Committee's budget report - DC Council

1 downloads 280 Views 821KB Size Report
May 4, 2016 - The Committee on Business, Consumer, and Regulatory Affairs (“Committee”), having conducted hearings .
C O M M IT T E E

ON

B U S IN E S S , C O N S U ME R ,

AND

R E G U LA TO RY A F F A I RS

S

VINCENT B. ORANGE, SR., CHAIRPERSON FISCAL YEAR 2017 COMMITTEE BUDGET REPORT

TO:

Members of the Council of the District of Columbia

FROM:

Councilmember Vincent B. Orange, Sr. Chairperson, Committee on Business, Consumer, and Regulatory Affairs

DATE:

May 4, 2016

SUBJECT:

Report and Recommendations of the Committee on Business, Consumer, and Regulatory Affairs on the Fiscal Year 2017 Budget for Agencies Under Its Purview

The Committee on Business, Consumer, and Regulatory Affairs (“Committee”), having conducted hearings and received testimony on the Mayor’s proposed operating and capital budgets for Fiscal Year 2017 (“FY17”) for the agencies under its purview, reports its recommendations for review and consideration by the Committee of the Whole. The Committee also comments on several sections in the Fiscal Year 2017 Budget Support Act of 2016, as proposed by the Mayor. TABLE OF CONTENTS I.

II.

EXECUTIVE SUMMARY A. Introduction B. FY 2017 Committee Operating Budget by Revenue Fund C. FY 2017 Committee Full-Time Equivalent Table D. FY 2017 Committee Operating Budget by Program E. FY 2017 Committee Operating Budget by CSG F. FY 2017 Committee Capital Programs G. Summary of Committee Budget Recommendations

3 6 8 10 13 15 16

AGENCY FISCAL YEAR 2017 BUDGET RECOMMENDATIONS A. Overview B. Alcoholic Beverage Regulation Administration C. Department of Consumer and Regulatory Affairs D. Department of Employment Services E. Department of Insurance, Securities, and Banking F. Department of Small and Local Business Development G. Office of Cable Television, Film, Music, and Entertainment H. Office of the Deputy Mayor for Greater Economic Opportunity I. Office of the People’s Counsel J. Office of Risk Management K. Office of the Tenant Advocate L. Public Service Commission

25 26 30 39 47 51 59 63 66 69 74 78

III.

FISCAL YEAR 2017 BUDGET FEDERAL PORTION ADOPTION AND REQUEST ACT RECOMMENDATIONS 81

IV.

FISCAL YEAR 2017 BUDGET LOCAL PORTION ADOPTION ACT RECOMMENDATIONS

1

81

V.

FISCAL YEAR 2017 BUDGET SUPPORT ACT RECOMMENDATIONS A. Recommendations on Budget Support Act Subtitles Proposed by the Mayor B. Recommendations for New Budget Support Act Subtitles

82 96

VI.

COMMITTEE ACTION AND VOTE

107

VII.

ATTACHMENTS

108

1350 PENNSYLVANIA AVENUE, N.W.  SUITE 119  WASHINGTON, DC 20004  TELEPHONE: (202) 727-6683  FAX: (202) 724-6193

I.

EXECUTIVE SUMMARY

COUNCIL BUDGET DIRECTOR CERTIFICATION: _________________________________ DATE: _______

2

I.

EXECUTIVE SUMMARY A.

INTRODUCTION

The Committee on Business, Consumer, and Regulatory Affairs provides legislative leadership and oversight for the following agencies and commissions: • Alcoholic Beverage Regulation Administration • Apprenticeship Council • Board of Accountancy • Board of Architecture and Interior Designs • Board of Barber and Cosmetology • Board of Condemnation of Insanitary Buildings • Board of Consumer Claims Arbitration for the District of Columbia • Board of Funeral Directors • Board of Industrial Trades • Board of Professional Engineering • Board of Real Estate Appraisers • Captive Insurance Agency • Commission on Fashion Arts and Events • Construction Codes Coordinating Board • Department of Consumer and Regulatory Affairs • Department of Employment Services • Department of Insurance, Securities, and Banking • Department of Small and Local Business Development • Disability Compensation Fund • District of Columbia Boxing and Wrestling Commission • Emancipation Commemoration Commission • Financial Literacy Council • Occupational Safety and Health Board • Office of Cable Television, Film, Music, and Entertainment • Office of the Deputy Mayor for Greater Economic Opportunity • Office of the People’s Counsel • Office of Risk Management • Office of the Tenant Advocate • Public Access Corporation • Public Service Commission • Real Estate Commission • Unemployment Compensation Fund • Workforce Investment Council • Under the leadership of Chairman Vincent B. Orange, Sr., the Committee works closely with agencies, commissions, instrumentalities, District residents, advocates, representatives from the Executive, and the business community to craft careful and deliberate policies concerning small and local business development, consumer and regulatory affairs, motion picture and television development, the regulation of banks and banking activities, securities, and insurance. The Committee was established by the Council pursuant to PR 21-1, the “Rules of Organization and 3

Procedure for the Council of the District of Columbia, Council Period 21, Resolution of 2015”. The Committee is responsible for matters concerning small and local business development policy; consumer and regulatory affairs; matters related to workforce-development issues; employment and manpower development; the regulation of alcoholic beverages; public utilities; cable television; the operation of business improvement districts (“BIDs”) and oversight of BIDs, but not including the establishment of BIDs; the oversight of Emancipation Day celebrations within the District of Columbia; the regulation of banks and banking activities, securities, and insurance, including private health insurance, but not including the Health Benefit Exchange. The District’s unemployment rate of 6.6 percent 1 is still higher than the national unemployment rate of 5 percent. 2 However, the number of people employed in the District is rising. 3 In 2014, tourism continued to increase with approximately 20 million visitors.4 Tourism spending supports about 74,570 jobs and $3.86 billion wages in the District. 5The District of Columbia is a high cost city and is experiencing an affordable housing crisis, due in part to the lack of affordable housing options. 6 The District is now the most expensive city in the U.S. to raise a family. 7 The Committee wants to create and advance small business opportunities and raise wages so that families can be provided the opportunity to remain in the city. In Council Period 21, the Committee has focused on the following areas: (1) Monitoring how the agencies under the Committee’s jurisdiction manage their resources and determining the effectiveness of each agency in exercising their statutory authority to meet program objectives efficiently and economically; (2) Establishing the foundation for implementing long-term strategies for the District’s economic growth and workforce development and improving employment and labor laws; such as, policing against unfair labor practices. (3) Facilitating the occupational skills of District residents to succeed in the workplace; (4) Expanding the eligibility age of the Marion S. Barry Summer Youth Employment Program (“MBSYEP”) to include youth aged 22 to 24. Through MBSYEP, the District will provide youth ages 14 – 24 with job opportunities and free transportation over the summer. Through MBSYEP the District’s youth learn and develop the skills, attitudes, and commitment necessary to succeed in today’s competitive job market;

1

U.S. Bureau of Labor Statistics, Economy at a Glance: District of Columbia, U.S. Department of Labor, (May 2, 2016, 9:37 AM), http://www.bls.gov/eag/eag.dc.htm. 2 U.S. Bureau of Labor Statistics, Labor Force Statistics from the Current Population Survey, U.S. Department of Labor, (May 2, 2016, 9:47 AM)), http://data.bls.gov/timeseries/LNS14000000. 3 U.S. Bureau of Labor Statistics, Economy at a Glance: District of Columbia, U.S. Department of Labor, (May 2, 2016, 9:37 AM), http://www.bls.gov/eag/eag.dc.htm. 4 Jonathan O'Connell, D.C. sets tourism record with 20 million visitors, Washington Post, (March 30, 2016, 2:40 PM), https://www.washingtonpost.com/news/digger/wp/2015/08/18/d-c-sets-tourism-record-with-20-millionvisitors/. 5 2014 Visitor Statistics: Washington D.C., Destination DC, (March 30, 2016, 2:45 PM), http://destinationdc.dmplocal.com/dsc/collateral/2014_Washington_DC_Visitor_Statistics.pdf 6 Andrew Giambrone, Report: 46 Percent of D.C. Area Renters Burdened by High Housing Costs, Washington City Paper (March 28, 2016, 5:48 pm), http://www.washingtoncitypaper.com/blogs/housingcomplex/2015/07/31/report46-percent-of-d-c-area-renters-burdened-by-high-housing-costs/; See also, Claire Zippel, DC's housing affordability crisis, in 7 charts, Greater Greater Washington, (March 28, 2016, 5:56 PM), http://greatergreaterwashington.org/post/26526/dcs-housing-affordability-crisis-in-7-charts/. 7 Catey Hill, The 10 most expensive places to raise a family in the U.S., Market Watch, March 30, 2016, 11:00 AM). http://www.marketwatch.com/story/10-most-expensive-places-to-raise-a-family-in-the-us-2015-08-26.

