District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill B25-0004 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
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	1	+	ENGROSSED ORIGINAL
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8		-	AN ACT
9		-
10		-	________
11		-
12		-	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
13		-
14		-	_______________
	8	+	A BILL 1
	9	+	2
	10	+	25-4 3
	11	+	4
	12	+	IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 5
	13	+	6
	14	+	_______________ 7
	15	+	8
	16	+	9
	17	+	To authorize the issuance of general obligation bonds and general obligation bond anticipation 10
	18	+	notes of the District of Columbia for the purposes of financing certain capital projects and 11
	19	+	the refunding of certain capital indebtedness of the District of Columbia during fiscal years 12
	20	+	2023 through 202 8. 13
	21	+	14
	22	+	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act 15
	23	+	may be cited as the "General Obligation Bonds and Bond Anticipation Notes for Fiscal Years 20 23-16
	24	+	2028 Authorization Act of 202 3". 17
	25	+	Sec. 2. Definitions. 18
	26	+	For the purposes of this act, the term: 19
	27	+	(1) "Additional Bonds" means District general obligation bonds that may be issued 20
	28	+	pursuant to section 461 of the Home Rule Act and any act enacted subsequent to this act on a parity 21
	29	+	with the bonds. 22
	30	+	(2) "Additional Notes" means District general obligation bond anticipation notes 23
	31	+	that may be issued pursuant to section 475 of the Home Rule Act and any act enacted subsequent to 24
	32	+	this act on a parity with the notes. 25
	33	+	(3) "Authorized Delegate"' means any officer or employee of the executive office of 26
	34	+	the Mayor to whom the Mayor has delegated any of the Mayor's functions under this act pursuant to 27
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16	36
17		-	To authorize the issuance of general obligation bonds and general obligation bond anticipation notes
18		-	of the District of Columbia for the purposes of financing certain capital projects and the
19		-	refunding of certain capital indebtedness of the District of Columbia during fiscal years
20		-	2023 through 2028.
21		-
22		-	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
23		-	act may be cited as the "General Obligation Bonds and Bond Anticipation Notes for Fiscal Years
24		-	2023-2028 Authorization Act of 2023".
25		-
26		-	Sec. 2. Definitions.
27		-	For the purposes of this act, the term:
28		-	(1) "Additional Bonds" means District general obligation bonds that may be
29		-	issued pursuant to section 461 of the Home Rule Act and any act enacted subsequent to this act
30		-	on a parity with the bonds.
31		-	(2) "Additional Notes" means District general obligation bond anticipation notes
32		-	that may be issued pursuant to section 475 of the Home Rule Act and any act enacted subsequent
33		-	to this act on a parity with the notes.
34		-	(3) "Authorized Delegate"' means any officer or employee of the executive office
35		-	of the Mayor to whom the Mayor has delegated any of the Mayor's functions under this act
36		-	pursuant to section 422(6) of the Home Rule Act, including, but not limited to, the Chief Financial
37		-	Officer, the City Administrator, and the Treasurer of the District of Columbia.
38		-	(4) "Bond Counsel" means a firm or firms of attorneys designated as bond counsel
39		-	or co-bond counsel from time to time by the Mayor or an Authorized Delegate.
40		-	(5) "Bonds" means District general obligation bonds authorized to be issued
41		-	pursuant to this act, including any refunding bonds.
42		-	(6) "Capital Projects" means the District capital projects as defined in section
43		-	103(8) of the Home Rule Act.
44		-	(7) "Deposit and Investment Act" means the Financial Institutions Deposit and
45		-	Investment Amendment Act of 1997, effective March 18, 1998 (D.C. Law 12-56; D.C. Official
46		-	Code § 47-351.01 et seq.).
47		-
48		-
49		-	ENROLLED ORIGINAL
	37	+	ENGROSSED ORIGINAL
50	38
51	39
52	40
53	41
54	42		2
55	43
56		-	(8) "Escrow Agreement" means any agreement heretofore or hereafter entered
57		-	into by the Mayor or an Authorized Delegate to provide for the custody, investment, and
58		-	disbursement of revenues and funds pledged to, and in which a security interest is created for, the
59		-	payment of the principal of, and interest on, the bonds or notes.
60		-	(9) "Hedge Agreement" means any financial arrangement that is a cap, floor,
61		-	or collar; forward rate; future rate; swap, which swap may be based on an amount equal to either
62		-	a principal amount or a notional principal amount relating to all or a portion of the principal
63		-	amount of a series of bonds; asset, index, price, or market-linked transaction or agreement; other
64		-	interest rate exchange or rate protection transaction agreement; other similar transactions,
65		-	however designated; any combination thereof; any option with respect thereto; or any similar
66		-	arrangement, which is executed by the District for purposes of debt management, including
67		-	managing interest rate fluctuations on bonds, but not for purposes of speculation.
68		-	(10) "Home Rule Act" means the District of Columbia Home Rule Act, approved
69		-	December 24, 1973 (87 Stat. 774; D.C. Official Code § 1-201.01 et seq.).
70		-	(11) "Notes" means District general obligation bond anticipation notes authorized
71		-	to be issued pursuant to this act, including any renewals of such notes.
72		-	(12) "Outstanding Debt" means the outstanding indebtedness at any time of the
73		-	District for capital project loans from the Treasury of the United States, any Treasury Advances,
74		-	any outstanding general obligation bonds issued pursuant to this or any prior act, any outstanding
75		-	general obligation bond anticipation notes issued pursuant to this or any prior act, and any
76		-	income tax secured revenue bonds issued pursuant to the Income Tax Secured Bond
77		-	Authorization Act of 2008, effective October 22, 2008 (D.C. Law 17-254, D.C. Official Code
78		-	§47-340.26 et seq.).
79		-	(13) "Paying Agent" means the District or any bank, trust company, or national
80		-	banking association designated to serve in this capacity by the Mayor or an Authorized Delegate
81		-	pursuant to section 6.
82		-	(14) "Procurement Act" means the District of Columbia Procurement Practices
83		-	Reform Act of 2010, effective April 8, 2011 (D.C. Law 18-371; D.C. Official Code § 2-351.01 et
84		-	seq.).
85		-	(15) "Registrar" means the District or any bank, trust company, or national
86		-	banking association designated to serve in this capacity by the Mayor or an Authorized Delegate
87		-	pursuant to section 6.
88		-	(16) "Secretary" means the Secretary of the District of Columbia.
89		-	(17) "Special Tax Fund" means the debt service fund established pursuant to
90		-	section 9(a)(1).
91		-	(18) “Special Tax Funds” means the debt service funds established pursuant to
92		-	section 9(a)(1) and (2).
93		-	(19) “Special Tax Fund for Notes” means the debt service fund established
94		-	pursuant to section 9(a)(2). ENROLLED ORIGINAL
	44	+	section 422(6) of the Home Rule Act, including, but not limited to, the Chief Financial Officer, the 28
	45	+	City Administrator, and the Treasurer of the District of Columbia. 29
	46	+	(4) "Bond Counsel" means a firm or firms of attorneys designated as bond 30
	47	+	counsel or co-bond counsel from time to time by the Mayor or an Authorized Delegate. 31
	48	+	(5) "Bonds" means District general obligation bonds authorized to be issued 32
	49	+	pursuant to this act, including any refunding bonds. 33
	50	+	(6) "Capital Projects" means the District capital projects as defined in section 34
	51	+	103(8) of the Home Rule Act. 35
	52	+	(7) "Deposit and Investment Act" means the Financial Institutions Deposit and 36
	53	+	Investment Amendment Act of 1997, effective March 18, 1998 (D.C. Law 12-56; D.C. Official 37
	54	+	Code § 47- 351.01 et seq.). 38
	55	+	(8) "Escrow Agreement" means any agreement heretofore or hereafter entered into 39
	56	+	by the Mayor or an Authorized Delegate to provide for the custody, investment, and disbursement 40
	57	+	of revenues and funds pledged to, and in which a security interest is created for, the payment of 41
	58	+	the principal of, and interest on, the bonds or notes. 42
	59	+	(9) "Hedge Agreement" means any financial arrangement that is a cap, floor, or 43
	60	+	collar; forward rate; future rate; swap, which swap may be based on an amount equal to either a 44
	61	+	principal amount or a notional principal amount relating to all or a portion of the principal 45
	62	+	amount of a series of bonds; asset, index, price, or market-linked transaction or agreement; other 46
	63	+	interest rate exchange or rate protection transaction agreement; other similar transactions, 47 ENGROSSED ORIGINAL
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96	65
97	66
98	67
99	68		3
100	69
101		-	(20) "Treasury Advances" means amounts advanced to the District from the
102		-	United States Treasury pursuant to Chapter 34 of Title 47 of the District of Columbia Official
103		-	Code.
104		-
105		-	Sec. 3. Findings.
106		-	The Council finds that:
107		-	(1) Section 461 of the Home Rule Act authorizes the District to incur indebtedness
108		-	by issuing general obligation bonds to refund Outstanding Debt of the District and to provide for
109		-	the payment of the cost of acquiring or undertaking its various capital projects.
110		-	(2) Section 475 of the Home Rule Act authorizes the District to incur indebtedness
111		-	by issuing general obligation bond anticipation notes, the proceeds of which shall be used for the
112		-	purposes for which general obligation bonds may be issued under section 461 of the Home Rule
113		-	Act.
114		-	(3) The cost of Outstanding Debt may be reduced by refunding a portion of it
115		-	through the issuance of the bonds, and the District's cost of borrowing may be reduced by the
116		-	issuance from time to time of notes in anticipation of the issuance of bonds.
117		-	(4) The issuance of the bonds and the notes in anticipation of the bonds is an
118		-	economical method of financing the costs of acquiring or undertaking the capital projects described
119		-	in section 5 and of refunding all or a portion of certain Outstanding Debt as is in the public
120		-	interest.
121		-	(5) To fund the capital needs of the District for fiscal years 2023 through 2028, it
122		-	will be necessary to issue bonds from time to time in one or more series in an aggregate principal
123		-	amount not to exceed $6,400,000,000 and to issue notes from time to time in one or more series
124		-	in anticipation of all or a portion of the bonds.
125		-
126		-	Sec. 4. Bond and note authorization.
127		-	(a) The District is authorized to incur indebtedness by issuing the bonds pursuant to
128		-	sections 461 through 467 of the Home Rule Act to provide for any of the following:
129		-	(1) The payment of the cost of acquiring, undertaking, or refinancing capital
130		-	projects described in section 5 for general governmental and enterprise purposes;
131		-	(2) The reimbursing of amounts temporarily advanced for the purposes authorized
132		-	by this act from the General Fund of the District of Columbia, any enterprise fund, or other fund or
133		-	account of the District;
134		-	(3) The refunding of Outstanding Debt; and
135		-	(4) The payment of the costs and expenses of preparation, execution, issuance,
136		-	sale, or delivery of, or security for, the bonds and notes, including the payments of contracts or
137		-	agreements the Mayor or an Authorized Delegate may determine to be necessary and appropriate
138		-	as described in section 7(f), and the payment of other debt program related costs as provided in
139		-	the contracts or agreements related thereto. ENROLLED ORIGINAL
	70	+	however designated; any combination thereof; any option with respect thereto; or any similar 48
	71	+	arrangement, which is executed by the District for purposes of debt management, including 49
	72	+	managing interest rate fluctuations on bonds, but not for purposes of speculation. 50
	73	+	(10) "Home Rule Act" means the District of Columbia Home Rule Act, approved 51
	74	+	December 24, 1973 (87 Stat. 774; D.C. Official Code § 1- 201.01 et seq.). 52
	75	+	(11) "Notes" means District general obligation bond anticipation notes 53
	76	+	authorized to be issued pursuant to this act, including any renewals of such notes. 54
	77	+	(12) "Outstanding Debt" means the outstanding indebtedness at any time of the 55
	78	+	District for capital project loans from the Treasury of the United States, any Treasury Advances, 56
	79	+	any outstanding general obligation bonds issued pursuant to this or any prior act, any outstanding 57
	80	+	general obligation bond anticipation notes issued pursuant to this or any prior act, and any 58
	81	+	income tax secured revenue bonds issued pursuant to the Income T ax Secured Bond 59
	82	+	Authorization Act of 2008, effective October 22, 2008 (D.C. Law 17- 254, D.C. Official Code 60
	83	+	§47-340.26 et seq .). 61
	84	+	(13) "Paying Agent" means the District or any bank, trust company, or national 62
	85	+	banking association designated to serve in this capacity by the Mayor or an Authorized Delegate 63
	86	+	pursuant to section 6. 64
	87	+	(14) "Procurement Act" means the District of Columbia Procurement Practices 65
	88	+	Reform Act of 2010 , effective April 8, 2011 (D.C. Law 18-371; D.C. Official Code § 2-351.01 et 66
	89	+	seq.). 67 ENGROSSED ORIGINAL
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145	95
146		-	(b) The Mayor or an Authorized Delegate is authorized to pay from the proceeds of the
147		-	bonds and other District funds, the costs and expenses referred to in subsection (a)(4) of this
148		-	section and to the extent necessary to establish or continue the tax exempt status of any of the
149		-	bonds issued on a tax exempt basis.
