Councilmember Carol Schwartz
A BILL IN THE
COUNCIL OF THE DISTRICT OF COLUMBIA
To provide incentives for District of Columbia government agencies that collect local
non-tax revenues to become more efficient in these functions, by requiring that a limited
amount of supplementary revenues collected by an agency over the greater of the average
agency revenues collected in the previous 3 fiscal years or the agency revenue estimate
for the base year be returned to that agency’s budget for its operations by deposit in a
newly created Fee Collection Incentive Fund.
BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as
the "Fee Collection Incentive Act of 1999".
Sec. 2. Definitions.
For the purposes of this act, the term:
(1) "Agency" means any District agency involved in the collection of local
non-tax revenues on behalf of the District.
(2) "Base year" means the fiscal year in which supplementary revenue
collected by an agency.
(3) "Credit" means the return of a certain percentage of supplementary
revenue collected by an agency to the operating budget of that agency.
(4) "Disbursal year" means the second fiscal year after the base year, in
which a percentage of the supplementary revenue collected by an agency is disbursed to
that agency after first being deposited in the Fee Collection Incentive Fund.
(5) "District" means the District of Columbia government.
(6) "Supplementary revenue" means all monies, from any source derived, except
monies credited to dedicated accounts established prior to the enactment of this act for a
specific and limited purpose, which in fact exceed the greater of an agency’s average
revenues for the past 3 fiscal years or the agency’s revenue estimate for the base year.
Sec. 3. Establishment of the Fee Collection Incentive Fund.
(a) There is established a Fee Collection Incentive Fund ("Fund") to be
operated by the Chief Financial Officer of the District.
(b) The monies in the Fund shall not be a part of, nor lapse into, the General Fund of
the District, except as provided in section 5.
(c) As of October 1, 1999, 5% of all supplementary revenue collected by a District
agency over the greater of an agency’s average revenue for the past 3 fiscal years, or the
agency’s revenue estimate for the base year, shall be earmarked for credit to the agency
and transferred to the Fund on an annual basis at the beginning of the disbursal year.
Sec. 4. Return of supplementary revenue.
(a) The Mayor shall credit to an agency 5% of all supplementary revenue collected by
the agency over the average revenue collected by that agency in the past 3 fiscal years
for use in the agency’s base year appropriations operations budget; provided, however,
that such supplementary revenue shall not be used by the agency for employee bonuses, and
any expenditure of funds shall directly enhance the agency’s efficiency by supporting
equipment, technology, training, or new personnel.
(b) The credit shall be made to the Fund.
(c) The credit shall supplement, but not replace or diminish, appropriated District
funds, subject to the Congressional appropriations process, that would normally be
directed to the agency.
Sec. 5. Transfer of excess cash.
If, at the end of the disbursal year, the balance of monies in the Fund exceeds the
amount required by the agency or is otherwise unexpended by the agency, the excess funds
shall be transferred, in cash, to the General Fund of the District.
Sec. 6. Fiscal impact.
The Council adopts the fiscal impact statement in the committee report as the fiscal
impact statement required by section 602(c)(3) of the District of Columbia Home Rule Act,
approved December 24, 1973 (87 Stat. 813; D.C. Code §1-233(c)(3)).
Sec. 7. Effective date.
(a) This act shall take effect following approval by the Mayor (or in the event of veto
by the Mayor, action by the Council to override the veto), approval by the Financial
Responsibility and Management Assistance Authority as provided in section 203(a) of the
District of Columbia Financial Responsibility and Management Assistance Act of 1995,
approved April 17, 1995 (109 Stat. 116; D.C. Code §47-392.3(a)), a 30-day period of
Congressional review as provided in section 602(c)(1) of the District of Columbia Home
Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code §1- 233(c)(1)), and
publication in the District of Columbia Register.
(b) This act shall expire 2 years after its effective date.