4

(5) Guarding consumers through the regulatory supervision of the financial services industry and improving market conditions to attract and to retain financial services firms. (6) Monitoring the progress of developers in reaching their Certified Business Enterprise (“CBE”) goals(s), and the performance of District government agencies in meeting their CBE contracting requirements; (7) Utilizing District-based small businesses when purchasing goods and services from their expendable budgets; (8) Advocating for the rights of the tenant community and providing financial assistance to displaced tenants in search of emergency housing; (9) Supporting the public’s health and welfare through the control and regulation of sale and distribution of alcoholic beverages; (10) Advocating for immediate action by the District of Columbia Zoning Commission to revise the zoning regulations to limit pop-up expansion of row houses, which occurred on June 8, 2015; 8 (11) Maintaining and managing efficient business licensing and permitting operations; and (12) Reforming DCRA; such as, by amending construction codes to address illegal construction and permitting issues. Immediate Solutions In the recommendations contained in this report, the Committee’s immediate solution to the challenges of the FY17 budget is a strategic plan that is guided by four key principles: • • • •

Government decisions must be fiscally responsible; The government’s core commitments must be preserved; No one citizen or group should bear a disproportionate burden of budgetary challenges; and Economic and workforce development is, in essence, community development.

Within the agencies under the jurisdiction of the Committee, these precepts dictate a prudent allocation of budgetary resources. The result is a FY17 budget from the Committee that provides efficient spending of local dollars by agencies under the Committee’s jurisdiction. This improvement in the District’s budgetary profile is the fourth successive year in which budgetary resources for government functions have continued to grow. With the assistance of the Council Chairman, this budget makes every effort to assure District citizens that their government is working to ensure their long-term prosperity. Long-Term Strategies for Economic Growth In addition to the immediate solutions for the FY17 budget, the Committee proposes to implement sustained changes as to how the government aggressively pursues economic and workforce development, and regulatory policies that promote the development, economic growth, and retention of District-based businesses; a well-trained and skilled workforce; and a secure financial system. These changes are necessary to ensure that the District government has the information it needs to perform an honest assessment of its role in strengthening compliance with small business preference requirements and ensuring our business community contributes to the economic development of the District. 8

D.C. Mun. Regs. tit. 11, § 330.7 (June 8, 2015).

5

The following charts summarize the Committee’s recommendations for FY17 budget for the agencies it oversees:

B. FISCAL YEAR 2017 OPERATING BUDGET BY REVENUE FUND Committee Variance

FY 2017 Committee Revised

21,521,002

0

21,521,002

20,221,002

21,521,002

0

21,521,002

6,887,000

6,887,000

0

6,887,000

6,887,000

6,887,000

0

6,887,000

LOCAL FUND

59,190,851

64,022,170

0

64,022,170

FEDERAL GRANT FUND

48,378,916

35,349,506

0

35,349,506

1,000

1,000

0

1,000

39,124,204

44,104,999

0

44,104,999

146,694,971

143,477,675

0

143,477,675

BCRA Committee(Agencies) EMPLOYEES'COMPENSATION FUND MPLOYEES'COMPENSATION FUND DC UNEMPLOYMENT COMPENSATION FUND DC UNEMPLOYMENT COMPENSATION FUND DEPARTMENT OF EMPLOYMENT SERVICES DEPARTMENT OF EMPLOYMENT SERVICES DEPARTMENT OF EMPLOYMENT SERVICES DEPARTMENT OF EMPLOYMENT SERVICES DEPARTMENT OF EMPLOYMENT SERVICES OFFICE OF FILM,TELEVISION &ENTERTAINMENT OFFICE OF FILM,TELEVISION &ENTERTAINMENT OFFICE OF FILM,TELEVISION &ENTERTAINMENT OFFICE OF THE TENANT ADVOCATE OFFICE OF THE TENANT ADVOCATE OFFICE OF THE TENANT ADVOCATE DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

LOCAL FUND Total Fund LOCAL FUND Total Fund

PRIVATE DONATIONS SPECIAL PURPOSE REVENUE FUNDS Total Fund

FY 2016 Approved

FY 2017 Mayor's Proposed

20,221,002

LOCAL FUND SPECIAL PURPOSE REVENUE FUNDS

3,405,263

1,624,586

0

1,624,586

10,196,225

10,339,496

0

10,339,496

Total Fund

13,601,488

11,964,082

0

11,964,082

2,788,415

2,788,415

195,000

2,983,415

LOCAL FUND INTRA-DISTRICT FUNDS Total Fund

0

0

0

2,788,415

195,000

2,983,415

15,052,313

20,008,282

377,624

20,385,906

DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

SPECIAL PURPOSE REVENUE FUNDS

28,959,370

35,517,927

0

35,517,927

DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

Total Fund

44,011,682

55,526,209

377,624

55,903,833

435,168

551,489

0

551,489

22,000

22,000

0

22,000

12,729,019

13,315,718

0

13,315,718

13,186,187

13,889,207

0

13,889,207

7,648,091

7,436,354

60,931

7,497,285

7,648,091

7,436,354

60,931

7,497,285

698,000

2,758,725

0

2,758,725

0

394,872

0

394,872

698,000

3,153,596

0

3,153,596

9,642,186

10,414,663

421,194

10,835,857

696,000

578,662

0

578,662

10,338,186

10,993,325

421,194

11,414,519

DEDICATED TAXES SPECIAL PURPOSE REVENUE FUNDS

1,170,000

1,170,000

0

1,170,000

6,971,975

7,098,024

0

7,098,024

Total Fund

8,141,975

8,268,024

0

8,268,024

PUBLIC SERVICE COMMISSION PUBLIC SERVICE COMMISSION PUBLIC SERVICE COMMISSION

LOCAL FUND

119,000 2,907,415

FEDERAL GRANT FUND PRIVATE DONATIONS SPECIAL PURPOSE REVENUE FUNDS

OFFICE OF PEOPLE'S COUNSEL

Total Fund SPECIAL PURPOSE REVENUE FUNDS

OFFICE OF PEOPLE'S COUNSEL

Total Fund

PUBLIC SERVICE COMMISSION

DEPTY MAYOR GREATER ECONOMIC OPPORTUNITY

LOCAL FUND

DEPTY MAYOR GREATER ECONOMIC OPPORTUNITY

INTRA-DISTRICT FUNDS

DEPTY MAYOR GREATER ECONOMIC OPPORTUNITY

Total Fund

DEPT OF SMALL & LOCAL BUSINESS DEVELOPMT

LOCAL FUND

DEPT OF SMALL & LOCAL BUSINESS DEVELOPMT

FEDERAL GRANT FUND

DEPT OF SMALL & LOCAL BUSINESS DEVELOPMT ALCOHOLIC BEVERAGE REGULATION ADMIN. ALCOHOLIC BEVERAGE REGULATION ADMIN. ALCOHOLIC BEVERAGE REGULATION ADMIN.

