1 | 1 | | |
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2 | 2 | | OFFICE OF CHAIRMAN PHIL MENDELSON |
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3 | 3 | | COUNCIL OF THE DISTRICT OF COLUMBIA |
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4 | 4 | | |
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5 | 5 | | Statement of Introduction |
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6 | 6 | | |
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7 | 7 | | “Stability and Equity in Arts Grantmaking Amendment Act of 2025” |
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8 | 8 | | |
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9 | 9 | | Today I am introducing the Stability and Equity in Arts Grantmaking Amendment Act of |
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10 | 10 | | 2025. This bill would create statutory stability in grantmaking at the Commission on the Arts and |
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11 | 11 | | Humanities in its General Operation Support (GOS) grant program. Between the Fiscal Year 2024 |
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12 | 12 | | and Fiscal Year 2025 General Operation Support grant cycles, 108 out of 166 GOS grantees saw |
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13 | 13 | | a reduction in the award amount – 16 of which saw a reduction of 60% each – despite the overall |
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14 | 14 | | GOS budget staying nearly identical between the two cycles. Several of the grantees not only |
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15 | 15 | | received a cut, but the cut is contrary to the guidance provided by the Arts Commission last year |
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16 | 16 | | which stated that its policy is to ensure that grantees will not experience more than a $10,000 |
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17 | 17 | | fluctuation in their award amount, and that certain funding ranges would be tied to organizations |
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18 | 18 | | with certain annual expenses. The Commission ignoring its own policies, which are not in law, |
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19 | 19 | | can cause tremendous instability, especially for mid- size and smaller organizations. |
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20 | 20 | | |
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21 | 21 | | To address this, the Stability and Equity in Arts Grantmaking Amendment Act of 2025 |
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22 | 22 | | would establish that GOS award amounts should be proportionally tied to organizational expenses |
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23 | 23 | | – a policy already used in practice by the Arts Commission. However, the bill does this in an |
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24 | 24 | | equitable manner whereby base award amounts are based on an organization’s proportional annual |
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25 | 25 | | expenses. Since larger, more well -funded organizations have an outsized share of expenses as |
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26 | 26 | | compared to smaller organizations, the legislation places a cap on the maximum award amount s, |
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27 | 27 | | regardless of an organization’s proportional share. Moreover, the bill places a floor on grant |
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28 | 28 | | awards for organizations to ensure adequate funding to support small and mid-sized organizations. |
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29 | 29 | | |
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30 | 30 | | The bill also places new guardrails on what organizations are eligible for grants to ensure |
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31 | 31 | | that incredibly large national arts institutions with budgets in excess of $100 million aren’t being |
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32 | 32 | | awarded grants that are better targeted to our locally anchored arts organizations. This bill would |
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33 | 33 | | also clarify that awardees must have an active Board of Directors, have more than half of their |
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34 | 34 | | activities and programs occur within the District, and have a primary mission of focusing on the |
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35 | 35 | | arts, arts education, or the humanities. Moreover, the bill would set clear criteria for consideration |
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36 | 36 | | of supplemental GOS award funding including the quality of the organization’s programming or |
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37 | 37 | | services, the charitable or philanthropic work of organizations in lifting up other artists and |
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38 | 38 | | organizations, and encouraging diversity in organizational governance and administration. |
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39 | 39 | | |
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40 | 40 | | Enshrining many of the equity goals built into the current Commission policies will ensure |
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41 | 41 | | that future grants are awarded on an equitable basis. Moreover, given the uncertain future of |
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42 | 42 | | revenue dedicated to the Arts Commission , it is more important now than ever to ensure that |
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43 | 43 | | guardrails are built into the law to ensure stability and equity to support our arts organizations. 1 |
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44 | 44 | | |
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45 | 45 | | _________________________ 1 |
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46 | 46 | | Chairman Phil Mendelson 2 |
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47 | 47 | | 3 |
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48 | 48 | | 4 |
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49 | 49 | | A BILL 5 |
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50 | 50 | | 6 |
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51 | 51 | | _______ 7 |
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52 | 52 | | 8 |
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53 | 53 | | IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 9 |
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54 | 54 | | 10 |
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55 | 55 | | _______________________ 11 |
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56 | 56 | | 12 |
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57 | 57 | | To amend the Commission on the Arts and Humanities Act to provide for stability and equity in 13 |
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58 | 58 | | the awarding of General Operating Support grants to arts organizations, and to remove 14 |
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59 | 59 | | obsolete provisions of law. 15 |
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60 | 60 | | 16 |
