SHORT PERIOD OF LIMITATION

SEC. 514. No suit or other proceeding contesting the validity of bonds issued pursuant to this subpart may be commenced later than twenty days after (1) the publication, in accordance with section 513 of this Act, of notice of passage of an authorizing resolution, if the question of issuing bonds is not submitted to referendum, or (2) the promulgation of the results of the referendum if such question is submitted to referendum.

ISSUE OF BONDS

SEC. 515. After the expiration of the twenty-day limitation period provided for in section 514 of this Act, the School Board may by resolution issue a series of bonds described in a resolution passed in accordance with section 512 of this Act. The bonds of any authorized series may be issued all at one time, or from time to time in such amounts as the School Board shall deem advisable. The resolution issuing any series of bonds shall fix the date of issue of the bonds of such series. Bonds of each such series shall be payable in annual installments beginning not more than three years after the date of issue of the bonds and ending not more than twenty years from such date. Such resolution shall also prescribe the form of the bonds to be issued thereunder, and interest coupons, the manner in which said bonds and coupons shall be executed and in which they may be registered, and the place where they are payable.

PUBLIC SALE

SEC. 516. All bonds issued under this subpart shall be sold at public sale upon sealed proposals at such price or prices as shall be approved by the School Board after publication of a notice of such sale at least once not less than ten days prior to the date fixed for the sale in a daily newspaper carrying municipal bond notices and devoted primarily to financial news or to the subject of State and municipal bonds published in the city of New York, New York, and in a newspaper of general circulation published in the District. Such notice shall state among other things that no proposal shall be considered unless there is deposited with the Treasurer as a downpayment a certified check or cashier's check for an amount equal to at least 2 per centum of the par amount of bonds bid for. The School Board shall reserve the right to reject any bid.

SUBPART 2-Short-Term Borrowing

BORROWING IN ANTICIPATION OF REVENUE

SEC. 521. For any fiscal year, in anticipation of the receipt of revenues of that fiscal year, the School Board may by resolution authorize the borrowing of money by the execution of negotiate notes of the School Board, not to exceed in the aggregate at any time outstanding 25 per centum of the total revenue anticipated for that fiscal year, each of which shall be designated "Revenue Note for the Fiscal Year 19 ". Such notes may be renewed from time to time, but all such notes, together with the renewals, shall mature and be paid not later than the end of the fiscal year for which the original notes have been issued.

REDEMPTION AND SALE OF NOTES

SEC. 522. (a) No notes issued pursuant to this subpart shall be made payable on demand, but any note may be made subject to redemption prior to maturity on such notice and at such time as may be stated in the note.

(b) All notes issued pursuant to this subpart may be sold at not less than par and accured interest at private sale without previous advertising.

SUBPART 3-Credit of United States

CREDIT OF UNITED STATES

SEC. 531. Bonds and notes issued by the School Board pursuant to this Act shall not be deemed obligations of the United States or the District (except for the purposes of section 103 (a) of the Internal Revenue Code), and the full faith and credit of the United States shall not be pledged in payment of them.

PART C-FINANCIAL AFFAIRS OF THE SCHOOL BOARD TREASURER

SEC. 551. The School Board shall annually, on the fourth Monday of September, elect a Treasurer. The Treasurer shall receive such salary as the School Board may direct. The Treasurer may at any time be removed by a vote of not less than seven members of the School Board, or by the district court under part C of title IV of this Act.

FINANCIAL DUTIES OF THE TREASURER

SEC. 552. The Treasurer shall have charge of the administration of the financial affairs of the school system and to that end he shall

(1) prepare and submit in the form prescribed by the School Board under section 502 of this Act the annual budget estimates;

(2) supervise and be responsible for all financial transactions to insure adequate control of revenues and resources and to insure that budgetary authorizations are not exceeded;

(3) maintain systems of accounting and internal control designed to provide

(A) full disclosure of the financial results of the School Board's activities,

(B) adequate financial information needed by the School Board for management purposes,

(C) effective control over and accountability for all funds, property, and other assets,

(4) submit to the School Board a monthly financial statement in such form as the School Board may specify;

(5) prepare, as of the end of each fiscal year, a complete financial statement and report;

(6) receive all money receivable by the School Board from the Federal Government and from the District of Columbia;

(7) have custody of all public funds belonging to or under the control of the School Board, and deposit all funds coming into his hands, in such depositories as may be designated and under such terms and conditions as may be prescribed by the School Board; and

(8) have custody of all investments and invested funds of the School Board and have the safekeeping of all bonds and notes of the School Board.

SURETY BONDS

SEC. 553. The Treasurer, and such other officers and employees of the School Board as the School Board shall require, shall be bonded with such sureties and in such amounts as the School Board may prescribe. The premiums for all such bonds shall be paid out of the funds of the School Board.