Total Fund

6

MEDICAL LIABILITY CAPTIVE INS AGENCY MEDICAL LIABILITY CAPTIVE INS AGENCY MEDICAL LIABILITY CAPTIVE INS AGENCY OFFICE OF RISK MANAGEMENT

LOCAL FUND SPECIAL PURPOSE REVENUE FUNDS

1,421,533

2,071,533

0

2,071,533

67,000

236,590

0

236,590

Total Fund

1,488,533

2,308,123

0

2,308,123

2,923,299

4,051,897

0

4,051,897

2,923,299

4,051,897

0

4,051,897

25,610,465

26,279,148

0

26,279,148

210,310

125,000

0

125,000

25,820,775

26,404,148

0

26,404,148

21,292,448

21,292,448

0

21,292,448

21,292,448

21,292,448

0

21,292,448

143,522,309

157,440,721

993,818

158,434,539

1,170,000

1,170,000

0

1,170,000

49,510,084

36,479,657

0

36,479,657

23,000

23,000

0

23,000

131,306,350

144,328,255

60,931

144,389,186

329,310

519,872

0

519,872

325,861,053

339,961,505

1,054,749

341,016,254

LOCAL FUND

OFFICE OF RISK MANAGEMENT

Total Fund

DEPART OF INSURANCE, SECURITIES & BANKING

SPECIAL PURPOSE REVENUE FUNDS

DEPART OF INSURANCE, SECURITIES & BANKING DEPART OF INSURANCE, SECURITIES & BANKING SETTLEMENTS & JUDGMENTS FUND SETTLEMENTS AND JUDGMENTS FUND Business Consumer and Regulatory Affairs Business Consumer and Regulatory Affairs Business Consumer and Regulatory Affairs Business Consumer and Regulatory Affairs Business Consumer and Regulatory Affairs Business Consumer and Regulatory Affairs Business Consumer and Regulatory Affairs

INTRA-DISTRICT FUNDS Total Fund LOCAL FUND Total Fund LOCAL FUND DEDICATED TAXES FEDERAL GRANT FUND PRIVATE DONATIONS SPECIAL PURPOSE REVENUE FUNDS INTRA-DISTRICT FUNDS Total Fund

7

C.

FISCAL YEAR 2017 COMMITTEE OPERATING BUDGET BY FTE

BCRA COMMITTEE DEPARTMENT OF EMPLOYMENT SERVICES DEPARTMENT OF EMPLOYMENT SERVICES DEPARTMENT OF EMPLOYMENT SERVICES DEPARTMENT OF EMPLOYMENT SERVICES OFFICE OF FILM,TELEVISION &ENTERTAINMENT OFFICE OF FILM,TELEVISION &ENTERTAINMENT OFFICE OF FILM,TELEVISION &ENTERTAINMENT OFFICE OF THE TENANT ADVOCATE

FY 2016 Approved FTE

FY 2017 Mayor's Proposed FTE

Committee Variance

193.64

190.49

1.00

191.49

FEDERAL GRANT FUND SPECIAL PURPOSE REVENUE FUNDS

249.93

207.86

0.00

207.86

143.45

212.64

0.00

212.64

Total Fund

587.02

610.99

1.00

611.99

LOCAL FUND

LOCAL FUND SPECIAL PURPOSE REVENUE FUNDS

6.00

6.00

0.00

6.00

42.50

42.50

0.00

42.50

Total Fund

48.50

48.50

0.00

48.50

18.00

18.00

0.00

18.00

18.00

18.00

0.00

18.00

LOCAL FUND SPECIAL PURPOSE REVENUE FUNDS

144.00

144.00

5.00

144.00

212.00

251.00

0.00

251.00

Total Fund

356.00

395.00

5.00

400.00

3.10

4.09

0.00

4.09

80.52

80.51

0.00

80.51

Total Fund SPECIAL PURPOSE REVENUE FUNDS

83.62

84.60

0.00

84.60

40.40

40.40

1.00

41.40

Total Fund

40.40

40.40

1.00

41.40

LOCAL FUND

5.00

12.00

0.00

12.00

INTRA-DISTRICT FUNDS

0.00

4.00

0.00

4.00

5.00

16.00

0.00

16.00

42.30

44.30

2.00

46.30

3.70

3.71

0.00

3.71

Total Fund SPECIAL PURPOSE REVENUE FUNDS

46.00

48.01

2.00

50.01

55.00

57.00

0.00

57.00

Total Fund SPECIAL PURPOSE REVENUE FUNDS

55.00

57.00

0.00

57.00

0.00

1.00

0.00

1.00

0.00

1.00

0.00

1.00

25.00

36.00

0.00

36.00

LOCAL FUND

OFFICE OF THE TENANT ADVOCATE DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

Total Fund

PUBLIC SERVICE COMMISSION

FEDERAL GRANT FUND SPECIAL PURPOSE REVENUE FUNDS

PUBLIC SERVICE COMMISSION PUBLIC SERVICE COMMISSION OFFICE OF PEOPLE'S COUNSEL OFFICE OF PEOPLE'S COUNSEL DEPTY MAYOR GREATER ECONOMIC OPPORTUNITY DEPTY MAYOR GREATER ECONOMIC OPPORTUNITY DEPTY MAYOR GREATER ECONOMIC OPPORTUNITY DEPT OF SMALL & LOCAL BUSINESS DEVELOPMT DEPT OF SMALL & LOCAL BUSINESS DEVELOPMT DEPT OF SMALL & LOCAL BUSINESS DEVELOPMT ALCOHOLIC BEVERAGE REGULATION ADMIN. ALCOHOLIC BEVERAGE REGULATION ADMIN. MEDICAL LIABILITY CAPTIVE INS AGENCY MEDICAL LIABILITY CAPTIVE INS AGENCY OFFICE OF RISK MANAGEMENT OFFICE OF RISK MANAGEMENT DEPART OF INSURANCE, SECURITIES & BANKING DEPART OF INSURANCE, SECURITIES & BANKING Business Consumer and Regulatory Affairs Business Consumer and Regulatory Affairs Business Consumer and Regulatory Affairs

FY 2017 Committee FTE

Total Fund LOCAL FUND FEDERAL GRANT FUND

Total Fund LOCAL FUND Total Fund SPECIAL PURPOSE REVENUE FUNDS

25.00

36.00

0.00

36.00

149.65

149.60

0.00

149.60

Total Fund

149.65

149.60

0.00

149.60

433.94

450.79

9.00

459.79

256.73

215.66

0.00

215.66

723.52

834.65

0.00

834.65

LOCAL FUND FEDERAL GRANT FUND SPECIAL PURPOSE REVENUE FUNDS

8

Business Consumer and Regulatory Affairs Business Consumer and Regulatory Affairs

INTRA-DISTRICT FUNDS BCRA Total Fund

9

0.00

4.00

0.00

4.00

1,414.19

1,505.10

9.00

1,514.10

D. FISCAL YEAR 2017 COMMITTEE OPERATING BUDGET BY PROGRAM

FY 2016 Approved

FY 2017 Mayor's Proposed

20,221,002

21,521,002

0

21,521,002

20,221,002

21,521,002

0

21,521,002

6,887,000

6,887,000

0

6,887,000

6,887,000

6,887,000

0

6,887,000

1000

9,500,215

9,752,829

0

9,752,829

DEPARTMENT OF EMPLOYMENT SERVICES

100F

2,929,178

2,944,272

0

2,944,272

DEPARTMENT OF EMPLOYMENT SERVICES

2000

43,206,479

31,406,643

0

31,406,643

DEPARTMENT OF EMPLOYMENT SERVICES

3000

21,075,208

23,010,833

125,000

23,135,833

DEPARTMENT OF EMPLOYMENT SERVICES

4000

69,983,891

76,363,098

0

76,363,098

146,694,971

143,477,675

125,000

143,60,2675

1000

2,791,847

2,862,677

0

2,862,677

OFFICE OF FILM,TELEVISION &ENTERTAINMENT

2000

7,309,378

7,381,818

0

7,381,818

OFFICE OF FILM,TELEVISION &ENTERTAINMENT

3000

3,500,263

1,719,586

0

1,719,586

13,601,488

11,964,082

0

11,964,082

1000

546,680

462,573

0

462,573

OFFICE OF THE TENANT ADVOCATE

3000

1,155,631

1,279,243

19,000

1,279,243

OFFICE OF THE TENANT ADVOCATE

4000

236,584

218,433

0

237,433

OFFICE OF THE TENANT ADVOCATE

5000

115,032

105,122

176,000

105,122

OFFICE OF THE TENANT ADVOCATE

6000

545,764

369,936

OFFICE OF THE TENANT ADVOCATE

8000

307,724

353,108

2,907,415

2,788,415

BUSINESS, CONSUMER AND REGULATORY AFFAIRS EMPLOYEES'COMPENSATION FUND EMPLOYEES'COMPENSATION FUND DC UNEMPLOYMENT COMPENSATION FUND DC UNEMPLOYMENT COMPENSATION FUND DEPARTMENT OF EMPLOYMENT SERVICES