150		-	(c) The District is authorized pursuant to section 475 of the Home Rule Act to issue the
151		-	notes in anticipation of the issuance of general obligation bonds and to expend the proceeds of the
152		-	notes for any of the purposes for which bonds may be issued.
153		-
154		-	Sec. 5. Capital projects.
155		-	(a)(1) Bonds and notes may be issued from time to time to provide for the payment of the
156		-	cost of acquiring, undertaking, or refinancing capital projects of the District and reimbursement of
157		-	amounts advanced for such purposes, including, but not limited to, capital projects for the
158		-	following categories of facilities and equipment by project and project description:
159		-	(A) Physical plant;
160		-	(B) Technology;
161		-	(C) Mass transportation;
162		-	(D) Roads and bridges;
163		-	(E) Housing and economic development;
164		-	(F) Environmental protection;
165		-	(G) Major equipment; and
166		-	(H) 6.
167		-	(2) The Council shall specify and determine from time to time, by resolution, the
168		-	capital projects for which the issuance of bonds shall be authorized.
169		-	(b) The maximum principal amount of indebtedness that may be incurred through the
170		-	issuance of bonds or notes for the capital projects, exclusive of the costs and expenses of issuing
171		-	and delivering the bonds or notes and any other costs referred to in section 4(a)(4), which may
172		-	be funded with proceeds of the bonds or notes, shall not exceed $6,400,000,000;
173		-	provided, that the principal amount of any notes or bonds issued to refund prior notes or bonds
174		-	issued for any capital project shall not be included in the determination of the principal amount of
175		-	indebtedness issued for such project, and provided that the aggregate amount of any refunded
176		-	notes or additional notes refinanced with bonds or additional bonds shall be returned to the
177		-	maximum principal amount of indebtedness for use in future issuances.
178		-	(c) The maximum total principal amount to be financed through the bonds and notes
179		-	provided for the capital projects listed in subsection (a)(1) of this section shall include amounts
180		-	requested by the District government and approved by Congress in the District's Fiscal Year
181		-	2023-2028 Capital Improvements Plan or other capital projects approved by the Council, as it
182		-	may be modified from time to time by appropriations legislation, or by the Council.
183		-	(d) The costs of the capital projects approved for financing pursuant to this act and prior
184		-	bond acts that have become law, which are paid originally from the General Fund of the District ENROLLED ORIGINAL
	96	+	(15) "Registrar" means the District or any bank, trust company, or national 68
	97	+	banking association designated to serve in this capacity by the Mayor or an Authorized 69
	98	+	Delegate pursuant to section 6. 70
	99	+	(16) "Secretary" means the Secretary of the District of Columbia. 71
	100	+	(17) "Special Tax Fund" means the debt service fund established pursuant to 72
	101	+	section 9(a)(1). 73
	102	+	(18) “Special Tax Funds” means the debt service funds established pursuant to 74
	103	+	section 9(a)(1) and (2). 75
	104	+	(19) “Special Tax Fund for Notes” means the debt service fund established 76
	105	+	pursuant to section 9(a)(2). 77
	106	+	(20) "Treasury Advances" means amounts advanced to the District from the 78
	107	+	United States Treasury pursuant to Chapter 34 of Title 47 of the District of Columbia Official 79
	108	+	Code. 80
	109	+	Sec. 3. Findings. 81
	110	+	The Council finds that: 82
	111	+	(1) Section 461 of the Home Rule Act authorizes the District to incur indebtedness 83
	112	+	by issuing general obligation bonds to refund Outstanding Debt of the District and to provide for 84
	113	+	the payment of the cost of acquiring or undertaking its various capital projects. 85
	114	+	(2) Section 475 of the Home Rule Act authorizes the District to incur indebtedness 86
	115	+	by issuing general obligation bond anticipation notes, the proceeds of which shall be used for the 87 ENGROSSED ORIGINAL
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187	118
188	119
189	120		5
190	121
191		-	of Columbia or General Capital Improvements Fund of the District of Columbia, are reasonably
192		-	expected to be reimbursed in whole or in part with the proceeds of the bonds or notes in the
193		-	maximum amount set forth in subsection (b) of this section. The adoption of this act by the
194		-	Council declares the intent of the District under Treas. Reg. § 1.150-2, issued under the Internal
195		-	Revenue Code of 1986, approved October 22, 1986 (100 Stat. 2085; 26 U.S.C. § 1 et seq.), to
196		-	reimburse the General Fund of the District of Columbia and General Capital Improvement Fund
197		-	of the District of Columbia or to refinance Treasury Advances or loans from the Treasury of the
198		-	United States for capital projects, in either case, with the proceeds of the bonds and notes.
199		-	(e) Funds pursuant to this act shall not be used to pay for personnel of the District,
200		-	except in positions working on authorized capital projects that create assets or extend the useful
201		-	life of the assets.
202		-
203		-	Sec. 6. Bond and note details.
204		-	(a) The Mayor or an Authorized Delegate is authorized to take any action necessary or
205		-	appropriate in accordance with this act in connection with the preparation, execution, issuance,
206		-	sale, delivery, security for, and payment of the bonds and notes, including, but not limited to,
207		-	determinations of:
208		-	(1) Whether the bonds or notes are to be issued in one or more series and the
209		-	principal amount of each series;
210		-	(2) For each series of the bonds or notes, the date of issuance, sale, and delivery of
211		-	the bonds or notes, the maturity date or dates of the bonds (provided that the maximum maturity
212		-	of any bond shall not exceed 30 years from the date of issuance) or notes (provided that the
213		-	maximum maturity date of any note, including any renewal note issued to refund such note, shall
214		-	not be later than the last day of the 3
215		-	rd
216		-	fiscal year following the fiscal year during which such note
217		-	was originally issued), the dates for payment of principal and interest on the bonds or notes, and
218		-	the amount of each installment or sinking fund payment of principal (provided that the principal
219		-	installments on each series of the bonds shall begin no later than 3 years from the date of issuance
220		-	of the series);
221		-	(3) The rate or rates of interest or the method for determining the rate or rates of
222		-	interest on each series of the bonds and notes; provided, that the interest rate or rates borne by
223		-	the bonds of any series with fixed interest rates shall not exceed 15% per year (calculated on the
224		-	basis of a 360-day year consisting of twelve 30-day months) in any event and that the interest rate
225		-	or rates borne by the bonds of any series with non-fixed interest rates shall not exceed 15% per
226		-	year (calculated on the basis of the actual number of days elapsed over a year of 365 or 366 days
227		-	and based on the total amount of interest paid in any fiscal year), and the interest rate or rates
228		-	borne by the notes of any series shall not exceed in the aggregate 10% per year (calculated on the
229		-	basis of a 360-day year consisting of twelve 30-day months or on the basis of the actual number of
230		-	days elapsed over a year of 365 or 366 days), as determined by the Mayor or the Authorized
231		-	Delegate; provided further, that if the notes are not paid at maturity, the notes may provide for an
232		-	interest rate or rates after maturity not to exceed in the aggregate 15% per year (calculated on the ENROLLED ORIGINAL
	122	+	purposes for which general obligation bonds may be issued under section 461 of the Home Rule 88
	123	+	Act. 89
	124	+	(3) The cost of Outstanding Debt may be reduced by refunding a portion of it 90
	125	+	through the issuance of the bonds, and the District's cost of borrowing may be reduced by the 91
	126	+	issuance from time to time of notes in anticipation of the issuance of bonds. 92
	127	+	(4) The issuance of the bonds and the notes in anticipation of the bonds is an 93
	128	+	economical method of financing the costs of acquiring or undertaking the capital projects 94
	129	+	described in section 5 and of refunding all or a portion of certain Outstanding Debt as is in the 95
	130	+	public interest. 96
	131	+	(5) To fund the capital needs of the District for fiscal years 2023 through 2028, it 97
	132	+	will be necessary to issue bonds from time to time in one or more series in an aggregate principal 98
	133	+	amount not to exceed $6,400,000,000 and to issue notes from time to time in one or more series 99
	134	+	in anticipation of all or a portion of the bonds. 100
	135	+	Sec. 4. Bond and note authorization. 101
	136	+	(a) The District is authorized to incur indebtedness by issuing the bonds pursuant to 102
	137	+	sections 461 through 467 of the Home Rule Act to provide for any of the following: 103
	138	+	(1) The payment of the cost of acquiring, undertaking, or refinancing capital 104
	139	+	projects described in section 5 for general governmental and enterprise purposes; 105
	140	+	(2) The reimbursing of amounts temporarily advanced for the purposes authorized 106
	141	+	by this act from the General Fund of the District of Columbia, any enterprise fund, or other fund or 107 ENGROSSED ORIGINAL
233	142
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235	144
236	145
237	146		6
238	147
239		-	basis of a 360-day year consisting of twelve 30-day months or on the basis of the actual number of
240		-	days elapsed over a year of 365 or 366 days), as determined by the Mayor or the Authorized
241		-	Delegate;
242		-	(4) For each series of the bonds or notes, the maximum debt service payable in
243		-	any fiscal year in accordance with the amount permitted under section 11(a)(3);
244		-	(5) The designation of any series of the bonds or notes and their denominations,
245		-	lettering, and numbering or the manner of determining the designations and denominations,
246		-	lettering, and numbering;
247		-	(6) The price and terms under which any series of the bonds or notes may be paid,
248		-	optionally or mandatorily redeemed, accelerated, tendered, called, or put for redemption,
249		-	repurchase, or remarketing before their stated maturities;
250		-	(7) The final form, content, and terms of each series of the bonds and notes,
251		-	including a determination that any series of the bonds or notes may be issued in book-entry form;
252		-	(8) The designation of a registrar, if other than the District, for any series of the
253		-	bonds or notes and the execution and delivery of any necessary agreements relating to the
254		-	appointment;
255		-	(9) The designation of a Paying Agent for any series of the bonds or notes and the
256		-	execution and delivery of any necessary agreements relating to the appointment;
257		-	(10) Provisions for the registration, transfer, and exchange of the bonds or notes and
258		-	the replacement of mutilated, lost, stolen, or destroyed bonds or notes; and
259		-	(11) Provisions for the security of holders of the bonds or notes, including, but not
260		-	limited to, bond insurance or other credit enhancement.
261		-	(b) The bonds and notes shall be executed in the name of the District and on its behalf by
262		-	the manual signature of the Mayor or an Authorized Delegate. To the extent required by the Home
263		-	Rule Act, the official seal of the District or a facsimile of it shall be impressed, printed, or
264		-	otherwise reproduced on
265		-
266		-	the bonds and notes.
267		-	(c) The registrar shall manually authenticate each bond or note and maintain the books of
268		-	registration for the payment of the principal of, and interest on, the bonds or notes and perform
269		-	other ministerial responsibilities as specifically provided in its appointment as registrar, and the
270		-	securities depository, if the bonds or notes are issued in book-entry form, shall maintain or cause to
271		-	be maintained books of registration of owners of beneficial interests in the bonds or notes.
272		-
273		-	Sec. 7. Sale of the bonds and notes.
274		-	(a) The bonds of any series may be sold by the Mayor or an Authorized Delegate at a
275		-	public sale upon receipt of sealed proposals (including electronic bids), or at a private sale on a
276		-	negotiated basis in a manner as the Mayor or an Authorized Delegate may determine to be in the
277		-	public interest, all pursuant to and in accordance with section 466 of the Home Rule Act. The
278		-	notes of any series may be sold by the Mayor or an Authorized Delegate by competitive bid or
279		-	negotiated sale as may be determined by the Mayor or an Authorized Delegate to be in the best ENROLLED ORIGINAL
	148	+	account of the District; 108
	149	+	(3) The refunding of Outstanding Debt; and 109
	150	+	(4) The payment of the costs and expenses of preparation, execution, issuance, sale 110
	151	+	or delivery of, or security for, the bonds and notes, including the payments of contracts or 111
	152	+	agreements the Mayor or an Authorized Delegate may determine to be necessary and appropriate 112
	153	+	as described in section 7(f), and the payment of other debt program related costs as provided in 113
	154	+	the contracts or agreements related thereto. 114
	155	+	(b) The Mayor or an Authorized D elegate is authorized to pay from the proceeds of the 115
	156	+	bonds and other District funds, the costs and expenses referred to in subsection (a)(4) of this 116
	157	+	section and to the extent necessary to establish or continue the tax exempt status of any of the 117
	158	+	bonds issued on a tax exempt basis. 118
	159	+	(c) The District is authorized pursuant to section 475 of the Home Rule Act to issue the 119
	160	+	notes in anticipation of the issuance of general obligation bonds and to expend the proceeds of 120
	161	+	the notes for any of the purposes for which bonds may be issued. 121
	162	+	Sec. 5. Capital projects. 122
	163	+	(a)(1) Bonds and notes may be issued from time to time to provide for the payment of 123
	164	+	the cost of acquiring, undertaking, or refinancing capital projects of the District and 124
	165	+	reimbursement of amounts advanced for such purposes, including, but not limited to, capital 125
	166	+	projects for the following categories of facilities and equipment by project and project 126
	167	+	description: 127 ENGROSSED ORIGINAL
280	168
281	169
282	170
283	171
284	172		7
285	173
286		-	interest of the District.
