to the provisions of Chapter 51 and subchapter III of Chapter 53 of that title relating to classification and General Schedule pay rates.

(2) District employment and procurement laws. — The Executive Director and staff of the Authority may be appointed and paid without regard to the provisions of the District of Columbia 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.


(Apr. 17, 1995, 109 Stat. 101, Pub. L. 104-8, § 102; Apr. 26, 1996, 110 Stat. 1321 221, Pub. L. 104-134, §§ 153(b)(1)-(3); enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-391.2.

References in Text

“This Act,” referred to in subsection (d), is the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995, 109 Stat. 97, Pub. L. 104-8.


§ 47–391.03. 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.

(c) Obtaining official data. —

(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.


(Apr. 17, 1995, 109 Stat. 105, Pub. L. 104-8, § 104; Apr. 26, 1996, 110 Stat. 1321 224, Pub. L. 104-134, § 153(c); enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-391.4.

References in Text

“This Act,” referred to in 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.


§ 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.


(Apr. 17, 1995, 109 Stat. 105, Pub. L. 104-8, § 105; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-391.5.

References in Text

“This Act,” referred to in subsection (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.


§ 47–391.06. 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

(C) Any gifts or bequests made to the Authority during the previous fiscal year.

(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).

(c) Sources of funds. —

(1) Use of previously appropriated funds in District budget. — The Mayor shall transfer funds previously appropriated to the District government for a fiscal year for auditing and consulting services to the Authority (in such amounts as are provided in the budget request of the Authority under subsection (a) 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.


(Apr. 17, 1995, 109 Stat. 106, Pub. L. 104-8, § 107; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-391.7.

Section References

This section is referenced in § 47-392.21.

References in Text

“This Act,” referred to in subsections (a) 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.


§ 47–391.08. 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.


(Apr. 17, 1995, 109 Stat. 141, Pub. L. 104-8, § 109; as added Oct. 21, 1998, 112 Stat. 2681-148, Pub. L. 105-277, § 159.)

Prior Codifications

1981 Ed., § 47-391.9.


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);

(C) Contain estimates of short-term and long-term debt (both outstanding and anticipated to be issued); and

(D) Contain cash flow forecasts for each fund of the District government at such intervals as the Authority may require.

(4) The financial plan and budget shall include a statement describing methods of estimations and significant assumptions.

(5) The financial plan and budget shall include any other provisions and shall meet such other criteria as the Authority considers appropriate to meet the purposes of this Act, including provisions for changes in personnel policies and levels for each department or agency of the District government, changes in the structure and organization of the District government, and management initiatives to promote productivity, improvement in the delivery of services, or cost savings.

(c) Standards to promote financial stability described. —

(1) In general. — The standards to promote the financial stability of the District government applicable to the financial plan and budget for a fiscal year are as follows:

(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.

(c) Action upon approval of Mayor’s preliminary financial plan and budget. —

(1) Certification to Mayor. —

(A) In general. — If the Authority determines that the financial plan and budget for the fiscal year submitted by the Mayor under subsection (a) 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.

(C) Deemed approval after 15 days. —

(i) In general. — If the Authority has not provided the Mayor, the Council, the President, and Congress with a notice certifying approval under subparagraph (A)(i) 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.

(C) Disapproval of Council’s revised financial plan and budget. —

(i) In general. — If, after reviewing the revised financial plan and budget for a fiscal year submitted by the Council under subparagraph (A) 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.

(C) Disapproval of Mayor’s revised financial plan and budget. —

(i) In general. — If the Authority determines that the revised financial plan and budget for the fiscal year submitted by the Mayor under subparagraph (A) 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) Local funds revenue transfer to the Capital Improvements Program. --

(1) For Fiscal Year 2020, the approved budget and financial plan shall include a minimum local funds transfer to the Capital Improvements Program ("CIP") of $58,950,000.

(2) Beginning with Fiscal Year 2021, and for each subsequent fiscal year thereafter until the provisions of paragraph (3) of this subsection are met, the approved budget and financial plan shall include a minimum local funds transfer to the CIP of $58,950,000 plus 25% of the amount by which the projected local funds revenue for that fiscal year exceeds the local funds revenue included in the budget and financial plan approved for Fiscal Year 2020.

(3) When the minimum local funds transfer to the CIP under paragraph (2) of this subsection for any fiscal year causes the amount of funds in the CIP to equal or exceed the amount reported for additions to total accumulated depreciation of capital assets, as reported in the most recent comprehensive annual financial report for the District of Columbia, the approved budget and financial plan for the next fiscal year and for each subsequent year thereafter, shall include a minimum local funds transfer to the CIP equal to the amount reported for additions to total depreciation of capital assets reported in the next annual financial report.

(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; and

(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.