DEPARTMENT OF EMPLOYMENT SERVICES OFFICE OF FILM,TELEVISION &ENTERTAINMENT

OFFICE OF FILM,TELEVISION &ENTERTAINMENT OFFICE OF THE TENANT ADVOCATE

OFFICE OF THE TENANT ADVOCATE

10 Total Program 1000 Total Program

Total Program

Total Program

Total Program

Committee Variance

FY 2017 Committee Revised

545,936 0 195,000

353,108 2,983,415

DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

1000

6,973,501

12,798,553

172,515

12,971,068

DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

100F

2,187,658

2,301,851

0

2,301,851

DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

2000

8,291,662

9,189,613

77,107

9,266,720

DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

3000

5,434,604

6,224,832

0

6,224,832

DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

4000

6,795,915

7,304,616

128,002

7,432,618

DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

6000

1,871,119

1,835,114

0

1,835,114

DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

7000

12,457,224

15,871,629

100,000

15,971,629

44,011,682

55,526,209

1000

4,741,681

5,044,635

0

5,044,635

PUBLIC SERVICE COMMISSION

100F

343,849

357,951

0

357,951

PUBLIC SERVICE COMMISSION

2000

526,342

722,962

0

722,962

DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS PUBLIC SERVICE COMMISSION

Total Program

10

477,624

56,003,833

PUBLIC SERVICE COMMISSION

3000

7,481,572

7,763,659

0

PUBLIC SERVICE COMMISSION

8000

92,743

0

0

13,186,187

13,889,207

0

13,889,207

1000

2,361,109

2,029,183

0

2,029,183

OFFICE OF PEOPLE'S COUNSEL

100F

317,154

442,382

0

442,382

OFFICE OF PEOPLE'S COUNSEL

2000

4,969,829

4,964,790

60,931

5,025,721

7,648,091

7,436,354

60,931

7,497,286

698,000

1,163,480

0

1,163,480

1,990,116

0

1,990,116

698,000

3,153,596

0

3,153,596

1000

1,349,336

1,559,136

0

1,559,136

DEPT OF SMALL & LOCAL BUSINESS DEVELOPMT

2000

2,399,864

2,191,927

0

2,191,927

DEPT OF SMALL & LOCAL BUSINESS DEVELOPMT

3000

1,860,085

1,950,632

221,194

2,171,826

DEPT OF SMALL & LOCAL BUSINESS DEVELOPMT

4000

4,728,901

5,291,630

338,636

5,630,266

10,338,186

10,993,325

559,830

11,553,155

1000

3,386,794

3,090,500

0

3,090,500

ALCOHOLIC BEVERAGE REGULATION ADMIN.

2000

1,060,746

1,117,650

0

1,117,650

ALCOHOLIC BEVERAGE REGULATION ADMIN.

3000

3,614,395

3,821,959

0

3,821,959

ALCOHOLIC BEVERAGE REGULATION ADMIN.

5000

80,040

237,915

0

237,915

8,141,975

8,268,024

0

8,268,024

1,488,533

2,308,123

0

2,308,123

1,488,533

2,308,123

0

2,308,123

1000

1,038,445

1,272,390

0

1,272,390

OFFICE OF RISK MANAGEMENT

2100

315,503

526,304

0

526,304

OFFICE OF RISK MANAGEMENT

3100

113,740

310,642

0

310,642

OFFICE OF RISK MANAGEMENT

4100

758,079

959,995

0

959,995

OFFICE OF RISK MANAGEMENT

6100

697,532

982,566

0

982,566

2,923,299

4,051,897

0

4,051,897

1000

7,680,383

8,209,524

0

8,209,524

DEPART OF INSURANCE, SECURITIES & BANKING

100F

977,340

1,054,729

0

1,054,729

DEPART OF INSURANCE, SECURITIES & BANKING

2000

3,489,936

3,739,059

0

3,739,059

DEPART OF INSURANCE, SECURITIES & BANKING

3000

1,601,967

1,928,444

0

1,928,444

DEPART OF INSURANCE, SECURITIES & BANKING

4000

1,009,765

1,037,139

0

1,037,139

DEPART OF INSURANCE, SECURITIES & BANKING

5000

5,103,199

5,038,507

0

5,038,507

DEPART OF INSURANCE, SECURITIES & BANKING

6000

911,930

615,212

0

615,212

DEPART OF INSURANCE, SECURITIES & BANKING

8000

3,233,571

2,965,229

0

2,965,229

PUBLIC SERVICE COMMISSION OFFICE OF PEOPLE'S COUNSEL

OFFICE OF PEOPLE'S COUNSEL DEPTY MAYOR GREATER ECONOMIC OPPORTUNITY DEPTY MAYOR GREATER ECONOMIC OPPORTUNITY DEPTY MAYOR GREATER ECONOMIC OPPORTUNITY DEPT OF SMALL & LOCAL BUSINESS DEVELOPMT

DEPT OF SMALL & LOCAL BUSINESS DEVELOPMT ALCOHOLIC BEVERAGE REGULATION ADMIN.

ALCOHOLIC BEVERAGE REGULATION ADMIN. MEDICAL LIABILITY CAPTIVE INS AGENCY MEDICAL LIABILITY CAPTIVE INS AGENCY OFFICE OF RISK MANAGEMENT

OFFICE OF RISK MANAGEMENT DEPART OF INSURANCE, SECURITIES & BANKING

Total Program

Total Program 2000 3000 Total Program

Total Program

Total Program 2000 Total Program

Total Program

11

7,763,659

DEPART OF INSURANCE, SECURITIES & BANKING

1,812,685

1,816,304

0

1,816,304

25,820,775

26,404,148

0

26,404,148

21,292,448

21,292,448

0

21,292,448

21,292,448

21,292,448

0

21,292,448

10

20,221,002

21,521,002

0

21,521,002

Business Consumer and Regulatory Affairs

1000

68,549,437

75,261,449

233,446

75,494,895

Business Consumer and Regulatory Affairs

100F

6,755,178

7,101,186

0

7,101,186

Business Consumer and Regulatory Affairs

2000

73,440,768

64,186,064

77,107

64,263,171

Business Consumer and Regulatory Affairs

2100

315,503

526,304

0

526,304

Business Consumer and Regulatory Affairs

3000

45,723,725

49,689,305

221,194

49,910,499

Business Consumer and Regulatory Affairs

3100

113,740

310,642

0

310,642

Business Consumer and Regulatory Affairs

4000

82,755,056

90,214,916

485,638

90,700,554

Business Consumer and Regulatory Affairs

4100

758,079

959,995

0

959,995

Business Consumer and Regulatory Affairs

5000

5,298,270

5,381,544

0

5,381,544

Business Consumer and Regulatory Affairs

6000

3,328,813

2,820,262

176,000

2,996,262

Business Consumer and Regulatory Affairs

6100

697,532

982,566

0

982,566

Business Consumer and Regulatory Affairs

7000

12,457,224

15,871,629

100,000

15,971,629

Business Consumer and Regulatory Affairs

8000

3,634,038

3,318,337

0

3,318,337

9000

1,812,685

1,816,304

0

1,816,304

325,861,053

339,961,505

1,293,385

341,254,890

DEPART OF INSURANCE, SECURITIES & BANKING SETTLEMENTS AND JUDGMENTS FUND SETTLEMENTS AND JUDGMENTS FUND Business Consumer and Regulatory Affairs

Business Consumer and Regulatory Affairs Business Consumer and Regulatory Affairs

9000 Total Program 1000 Total Program

BCRA Total Program

12

E.