287		-	(b) The Mayor or an Authorized Delegate may prepare, or cause to be prepared, and may
288		-	execute, for each sale of the bonds or notes, offering documents on behalf of the District and may
289		-	authorize the distribution of the offering documents for the bonds or notes.
290		-	(c) The Mayor or an Authorized Delegate shall take actions and execute and deliver
291		-	agreements, documents, and instruments (including any amendment of or supplement to any such
292		-	agreement, document, or instrument) as required by or incidental to:
293		-	(1) The issuance of the bonds or notes;
294		-	(2) If and to the extent the bonds or notes are issued on a tax-exempt basis, the
295		-	'
296		-	exclusion from gross income for federal income tax purposes of interest on the bonds or notes, the
297		-	treatment of interest on the bonds or notes as not an item of tax preference for purposes of the
298		-	federal alternative minimum tax, and the exemption from District taxation of interest on the bonds
299		-	or notes;
300		-	(3) The performance of any covenants contained in this act or any purchase
301		-	contract for the bonds or notes; and
302		-	(4) The execution, delivery, and performance of any financing documents in
303		-	connection with the sale of the bonds or notes, including but not limited to, any Escrow
304		-	Agreement, trust agreement, bond or note purchase agreement, or paying agent agreement.
305		-	(d) The bonds or notes shall not be issued until the Mayor or an Authorized Delegate
306		-	receives an approving opinion from Bond Counsel as to the validity of the bonds or notes and, if
307		-	and to the extent the bonds or notes are issued on a tax-exempt basis, the treatment of the interest
308		-	on the bonds or notes for purposes of federal and District income taxation.
309		-	(e) The Mayor shall execute a bond issuance certificate or note issuance certificate, as the
310		-	case may be, evidencing the determinations made and other actions taken by the Mayor for each
311		-	series of the bonds or notes issued and shall designate in such certificate the amount of the bonds
312		-	or notes to be used to finance capital projects or to refund or refinance Outstanding Debt, the
313		-	amount of principal and interest on that amount of bonds or notes to be paid through sinking fund
314		-	payments, redemptions, or otherwise, in each fiscal year, the date of the bonds or notes, the series
315		-	designation, the authorized denominations, the Paying Agent or Agents, and any other matters
316		-	pertaining to the bonds or notes, including any matters applicable under section 6(a). A copy of the
317		-	bond issuance certificate or note issuance certificate, as the case may be, shall be filed with the
318		-	Secretary to the Council not more than 3 days after the delivery of the bonds or notes covered by
319		-	the certificate. Any bond issuance certificate or note issuance certificate shall be conclusive
320		-	evidence of the actions or determinations taken or made as stated in the certificate.
321		-	(f) The Procurement Act and the Deposit and Investment Act shall not apply to whatever
322		-	contract the Mayor or an Authorized Delegate may from time to time enter into for purposes of this
323		-	act or the Mayor or an Authorized Delegate may determine to be necessary or appropriate for
324		-	purposes of this act to place, in whole or in part, including, but not limited to:
325		-	(1) An investment or obligation of the District as represented by the bonds or ENROLLED ORIGINAL
	174	+	(A) Physical plant; 128
	175	+	(B) Technology; 129
	176	+	(C) Mass transportation; 130
	177	+	(D) Roads and bridges; 131
	178	+	(E) Housing and economic development; 132
	179	+	(F) Environmental protection; 133
	180	+	(G) Major equipment; and 134
	181	+	(H) 6. 135
	182	+	(2) The Council shall specify and determine from time to time, by resolution, the 136
	183	+	capital projects for which the issuance of bonds shall be authorized. 137
	184	+	(b) The maximum principal amount of indebtedness that may be incurred through the 138
	185	+	issuance of bonds or notes for the capital projects, exclusive of the costs and expenses of issuing 139
	186	+	and delivering the bonds or notes and any other costs referred to in section 4(a)(4), which may 140
	187	+	be funded with proceeds of the bonds or notes, shall not exceed $ 6,400,000,000; 141
	188	+	provided, that the principal amount of any notes or bonds issued to refund prior notes or bonds 142
	189	+	issued for any capital project shall not be included in the determination of the principal amount of 143
	190	+	indebtedness issued for such project, and provided that the aggregate amount of any refunded notes 144
	191	+	or additional notes refinanced with bonds or additional bonds shall be returned to the maximum 145
	192	+	principal amount of indebtedness for use in future issuance s. 146
	193	+	(c) The maximum total principal amount to be financed through the bonds and notes 147 ENGROSSED ORIGINAL
326	194
327	195
328	196
329	197
330	198		8
331	199
332		-	notes;
333		-	(2) A contract or contracts for bond insurance or other credit enhancement
334		-	(including, but not limited to, a letter or line of credits), or liquidity agreements, or
335		-	placement of any investment or obligation or program of investment including any offering
336		-	document, contract based on interest rate, currency, cash flow, or other basis, including,
337		-	without limitation, interest rate swap agreements; currency swap agreements; insurance
338		-	agreements; forward payment conversion agreements; futures contracts providing for payments
339		-	based on levels of, or changes in, interest rates, currency exchange rates, or stock or other indices;
340		-	contracts to exchange cash flows or a series of payments; and contracts to hedge payment,
341		-	currency, rate, spread, or similar exposure, including, without limitation, interest rate floors, or
342		-	caps, options, puts, and calls, Hedge Agreements, and any required supplements to any such
343		-	documents. The contracts or other arrangements may also be entered into by the District in
344		-	connection with, or incidental to, entering into or maintaining any agreement that secures the
345		-	bonds or notes. The contracts or other arrangements entered into pursuant to this section shall
346		-	contain whatever payment security, terms, and conditions as the Mayor or an Authorized Delegate
347		-	may consider appropriate and shall be entered into with whatever party or parties the Mayor or an
348		-	Authorized Delegate may select, after giving due consideration, where applicable, to the
349		-	creditworthiness of the counterparty or counterparties, including any rating by a nationally
350		-	recognized rating agency or any other criteria as may be appropriate.
351		-	(3) A contract or contracts for an escrow agent, paying agent, disclosure agent,
352		-	trustee, collection agent, registrar, underwriting, legal services, accounting, financial advisory
353		-	services, rating agency services, printing, and any other contracts for services of professionals or
354		-	advisors or for disclosure services as the Mayor or an Authorized Delegate may deem to be
355		-	necessary or appropriate.
356		-
357		-	Sec. 8. Payment and security of the bonds and notes.
358		-	(a) The full faith and credit of the District is pledged for the payment of the principal of,
359		-	and interest on, the bonds and notes as they become due and payable through required sinking fund
360		-	payments, redemptions, or otherwise.
361		-	(b) The Council shall, in the full exercise of the authority granted in section 483 of the
362		-	Home Rule Act and under any other law, provide in each annual budget for a fiscal year of the
363		-	District sufficient funds to pay the principal of, and interest on, the bonds and notes becoming due
364		-	and payable for any reason during that fiscal year.
365		-	(c) The Mayor shall, in the full exercise of the authority granted to the Mayor under the
366		-	Home Rule Act and under any other law, take such actions as may be necessary or appropriate to
367		-	ensure that the principal of, and interest on, the bonds and notes are paid when due for any reason,
368		-	including the payment of principal and interest from any funds or accounts of the District not
369		-	otherwise legally committed.
370		-	(d) The bonds and notes shall evidence continuing obligations of the District until paid in ENROLLED ORIGINAL
	200	+	provided for the capital projects listed in subsection (a)(1) of this section shall include amounts 148
	201	+	requested by the District government and approved by Congress in the District's Fiscal Year 149
	202	+	2023-2028 Capital Improvements Plan or other capital projects approved by the Council, as it 150
	203	+	may be modified from time to time by appropriations legislation, or by the Council . 151
	204	+	(d) The costs of the capital projects approved for financing pursuant to this act and prior 152
	205	+	bond acts that have become law, which are paid originally from the General Fund of the District of 153
	206	+	Columbia or General Capital Improvements Fund of the District of Columbia, are reasonably 154
	207	+	expected to be reimbursed in whole or in part with the proceeds of the bonds or notes in the 155
	208	+	maximum amount set forth in subsection (b) of this section. The adoption of this act by the 156
	209	+	Council declares the intent of the District under Treas. Reg. § 1.150- 2, issued under the Internal 157
	210	+	Revenue Code of 1986, approved October 22, 1986 (100 Stat. 2085; 26 U.S.C. § 1 et seq.), to 158
	211	+	reimburse the General Fund of the District of Columbia and General Capital Improvement Fund of 159
	212	+	the District of Columbia or to refinance Treasury Advances or loans from the Treasury of the 160
	213	+	United States for capital projects, in either case, with the proceeds of the bonds and notes. 161
	214	+	(e) Funds pursuant to this act shall not be used to pay for personnel of the District, 162
	215	+	except in positions working on authorized capital projects that create assets or extend the useful 163
	216	+	life of the assets. 164
	217	+	Sec. 6. Bond and note details. 165
	218	+	(a) The Mayor or an Authorized D elegate is authorized to take any action necessary or 166
	219	+	appropriate in accordance with this act in connection with the preparation, execution, issuance, 167 ENGROSSED ORIGINAL
371	220
372	221
373	222
374	223
375	224		9
376	225
377		-	accordance with their terms.
378		-	(e) Any Paying Agent shall pay the principal of, and interest on, the bonds and notes
379		-	and may perform other ministerial responsibilities as specifically provided in its appointment as
380		-	paying agent.
381		-	(f) Proceeds of the bonds or notes and any money set aside for any security for the bonds
382		-	or notes or any contract or other arrangement entered into pursuant to this section, may be pledged
383		-	to and used to service any contract or other arrangement providing for payment of principal of and
384		-	interest on the bonds or notes.
385		-
386		-	Sec. 9. Special tax; establishment of rates; collection.
387		-	(a) (1) The Council determines that a special tax is necessary in conjunction with the
388		-	authorization and issuance of the bonds and any Additional Bonds. Pursuant to section 481 of the
389		-	Home Rule Act and notwithstanding the provisions of Chapter 5 of Title 47 of the District of
390		-	Columbia Official Code, there is levied, for each real property tax year in which bonds or
391		-	Additional Bonds are outstanding, a special tax on the real property in the District subject to
392		-	taxation, in amounts that will be sufficient to pay the principal of, and interest on, the bonds and
393		-	Additional Bonds coming due in each year. This special tax is levied, without limitation as to rate
394		-	or amount, on all classes of real property subject to taxation in the District. The special tax shall
395		-	be collected and apportioned among classes of real property in the same manner as other District
396		-	real property taxes and, when collected, shall be set aside in a Special Tax Fund maintained
397		-	separate from other funds of the District. The collection and custody of the special tax payment
398		-	may be pursuant to an agreement with an agent for such purposes and the Special Tax Fund may
399		-	be maintained under an Escrow Agreement. When deposited, the funds in the fund and all
400		-	investment income or earnings on these funds shall be irrevocably dedicated and pledged to the
401		-	payment of principal, and interest on, the bonds and any Additional Bonds. Any Escrow
402		-	Agreement providing for holding funds for the benefit of the holders of the bonds shall be
403		-	maintained so long as any of the bonds is outstanding under this act.
