(a) Bonds in one or more series may be issued in an aggregate principal amount not to exceed $9,180,985,000 to fund costs of Capital Projects and the New Communities Initiative Projects (including the issuance of both refunding bonds and bond anticipation notes from time to time in one or more series to refund Outstanding Debt or in anticipation of all or a portion of the bonds; provided, that the principal amount of any such refunded bonds or notes shall not be included in the total amount authorized by this section upon their repayment or defeasance from bond proceeds), such amount being subject to adjustment by Council act, plus an amount equal to all costs and expenses of issuing and delivering the bonds, including, but not limited to, underwriting, rating agency fees, legal fees, accounting fees, financial advisory fees, bond insurance and other credit enhancements, liquidity enhancements, printing costs and expenses, capitalized interest, establishment of debt service or other reserve funds related to the bonds, the payment of costs of contracts described in § 47-340.30(f), and the payments of other debt program related costs as provided in the related agreements.
(b) The bonds authorized pursuant to subsection (a) of this section shall be tax-exempt or taxable as the Chief Financial Officer shall determine and shall be payable in the manner set forth in § 47-340.31.
(b-1) The Council shall specify and determine from time to time, by resolution, the Capital Projects and the New Communities Initiative Projects for which the issuance of bonds shall be authorized.
(c) The Chief Financial Officer may pay from the proceeds of the bonds the costs and expenses specified in subsection (a) of this section, plus amounts, to the extent necessary, to establish or maintain the tax-exempt status of any of the bonds issued on a tax-exempt basis.
(d) Subject to applicable law, the District shall maintain a capital projects fund separate and apart from other funds of the District into which it will deposit the proceeds of any series of the bonds for the Capital Projects, less any capitalized interest, accrued interest, and costs of issuance. Subject to applicable law, the District shall maintain a new communities initiative project fund separate and apart from other funds of the District into which it will deposit the proceeds of any series of the bonds for the New Communities Initiative Projects, less any capitalized interest, accrued interest, and costs of issuance. The District shall expend the bond proceeds only to finance Capital Projects or to refund Outstanding Debt. Subject to applicable law, the proceeds of any series of the bonds may be escrowed in appropriate accounts with escrow agents or the trustee to be applied to the applicable purposes. Interest or other investment earnings of proceeds in the capital projects fund shall be credited to the General Fund of the District of Columbia, subject to provisions for any deposit requirements to a rebate fund or other funds in accordance with agreements pertaining to the bonds.
(e) The costs of the capital projects approved for financing pursuant to this section and prior bond acts that have become law, which are paid originally from the General Fund of the District of Columbia, any enterprise fund, or other fund or account of the District, are reasonably expected to be reimbursed in whole or in part with the proceeds of the bonds in the maximum amount set forth in subsection (a) of this section. The Council declares that it is the intent of the District, in accordance with Treas. Reg. § 1.150-2, issued under the Internal Revenue Code of 1986, approved October 22, 1986 (100 Stat. 2085; 26 U.S.C. § 1 et seq.), to reimburse the General Fund of the District of Columbia, any enterprise fund, or other fund or account of the District, with the proceeds of the bonds.
(Oct. 22, 2008, D.C. Law 17-254, § 2(b), 55 DCR 9275; Nov. 16, 2011, D.C. Law 19-39, § 2(b), 58 DCR 8471; Dec. 5 , 2013, D.C. Law 20-46, § 2, 60 DCR 14962; June 26, 2014, D.C. Law 20-117, § 10(b), 61 DCR 2032.)
Effect of AmendmentsD.C. Law 19-39 rewrote subsecs. (a) and (b); and added subsecs. (b-1) and (e).
The 2013 amendment by D.C. Law 20-46 substituted “$9,180,985,000” for “$5,180,985,000 in (a).
The 2014 amendment by D.C. Law 20-117 substituted “costs of Capital Projects and the New Communities Initiative Projects” for “costs of Capital Projects” in (a); substituted “the Capital Projects and the New Communities Initiative Projects” for “the capital projects” in (b-1); and, in (d), substituted “series of the bonds for the Capital Projects, less any capitalized interest, accrued interest, and costs of issuance” for “series of the bonds, less any capitalized interest accrued interest and costs of issuance” in the first sentence, and added the second sentence.
Emergency LegislationFor temporary (90 day) amendment of section, see § 2(b) of Income Tax Secured Bond Authorization Emergency Act of 2011 (D.C. Act 19-145, August 9, 2011, 58 DCR 6823).
For temporary (90 day) amendment of section, see § 2(b) of Income Tax Secured Bond Authorization Congressional Review Emergency Act of 2011 (D.C. Act 19-216, October 31, 2011, 58 DCR 9348).
For temporary (90 days) amendment of this section, see § 2 of the Income Tax Secured Bond Authorization Emergency Act of 2013 (D.C. Act 20-166, September 30, 2013, 60 DCR 14730).
Legislative HistoryLegislative history of Law 20–117
See note to § 47-340.26.
Editor's NotesApplicability of D.C. Law 20-117: Section 18 of D.C. Law 20-117 provided that the act shall apply as of October 1, 2013.