FISCAL YEAR 2017 COMMITTEE OPERATING BUDGET BY CSG Committee Variance

FY 2017 Committee Revised

21,521,002

0

21,521,002

21,521,002

0

21,521,002

6,887,000

6,887,000

0

6,887,000

6,887,000

6,887,000

0

6,887,000

LOCAL FUND

59,190,851

64,022,170

125,000

64,141,170

FEDERAL GRANT FUND

48,378,916

35,349,506

0

35,349,506

1,000

1,000

0

1,000

39,124,204

44,104,999

0

44,104,999

146,694,971

143,477,675

125,000

143,602,675

3,405,263

1,624,586

0

1,624,586

10,196,225

10,339,496

0

10,339,496

13,601,488

11,964,082

0

11,964,082

2,788,415

2,788,415

195,000

2,983,415

119,000

0

0

0

2,907,415

2,788,415

195,000

2,983,415

BCRA Committee(Agencies) EMPLOYEES'COMPENSATION FUND EMPLOYEES'COMPENSATION FUND DC UNEMPLOYMENT COMPENSATION FUND UNEMPLOYMENT COMPENSATION FUND DEPARTMENT OF EMPLOYMENT SERVICES DEPARTMENT OF EMPLOYMENT SERVICES DEPARTMENT OF EMPLOYMENT SERVICES DEPARTMENT OF EMPLOYMENT SERVICES DEPARTMENT OF EMPLOYMENT SERVICES OFFICE OF FILM,TELEVISION &ENTERTAINMENT OFFICE OF FILM,TELEVISION &ENTERTAINMENT OFFICE OF FILM,TELEVISION &ENTERTAINMENT

LOCAL FUND Total Fund LOCAL FUND Total Fund

PRIVATE DONATIONS SPECIAL PURPOSE REVENUE FUNDS Total Fund LOCAL FUND SPECIAL PURPOSE REVENUE FUNDS Total Fund

OFFICE OF THE TENANT ADVOCATE

LOCAL FUND

OFFICE OF THE TENANT ADVOCATE

INTRA-DISTRICT FUNDS

OFFICE OF THE TENANT ADVOCATE

Total Fund

FY 2016 Approved

FY 2017 Mayor's Proposed

20,221,002 20,221,002

DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

LOCAL FUND

15,052,313

20,008,282

377,624

20,385,906

DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

SPECIAL PURPOSE REVENUE FUNDS

28,959,370

35,517,927

0

35,517,927

44,011,682

55,526,209

377,624

55,903,833

435,168

551,489

0

551,489

22,000

22,000

0

22,000

12,729,019

13,315,718

0

13,315,718

13,186,187

13,889,207

0

13,889,207

7,648,091

7,436,354

60,931

7,497,285

7,648,091

7,436,354

60,931

7,497,285

698,000

2,758,725

0

2,758,725

0

394,872

0

394,872

698,000

3,153,596

0

3,153,596

9,642,186

10,414,663

421,194

10,835,857

696,000

578,662

0

578,662

10,338,186

10,993,325

421,194

11,414,519

DEDICATED TAXES

1,170,000

1,170,000

0

1,170,000

SPECIAL PURPOSE REVENUE FUNDS

6,971,975

7,098,024

0

7,098,024

8,141,975

8,268,024

0

8,268,024

1,421,533

2,071,533

0

2,071,533

67,000

236,590

0

236,590

1,488,533

2,308,123

0

2,308,123

DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

Total Fund

PUBLIC SERVICE COMMISSION

FEDERAL GRANT FUND

PUBLIC SERVICE COMMISSION

PRIVATE DONATIONS

PUBLIC SERVICE COMMISSION

SPECIAL PURPOSE REVENUE FUNDS

PUBLIC SERVICE COMMISSION OFFICE OF PEOPLE'S COUNSEL OFFICE OF PEOPLE'S COUNSEL

Total Fund SPECIAL PURPOSE REVENUE FUNDS Total Fund

DEPTY MAYOR GREATER ECONOMIC OPPORTUNITY

LOCAL FUND

DEPTY MAYOR GREATER ECONOMIC OPPORTUNITY

INTRA-DISTRICT FUNDS

DEPTY MAYOR GREATER ECONOMIC OPPORTUNITY

Total Fund

DEPT OF SMALL & LOCAL BUSINESS DEVELOPMT

LOCAL FUND

DEPT OF SMALL & LOCAL BUSINESS DEVELOPMT

FEDERAL GRANT FUND

DEPT OF SMALL & LOCAL BUSINESS DEVELOPMT ALCOHOLIC BEVERAGE REGULATION ADMIN. ALCOHOLIC BEVERAGE REGULATION ADMIN. ALCOHOLIC BEVERAGE REGULATION ADMIN.

Total Fund

Total Fund

MEDICAL LIABILITY CAPTIVE INS AGENCY

LOCAL FUND

MEDICAL LIABILITY CAPTIVE INS AGENCY

SPECIAL PURPOSE REVENUE FUNDS

MEDICAL LIABILITY CAPTIVE INS AGENCY

Total Fund

13

OFFICE OF RISK MANAGEMENT OFFICE OF RISK MANAGEMENT

LOCAL FUND Total Fund

DEPART OF INSURANCE, SECURITIES & BANKING

SPECIAL PURPOSE REVENUE FUNDS

DEPART OF INSURANCE, SECURITIES & BANKING

INTRA-DISTRICT FUNDS

DEPART OF INSURANCE, SECURITIES & BANKING SETTLEMENTS & JUDGMENTS FUND SETTLEMENTS AND JUDGMENTS FUND

Total Fund LOCAL FUND Total Fund

Business Consumer and Regulatory Affairs

LOCAL FUND

Business Consumer and Regulatory Affairs

DEDICATED TAXES

Business Consumer and Regulatory Affairs

FEDERAL GRANT FUND

Business Consumer and Regulatory Affairs

PRIVATE DONATIONS

Business Consumer and Regulatory Affairs

SPECIAL PURPOSE REVENUE FUNDS

Business Consumer and Regulatory Affairs

INTRA-DISTRICT FUNDS

Business Consumer and Regulatory Affairs

Total Fund

14

2,923,299

4,051,897

0

4,051,897

2,923,299

4,051,897

0

4,051,897

25,610,465

26,279,148

0

26,279,148

210,310

125,000

0

125,000

25,820,775

26,404,148

0

26,404,148

21,292,448

21,292,448

0

21,292,448

21,292,448

21,292,448

0

21,292,448

143,522,309

157,440,721

993,818

158,434,539

1,170,000

1,170,000

0

1,170,000

49,510,084

36,479,657

0

36,479,657

23,000

23,000

0

23,000

131,306,350

144,328,255

60,931

144,389,186

329,310

519,872

0

519,872

325,861,053

339,961,505

1,054,749

341,016,254

F.

FISCAL YEAR 2017 COMMITTEE CAPITAL BUDGET TABLE FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

6-Year Total

DEPT. OF CONSUMER AND REGUL AFFAIRS ISM07C - IT SYSTEMS MODERNIZATION AGENCY TOTAL

0

0

0

0

2,000,000

2,000,000

4,000,000

0

0

0

0

2,000,000

2,000,000

4,000,000

15

G.