404		-	(2) In addition to the special tax levied pursuant to paragraph (1) of this subsection,
405		-	the Council determines that a separate tax levy is necessary in conjunction with the authorization
406		-	and issuance of notes and any Additional Notes. Pursuant to section 467(a) of the Home Rule Act,
407		-	and notwithstanding the provisions of Chapter 5 of Title 47 of the District of Columbia Official
408		-	Code, there is levied, for each real property tax year in which notes or Additional Notes are
409		-	outstanding, a special tax for notes on the real property in the District subject to taxation, which
410		-	shall be separate and distinct from the collection and pledge of the special tax in paragraph (1) of
411		-	this subsection, in amounts that will be sufficient to pay the principal of, and interest on, the notes
412		-	and Additional Notes coming due in each year. This special tax for notes is levied, without
413		-	limitation as to rate or amount, on all classes of real property subject to taxation in the District. The
414		-	special tax for notes shall be collected and apportioned among classes of real property in the same
415		-	manner as other District real property taxes and, when collected, shall be set aside in a Special Tax ENROLLED ORIGINAL
	226	+	sale, delivery, security for, and payment of the bonds and notes, including, but not limited to, 168
	227	+	determinations of: 169
	228	+	(1) Whether the bonds or notes are to be issued in one or more series and the 170
	229	+	principal amount of each series; 171
	230	+	(2) For each series of the bonds or notes, the date of issuance, sale, and delivery of 172
	231	+	the bonds or notes, the maturity date or dates of the bonds (provided that the maximum maturity of 173
	232	+	any bond shall not exceed 30 years from the date of issuance) or notes (provided that the maximum 174
	233	+	maturity date of any note, including any renewal note issued to refund such note, shall not be later 175
	234	+	than the last day of the 3
	235	+	rd
	236	+	fiscal year following the fiscal year during which such note was 176
	237	+	originally issued), the dates for payment of principal and interest on the bonds or notes, and the 177
	238	+	amount of each installment or sinking fund payment of principal (provided that the principal 178
	239	+	installments on each series of the bonds shall begin no later than 3 years from the date of issuance 179
	240	+	of the series); 180
	241	+	(3) The rate or rates of interest or the method for determining the rate or rates of 181
	242	+	interest on each series of the bonds and notes; provided, that the interest rate or rates borne by 182
	243	+	the bonds of any series with fixed interest rates shall not exceed 15% per year ( calculated on the 183
	244	+	basis of a 360-day year consisting of twelve 30-day months) in any event and that the interest rate 184
	245	+	or rates borne by the bonds of any series with non- fixed interest rates shall not exceed 15% per 185
	246	+	year (calculated on the basis of the actual number of days elapsed over a year of 365 or 366 days 186
	247	+	and based on the total amount of interest paid in any fiscal year), and the interest rate or rates borne 187 ENGROSSED ORIGINAL
416	248
417	249
418	250
419	251
420	252		10
421	253
422		-	Fund for Notes maintained separate from other funds of the District, including the Special Tax Fund
423		-	maintained under paragraph (1) of this subsection. The collection and custody of the revenue
424		-	pledge payment may be pursuant to an agreement with an agent for such purposes and the Special
425		-	Tax Fund for Notes may be maintained under an Escrow Agreement. When deposited, the revenues
426		-	in the fund and all investment income or earnings on these funds shall be irrevocably dedicated and
427		-	pledged to the payment of principal, and interest on, the notes and any Additional Notes. Any
428		-	Escrow Agreement providing for holding funds for the benefit of the holders of the notes or
429		-	Additional Notes shall be maintained so long as any of the notes or Additional Notes is outstanding
430		-	under this act.
431		-	(3) The special taxes authorized pursuant to subsection (a)(1) and (2) of this
432		-	section shall be levied and collected ratably and on a parity with each other, and in the event
433		-	there are insufficient collections of real property taxes, the amounts collected shall be allocated
434		-	to each of the Special Tax Funds in proportion of the amounts of bonds and Additional Bonds
435		-	and notes and Additional Notes outstanding.
436		-	(b) The District irrevocably pledges for and on behalf of the owners of the bonds or notes
437		-	as further security for the due and punctual payment of the principal and redemption price, if
438		-	any, of, and interest on, the bonds or notes as they shall become due and payable for any reason,
439		-	all of its right, title, and interest now owned or later acquired in and to the revenue from the
440		-	applicable special taxes levied by this section, whether to be received, or held at the time, by a
441		-	collection agent, custodian, or escrow agent for the District, or by District officials. This pledge
442		-	creates and grants a parity security interest, which is created and perfected as contemplated in
443		-	section 467 of the Home Rule Act, subject to the terms, conditions, and limitations in this act,
444		-	including the provisions of subsections (e) and (i) of this section and the provisions setting forth
445		-	conditions and limitations applicable to the issuance of Additional Bonds or Additional Notes
446		-	secured, equally and ratably with the bonds or notes, respectively by a pledge of and security
447		-	interest in the special tax revenue or special tax for notes revenue.
448		-	(c) The security interests created in the revenues from the special taxes levied by this
449		-	section shall be valid, binding, and perfected from the time of the delivery of the first bonds or
450		-	notes with or without the physical delivery or allocation of any special tax revenue or special tax
451		-	for notes revenue and with or without any further action. The security interest shall be valid,
452		-	binding, and perfected whether or not any statement, document, or instrument relating to the
453		-	security interest is recorded or filed. The pledge and lien created by the security interest shall be
454		-	valid, binding, and perfected with respect to any individual or legal entity having claims against
455		-	the District, whether or not the individual or legal entity has notice of the pledge and lien.
456		-	(d) If the District pays or, pursuant to section 15, makes provisions to pay to the owners
457		-	of all bonds and Additional Bonds or notes and Additional Notes the principal or redemption
458		-	price, if any, and the interest due or to become due, at the time and in the manner stipulated, the
459		-	security interest created in the revenue from the special taxes levied under this section shall be
460		-	terminated.
461		-	(e)(1) In any real property tax year, if the amount expected to be on deposit in the Special ENROLLED ORIGINAL
	254	+	by the notes of any series shall not exceed in the aggregate 10% per year ( calculated on the basis of 188
	255	+	a 360-day year consisting of twelve 30-day months or on the basis of the actual number of days 189
	256	+	elapsed over a year of 365 or 366 days), as determined by the Mayor or the Authorized Delegate; 190
	257	+	provided further, that if the notes are not paid at maturity, the notes may provide for an interest rate 191
	258	+	or rates after maturity not to exceed in the aggregate 15% per year ( calculated on the basis of a 360-192
	259	+	day year consisting of twelve 30-day months or on the basis of the actual number of days elapsed 193
	260	+	over a year of 365 or 366 days), as determined by the Mayor or the Authorized Delegate; 194
	261	+	(4) For each series of the bonds or notes, the maximum debt service payable in 195
	262	+	any fiscal year in accordance with the amount permitted under section 11(a)(3); 196
	263	+	(5) The designation of any series of the bonds or notes and their denominations, 197
	264	+	lettering, and numbering or the manner of determining the designations and denominations, 198
	265	+	lettering, and numbering; 199
	266	+	(6) The price and terms under which any series of the bonds or notes may be 200
	267	+	paid, optionally or mandatorily redeemed, accelerated, tendered, called, or put for redemption, 201
	268	+	repurchase, or remarketing before their stated maturities; 202
	269	+	(7) The final form, content, and terms of each series of the bonds and notes, 203
	270	+	including a determination that any series of the bonds or notes may be issued in book- entry 204
	271	+	form; 205
	272	+	(8) The designation of a registrar, if other than the District, for any series of the 206
	273	+	bonds or notes and the execution and delivery of any necessary agreements relating to the 207 ENGROSSED ORIGINAL
462	274
463	275
464	276
465	277
466	278		11
467	279
468		-	Tax Fund on the first day of the next succeeding real property tax year exceeds the greater of the
469		-	earnings on the Special Tax Fund for the current real property tax year or 1/12 of the amount that
470		-	the Mayor certifies as required to pay the principal of, and interest on, the bonds and any
471		-	Additional Bonds coming due in the next succeeding real property tax year, the Mayor shall
472		-	either cause the transfer of that excess amount to the General Fund of the District of Columbia or
473		-	the use of that excess amount to purchase, for cancellation, Outstanding Debt. That excess
474		-	amount shall be released from the lien on and security interest in the special tax revenue created
475		-	under this section.
476		-	(2) In any real property tax year, if the amount expected to be on deposit the
477		-	Special Tax Fund for Notes on the first day of the next succeeding real property tax year exceeds
478		-	the greater of the earnings on the Special Tax Fund for Notes for the current real property tax year
479		-	or 1/12 of the amount that the Mayor certifies as required to pay the principal of, and interest on,
480		-	the notes and any Additional Notes coming due in the next succeeding real property tax year, the
481		-	Mayor shall either cause the transfer of that excess amount to the General Fund of the District of
482		-	Columbia or the use of that excess amount to purchase, for cancellation, Outstanding Debt. That
483		-	excess amount shall be released from the lien on and security interest in the special tax for notes
484		-	revenue created under this section.
485		-	(3) On or before the date upon which the Mayor is required by law to submit to
486		-	the Council proposed real property tax rates for a real property tax year of the District (but not
487		-	later than the first day of that real property tax year), the Mayor shall certify to the Council the
488		-	amount required in that real property tax year to pay the principal of, and interest on, the bonds
489		-	and any Additional Bonds or notes and any Additional Notes coming due for any reason during
490		-	that real property tax year. The amount certified, less any funds then on deposit in the Special
491		-	Tax Funds after application of paragraphs (1) and (2) of this subsection, shall be called the
492		-	special tax requirement.
493		-	(f) On or before the date upon which the Mayor is required by law to submit to the Council
494		-	proposed tax rates for a real property tax year of the District (but not later than the first day of that
495		-	real property tax year), the Mayor shall calculate and submit to the Council proposed real property
496		-	special tax rates to be applied during the real property tax year to all real property subject to
497		-	taxation in the District. The real property special tax rates shall be calculated to yield the special
498		-	tax requirement, as that amount is certified by the Mayor pursuant to subsection (e) of this section.
499		-	(g) The Council, in the same manner as provided for the establishment of other real
500		-	property tax rates, shall, by act, establish real property special tax rates for the real property tax
501		-	year calculated to yield the special tax requirement, as that amount is certified by the Mayor
502		-	pursuant to subsection (e) of this section. If the Council fails to enact special real property tax
503		-	rates for the real property tax year within the time provided by law, the real property special tax
504		-	rates submitted by the Mayor pursuant to subsection (f) of this section shall be the real property
505		-	special tax rates to be applied during that real property tax year.
506		-	(h) Real property special taxes shall be collected in the same manner as other District ENROLLED ORIGINAL
	280	+	appointment; 208
	281	+	(9) The designation of a Paying Agent for any series of the bonds or notes and the 209
	282	+	execution and delivery of any necessary agreements relating to the appointment; 210
	283	+	(10) Provisions for the registration, transfer, and exchange of the bonds or notes and 211
	284	+	the replacement of mutilated, lost, stolen, or destroyed bonds or notes; and 212
	285	+	(11) Provisions for the security of holders of the bonds or notes, including, but not 213
	286	+	limited to, bond insurance or other credit enhancement . 214
	287	+	(b) The bonds and notes shall be executed in the name of the District and on its behalf by 215
	288	+	the manual signature of the Mayor or an Authorized Delegate. To t he extent required by the 216
	289	+	Home Rule Act, the official seal of the District or a facsimile of it shall be impressed, printed, or 217
	290	+	otherwise reproduced on
	291	+
	292	+	the bonds and notes. 218
	293	+	(c) The registrar shall manually authenticate each bond or note and maintain the books of 219
	294	+	registration for the payment of the principal of, and interest on, the bonds or notes and perform 220
	295	+	other ministerial responsibilities as specifically provided in its appointment as registrar, and the 221
	296	+	securities depository, if the bonds or notes are issued in book-entry form, shall maintain or cause to 222
	297	+	be maintained books of registration of owners of beneficial interests in the bonds or notes. 223
	298	+	Sec. 7. Sale of the bonds and notes. 224
	299	+	(a) The bonds of any series may be sold by the Mayor or an Authorized Delegate at a 225
	300	+	public sale upon receipt of sealed proposals (including electronic bids), or at a private sale on a 226
	301	+	negotiated basis in a manner as the Mayor or an Authorized Delegate may determine to be in the 227 ENGROSSED ORIGINAL
507	302
508	303
509	304
510	305
511	306		12
512	307
513		-	real property taxes and the Mayor shall promptly deposit in the Special Tax Funds all real
514		-	property special taxes collected, including collection through a collection agent and deposit
515		-	under an Escrow Agreement. If the law of the District relating to the levy or collection of real
516		-	property taxes or the calculation or establishment of real property tax rates is changed in a
517		-	manner that renders any of the provisions of subsections (e) through (h) of this section incapable
518		-	of performance in accordance with their respective terms, the Mayor and the Council shall take
519		-	actions that result in the collection of real property special taxes, in the same manner as other
520		-	District real property taxes, in the amounts required by this section.
521		-	(i) The District and the Mayor reserve the right to satisfy all or a portion of the special tax
522		-	pledge requirements by setting aside and depositing into the Special Tax Funds, equally and ratably,
523		-	at any time any funds of the District not otherwise legally committed, which shall irrevocably
524		-	dedicate and pledge those deposits to the payment of principal of, and interest on, the bonds and
525		-	Additional Bonds or notes and any Additional Notes then outstanding. To the extent that all or a
526		-	portion of the special tax requirement or revenue pledge requirement is satisfied by those deposits,
527		-	an equal amount of real property special tax revenue or special tax for notes revenue subsequently
528		-	collected shall be released from the lien on and the security interest in the special tax revenue or the
529		-	special tax for notes revenue created under this section and shall be paid to reimburse the General
530		-	Fund of the District of Columbia or other fund of the District of Columbia from which the other
531		-	funds were received, and any other funds so deposited in lieu of a portion of the special tax revenues
532		-	or pledged property tax revenues shall be subject to the pledge and security interest under this act as
533		-	if they were special tax revenues or special tax for notes pledged revenues pursuant to section 467
534		-	of the Home Rule Act.
535		-	(j) The Mayor shall provide for the payment of the principal of, and interest on, the bonds
536		-	or notes, as it may become due and payable for any reason, by transferring funds on deposit in the
537		-	Special Tax Funds, respectively, to the Paying Agent to the extent required pursuant to the bond or
538		-	Additional Bond issuance certificate or note or Additional Note issuance certificate provided for in
539		-	section 7.
540		-
541		-	Sec. 10. Issuance of bonds to pay notes when due.
542		-	(a) The District shall issue the bonds or, to the extent permitted by the Home Rule Act,
543		-	renewal notes to provide for the payment of the principal of the notes, as they may become due and
544		-	payable.