(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 8.33% of the General Fund operating budget for each fiscal year.

(4) 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 Comprehensive Annual Financial Report shall be used for the following purposes:

(A) 50% shall be deposited in the Housing Production Trust Fund; and

(B) 50% shall be reserved for Pay-as-you-go capital projects.

(j-3) 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 Comprehensive Annual 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.

(j-4) 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.

(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.)

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).

Emergency Legislation

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.

(C) [Repealed].

(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.

(c) Restrictions on reprogramming of amounts in budget during control years. —

(1) Submissions of requests to Authority. — If the Mayor submits a request to the Council for the reprogramming of any amounts provided in a budget for a fiscal year which is a control year after the budget is adopted by the Council, the Mayor shall submit such request to the Authority, which shall analyze the effect of the proposed reprogramming on the financial plan and budget for the fiscal year and submit its analysis to the Council not later than 15 days after receiving the request.

(2) No action permitted until analysis received. — The Council may not adopt a reprogramming during a fiscal year which is a control year, and no officer or employee of the District government may carry out any reprogramming during such a year, until the Authority has provided the Council with an analysis of a request for the reprogramming in accordance with paragraph (1) of this subsection.


(Apr. 17, 1995, 109 Stat. 116, Pub. L. 104-8, § 203; Apr. 26, 1996, 110 Stat. 1321 224, Pub. L. 104-134, § 153(d); Sept. 30, 1996, 110 Stat. 3009 1455, Pub. L. 104-208, §§ 5203(a), (d); enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.3.

References in Text

“The District of Columbia Appropriations Act, 1995,” referred to in subsection (b)(3) is 108 Stat. 2585, Pub. L. 103-334, approved September 30, 1994.


§ 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.

(c) [Reserved].

(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.

(c) Certification of variance. —

(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.


(Apr. 17, 1995, 109 Stat. 131, Pub. L. 104-8, § 206; Sept. 30, 1996, 110 Stat. 3009 1457, Pub. L. 104-208, § 5203(e)(2)(B); enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.6.


§ 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.

(c) Implementation of rejected recommendations by Authority. —

(1) In general. — If the Mayor or the Council (whichever is applicable) notifies the Authority, the President, and Congress under subsection (b)(1) 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.

(c) Restrictions on advances from treasury. —

(1) Monthly determination of progress toward financial plan and budget. — During each month of Fiscal Year 1996 prior to the adoption of the financial plan and budget, the Authority shall determine whether the District government is making appropriate progress in preparing and adopting a financial plan and budget for the fiscal year under this 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.


(Apr. 17, 1995, 109 Stat. 134, Pub. L. 104-8, § 208; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.8.

References in Text

“This Act,” referred to in subsection (b)(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.


§ 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.


(Apr. 17, 1995, 109 Stat. 137, Pub. L. 104-8, § 211; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.11.

References in Text

“The District of Columbia Home Rule Act,” referred to in (c), is Pub. L. 93-198, 87 Stat. 774, approved December 24, 1973.


§ 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.


(Apr. 17, 1995, 109 Stat. 137, Pub. L. 104-8, § 212; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.12.


§ 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.


(Apr. 17, 1995, 109 Stat. 138, Pub. L. 104-8, § 213; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.13.

Section References

This section is referenced in § 47-391.06 and § 47-392.14.


§ 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).


(Apr. 17, 1995, 109 Stat. 138, Pub. L. 104-8, § 214; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.14.


§ 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.


(Apr. 17, 1995, 109 Stat. 139, Pub. L. 104-8, § 215; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.15.


§ 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.


(Apr. 17, 1995, 109 Stat. 139, Pub. L. 104-8, § 221; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.21.


§ 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.


(Apr. 17, 1995, 109 Stat. 140, Pub. L. 104-8, § 222; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.22.

References in Text

“This Act,” referred to in paragraph (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.


§ 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.


(Apr. 17, 1995, 109 Stat. 140, Pub. L. 104-8, § 223; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.23.

References in Text

“This Act,” referred to in 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.


§ 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.


(Apr. 17, 1995, 109 Stat. 140, Pub. L. 104-8, § 224; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.24.

References in Text

“This Act,” referred to in subsections (a)(1) and (a)(2), is the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995, 109 Stat. 97, Pub. L. 104-8.


§ 47–392.25. 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.

(c) Use of proceeds from disposition for school repair and maintenance. —

(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).


(Sept. 30, 1996, 110 Stat. 3009-503, Pub. L. 104-208, title V, ch. 2, § 5204; enacted, Apr. 9, 1997, D.C. Law 11-254, § 2, 44 DCR 1575.)

Prior Codifications

1981 Ed., § 47-392.26.


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.

(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 regulations of the District of Columbia, in accordance with (and subject to the terms and conditions described in) § 47-392.07.

(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.