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61 | 61 | | BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 17 |
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62 | 62 | | act may be cited as the “Stability and Equity in Arts Grantmaking Amendment Act of 2025”. 18 |
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63 | 63 | | Sec 2. The Commission on the Arts and Humanities Act, effective October 21, 1975 19 |
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64 | 64 | | (D.C. Law 1-22; D.C. Official Code § 39-201 et seq.), is amended as follows: 20 |
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65 | 65 | | (a) Section 4 (D.C. Official Code § 39-203) is amended as follows: 21 |
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66 | 66 | | (1) Subsection (a-1) is amended to read as follows: 22 |
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67 | 67 | | “(a-1)(1) The Commission shall consist of 12 members appointed by the Mayor, with the 23 |
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68 | 68 | | advice and consent of the Council, in accordance with section 2(e)(32) of the Confirmation Act 24 |
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69 | 69 | | of 1978, effective March 3, 1979 (D.C. Law 2-142; D.C. Official Code § 1-523.01(e)(32)). 25 |
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70 | 70 | | “(2) Each member appointed to the Commission shall be a District resident who 26 |
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71 | 71 | | has displayed an interest or an ability in the arts or humanities or has been active in the 27 |
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72 | 72 | | furtherance of the arts or humanities in the District of Columbia. 28 |
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73 | 73 | | “(3) When appointing members to the Commission, the Mayor shall give due 29 |
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74 | 74 | | consideration to recommendations made by representative civic, educational, and professional 30 |
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75 | 75 | | groups concerned with the arts, humanities, and culture, and shall maintain reasonable 31 2 |
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76 | 76 | | |
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77 | 77 | | representation of all the various geographic areas and neighborhoods within the District of 32 |
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78 | 78 | | Columbia.”. 33 |
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79 | 79 | | (2) Subsection (b) is amended to read as follows: 34 |
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80 | 80 | | “(b) All members of the Commission shall be appointed to 3-year terms that shall 35 |
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81 | 81 | | commence on July 1 in the year of appointment and expire on June 30 of the 3rd year.”. 36 |
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82 | 82 | | (3) Subsection (b-1) is repealed. 37 |
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83 | 83 | | (b) Section 6(c-1) (D.C. Official Code § 39-205(c-1)) is amended to read as follows: 38 |
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84 | 84 | | “(c-1) The Commission shall allocate the annual budget as follows: 39 |
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85 | 85 | | “(1) Not more than 20% of the annual budget shall be allocated for administrative 40 |
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86 | 86 | | costs. 41 |
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87 | 87 | | “(2) The funds remaining after the allocation described in paragraph (1) of this 42 |
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88 | 88 | | subsection shall be allocated for grants for the following purposes: 43 |
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89 | 89 | | “(A) 12.0% for grants to fund capital projects in support of eligible arts 44 |
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90 | 90 | | and humanities organizations; 45 |
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91 | 91 | | “(B) 50.0% for General Operating Support grants to eligible arts and 46 |
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92 | 92 | | humanities organizations to be administered pursuant to section 6e; 47 |
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93 | 93 | | “(C ) 22.0% for other art grant programs established by the Commission; 48 |
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94 | 94 | | and 49 |
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95 | 95 | | “(D) 4.0% the for the Humanities Grant Program administered by 50 |
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96 | 96 | | HumanitiesDC. 51 |
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97 | 97 | | “(E) 12.0% for a large capital grant program to be administered pursuant 52 |
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98 | 98 | | to section 6d.” 53 |
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99 | 99 | | (c) Section 6c (D.C. Official Code § 39-205.03) is repealed. 54 |
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100 | 100 | | (d) A new Section 6e is added to read as follows: 55 3 |
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101 | 101 | | |
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102 | 102 | | “Sec. 6e. General operating support grants program. 56 |
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103 | 103 | | “(a) There is established within the Commission a General Operating Support Grants 57 |
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104 | 104 | | program to provide subgrants to eligible organizations for offsetting the operating expenses of 58 |
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105 | 105 | | eligible organizations. 59 |
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106 | 106 | | “(b) For purposes of this section, the term “organization average expenses” shall mean 60 |
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107 | 107 | | the organization’s expenses averaged from its two most recent Annual Form 990 filings 61 |
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108 | 108 | | “(c) Eligibility for a general operating support grant shall be limited to organizations that: 62 |
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109 | 109 | | “(1) Are incorporated as a nonprofit with a federally designated tax-exempt status 63 |
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110 | 110 | | under section 501(c)(3) of the United States Internal Revenue Service (IRS) code and have a 64 |
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111 | 111 | | principal business office address within in the District of Columbia, not including a Post Office 65 |
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112 | 112 | | Box, as evidenced by the organization’s most recent Internal Revenue Service Annual Form 990 66 |
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113 | 113 | | filing; 67 |
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114 | 114 | | “(2) Have provided the organization’s two most recent Internal Revenue Service 68 |
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115 | 115 | | Annual Form 990 filings with its grant application; 69 |