545		-	(b) The par value to be received from the sale of any bonds issued to refund the notes or
546		-	any renewal notes shall, to the extent necessary, be used to pay the principal of, and interest on, the
547		-	notes when due and are pledged to that purpose.
548		-
549		-	Sec. 11. General covenants.
550		-	(a) The following covenants are made by the District in connection with the authorization
551		-	and issuance of the bonds:
552		-	(1) Pursuant to section 603(c) of the Home Rule Act, the Council shall not approve ENROLLED ORIGINAL
	308	+	public interest, all pursuant to and in accordance with section 466 of the Home Rule Act. The 228
	309	+	notes of any series may be sold by the Mayor or an Authorized Delegate by competitive bid or 229
	310	+	negotiated sale as may be determined by the Mayor or an Authorized Delegate to be in the best 230
	311	+	interest of the District. 231
	312	+	(b) The Mayor or an Authorized Delegate may prepare, or cause to be prepared, and may 232
	313	+	execute, for each sale of the bonds or notes, offering documents on behalf of the District and may 233
	314	+	authorize the distribu tion of the offering documents for the bonds or notes. 234
	315	+	(c) The Mayor or an Authorized Delegate shall take actions and execute and deliver 235
	316	+	agreements, documents, and instruments (including any amendment of or supplement to any 236
	317	+	such agreement, document, or instrument) as required by or incidental to: 237
	318	+	(1) The issuance of the bonds or notes; 238
	319	+	(2) If and to the extent the bonds or notes are issued on a tax-exempt basis, the 239
	320	+	'
	321	+	exclusion from gross income for federal income tax purposes of interest on the bonds or notes, the 240
	322	+	treatment of interest on the bonds or notes as not an item of tax preference for purposes of the 241
	323	+	federal alternative minimum tax, and the exemption from District taxation of interest on the 242
	324	+	bonds or notes; 243
	325	+	(3) The performance of any covenants contained in this act or any purchase 244
	326	+	contract for the bonds or notes; and 245
	327	+	(4) The execution, delivery, and performance of any financing documents in 246
	328	+	connection with the sale of the bonds or notes, including but not limited to, any Escrow 247 ENGROSSED ORIGINAL
553	329
554	330
555	331
556	332
557	333		13
558	334
559		-	any budget that would result in expenditures being made by the District during any fiscal year in
560		-	excess of all resources that the Mayor estimates will be available from all funds available to the
561		-	District for that fiscal year, except as permitted by applicable law. The Mayor shall not forward to
562		-	the President for submission to Congress a budget that is not balanced according to the provisions
563		-	of section 603(c) of the Home Rule Act, except as permitted by applicable law.
564		-	(2) The District shall prepare its annual financial statements in accordance with
565		-	generally accepted accounting principles for state and local governments and cause its annual
566		-	financial statements to be audited by an independent accountant.
567		-	(3) The District shall not issue any general obligation bonds or general
568		-	obligation bond anticipation notes, other than bonds or renewal notes to refund any Outstanding
569		-	Debt, or incur any indebtedness to the Treasury of the United States for capital projects in an
570		-	amount that would cause the amount of debt service payable in any fiscal year on all the
571		-	indebtedness, including all outstanding bonds and loans, to exceed any limitations set forth in the
572		-	Home Rule Act or the borrowing limitation set forth in D. C. Official Code §47-335.02 at the time
573		-	the additional bonds or indebtedness are issued or incurred. For purposes of the limitation imposed
574		-	by this section, and as required by section 475(b) of the Home Rule Act, the Council hereby
575		-	determines that the estimated maximum annual debt service amount for the bonds anticipated by
576		-	the notes is $30 million.
577		-	(4) Subject to applicable law, the District shall maintain a capital projects fund,
578		-	separate from other funds of the District, into which it will deposit the proceeds of any bonds or
579		-	notes, other than bonds or notes issued to refund Outstanding Debt, less any capitalized interest
580		-	and accrued interest, and shall expend the proceeds only to finance capital projects and incidental
581		-	costs as defined in section 103(8) of the Home Rule Act. Subject to applicable law, the proceeds
582		-	of the bonds or notes may be escrowed in appropriate accounts with escrow agents or a trustee for
583		-	the bonds or notes to be applied to the applicable purposes. Interest or other investment earnings
584		-	of proceeds in the capital projects fund shall be credited to the General Fund of the District of
585		-	Columbia, subject to provisions for any deposit requirements to a rebate fund or other funds in
586		-	accordance with agreements pertaining to the bonds or notes.
587		-	(b) The Mayor or an Authorized Delegate may, through a trust agreement or other
588		-	instrument, make additional covenants of the District and agree to other provisions to better
589		-	secure, administer funds for, and protect the bonds or notes and the owners thereof.
590		-
591		-	Sec. 12. Events of default.
592		-	(a) Each of the following events constitutes an event of default:
593		-	(1) Failure to pay the principal of the bonds or notes, as the case may be, when the
594		-	principal becomes due and payable at maturity, upon redemption, or otherwise;
595		-	(2) Failure to pay an installment of interest on the bonds or notes, as the case may
596		-	be, upon the day when the interest becomes due; and
597		-	(3) Failure by the District to observe and perform any covenant, condition, ENROLLED ORIGINAL
	335	+	Agreement, trust agreement, bond or note purchase agreement, or paying agent agreement. 248
	336	+	(d) The bonds or notes shall not be issued until the Mayor or an Authorized Delegate 249
	337	+	receives an approving opinion from Bond Counsel as to the validity of the bonds or notes and, if 250
	338	+	and to the extent the bonds or notes are issued on a tax- exempt basis, the treatment of the interest 251
	339	+	on the bonds or notes for purposes of federal and District income taxation. 252
	340	+	(e) The Mayor shall execute a bond issuance certificate or note issuance certificate, as the 253
	341	+	case may be, evidencing the determinations made and other actions taken by the Mayor for each 254
	342	+	series of the bonds or notes issued and shall designate in such certificate the amount of the bonds 255
	343	+	or notes to be used to finance capital projects or to refund or refinance Outstanding Debt, the 256
	344	+	amount of principal and interest on that amount of bonds or notes to be paid through sinking fund 257
	345	+	payments, redemptions, or otherwise, in each fiscal year, the date of the bonds or notes, the series 258
	346	+	designation, the authorized denominations, the Paying Agent or Agents, and any other matters 259
	347	+	pertaining to the bonds or notes, including any matters applicable under section 6(a). A copy of the 260
	348	+	bond issuance certificate or note issuance certificate, as the case may be, shall be filed with the 261
	349	+	Secretary to the Council not more than 3 days after the delivery of the bonds or notes covered by 262
	350	+	the certificate. Any bond issuance certificate or note issuance certificate shall be conclusive 263
	351	+	evidence of the actions or determinations taken or made as stated in the certificate. 264
	352	+	(f) The Procurement Act and the Deposit and Investment Act shall not apply to whatever 265
	353	+	contract the Mayor or an Authorized Delegate may from time to time enter into for purposes of 266 ENGROSSED ORIGINAL
598	354
599	355
600	356
601	357
602	358		14
603	359
604		-	agreement, or provision, other than as specified in paragraphs (1) and (2) of this subsection,
605		-	contained in the bonds or notes, as the case may be, or in this act, but only if the failure continues
606		-	for a period of 90 days after transmittal to the District of written notice of failure.
607		-	(b) A bond or note owner who claims an event of default under subsection (a)(3) of this
608		-	section shall provide to the registrar written notice specifying the failure and requesting that it be
609		-	remedied. Upon verifying that the written notice has been transmitted by a bona fide bond or note
610		-	owner, the registrar, if other than the District, shall transmit the written notice to the District. If
611		-	the registrar is the District, the written notice shall be delivered directly to the Mayor. Transmittal
612		-	to the District of the written notice required by subsection (a)(3) of this section shall not be
613		-	accomplished in any manner other than that set forth in this subsection. If there is a trust
614		-	agreement or Escrow Agreement for the bonds or notes, the notice by bond or note owners and
615		-	notice to the District shall be given by and to the persons designated in or pursuant to such
616		-	agreement.
617		-
618		-	Sec. 13. Remedies.
619		-	(a) Upon the occurrence and continuance of any event of default, any bond or note owner
620		-	may:
621		-	(1) By mandamus or other suit, action, or proceeding at law or in equity, enforce
622		-	all rights of the bond or note owner and require the District to carry out any agreements with or for
623		-	the benefit of the bond or note owner and to perform its duties under this act;
624		-	(2) Bring suit upon the bonds or notes, as the case may be; and
625		-	(3) By action or suit at law or in equity, enjoin any acts that may be unlawful or in
626		-	violation of the rights of the bond or note owner.
627		-	(b) If any proceeding initiated by any bond or note owner to enforce any right under this
628		-	act is discontinued or abandoned for any reason, the District and the bond or note owner shall be
629		-	restored to their former positions and rights, and all rights, remedies, and powers of each of the
630		-	parties shall continue as though the proceeding had not been initiated.
631		-	(c) Subject to the provisions of the Home Rule Act, if there is a trust agreement or
632		-	Escrow Agreement for the bonds or notes, actions under this act or such agreement, or on the
633		-	bonds or notes, as the case may be, shall be subject to applicable provisions in the agreement,
634		-	notwithstanding other provisions in this act.
635		-
636		-	Sec. 14. District officials.
637		-	(a) The elected and appointed officials, officers, employees, or agents of the District shall
638		-	not be liable personally for the payment of the bonds or notes or be subject to any personal
639		-	liability by reason of the issuance of the bonds or notes.
640		-	(b) The signature, countersignature, facsimile signature, or facsimile countersignature on
641		-	the bonds or notes shall be valid and sufficient for all purposes, notwithstanding the fact that the
642		-	official ceases to be that official before delivery of the bonds or notes. ENROLLED ORIGINAL
	360	+	this act or the Mayor or an Authorized Delegate may determine to be necessary or appropriate for 267
	361	+	purposes of this act to place, in whole or in part , including, but not limited to: 268
	362	+	(1) An investment or obligation of the District as represented by the bonds or 269
	363	+	notes; 270
	364	+	(2) A contract or contracts for bond insurance or other credit enhancement 271
	365	+	(including, but not limited to, a letter or line of credits), or liquidity agreements, or 272
	366	+	placement of any investment or obligation or program of investment including any offering 273
	367	+	document, contract based on interest rate, currency, cash flow, or other basis, including, 274
	368	+	without limitation, interest rate swap agreements; currency swap agreements; insurance agreements; 275
	369	+	forward payment conversion agreements; futures contracts providing for payments based on levels 276
	370	+	of, or changes in, interest rates, currency exchange rates, or stock or other indices; contracts to 277
	371	+	exchange cash flows or a series of payments; and contracts to hedge payment, currency, rate, 278
	372	+	spread, or similar exposure, including, without limitation, interest rate floors, or caps, options, 279
	373	+	puts, and calls, Hedge Agreements, and any required supplements to any such documents. 280
	374	+	The contracts or other arrangements may also be entered into by the District in connection with, or 281
	375	+	incidental to, entering into or maintaining any agreement that secures the bonds or notes. The 282
	376	+	contracts or other arrangements entered into pursuant to this section shall contain whatever payment 283
	377	+	security, terms, and conditions as the Mayor or an Authorized Deleg ate may consider appropriate 284
	378	+	and shall be entered into with whatever party or parties the Mayor or an Authorized Delegate may 285
	379	+	select, after giving due consideration, where applicable, to the creditworthiness of the counterparty 286 ENGROSSED ORIGINAL
643	380
644	381
645	382
646	383
647	384		15
648	385
649		-
650		-	Sec. 15. Defeasance of bonds and notes.
651		-	(a) The bonds or notes, as the case may be, shall be legally defeased and no longer be
652		-	considered outstanding and unpaid for the purpose of this act, and the requirements of this act
653		-	shall be discharged with respect to the bonds or the notes if the Mayor or an Authorized
654		-	Delegate:
655		-	(1) Deposits with an escrow agent, which shall be a bank, trust company, or
656		-	national banking association with requisite trust powers, in a separate defeasance escrow
657		-	account, established and maintained by the escrow agent solely at the expense of the District
658		-	and held in trust for the bond owners, sufficient moneys or direct obligations of the United States,
659		-	the principal of, and interest on, which, when due and payable, will provide sufficient moneys to
660		-	pay when due the principal of, and interest on, the bonds or notes to be defeased; and
661		-	(2) Delivers to the defeasance escrow agent an irrevocable letter of instruction to
662		-	apply the moneys or investments to the payment of the principal of and interest on, the bonds or
663		-	notes to be defeased as they become due and payable.
664		-	(b) The defeasance escrow agent shall not invest the defeasance escrow account in any
665		-	investment callable at the option of its issuer if the call could result in less than sufficient moneys
666		-	being available for the purposes required by this section.
667		-	(c) The defeasance escrow account specified in subsection (a) of this section may be
668		-	established and maintained without regard to any District limitations placed on these accounts by
669		-	any law, except for this act.