ACCOUNTING SUPERVISION AND CONTROL

SEC. 554. (a) The Treasurer and his duly authorized subordinates, shall(1) prescribe the forms of receipts, vouchers, bills, and claims to be used by the School Board;

(2) examine and approve all contracts, orders, and other documents by which the School Board incurs financial obligations, having ascertained that moneys have been allotted and will be available when the obligations shall become due and payable;

(3) audit and approve before payment all bills, invoices, payrolls, and other evidences of claims, demands, or charges against the School Board and with the advice of the legal officials of the School Board determine the regularity, legality, and correctness of such claims, demands, or charges; and

(4) perform internal audits and accounts and records of the School Board, including the examination of any accounts or records of financial transactions, and giving due conisderation to the effectiveness of accounting systems, internal control, and related administrative practices of the respective agencies.

INDEPENDENT AUDIT

SEC. 555. (a) The financial transactions of the School Board shall be audited by the General Accounting Office in accordance with such principles and procedures and under such rules and regulations as may be prescribed by the Comptroller General of the United States. In the determination of the auditing procedures to be followed and the extent of the examination of vouchers and other documents, the Comptroller General shall give due regard to generally accepted principles of auditing, including consideration of the effectiveness of the accounting organizations and systems, internal audit and control, and related administrative practices. The audit shall be conducted at the place or places where the accounts are normally kept. The representatives of the General Accounting Office shall have access to all books, accounts, financial records, reports, files, and all other papers, things, or property belonging to or in use by the School Board and necessary to facilitate the audit, and they shall be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians.

(b) (1) The Comptroller General shall submit such audit reports as he may deem necessary to the Congress and the School Board. The reports shall set forth the scope of the audits and shall include such comments and information as may be deemed necessary to keep the School Board informed of the operations to which the reports relate, together with such recommendations with respect thereto as the Comptroller General may deem advisable. The reports shall show specifically every program, expenditure, and other financial transactions or undertaking which, in the opinion of the Comptroller General, has been carried on or made without authority of law.

(2) The School Board shall make such report, together with such other material as it deems pertinent thereto, available for public inspection.

AMENDMENT OF BUDGET AND ACCOUNTING ACT

SEC. 556. Section 2 of the Budget and Accounting Act, 1921 (31 U.S.C. 2), is hereby amended by inserting in the first paragraph after "legislative branch of the Government" the words ", the District of Columbia Independent School Board,".

PART D-REVENUES AND BUDGETARY LIMITATIONS GENERAL ACCOUNT SEC. 561. The School Board's general account shall consist of all of the Board's funds except those in the capital construction account. The revenue accruing to the general account in any fiscal year (other than revenues diverted to the general account from the capital construction account under section 562(d) of this Act) shall not exceed $200 per pupil enrolled at the end of the previous school year in the District school system.

CAPITAL CONSTRUCTION ACCOUNT

SEC. 562. (a) The capital construction account shall consist of all revenues accruing thereto under subsection (b) not expended pursuant to subsection (c). (b) The revenues accruing to the capital construction account shall consist of (1) five-sevenths of the tax to be levied pursuant to section 563 of this Act; (2) the proceeds of sale of bonds issued pursuant to subpart 1 of part B of this title; and (3) funds transferred by resolution from the general account to the capital construction account.

(c) Funds in the capital construction account may be expended (1) for acquisition of land, construction of buildings and improvements, and purchase of school equipment; (2) for the payment of principal and interest on bonds issued pursuant to subpart 1 of part B of this title; and (3) if transferred to the general account pursuant to subsection (d), for other purposes.

(d) (1) If approved by the school electors in a referendum in accordance with section 322(2), the School Board may in any fiscal year transfer from the capital construction account to the general account an amount not exceeding the amount by which the capital construction account (at the time of transfer) exceeds sums falling due in such fiscal year for principal and interest on bonds issued pursuant to subpart 1 of part B of this title.

(2) Without approval in a referendum under section 322 (2), the School Board may in any fiscal year transfer from the capital construction account to the

general account an amount not exceeding either (A) the amount transferable under subsection (d)(1) of this section or (B) 10 per centum of the revenue accruing to the capital construction account in that fiscal year.

REAL PROPERTY TAX

SEC. 563. The School Board may cause to be levied an ad valorem real property tax on all the taxable real property in the District. Not later than August 15 of each year the School Board shall certify to the Commissioners of the District the amount proposed to be raised by the tax in the next fiscal year. The tax shall be levied by the Commissioners in the same manner as is the real property tax levied under the authority of the Act approved June 29, 1922 (D.C. Code, sec. 47-501) and the amounts so raised shall be paid to the account of the School Board in such manner as the School Board may direct. The amount so certified and paid shall not

(1) be less than amounts falling due in that fiscal year on principal and interest on bonds issued pursuant to subpart 1 of part B of this title, and (2) exceed fourteen mills when divided by the assessed value of taxable real property in the District (paragraph (1) of this section notwithstanding).

