Phil Mendelson Chairman COUNCIL OF THE DISTRICT OF COLUMBIA 1350 PENNSYLVANIA AVENUE, N.W WASHINGTON, D.C. 20004 January 24, 2023 Office: (202) 724-8032 Fax: (202) 724-8085 STATEMENT UPON INTRODUCTION CONTRACTOR PAYMENTCONTROL AMENDMENT ACT OF 2023 Today I am introducing the Contractor Payment Control Amendment Act of2023 to make clear in the law that the Chief Financial Officer, and others, cannot approve payments for goods or services under contracts that have not been approved by the Council. Longstanding law in the District requires that all contracts exceeding $1 million for goods or services must be submitted for approval by the Council. The genesis for the Contractor Payment Control Amendment Act o/'2023 are two food service contracts for the DC Public Schools that were only recently submitted to the Council. They were both executed as letter contracts in June but were not submitted to the Council for six months. In fact, they were submitted so late in Council Period 24 that they had to be reintroduced last week. Even though neither contract had been submitted to the Council for approval, DCPS has been paying the vendors -a total of $6.265 million as of December l 0 th (the contracts were submitted after then). The DCPS food service contracts have been controversial in the past. Indeed, parents complain to the Council about the quality of meals in DC Public Schools. But when the contracts are withheld from the Council until halfway through the school year, parents and policymakers are denied meaningful opportunity to comment or seek improvement. Current law states that no agency director, agency fiscal officer, or other employee may approve disbursements without appropriate authorization. That would include Council approval of the contracts. But presumably the DCPS Chancellor, the DCPS fiscal officer, and the city's Chief financial Officer don't agree, so the Contractor Payment Control Amendment Act of 2023 will clarify that the role of the Council must be respected. The Contractor Payment Control Amendment Ac/ c~/'2023 should make it harder for Executive agencies to disregard the Council and disrespect parents. 1 ______________________________ 1 Chairman Phil Mendelson 2 3 4 5 A BILL 6 7 8 _________ 9 10 11 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 12 13 __________________ 14 15 16 To amend section 47-355.02 of the District of Columbia Official Code to prohibit payments in 17 excess of $1 million to vendors under a contract that has not yet been approved by the 18 Council. 19 20 BE IT ENACTED BY THE COUNCIL OF TH E DISTRICT OF COLUMBIA, That this 21 act may be cited as the “Contractor Payment Control Amendment Act of 2023”. 22 Sec. 2. Section 47-355.02 of the District of Columbia Official Code is amended by 23 adding a new paragraph (3A) to read as follows: 24 “(3A) Approve any disbursement of funds pursuant to a contract that exceed an 25 aggregate amount of $1 million, unless such contract has been approved by the Council pursuant 26 to section 451 of the District of Columbia Home Rule Act, approved December 24, 1973 (87 27 Stat. 803; D.C. Official Code § 1-204.51);” 28 Sec. 3. Fiscal impact statement. 29 The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact 30 statement required by section 4a of the General Legislative Procedures Act of 1975, approved 31 October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 32 Sec. 4. Effective date. 33 This act shall take effect following approval by the Mayor (or in the event of veto by the 34 2 Mayor, action by the Council to override the veto), a 30-day period of congressional review as 35 provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 36 24, 1973 (87 Stat. 813; D.C. Official Code §1-206.02(c)(1)), and publication in the District of 37 Columbia Register. 38