670		-	(d) References in this section to "amounts due and payable" include, but are not limited to,
671		-	amounts due and payable by reason of optional or mandatory redemption.
672		-
673		-	Sec. 16. Additional debt and other obligations.
674		-	Subject to the terms of any trust agreement or Escrow Agreement pertaining to the bonds or
675		-	notes, the District reserves the right at any time to borrow money or enter into other
676		-	obligations to the full extent permitted by law, to secure the borrowings or obligations by the
677		-	pledge of its full faith and credit, to secure the borrowings or other obligations by any other
678		-	security and pledges of funds as may be authorized by law, and to issue bonds, including
679		-	Additional Bonds, notes, including Additional Notes, or other instruments, to evidence the
680		-	borrowings or obligations. Any act of the Council authorizing the issuance of Additional Bonds or
681		-	Additional Notes shall provide for an increase in the special tax requirements sufficient to pay
682		-	principal of, and interest on, the Additional Bonds or Additional Notes.
683		-
684		-	Sec. 17. Tax status.
685		-	If and to the extent the bonds or notes are issued on a tax-exempt basis, the Mayor or an
686		-	Authorized Delegate shall not (1) take any action or omit to take any action, or (2) invest, reinvest,
687		-	or accumulate any moneys in a manner, that will cause the interest on the bonds or notes, as the ENROLLED ORIGINAL
	386	+	or counterparties, including any rating by a nationally recognized rating agency or any other 287
	387	+	criteria as may be appropriate. 288
	388	+	(3) A contract or contracts for an escrow agent, paying agent, disclosure agent, 289
	389	+	trustee, collection agent, registrar, underwriting, legal services, accounting, financial advisory 290
	390	+	services, rating agency services, printing, and any other contracts for services of professionals or 291
	391	+	advisors or for disclosure services as the Mayor or an Authorized Delegate may deem to be 292
	392	+	necessary or appropriate. 293
	393	+	Sec. 8. Payment and security of the bonds and notes. 294
	394	+	(a) The full faith and credit of the District is pledged for the payment of the principal of, 295
	395	+	and interest on, the bonds and notes as they become due and payable through required sinking fund 296
	396	+	payments, redemptions, or otherwise. 297
	397	+	(b) The Council shall, in the full exercise of the authority granted in section 483 of the 298
	398	+	Home Rule Act and under any other law, provide in each annual budget for a fiscal year of the 299
	399	+	District sufficient funds to pay the principal of, and interest on, the bonds and notes becoming 300
	400	+	due and payable for any reason during that fiscal year. 301
	401	+	(c) The Mayor shall, in the full exercise of the authority granted to the Mayor under the 302
	402	+	Home Rule Act and under any other law, take such actions as may be necessary or appropriate to 303
	403	+	ensure that the principal of, and interest on, the bonds and notes are paid when due for any reason, 304
	404	+	including the payment of principal and interest from any funds or accounts of the District not 305
	405	+	otherwise legally committed. 306 ENGROSSED ORIGINAL
688	406
689	407
690	408
691	409
692	410		16
693	411
694		-	case may be, to be includable in gross income for federal income tax purposes or to be treated as
695		-	an item of tax preference for purposes of the federal alternative minimum tax. The Mayor or an
696		-	Authorized Delegate shall also take all actions necessary to be taken, including to make any rebate
697		-	payment, if any, when due, so that the interest on the bonds or notes will not be includable in gross
698		-	income for federal income tax purposes or be treated as an item of tax preference for purposes of
699		-	the federal alternative minimum tax.
700		-
701		-	Sec. 18. Contract.
702		-	This act shall constitute a contract between the District and the owners of the bonds and
703		-	notes. To the extent that any acts or resolutions of the Council may be in conflict with this act, this
704		-	act shall be controlling with respect to bonds and notes.
705		-
706		-	Sec. 19. Authorized delegation of authority.
707		-	To the extent permitted by District and federal laws, the Mayor may delegate to any
708		-	authorized delegate the performance of any act authorized to be performed by the Mayor under this
709		-	act.
710		-	Sec. 20. Maintenance of documents.
711		-	Copies of the specimen bonds and notes and related documents shall be filed in the Office
712		-	of the Secretary of the District of Columbia.
713		-
714		-	See. 21. Information reporting.
715		-	(a) Within 3 days after the Mayor's receipt of the transcript of proceedings relating to
716		-	the issuance of any series of the bonds or notes, the Mayor shall transmit a copy of the transcript to
717		-	the Secretary to the Council.
718		-	(b) The Mayor shall notify the Council, within 30 days, if any funds or accounts of the
719		-	District not otherwise legally committed have been used for the payment of principal of and
720		-	interest on the bonds pursuant to section 8(c).
721		-	(c)(1) The Mayor's letter of transmittal accompanying the submission of any proposed
722		-	resolution to approve the issuance of bonds or notes pursuant to this act shall include a statement
723		-	as to:
724		-	(A) Whether the bonds or notes of any series are intended to be sold by
725		-	competitive bid or by negotiated sale and, if bonds of any series are intended to be sold by
726		-	negotiated sale, a copy of the Mayor's written determination that sale by competitive bid is not
727		-	feasible or is not in the best interests of the District and a statement of the reasons supporting this
728		-	determination; and
729		-	(B) Whether the bonds or notes of any series are intended to be issued
730		-	on a tax-exempt or taxable basis.
731		-	(d)(1) No portion of the proceeds of the sale of bonds or notes shall be used to
732		-	compensate a District employee unless the employee actually performs duties related to the ENROLLED ORIGINAL
	412	+	(d) The bonds and notes shall evidence continuing obligations of the District until paid in 307
	413	+	accordance with their terms. 308
	414	+	(e) Any Paying Agent shall pay the principal of, and interest on, the bonds and notes 309
	415	+	and may perform other ministerial responsibilities as specifically provided in its appointment as 310
	416	+	paying agent. 311
	417	+	(f) Proceeds of the bonds or notes and any money set aside for any security for the bonds 312
	418	+	or notes or any contract or other arrangement entered into pursuant to this section , may be pledged to 313
	419	+	and used to service any contract or other arrangement providing for payment of principal of and 314
	420	+	interest on the bonds or notes. 315
	421	+	Sec. 9. Special tax; establishment of rates; collection. 316
	422	+	(a) (1) The Council determines that a special tax is necessary in conjunction with the 317
	423	+	authorization and issuance of the bonds and any Additional Bonds. Pursuant to section 481 of the 318
	424	+	Home Rule Act and notwithstanding the provisions of Chapter 5 of Title 47 of the District of 319
	425	+	Columbia Official Code, there is levied, for each real property tax year in which bonds or 320
	426	+	Additional Bonds are outstanding, a special tax on the real property in the District subject to 321
	427	+	taxation, in amounts that will be sufficient to pay the principal of, and interest on, the bonds and 322
	428	+	Additional Bonds coming due in each year. This special tax is levied, without limitation as to rate 323
	429	+	or amount, on all classes of real property subject to taxation in the District. The special tax shall be 324
	430	+	collected and apportioned among classes of real property in the same manner as other District real 325
	431	+	property taxes and, when collected, shall be set aside in a Special Tax Fu nd maintained separate 326 ENGROSSED ORIGINAL
733	432
734	433
735	434
736	435
737	436		17
738	437
739		-	projects financed by this act, as provided in section 5(e).
740		-	(2) Within 30 days after the effective date of this act, and before any bonds or
741		-	notes are issued pursuant to this act, the Mayor shall submit to the Council a list of all District
742		-	employees who are compensated, in whole or part, by capital improvement funds.
743		-	(e) With respect to a negotiated sale of bonds or notes, the underwriters shall provide
744		-	written notification to the District of the following circumstances:
745		-	(1) Any relationship, during the prior 2 years, with elected or appointed District
746		-	officials, or the District's bond counsel or financial advisor, which could create a conflict of
747		-	interest or apparent conflict of interest with the duties performed, or to be performed, by such
748		-	underwriters or other advisors for the District;
749		-	(2) Any arrangement, during the prior 2 years, to share fees with other
750		-	underwriters, firms, or individuals in connection with the provision of services to the District by
751		-	either entity; and
752		-	(3) Any public finance transaction for any other issuer where the underwriter, or
753		-	prospective underwriter, is serving, or has served in the prior 2 years, as financial advisor in any
754		-	transaction where the District's financial advisor was, or is, an underwriter.
755		-
756		-	Sec. 22. Period of Limitations.
757		-	At the end of the 20-day period beginning on the date of the first publication pursuant to
758		-	the notice in section 463(a) of the Home Rule Act that an act authorizing the issuance of the
759		-	bonds has taken effect:
760		-	(1) Any recital or statement of fact contained in such act or in the preamble or
761		-	title of this act shall be deemed to be true for the purpose of determining the validity of any
762		-	bonds authorized by this act, and the District and all others interested shall be estopped from
763		-	denying any such recital or statement of fact; and
764		-	(2) This act, and all proceedings in connection with the authorization of the
765		-	issuance of bonds authorized by this act, shall be deemed to have been duly and regularly taken,
766		-	passed, and done by the District, in compliance with the Home Rule Act and all other applicable
767		-	laws, for the purpose of determining the validity of this act and the proceeding in connection
768		-	with the authorization and issuance of bonds authorized by this act; and no court shall have
769		-	jurisdiction in any suit, action, or proceeding commenced before the end of such 20-day period.
770		-
771		-	Sec 23. Severability.
772		-	As provided in the General Rule of Severability Adoption Act of 1983, effective March
773		-	14, 1984 (D.C. Law 5-56; D.C. Official Code § 45-201), if any provision of this act or the
774		-	application of this act to any person or circumstance is held to be unconstitutional or beyond the
775		-	statutory authority of the Council, or otherwise invalid, the invalidity shall not affect other
776		-	provisions or applications of the act that can be given effect without the invalid provision or
777		-	application, and to this end the provisions of this act are declared to be severable. ENROLLED ORIGINAL
	438	+	from other funds of the District. The collection and custody of the s pecial tax payment may be 327
	439	+	pursuant to an agreement with an agent for such purposes and the Special Tax Fund may be 328
	440	+	maintained under an Escrow Agreement. When deposited, the funds in the fund and all investment 329
	441	+	income or earnings on these funds shall be irrevocably dedicated and pledged to the payment of 330
	442	+	principal, and interest on, the bonds and any Additional Bonds. Any Escrow Agreement providing 331
	443	+	for holding funds for the benefit of the holders of the bonds shall be maintained so long as any of 332
	444	+	the bonds is outstanding under this act. 333
	445	+	(2) In addition to the special tax levied pursuant to paragraph (1) of this subsection, the 334
	446	+	Council determines that a separate tax levy is necessary in conjunction with the authorization and 335
	447	+	issuance of notes and any Additional Notes. Pursuant to section 467(a) of the Home Rule Act, and 336
	448	+	notwithstanding the provisions of Chapter 5 of Title 47 of the District of Columbia Official Code, 337
	449	+	there is levied, for each real property tax year in which notes or Additional Notes are outstanding, a 338
	450	+	special tax for notes on the real property in the District subject to taxation, which shall be separate 339
	451	+	and distinct from the collection and pledge of the special tax in paragraph (1) of this subsection, in 340
	452	+	amounts that will be sufficient to pay the principal of, and interest on, the notes and Additional Notes 341
	453	+	coming due in each year. This special tax for notes is levied, without limitation as to rate or amount, 342
	454	+	on all classes of real property subject to taxation in the District. The special tax for notes shall be 343
	455	+	collected and apportioned among classes of real property in the same manner as other District real 344
	456	+	property taxes and, when collected, shall be set aside in a Special Tax Fund for Notes maintained 345
	457	+	separate from other funds of the District, including the Special Tax Fund maintained under 346 ENGROSSED ORIGINAL
778	458
779	459
780	460
781	461
782	462		18
783	463
784		-
785		-	Sec. 24. Fiscal impact statement.
786		-	The Council adopts the fiscal impact statement in the committee report as the fiscal impact
787		-	statement required by section 602(c)(3) of the District of Columbia Home Rule Act, approved
788		-	December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(3)).
789		-
790		-	Sec. 25. Effective date.
791		-	This act shall take effect following approval by the Mayor (or in the event of veto by the
792		-	Mayor, action by the Council to override the veto), a 30-day period of Congressional review as
793		-	provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December
794		-	24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of
795		-	Columbia Register.