SUMMARY OF COMMITTEE BUDGET RECOMMENDATIONS

The information below summarizes the Committee’s recommended changes to the Mayor’s proposed FY 2017 operating budget, along with a brief description of the capital budget. For more detailed information, please see Sections II-V of the report. Alcoholic Beverage Regulation Administration Operating Budget Recommendations: • The Committee approves the FY17 operating budget for ABRA as proposed by the Mayor. Capital Budget Recommendations: • ABRA does not have a capital budget for FY17. Policy Recommendations: • Approval of the Mayor’s Budget Support Act proposal contained in Title II, Subtitle A, the “Inaugural Celebration Amendment Act of 2016”. The proposed subtitle would extend the length of the designated Inauguration Week by two days for 2017 only. •

Approval of the Mayor’s Budget Support Act proposal contained in Title II, Subtitle C, the “Reimbursable Detail Subsidy Program Amendment Act of 2016”. The proposed subtitle would allow pub crawl organizers to participate in the RDO program.



ABRA should continue to work collectively with MPD and DCRA on the Noise Task Force.



ABRA should continue to support the enforcement of underage drinking laws within the District in collaboration with MPD.

Department of Consumer and Regulatory Affairs Operating Budget Recommendations: • The Committee approves the FY17 operating budget for DCRA as proposed by the Mayor with the following changes: -

Transfer-in of $377,624 from the Committee on Transportation and the Environment to be used as follows: Create 5 new positions: o (Two) Housing Inspectors (Grade 9 @ $64,001 = $128,002) Program 4000 – Inspections (Activity Code: 3080-Residential Inspections) o (Two) Community Relations Specialist (Grade 11-$77,107 & Grade 12-$95,408) Program 1000 – Administrative Services (Activity Code: 1085-Customer Service) o (One) Plan Review Coordinator (Grade 11-$77,107) Program 2000 – Permitting (Activity Code: 2020-Plan Review)

-

Decrease of $100,000 from DCRA – IT Services 16

Program 1000 – Administrative Services (Activity Code: 1040-Information Technology) -

Increase of $100,000 for Boxing and Wrestling Commission within DCRA to purchase boxing equipment for youth @DC Recreation Centers Program 7000 – Licensing (Activity Code: 2095-Occupational and Professional Licensing)

Capital Budget Recommendations: • The Committee approves the FY17 capital budget for DCRA as proposed by the Mayor. Policy Recommendations: • Approval of the Mayor’s Budget Support Act proposal contained in Title III, Subtitle G, the “Anatomical Board Repeal Amendment Act of 2016”. The proposed subtitle eliminates the Anatomical Board, which is no longer active. •

DCRA shall establish a finite process used by the permitting division to determine whether construction that changes the original layout of a property will cause damage to adjacent properties and specific questions that must be answered before these types of permits are approved as well as ensure that the paperwork submitted for the receipt of a permit is truthful and all parties involved are properly notified.



DCRA should examine possible ways to ensure that inspections are being done on a regular basis in order to prevent illegal construction.



DCRA should reconfigure the notification given to homeowners about construction taking place on the adjacent properties so that they are not responsible for damage caused to their home by the construction if they do not sign the notification within 30 days of receipt.



DCRA should continue to make sound-proofing recommendations to be included in the Construction Codes as they are updated in order to address noise issues in entertainment areas.

Department of Employment Services Operating Budget Recommendations: • The Committee approves the FY17 operating budget for DOES as proposed by the Mayor with the following changes: -

Transfer-in of $125,000 from the Committee of the Whole: o Fund 1 FTE for the sick and safe leave audit program of District employers Program 3000 – Labor Standards (Activity Code: 3200–Office of Wage and Hour)

Capital Budget Recommendations: • The Committee approves the FY17 capital budget for DOES as proposed by the Mayor.

17

Policy Recommendations: • Approval of the new Budget Support Act provision proposed by the Committee entitled the “Protecting Pregnant Workers Fairness Amendment Act of 2016”. The proposed subtitle would require an employer to make reasonable accommodations for an employee whose ability to perform the functions of the employee’s job are affected by a pre-birth complication. •

Approval of the new Budget Support Act provision proposed by the Committee entitled the “Accrued Sick and Safe Leave Amendment Act of 2016”. The proposed subtitle would clarify that employees in the building and construction industry covered by a bona fide collective bargaining agreement shall be exempted from the paid leave requirements of the act only if the agreement expressly waives those requirements.



Approval of the new Budget Support Act provision proposed by the Committee entitled the “Unemployment Benefits Modernization Amendment Act of 2016”. The proposed subtitle would increase the maximum weekly benefit to $425 and to provide for cost of living adjustments as determined by the Director of DOES. In addition, the bill standardizes the number of weeks claimants can receive benefits. Furthermore, the bill raises benefits for recipients who are part-time workers.

Department of Insurance, Securities, and Banking Operating Budget Recommendations: • The Committee approves the FY17 operating budget for DISB as proposed by the Mayor. Capital Budget Recommendations: • DISB does not have a capital budget for FY17. Policy Recommendations: • DISB should continue to expand the Bank on DC program and modernize the Banking Code to provide more banking opportunities for the unbanked and underbanked residents in the District. •

DISB should continue to work with the Superior Court of the District of Columbia to improve the mediation program for District residents going through the judicial foreclosure process.



Approval of the new Budget Support Act provision proposed by the Committee entitled the “Risk-Based Capital Amendment Act of 2016”. The proposed subtitle would ensure that DISB retains its accreditation with the National Association of Insurance Commissioners by conforming to key, nationally accepted risk-based capital standards.

Department of Small and Local Business Development Operating Budget Recommendations: • The Committee approves the FY17 operating budget for DSLBD as proposed by the Mayor with the following changes: -

Transfer-in of $356,194 from the Committee on Transportation and the Environment: 18

o $135,000 to create Glover Park Clean Team in Ward 3 Program 4000 – Commercial Revitalization (Activity Code: 4040-Commercial Clean Teams) -

$221,194 for the Made in DC Program: o $161,317 (Two) Positions (Grade 13-Program Manager (94,807) & Grade 11-Staff Assistant (66,510) for the Made in DC Program o $59,877 in NPS Cost for Made in DC Program Program 3000 – Business Opportunities (Activity Code: 3060– Business Development)

-

Transfer-in of $120,000 from the Committee on Health and Human Services: Funding for Ward 7 Clean Team Program 4000 – Commercial Revitalization (Activity Code: 4040-Commercial Clean Teams)

-

Reduce $120,000 from Clean Teams to Main Streets ($101,000) and Office of Tenant Advocate ($19,000) Program 4000 – Commercial Revitalization (Activity Code: 4040-Commercial Clean Teams)

-

Create Columbia Heights-Mount Pleasant Main Street in Ward 1 @ $204,636 Program 4000 – Commercial Revitalization (Activity Code: 4030-Main Streets)

Capital Budget Recommendations: • DSLBD does not have a capital budget for FY17. Policy Recommendations: • Approval of the new Budget Support Act provision proposed by the Committee entitled the “Business Improvement Districts Charter Renewal Amendment Act of 2016”. The proposed subtitle would: 1) clarify the Business Improvement District charter renewal process and 2) eliminate the 20 year sunset provision. •

Approval of the new Budget Support Act provision proposed by the Committee entitled the “Made in DC Program Subject to Appropriations Repealer Amendment Act of 2016”. The proposed subtitle would amend the Made in DC Program Establishment Act of 2016 by repealing the subject to appropriation section.



DSLBD should ensure District agencies meet and exceed the District-wide CBE expenditures goals.



DSLBD should increase training and oversight to reduce the number of agency CBE waivers and special exceptions.



DLSBD should expand the newly launched CEO Growth Academy.

19

Office of Cable Television, Film, Music, and Entertainment Operating Budget Recommendations: • The Committee approves the FY17 operating budget for OCTFME as proposed by the Mayor. Capital Budget Recommendations: • The Committee approves the FY17 capital budget for OCTFME as proposed by the Mayor. Policy Recommendations: • Approval of the Mayor’s Budget Support Act proposal contained in Title II, Subtitle F, the “Office of Cable Television, Film, Music, and Entertainment Clarification Amendment Act of 2016”. The proposed subtitle provides several technical and conforming amendments to the current law to address the agency’s statutory authority. •

OCTFME should continue to work with other District agencies to craft a comprehensive and targeted strategic plan to aggressively expand the “creative economy” in the District.