SALES AND PERSONAL INCOME TAXES

SEC. 564. The School Board may cause to be levied a sales tax in an amount not to exceed one-half of the amount levied by the District under the District of Columbia Sales Tax Act, and a personal income tax in an amount not to exceed one-half of the amount levied by the District under the District of Columbia Income Tax Act. Upon receiving from the School Board a certificate showing the amount to be raised by such taxes, the Commissioners of the District shall collect the taxes in the same manner as the respective District taxes are collected. The District shall diminish the amount of taxes levied by the District and collected for its own account to an amount which, if added to the taxes collected for the account of the School Board, shall not exceed the amount which (this section notwithstanding) the District would by law be authorized to levy and collect for its own account.

TITLE VI-EFFECTIVE DATES

SEC. 601. (a) The effective date of—

(1) title I and section 201 of this Act shall be the date of enactment of this Act,

(2) title IV and sections 202 and 203 of this Act shall be the day on which the President receives from the Election Board the certificate declaring that the electors have approved the proposed School Board in the referendum pursuant to section 201 of this Act,

(3) the remainder of this Act shall be the day on which the sixth member of the first School Board takes the oath of office.

(b) This Act shall no longer be in effect if the school electors reject the proposed School Board in the initial referendum provided for by section 201 of this Act.

VII

RETROCEDE PART OF DISTRICT OF COLUMBIA TO MARYLAND

H.R. 10264 (Broyhill of Virginia)

This bill authorizes the retrocession of that part of the District which was ceded to the United States by the State of Maryland, excluding that area bounded roughly by Rock Creek Park, Florida Avenue, Fifteenth Street Northeast, C Street Northeast, and the Anacostia and Potomac Rivers.

It provides that the United States shall retain jurisdiction over the real and personal property held by it within the portion of the District retroceded to the State of Maryland.

It further provides that from the date of such retrocession, the State of Maryland shall be entitled to one additional Representative in the Congress, until the next reapportionment of the State shall become effective. Unless the State otherwise provides, such additional Representative shall be elected from the Federal area retroceded by this bill to Maryland.

[H.R. 10264, 89th Cong., 1st sess.]

A BILL To retrocede a portion of the District of Columbia to the State of Maryland Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That all of that portion of the District of Columbia ceded to the United States by the Sttae of Maryland and not included within the Federal area described in section 3 of this Act, and all the rights and jurisdiction ceded to the United States by the State of Maryland in connection therewith, are hereby retroceded and relinquished to the State of Maryland effective as of the date of the acceptance thereof by the State of Maryland.

SEC. 2. (a) Nothing in this Act shall be construed to vest in the State of Maryland any property right in any real or personal property situated in that portion of the District of Columbia retroceded to the State of Maryland under the first section of this Act and held by the United States or by any person, except as such property may be transferred to the State of Maryland by the United States or by such person, as the case may be.

(b) The jurisdiction of the United States and of the government of the District of Columbia, and the laws in effect in the District of Columbia as of the date of acceptance by the State of Maryland of the retrocession provided for by the first section of this Act, shall remain in full force and effect until the State of Maryland shall provide by law for the extension of its jurisdiction and judicial system over that portion of the District of Columbia retroceded to the State of Maryland under the first section of this Act.

(c) The United States shall retain jurisdiction over the real and personal property held by it, and situated within that portion of the District of Columbia retroceded to the State of Maryland under the first section of this Act, in the same manner and to the same extent as the United States exercises jurisdiction over property held by it situated within the various States.

SEC. 3. (a) The Federal area referred to in the first section of this Act is more particularly described as that portion of the District of Columbia situated within the boundary line described as follows:

Beginning on the east side of Rock Creek where it meets the Potomac River and running generally north and east to a point where P Street Northwest intersects Rock Creek;

thence east on P Street Northwest to Florida Avenue;

thence following Florida Avenue to Fifteenth Street Northeast; thence south on Fifteenth Street Northeast to C Street Northeast; thence east on C Street Northeast to the East Capitol Street Bridge; thence east on the East Capitol Street Bridge to the point where it intersects the middle of the Anacostia River channel;

thence generally south and west down the midchannel of the Anacostia River to that point in the channel that is due south of Hains Point;

thence due west to the present Virginia-District of Columbia boundary at the shoreline of Washington National Airport;

thence generally north and east up the Potomac River along the VirginiaDistrict of Columbia boundary to a point parallel to the northernmost projection of Theodore Roosevelt Island;

thence east to the confluence of Rock Creek and the Potomac River. (b) Where the Federal area described in subsection (a) is bounded by streets such streets shall be under the exclusive jurisdiction of the Federal City and the Federal jurisdiction shall extend to the sidewalks of the distant side of the street.

SEC. 4. Effective as of the date of the acceptance by the State of Maryland of the Federal area retroceded to it under this Act, the State of Maryland shall be entitled to one Representative in addition to the number of Representatives to which it is otherwise entitled, until the taking effect of the next reapportionment, and such Representative shall be in addition to the membership of the House of Representatives, as now prescribed by law. Until otherwise provided