796		-
797		-
798		-
799		-	______________________________
800		-	Chairman
801		-	Council of the District of Columbia
	464	+	paragraph (1) of this subsection. The collection and custody of the revenue pledge payment may be 347
	465	+	pursuant to an agreement with an agent for such purposes and the Special Tax Fund for Notes may 348
	466	+	be maintained under an Escrow Agreement. When deposited, the revenues in the fund and all 349
	467	+	investment income or earnings on these funds shall be irrevocably dedicated and pledged to the 350
	468	+	payment of principal, and interest on, the notes and any Additional Notes. Any Escrow Agreement 351
	469	+	providing for holding funds for the benefit of the holders of the notes or Additional Notes shall be 352
	470	+	maintained so long as any of the notes or Additional Notes is outstanding under this act. 353
	471	+	(3) The special taxes authorized pursuant to subsection (a)(1) and (2) of this section 354
	472	+	shall be levied and collected ratably and on a parity with each other, and in the event there are 355
	473	+	insufficient collections of real property taxes, the amounts collected shall be allocated to each of 356
	474	+	the Special Tax Funds in proportion of the amounts of bonds and Additional Bonds and notes and 357
	475	+	Additional Notes outstanding. 358
	476	+	(b) The District irrevocably pledges for and on behalf of the owners of the bonds or notes 359
	477	+	as further security for the due and punctual payment of the principal and redemption price, if any, 360
	478	+	of, and interest on, the bonds or notes as they shall become due and payable for any reason, all of 361
	479	+	its right, title, and interest now owned or later acquired in and to the revenue from the applicable 362
	480	+	special taxes levied by this section, whether to be received, or held at the time, by a collection 363
	481	+	agent, custodian, or escrow agent for the District, or by District officials. This pledge creates and 364
	482	+	grants a parity security interest, which is created and perfected as contemplated in section 467 of 365
	483	+	the Home Rule Act, subject to the terms, conditions, and limitations in this act, including the 366 ENGROSSED ORIGINAL
802	484
803	485
804	486
805	487
	488	+	19
806	489
807		-	_________________________________
808		-	Mayor
809		-	District of Columbia
	490	+	provisions of subsections (e) and (i) of this section and the provisions setting forth conditions and 367
	491	+	limitations applicable to the issuance of Additional Bonds or Additional Notes secured, equally 368
	492	+	and ratably with the bonds or notes, respectively by a pledge of and security interest in the special 369
	493	+	tax revenue or special tax for notes revenue. 370
	494	+	(c) The security interests created in the revenues from the special tax es levied by this 371
	495	+	section shall be valid, binding, and perfected from the time of the delivery of the first bonds or 372
	496	+	notes with or without the physical delivery or allocation of any special tax revenue or special tax 373
	497	+	for notes revenue and with or without any further action. The security interest shall be valid, 374
	498	+	binding, and perfected whether or not any statement, document, or instrument relating to the 375
	499	+	security interest is recorded or filed. The pledge and lien created by the security interest shall be 376
	500	+	valid, binding, and perfected with respect to any individual or legal entity having claims against 377
	501	+	the District, whether or not the individual or legal entity has notice of the pledge and lien. 378
	502	+	(d) If the District pays or, pursuant to section 15, makes provisions to pay to the owners of 379
	503	+	all bonds and Additional Bonds or notes and Additional Notes the principal or redemption price, 380
	504	+	if any, and the interest due or to become due, at the time and in the manner stipulated, the security 381
	505	+	interest created in the revenue from the special tax es levied under this section shall be terminated. 382
	506	+	(e)(1) In any real property tax year, if the amount expected to be on deposit in the Special 383
	507	+	Tax Fund on the first day of the next succeeding real property tax year exceeds the greater of the 384
	508	+	earnings on the Special Tax Fund for the current real property tax year or 1/12 of the amount that 385
	509	+	the Mayor certifies as required to pay the principal of, and interest on, the bonds and any 386 ENGROSSED ORIGINAL
810	510
811	511
812	512
	513	+
	514	+	20
	515	+
	516	+	Additional Bonds coming due in the next succeeding real property tax year, the Mayor shall either 387
	517	+	cause the transfer of that excess amount to the General Fund of the District of Columbia or the 388
	518	+	use of that excess amount to purchase, for cancellation, Outstanding Debt. That excess amount 389
	519	+	shall be released from the lien on and security interest in the special tax revenue created under this 390
	520	+	section. 391
	521	+	(2) In any real property tax year, if the amount expected to be on deposit the 392
	522	+	Special Tax Fund for Notes on the first day of the next succeeding real property tax year exceeds 393
	523	+	the greater of the earnings on the Special Tax Fund for Notes for the current real property tax 394
	524	+	year or 1/12 of the amount that the Mayor certifies as required to pay the principal of, and interest 395
	525	+	on, the notes and any Additional Notes coming due in the next succeeding real property tax year, 396
	526	+	the Mayor shall either cause the transfer of that excess amount to the General Fund of the District 397
	527	+	of Columbia or the use of that excess amount to purchase, for cancellation, Outstanding Debt. 398
	528	+	That excess amount shall be released from the lien on and security interest in the special tax for 399
	529	+	notes revenue created under this section. 400
	530	+	(3) On or before the date upon which the Mayor is required by law to submit to 401
	531	+	the Council proposed real property tax rates for a real property tax year of the District (but not 402
	532	+	later than the first day of that real property tax year), the Mayor shall certify to the Council the 403
	533	+	amount required in that real property tax year to pay the principal of, and interest on, the bonds 404
	534	+	and any Additional Bonds or notes and any Additional Notes coming due for any reason during 405
	535	+	that real property tax year. The amount certified, less any funds then on deposit in the Special 406 ENGROSSED ORIGINAL
	536	+
	537	+
	538	+
	539	+
	540	+	21
	541	+
	542	+	Tax Funds after application of paragraphs (1) and (2) of this subsection, shall be called the 407
	543	+	special tax requirement. 408
	544	+	(f) On or before the date upon which the Mayor is required by law to submit to the Council 409
	545	+	proposed tax rates for a real property tax year of the District (but not later than the first day of that 410
	546	+	real property tax year), the Mayor shall calculate and submit to the Council proposed real property 411
	547	+	special tax rates to be applied during the real property tax year to all real property subject to 412
	548	+	taxation in the District. The real property special tax rates shall be calculated to yield the special tax 413
	549	+	requirement, as that amount is certified by the Mayor pursuant to subsection (e) of this section. 414
	550	+	(g) The Council, in the same manner as provided for the establishment of other real 415
	551	+	property tax rates, shall, by act, establish real property special tax rates for the real pr operty tax 416
	552	+	year calculated to yield the special tax requirement, as that amount is certified by the Mayor 417
	553	+	pursuant to subsection (e) of this section. If the Council fails to enact special real property tax 418
	554	+	rates for the real property tax year within the time provided by law, the real property special tax 419
	555	+	rates submitted by the Mayor pursuant to subsection (f) of this section shall be the real property 420
	556	+	special tax rates to be applied during that real property tax year. 421
	557	+	(h) Real property special taxes shall be collected in the same manner as other District real 422
	558	+	property taxes and the Mayor shall promptly deposit in the Special Tax Funds all real property 423
	559	+	special taxes collected, including collection through a collection agent and deposit under an 424
	560	+	Escrow Agreement. If the law of the District relating to the levy or collection of real property 425
	561	+	taxes or the calculation or establishment of real property tax rates is changed in a manner that 426 ENGROSSED ORIGINAL
	562	+
	563	+
	564	+
	565	+
	566	+	22
	567	+
	568	+	renders any of the provisions of subsections (e) through (h) of this section incapable of 427
	569	+	performance in accordance with their respective terms, the Mayor and the Council shall take 428
	570	+	actions that result in the collection of real property special taxes, in the same manner as other 429
	571	+	District real property taxes, in the amounts required by this section. 430
	572	+	(i) The District and the Mayor reserve the right to satisfy all or a portion of the special tax 431
	573	+	pledge requirements by setting aside and depositing into the Special Tax Funds, equally and ratably, 432
	574	+	at any time any funds of the District not otherwise legally committed, which shall irrevocably 433
	575	+	dedicate and pledge those deposits to the payment of principal of, and interest on, the bonds and 434
	576	+	Additional Bonds or notes and any Additional Notes then outstanding. To the extent that all or a 435
	577	+	portion of the special tax requirement or revenue pledge requirement is satisfied by those deposits, 436
	578	+	an equal amount of real property special tax revenue or special tax for notes revenue subsequently 437
	579	+	collected shall be released from the lien on and the security interest in the special tax revenue or the 438
	580	+	special tax for notes revenue created under this section and shall be paid to reimburse the General 439
	581	+	Fund of the District of Columbia or other fund of the District of Columbia from which the other 440
	582	+	funds were received, and any other funds so deposited in lieu of a portion of the special tax revenues 441
	583	+	or pledged property tax revenues shall be subject to the pledge and security interest under this act as 442
	584	+	if they were special tax revenues or special tax for notes pledged revenues pursuant to section 467 of 443
	585	+	the Home Rule Act. 444
	586	+	(j) The Mayor shall provide for the payment of the principal of, and interest on, the bonds 445
	587	+	or notes, as it may become due and payable for any reason, by transferring funds on deposit in the 446 ENGROSSED ORIGINAL
	588	+
	589	+
	590	+
	591	+
	592	+	23
	593	+
	594	+	Special Tax Funds, respectively, to the Paying Agent to the extent required pursuant to the bond or 447
	595	+	Additional Bond issuance certificate or note or Additional Note issuance certificate provided for in 448
	596	+	section 7. 449
	597	+	Sec. 10. Issuance of bonds to pay notes when due. 450
	598	+	(a) The District shall issue the bonds or, to the extent permitted by the Home Rule Act, 451
	599	+	renewal notes to provide for the payment of the principal of the notes, as they may become due and 452
	600	+	payable. 453
	601	+	(b) The par value to be received from the sale of any bonds issued to refund the notes or any 454
	602	+	renewal notes shall, to the extent necessary, be used to pay the principal of, and interest on, the 455
	603	+	notes when due and are pledged to that purpose. 456
	604	+	Sec. 11. General covenants. 457
	605	+	(a) The following covenants are made by the District in connection with the 458
	606	+	authorization and issuance of the bonds: 459
	607	+	(1) Pursuant to section 603(c) of the Home Rule Act, the Council shall not approve 460
	608	+	any budget that would result in expenditures being made by the District during any fiscal year in 461
	609	+	excess of all resources that the Mayor estimates will be available from all funds available to the 462
	610	+	District for that fiscal year, except as permitted by applicable law. The Mayor shall not forward to 463
	611	+	the President for submission to Congress a budget that is not balanced according to the provisions 464
	612	+	of section 603(c) of the Home Rule Act, except as permitted by applicable law. 465
	613	+	(2) The District shall prepare its annual financial statements in accordance with 466 ENGROSSED ORIGINAL
	614	+
	615	+
	616	+
	617	+
	618	+	24
	619	+
	620	+	generally accepted accounting principles for state and local governments and cause its annual 467
	621	+	financial statements to be audited by an independent accountant. 468
	622	+	(3) The District shall not issue any general obligation bonds or general 469
	623	+	obligation bond anticipation notes, other than bonds or renewal notes to refund any Outstanding 470
	624	+	Debt, or incur any indebtedness to the Treasury of the United States for capital projects in an 471
	625	+	amount that would cause th e amount of debt service payable in any fiscal year on all the 472
	626	+	indebtedness, including all outstanding bonds and loans, to exceed any limitations set forth in the 473
	627	+	Home Rule Act or the borrowing limitation set forth in D. C. Official Code §47- 335.02 at the time 474
	628	+	the additional bonds or indebtedness are issued or incurred. For purposes of the limitation imposed 475
	629	+	by this section, and as required by section 475(b) of the Home Rule Act, the Council hereby 476
	630	+	determines that the estimated maximum annual debt service amount for the bonds anticipated by 477
	631	+	the notes is $30 million . 478
	632	+	(4) Subject to applicable law, the District shall maintain a capital projects fund, 479
	633	+	separate from other funds of the District, into which it will deposit the proceeds of any bonds or 480
	634	+	notes, other than bonds or notes issued to refund Outstanding Debt, less any capitalized interest 481
	635	+	and accrued interest, and shall expend the proceeds only to finance capital projects and incidental 482
	636	+	costs as defined in section 103(8) of the Home Rule Act. Subject to applicable law, the proceeds 483
	637	+	of the bonds or notes may be escrowed in appropriate accounts with escrow agents or a trustee for 484
	638	+	the bonds or notes to be applied to the applicable purposes. Interest or other investment earnings 485
	639	+	of proceeds in the capital projects fund shall be credited to the General Fund of the District of 486 ENGROSSED ORIGINAL
	640	+
	641	+
	642	+
	643	+
	644	+	25
	645	+
	646	+	Columbia, subject to provisions for any deposit requirements to a rebate fund or other funds in 487
	647	+	accordance with agreements pertaining to the bonds or notes. 488
	648	+	(b) The Mayor or an Authorized Delegate may, through a trust agreement or other 489