OCTFME should continue to engage, promote, and support local, aspiring young, and emerging filmmakers in the District.



OCTFME should expand its outreach to more District public schools to nurture and cultivate more District youth in the film, music, and entertainment industry.

Office of the Deputy Mayor for Greater Economic Opportunity Operating Budget Recommendations: • The Committee approves the FY17 operating budget for DMGEO as proposed by the Mayor. Capital Budget Recommendations: • DMGEO does not have a capital budget for FY17 Office of the People’s Counsel Operating Budget Recommendations: • The Committee approves the FY17 operating budget for OPC as proposed by the Mayor with the following changes: -

Transfer-in of $60,931 from the Committee on Transportation and the Environment: o Convert DOES Leap Positon into a permanent position (Salary and Fringe) Program 2000-Office of People’s Counsel (Activity Code: 2010-Consumer Advocacy and Representation)

Capital Budget Recommendations: • OPC does not have a capital budget for FY17.

20

Policy Recommendations: • Approval of the Budget Support Act proposal contained in Title II, Subtitle J, the “Adult Career Pathways Amendment Act of 2016”. The proposed subtitle would allow the Workforce Investment Council to find alternative sources of funding for the Adult Career Pathways program. •

DMGEO should continue to support the creation of more businesses in Wards 7 and 8.



DMGEO should continue to find solutions to provide more employment opportunities for District residents residing in Ward 7 and 8.

Office of Risk Management Operating Budget Recommendations: • The Committee approves the FY17 operating budget for ORM as proposed by the Mayor. Capital Budget Recommendations: • The Committee approves the FY17 capital budget for ORM as proposed by the Mayor. Policy Recommendations: • Approval of the Budget Support Act proposal contained in Title I, Subtitle F, the “District of Columbia Captive Insurance Agency Budget Technical Amendment Act of 2016”. The proposed subtitle allows the Chief Risk Officer to purchase any type of insurance for the District. •

Approval of the Budget Support Act proposal contained in Title I, Subtitle H, the “District of Columbia Subrogation Fund Establishment Act of 2016”. The proposed subtitle will create a non-lapsing Subrogation Fund so ORM can hire staff to prosecute outstanding claims and provide for operational costs to advance the District’s subrogation efforts. In addition, it provides that the fund will receive all claim judgments received in litigation.

Office of the Tenant Advocate Operating Budget Recommendations: • The Committee approves the FY17 operating budget for OTA as proposed by the Mayor with the following changes: -

Transfer-in of $176,000 from Committee on Housing and Community Development: - Restore EHAP Program 6000 – Emergency Housing (Activity Code: 6010 – Emergency Housing)

-

Increase of $19,000 from Clean Teams for misclassification of Legislative Counsel position Program 4000 – Policy Advocacy Program (Activity Code: 4010 – Policy Advocacy Program)

21

Capital Budget Recommendations • OTA does not have a capital budget for FY17. Policy Recommendations: • OTA should collaborate with the Department of Housing and Community Development and other sister agencies to contact the owners of project-based section 8 properties whose Housing Assistance Programs (“HAP”) contracts will expire in FY16 in order to ensure continued affordability of these residences for the elderly and tenants with disabilities. Public Service Commission Operating Budget Recommendations: • The Committee approves the FY17 operating budget for PSC as proposed by the Mayor. Capital Budget Recommendations: • PSC does not have a capital budget for FY17. Policy Recommendations: • The Committee has no policy recommendations for the OPC. Fiscal Year 2017 Performance Measure Recommendations Alcoholic Beverage Regulation Administration •

ABRA should increase its projections for the number of establishments inspected to ensure compliance with underage drinking laws to 850. Given that the number of establishments inspected in FY15 was 905 and thus far in FY16 they have inspected 253 establishments, the Committee believes that 850 is the appropriate target for FY17.

Department of Consumer and Regulatory Affairs •

DCRA should increase the number of surprise inspections at various construction sites in order to determine whether illegal construction is taking place as a performance indicator for the Inspections division.



DCRA should provide all public records on the DCRA website without cost to residents and customers.



DCRA should provide the number of community meetings attended and outreach events held and include it as a performance indicator.

Department of Employment Services •

DOES should provide quarterly reports to the Council on the number of youth enrolled in programming through and served by the OYP including but not limited to the Year-Round Youth Program, Marion Barry Youth Leadership Institute, Pathways for Young Adults, Career Connections, and the Youth Earn and Learn Program. DOES will submit reports for all programs-locally, federally and privately funded. Reports should be submitted according the following schedule: 22

• • • •

Quarter 1: October 1, 2016-December 31, 2016 by January 31, 2017 Quarter 2: January 1, 2017-April 30, 2017 by May 31, 2017 Quarter 3: May 1, 2017-July 31, 2017 by August 31, 2017 Quarter 4: August 1-September 30, 2017 by October 31, 2017



DOES should provide a comprehensive analysis on the Career Connections program covering operations from November 2015 through December 2016. The analysis should include: • Complete logic model for the program; • Overview of evaluation process including target outputs and outcomes including job readiness, skills gains, program completion rates, and permanent employment placement; • Progress made on all outputs and outcomes and program satisfaction data from participating youth and employers; • Overview of approach and support mechanisms for participating youth and employers; • Details on all program costs including--wages, transportation stipends, bonuses, and any other related costs; • Number of participants who enrolled in educational or vocational programs; and • Number of youth who exited the program before completion and the reason for exit.



DOES should implement the provisions of the Youth Apprenticeship Advisory Committee Amendment Act of 2016, enacted March 18, 2016 (D.C. Act 21-337; 63 DCR 4319) (“Act”) and should submit a report to the Council by December 1, 2016, as required by the Act.

Department of Insurance, Securities, and Banking •

DISB should order Group Hospitalization and Medical Services, Inc. to implement a plan for reinvesting $56 million in excess 2011 surplus. Specifically, the agency shall follow the timeline as provided in Section 3 of the Sense of the Council Regarding the 2011 Surplus Review of Group Hospitalization and Medical Services, Inc. Emergency Resolution of 2016, effective April 5, 2016 (Res. 21-462; 63 DCR 5953).



DISB should finish promulgating regulations for DCIFP and should host more events for District businesses, especially for CBEs, to educate them on different financing options that the agency provides.



DISB should complete its strategy to obtain accreditation with the CSBS.

Department of Small and Local Business Development •

DSLBD’s Commercial Revitalization Division should target 3,000 graffiti removals.



DSLBD should reduce the average number of days to complete new CBE certifications to 25 business days.

Office of Cable Television, Film, Music, and Entertainment 23



OCTFME should add the number and amount of funds distributed from the Film, Television and Entertainment Rebate Fund as a key performance indicator to track the District’s ability to use the Film, Television and Entertainment Rebate Fund to attract film and television productions to the District.



OCFTME should complete the franchise renewal negotiations with Comcast and RCN.

Office of the Deputy Mayor for Greater Economic Opportunity •

DMGEO should strive to get the District off of the U.S. Department of Labor’s “high-risk” designation list.

Office of the People’s Counsel •

The Committee has no performance measure recommendations for OPC.

Office of Risk Management •

ORM shall provide a detailed progress report on the improvement of the third party administrator CorVel that details a plan for greater management and efficiency of the Public Sector Workers’ Compensation program.



ORM should improve the tort claims case resolution rate from 59 percent to 65 percent.

Office of the Tenant Advocate •

The Committee has no performance measure recommendations for OTA.

Public Service Commission •

The Committee has no performance measure recommendations for PSC. Fiscal Year 2017 Budget Recommendations Not Funded in the Committee’s Report:

The Committee has no recommendations that are not funded in the Committee’s report.

24

II.

AGENCY FISCAL YEAR 2017 BUDGET RECOMMENDATIONS

A.