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116 | 116 | | “(3) Have less than $100 million in organization average expenses; 70 |
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117 | 117 | | “(4) Have a primary mission focusing on the arts or humanities disciplines such 71 |
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118 | 118 | | that the majority the organization’s activities are related to the arts, arts education, or the 72 |
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119 | 119 | | humanities; 73 |
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120 | 120 | | “(5) Have an active Board of Directors ; and 74 |
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121 | 121 | | “(6) Have at least 51% of its activities or programs occur within the District of 75 |
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122 | 122 | | Columbia. 76 |
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123 | 123 | | “(d)(1) The base general operating funding amount for each eligible organization shall be 77 |
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124 | 124 | | calculated as follows: 78 4 |
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125 | 125 | | |
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126 | 126 | | “(A) Determining the aggregate sum of all eligible organization average 79 |
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127 | 127 | | expenses; 80 |
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128 | 128 | | “(B) Dividing each individual organization’s average expenses by the sum 81 |
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129 | 129 | | determined in subparagraph (A); and 82 |
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130 | 130 | | “(C) Multiplying the amount calculated in subparagraph (B) by 2. 83 |
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131 | 131 | | “(2) If the base general operating funding amount calculated under paragraph (1) 84 |
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132 | 132 | | for an organization is more than one percent (1.0%) of the annual amount budgeted pursuant to 85 |
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133 | 133 | | Section 6(c-1)(2)(B) of this act, the base funding amount for such organization shall be equal to 86 |
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134 | 134 | | such one percent (1.0%) amount and such organization shall not be allocated additional funds 87 |
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135 | 135 | | pursuant to subsection (e). 88 |
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136 | 136 | | “(3) If the base general operating funding amount calculated under paragraph (1) 89 |
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137 | 137 | | for an organization is less than three-quarters of one-tenth percent (0.075%) of the annual 90 |
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138 | 138 | | amount budgeted pursuant to Section 6(c-1)(2)(B) of this act, the base general operating funding 91 |
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139 | 139 | | amount for such organization shall be equal to such three-quarters of one-tenth percent (0.075%), 92 |
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140 | 140 | | provided that for an organization where the base general operating funding amount calculated 93 |
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141 | 141 | | pursuant to this paragraph exceeds 50% of the organization average expenses, such organization 94 |
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142 | 142 | | shall be awarded a base general operating funding amount equal to 50% of the organization 95 |
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143 | 143 | | average expenses and such organization shall not be allocated additional funds pursuant to 96 |
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144 | 144 | | subsection (e) of this section. 97 |
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145 | 145 | | “(e)(1) Funds budgeted pursuant to Section 6(c-1)(2)(B) of this act remaining after 98 |
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146 | 146 | | allocating base funds pursuant to subsection (d) of this section shall be awarded as supplemental 99 |
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147 | 147 | | general operating funding amounts. 100 |
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148 | 148 | | “(2) Supplemental general operating funding amounts shall be competitive, and 101 |
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149 | 149 | | each application of an eligible organization shall be reviewed in cohorts of similar budget size, 102 5 |
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150 | 150 | | |
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151 | 151 | | and with award amounts tiered in relation to the grantee’s budget size. In awarding supplemental 103 |
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152 | 152 | | operating funding amounts, the Commission shall take into account: 104 |
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153 | 153 | | “(A) The quality of the organization’s programming or services; 105 |
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154 | 154 | | “(B) Charitable and philanthropic activities of the organization that make a 106 |
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155 | 155 | | positive impact on the District, residents, or artists; 107 |
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156 | 156 | | “(C) Diversity in governance, management, and administration of the 108 |
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157 | 157 | | organization; 109 |
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158 | 158 | | “(D) Economic impact on the District ; and 110 |
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159 | 159 | | “(E) Other factors as determined by the Commission.”. 111 |
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160 | 160 | | (e) Section 7 (D.C. Official Code § 39-206) is repealed. 112 |
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161 | 161 | | Sec. 3. Fiscal impact statement. 113 |
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162 | 162 | | The Council adopts the fiscal impact statement in the committee report as the fiscal 114 |
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163 | 163 | | impact statement required by section 602(c)(3) of the District of Columbia Home Rule Act, 115 |
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164 | 164 | | approved December 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(3)). 116 |
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165 | 165 | | Sec. 4. Effective date. 117 |
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166 | 166 | | This act shall take effect following approval by the Mayor (or in the event of veto by the 118 |
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167 | 167 | | Mayor, action by the Council to override the veto) and a 30-day period of congressional review 119 |
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168 | 168 | | as provided in section 602(c)(2) of the District of Columbia Home Rule Act, approved December 120 |
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169 | 169 | | 24, 1973 (87 Stat. 788; D.C. Official Code § 1-206.02(c)(2)). 121 |
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