	649	+	instrument, make additional covenants of the District and agree to other provisions to better secure, 490
	650	+	administer funds for, and protect the bonds or notes and the owners thereof. 491
	651	+	Sec. 12. Events of default. 492
	652	+	(a) Each of the following events constitutes an event of default: 493
	653	+	(1) Failure to pay the principal of the bonds or notes, as the case may be, when 494
	654	+	the principal becomes due and payable at maturity, upon redemption, or otherwise; 495
	655	+	(2) Failure to pay an installment of interest on the bonds or notes, as the case 496
	656	+	may be, upon the day when the interest becomes due; and 497
	657	+	(3) Failure by the District to observe and perform any covenant, condition, 498
	658	+	agreement, or provision, other than as specified in paragraphs (1) and (2) of this subsection, 499
	659	+	contained in the bonds or notes, as the case may be, or in this act, but only if the failure 500
	660	+	continues for a period of 90 days after transmittal to the District of written notice of failure. 501
	661	+	(b) A bond or note owner who claims an event of default under subsection (a)(3) of this 502
	662	+	section shall provide to the registrar written notice specifying the failure and requesting that it be 503
	663	+	remedied. Upon verifying that the written notice has been transmitted by a bona fide bond or note 504
	664	+	owner, the registrar, if other than the District, shall transmit the written notice to the District. If 505
	665	+	the registrar is the District, the written notice shall be delivered directly to the Mayor. Transmittal 506 ENGROSSED ORIGINAL
	666	+
	667	+
	668	+
	669	+
	670	+	26
	671	+
	672	+	to the District of the written notice required by subsection (a)(3) of this section shall not be 507
	673	+	accomplished in any manner other than that set forth in this subsection. If there is a trust 508
	674	+	agreement or Escrow Agreement for the bonds or notes, the notice by bond or note owners and 509
	675	+	notice to the District shall be given by and to the persons designated in or pursuant to such 510
	676	+	agreement. 511
	677	+	Sec. 13. Remedies. 512
	678	+	(a) Upon the occurrence and continuance of any event of default, any bond or note 513
	679	+	owner may: 514
	680	+	(1) By mandamus or other suit, action, or proceeding at law or in equity, enforce 515
	681	+	all rights of the bond or note owner and require the District to carry out any agreements with or for 516
	682	+	the benefit of the bond or note owner and to perform its duties under this act; 517
	683	+	(2) Bring suit upon the bonds or notes, as the case may be; and 518
	684	+	(3) By action or suit at law or in equity, enjoin any acts that may be unlawful or in 519
	685	+	violation of the rights of the bond or note owner. 520
	686	+	(b) If any proceeding initiated by any bond or note owner to enforce any right under this 521
	687	+	act is discontinued or abandoned for any reason, the District and the bond or note owner shall be 522
	688	+	restored to their former positions and rights, and all rights, remedies, and powers of each of the 523
	689	+	parties shall continue as though the proceeding had not been initiated. 524
	690	+	(c) Subject to the provisions of the Home Rule Act, if there is a trust agreement or 525
	691	+	Escrow Agreement for the bonds or notes, actions under this act or such agreement, or on the 526 ENGROSSED ORIGINAL
	692	+
	693	+
	694	+
	695	+
	696	+	27
	697	+
	698	+	bonds or notes, as the case may be, shall be subject to applicable provisions in the agreement, 527
	699	+	notwithstanding other provisions in this act. 528
	700	+	Sec. 14. District officials. 529
	701	+	(a) The elected and appointed officials, officers, employees, or agents of the District shall 530
	702	+	not be liable personally for the payment of the bonds or notes or be subject to any personal 531
	703	+	liability by reason of the issuance of the bonds or notes. 532
	704	+	(b) The signature, countersignature, facsimile signature, or facsimile countersignature on 533
	705	+	the bonds or notes shall be valid and sufficient for all purposes, notwithstanding the fact that the 534
	706	+	official ceases to be that official before delivery of the bonds or notes. 535
	707	+	Sec. 15. Defeasance of bonds and notes. 536
	708	+	(a) The bonds or notes, as the case may be, shall be legally defeased and no longer be 537
	709	+	considered outstanding and unpaid for the purpose of this act , and the requirements of this act 538
	710	+	shall be discharged with respect to the bonds or the notes if the Mayor or an Authorized 539
	711	+	Delegate: 540
	712	+	(1) Deposits with an escrow agent, which shall be a bank, trust company, or 541
	713	+	national banking association with requisite trust powers, in a separate defeasance escrow 542
	714	+	account, established and maintained by the escrow agent solely at the expense of the 543
	715	+	District and held in trust for the bond owners, sufficient moneys or direct obligations of the 544
	716	+	United States, the principal of, and interest on, which, when due and payable, will provide 545
	717	+	sufficient moneys to pay when due the principal of, and interest on, the bonds or notes to be 546 ENGROSSED ORIGINAL
	718	+
	719	+
	720	+
	721	+
	722	+	28
	723	+
	724	+	defeased; and 547
	725	+	(2) Delivers to the defeasance escrow agent an irrevocable letter of instruction to 548
	726	+	apply the moneys or investments to the payment of the principal of and interest on, the bonds or 549
	727	+	notes to be defeased as they become due and payable. 550
	728	+	(b) The defeasance escrow agent shall not invest the defeasance escrow account in any 551
	729	+	investment callable at the option of its issuer if the call could result in less than sufficient moneys 552
	730	+	being available for the purposes required by this section. 553
	731	+	(c) The defeasance escrow account specified in subsection (a) of this section may be 554
	732	+	established and maintained without regard to any District limitations placed on these accounts by 555
	733	+	any law, except for this act. 556
	734	+	(d) References in this section to "amounts due and payable" include, but are not limited to, 557
	735	+	amounts due and payable by reason of optional or mandatory redemption. 558
	736	+	Sec. 16. Additional debt and other obligations. 559
	737	+	Subject to the terms of any trust agreement or Escrow Agreement pertaining to the bonds or 560
	738	+	notes, the District reserves the right at any time to borrow money or enter into other 561
	739	+	obligations to the full extent permitted by law, to secure the borrowings or obligations by the pledge 562
	740	+	of its full faith and credit, to secure the borrowings or other obligations by any other security and 563
	741	+	pledges of funds as may be authorized by law, and to issue bonds, including Additional Bonds, 564
	742	+	notes, including Additional Notes, or other instruments, to evidence the borrowings or obligations. 565
	743	+	Any act of the Council authorizing the issuance of Additional Bonds or Additional Notes shall 566 ENGROSSED ORIGINAL
	744	+
	745	+
	746	+
	747	+
	748	+	29
	749	+
	750	+	provide for an increase in the special tax requirements sufficient to pay principal of, and interest on, 567
	751	+	the Additional Bonds or Additional Notes. 568
	752	+	Sec. 17. Tax status. 569
	753	+	If and to the extent the bonds or notes are issued on a tax- exempt basis, the Mayor or an 570
	754	+	Authorized Delegate shall not (1) take any action or omit to take any action, or (2) invest, reinvest, 571
	755	+	or accumulate any moneys in a manner, that will cause the interest on the bonds or notes, as the 572
	756	+	case may be, to be includable in gross income for federal income tax purposes or to be treated as 573
	757	+	an item of tax preference for purposes of the federal alternative minimum tax. The Mayor or an 574
	758	+	Authorized Delegate shall also take all actions necessary to be taken, including to make any rebate 575
	759	+	payment, if any, when due, so that the intere st on the bonds or notes will not be includable in gross 576
	760	+	income for federal income tax purposes or be treated as an item of tax preference for purposes of 577
	761	+	the federal alternative minimum tax. 578
	762	+	Sec. 18. Contract. 579
	763	+	This act shall constitute a contract between the District and the owners of the bonds and 580
	764	+	notes. To the extent that any acts or resolutions of the Council may be in conflict with this act, this 581
	765	+	act shall be controlling with respect to bonds and notes. 582
	766	+	Sec. 19. Authorized delegation of authority. 583
	767	+	To the extent permitted by District and federal laws, the Mayor may delegate to any 584
	768	+	authorized delegate the performance of any act authorized to be performed by the Mayor under this 585
	769	+	act. 586 ENGROSSED ORIGINAL
	770	+
	771	+
	772	+
	773	+
	774	+	30
	775	+
	776	+	Sec. 20. Maintenance of documents. 587
	777	+	Copies of the specimen bonds and notes and related documents shall be filed in the 588
	778	+	Office of the Secretary of the District of Columbia. 589
	779	+	See. 21. Information reporting. 590
	780	+	(a) Within 3 days after the Mayor's receipt of the transcript of proceedings relating to 591
	781	+	the issuance of any series of the bonds or notes, the Mayor shall transmit a copy of the transcript to 592
	782	+	the Secretary to the Council. 593
	783	+	(b) The Mayor shall notify the Council, within 30 days, if any funds or accounts of 594
	784	+	the District not otherwise legally committed have been used for the payment of principal of 595
	785	+	and interest on the bonds pursuant to section 8(c). 596
	786	+	(c)(1) The Mayor's letter of transmittal accompanying the submission of any proposed 597
	787	+	resolution to approve the issuance of bonds or notes pursuant to this act shall include a statement 598
	788	+	as to: 599
	789	+	(A) Whether the bonds or notes of any series are intended to be sold by 600
	790	+	competitive bid or by negotiated sale and, if bonds of any series are intended to be sold by 601
	791	+	negotiated sale, a copy of the Mayor's written determination that sale by competitive bid is not 602
	792	+	feasible or is not in the best interests of the District and a statement of the reasons supporting 603
	793	+	this determination; and 604
	794	+	(B) Whether the bonds or notes of any series are intended to be issued on a 605
	795	+	tax-exempt or taxable basis. 606 ENGROSSED ORIGINAL
	796	+
	797	+
	798	+
	799	+
	800	+	31
	801	+
	802	+	(d)(1) No portion of the proceeds of the sale of bonds or notes shall be used to 607
	803	+	compensate a District employee unless the employee actually performs duties related to the 608
	804	+	projects financed by this act, as provided in section 5(e). 609
	805	+	(2) Within 30 days after the effective date of this act, and before any bonds or 610
	806	+	notes are issued pursuant to this act, the Mayor shall submit to the Council a list of all 611
	807	+	District employees who are compensated, in whole or part, by capital improvement funds. 612
	808	+	(e) With respect to a negotiated sale of bonds or notes, the underwriters shall provide 613
	809	+	written notification to the District of the following circumstances: 614
	810	+	(1) Any relationship, during the prior 2 years, with elected or appointed District 615
	811	+	officials, or the District's bond counsel or financial advisor, which could create a conflict of 616
	812	+	interest or apparent conflict of interest with the duties performed, or to be performed, by such 617
	813	+	underwriters or other advisors for the District; 618
	814	+	(2) Any arrangement, during the prior 2 years, to share fees with other 619
	815	+	underwriters, firms, or individuals in connection with the provision of services to the District by 620
	816	+	either entity; and 621
	817	+	(3) Any public finance transaction for any other issuer where the underwriter, or 622
	818	+	prospective underwriter, is serving, or has served in the prior 2 years, as financial advisor in any 623
	819	+	transaction where the District's financial advisor was, or is, an underwriter. 624
	820	+	Sec. 22. Period of Limitations. 625
	821	+	At the end of the 20- day period beginning on the date of the first publication pursuant to 626 ENGROSSED ORIGINAL
	822	+
	823	+
	824	+
	825	+
	826	+	32
	827	+
	828	+	the notice in section 463(a) of the Home Rule Act that an act authorizing the issuance of the 627
	829	+	bonds has taken effect: 628
	830	+	(1) Any recital or statement of fact contained in such act or in the preamble or title of 629
	831	+	this act shall be deemed to be true for the purpose of determining the validity of any bonds 630
	832	+	authorized by this act, and the District and all others interested shall be estopped from denying 631
	833	+	any such recital or statement of fact; and 632
	834	+	(2) This act, and all proceedings in connection with the authorization of the issuance 633
	835	+	of bonds authorized by this act, shall be deemed to have been duly and regularly taken, passed, 634
	836	+	and done by the District, in compliance with the Home Rule Act and all other applicable laws, for 635
	837	+	the purpose of determining the validity of this act and the proceeding in connection with the 636
	838	+	authorization and issuance of bonds authorized by this act; and no court shall have jurisdiction in 637
	839	+	any suit, action, or proceeding commenced before the end of such 20 -day period. 638
	840	+	Sec 23. Severability. 639
	841	+	As provided in the General Rule of Severability Adoption Act of 1983, effective March 640
	842	+	14, 1984 (D.C. Law 5-56; D.C. Official Code § 45- 201), if any provision of this act or the 641
	843	+	application of this act to any person or circumstance is held to be unconstitutional or beyond the 642
	844	+	statutory authority of the Council, or otherwise invalid, the i nvalidity shall not affect other 643
	845	+	provisions or applications of the act that can be given effect without the invalid provision or 644
	846	+	application, and to this end the provisions of this act are declared to be severable. 645
	847	+	Sec. 24. Fiscal impact statement. 646 ENGROSSED ORIGINAL
	848	+
	849	+
	850	+
	851	+
	852	+	33
	853	+
	854	+	The Council adopts the fiscal impact statement in the committee report as the fiscal 647
	855	+	impact statement required by section 602(c)(3) of the District of Columbia Home Rule Act, 648
	856	+	approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1- 206.02(c)(3)). 649
	857	+	Sec. 25. Effective date. 650
	858	+	This act shall take effect following approval by the Mayor (or in the event of veto by the 651
	859	+	Mayor, action by the Council to override the veto), a 30- day period of Congressional review as 652
	860	+	provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 653
	861	+	24, 1973 (87 Stat. 813; D.C. Official Code § 1- 206.02(c)(1)), and publication in the District of 654
	862	+	Columbia Register. 655