OVERVIEW

On March 24, 2016, Mayor Muriel Bowser submitted her proposed operating budget and financial plan for the upcoming fiscal year to the Council of the District of Columbia. The Committee held the following hearings to review the proposed budgets for the agencies under its purview:

April 20, 2016

April 25, 2016

• • • • • •

Alcoholic Beverage Regulation Administration Department of Consumer and Regulatory Affairs Department of Insurance, Securities, and Banking Department of Small and Local Business Development Office of the Deputy Mayor for Greater Economic Opportunity Office of the Tenant Advocate

• • • • •

Department of Employment Services Office of Cable Television, Film, Music, and Entertainment Office of Risk Management Office of the People’s Counsel Public Service Commission

During these hearings, the Committee heard hours of public testimony from District residents, advocates, and agency representatives regarding the proposed FY17 budget. The testimony has provided insightful guidance to the Committee, as it evaluated the Mayor’s request. The recommendations contained within this report represent the Committee’s thorough analysis of the Mayor’s proposed budget for the agencies under its purview. The report also includes recommendations on the Local Budget Act, the Federal Budget Request Act, and the Budget Support Act. For each agency, the Committee presents the following information: • • • •

An overview of the agencies FY17 budget as proposed by the Mayor; The Committee’s FY17 budget recommendations for the agency as a whole; A review of the proposed FY17 agency budgets including a summary of the Mayor’s program request and detailed breakdown of the Committee’s recommendations; and The Committee’s recommendations on proposed capital expenditures, where applicable.

25

B.

ALCOHOLIC BEVERAGE REGULATION ADMINISTRATION

1. COMMITTEE ANALYSIS AND COMMENTS a. Agency Mission and Overview The Alcoholic Beverage Regulation Administration (“ABRA”) was created under the Title 25, D.C. Code Enactment and Related Amendment Act of 2001, effective May 3, 2001 (D.C. Law 13-298; D.C. Official Code § 25-101 et seq.). The legislation transferred the functions of the Alcoholic Beverage Control Division in the Department of Consumer and Regulatory Affairs into a newly created agency called ABRA and placed it under the supervision of the Alcoholic Beverage Control Board ("ABC Board"). Under the law, ABRA is tasked with providing professional, technical, and administrative staff assistance to the ABC Board.

ABRA's mission is to support the public's health, safety, and welfare through the control and regulation of the sale and distribution of alcoholic beverages. ABRA conducts licensing, training, adjudication, community outreach, and enforcement efforts to serve the community and businesses so that they can understand and adhere to all the District's laws, regulations, and ABRA policies and procedures. ABRA operates through four programs: 1) Licensing, which issues new and renewal licenses to liquor stores, grocery stores, restaurants, hotels, nightclubs, and other establishments that manufacture, distribute, sell, or serve alcoholic beverages in the District; 2) Investigations, which conducts regulatory and voluntary agreement compliance inspections, underage compliance checks, and joint investigations with other District agencies 9 and conducts various inspections associated with licensing and adjudicatory processes; 3) Records Management, which provides files, documents, and database information to ABRA staff, the ABC Board, and the public; and 4) Agency Management which provides administrative support and the required tools to achieve operational and programmatic results. b. Mayor’s Proposed Fiscal Year 2017 Operating Budget i. Proposed Operating Budget Summary The Mayor’s proposed FY17 operating budget for ABRA is $8,268,024, which represents a 1.5 percent increase over its FY16 approved budget of $8,141,975. The budget is comprised of $7,098,024 in Special Purpose Revenue funds and $1,170,000 in Dedicated Taxes. Dedicated Taxes: The Mayor’s proposed FY17 budget for ABRA includes $1,170,000 in Dedicated Taxes, which is no change from ABRA’s FY16 budget. The Dedicated Taxes help fund the Reimbursable Detail Subsidy Program. Local Funds: The Mayor’s proposed FY17 budget for ABRA includes no Local funds.

9

ABRA works mainly with the Metropolitan Police Department, the Fire and Emergency Medical Services Department, the Office of Tax and Revenue, and the Department of Consumer and Regulatory Affairs.

26

Special Purpose Revenue Funds: The Mayor's proposed FY17 budget for ABRA includes $7,098,024 in Special Purpose Revenue funds, which is a $126,000 or 1.8 percent increase from ABRA’s FY16 budget. Federal Grant Funds: The Mayor’s proposed FY17 budget for ABRA includes no Federal Grant funds. Intra-District Funds: The Mayor’s proposed FY17 budget for ABRA includes no IntraDistrict funds. Private Donations: The Mayor’s proposed FY17 budget for ABRA includes no Private Donations. ii. Committee Analysis and Comments The Committee supports and recommends approval of the proposed FY17 budget for ABRA. The FY17 proposed budget for ABRA is $8,268,024. ABRA’s budget will be increased by $126,049 or 1.5 percent from the agency’s FY16 approved budget. The agency’s budget is increased due to higher revenue estimates from the issuance of alcohol licenses and permits in FY17. There is an increase of $150,186 in Special Purpose Revenue funds to support the hiring of two new FTEs. The two new FTEs will be hired in the Records Management program to support the agency’s document management system. Currently, ABRA has only one FTE who works in the Records Management program. The Committee supports the proposed increase for these two new positions. Reimbursable Detail Subsidy Program The Committee supports the Mayor’s proposed budget which continues to fund ABRA’s reimbursable detail subsidy program (“RDO program”) at $1,170,000. The RDO program allows ABRA to reimburse money paid to the Metropolitan Police Department (“MPD”) by licensees for the hiring of MPD officers to work a reimbursable detail, thereby continuing to ensure there is compliance with the law and regulations to create a safe and secure environment for residents, businesses, and the patrons of the businesses. Last year, the Council approved new rules proposed by the ABC Board which increased the subsidies provided by ABRA to businesses from 50 percent to 70 percent. 10 The increase in subsidies was in response to rules adopted by MPD, on February 13, 2015, which allows for a three percent increase of the reimbursement rate on a yearly basis. 11 The Committee would like to note that the annual reimbursement rate increases will have an impact on the RDO program’s budget. The Committee will continue to monitor whether the budget for the RDO program should be increased in the future. Underage Drinking Enforcement

10

Reimbursable Details Subsidy Program Regulations Approval Resolution of 2015, effective December 1, 2015 (Res. 21-312; 62 DCR 16034). 11 24 DCMR § 3802.

27

The Committee believes that the Mayor’s proposed budget provides sufficient resources to fund ABRA’s sale to minor compliance check program. This program is essential to ensure that licensed establishments are not selling alcoholic beverages to anyone under the age of 21. ABRA’s proposed FY17 budget contains $68,000 for the agency to contract with a vendor to provide minors to take part in this compliance program. 12 BSA Proposals The Committee recommends approval of the “Inaugural Celebration Amendment Act of 2016”, which was included in the Fiscal Year 2017 Budget Support Act of 2016 (“BSA”). The proposed subtitle would extend the length of the designated Inauguration Week by two days for 2017 only. Currently, the designated Inauguration Week is from January 15th through January 21st. If approved, the designated Inauguration Week for 2017 would begin on January 14th and end on January 22nd. Currently, ABC licensees with an on-premises retailer’s license, or a temporary license can sell or serve alcoholic beverages until 4 a.m. and operate 24 hours a day during a designated Inauguration Week. Expanding the designated Inauguration will allow registered onpremises licensees to extend their hours during two full weekends while many people are visiting the District. An ABC licensee must register with ABRA by January 7, 2017 and submit a public safety plan to be eligible to sell and serve alcoholic beverages until 4 a.m. and operate 24 hours a day during the designated Inauguration Week. 13 The Committee also recommends approval of the “Reimbursable Detail Subsidy Program Amendment Act of 2016” which was included in the BSA. The proposed subtitle would allow pub crawl organizers to participate in the RDO program. This proposal would enhance public safety at crawl events that can bring large crowds to District neighborhoods. 14 Concerns have been raised over the past year about how to regulate pub crawl events. A letter from the Golden Triangle BID to the ABC Chairperson detailed issues with pub crawls in that area. 15 In addition, the letter noted that due to the public safety issues MPD has to increase their patrols substantially in that area. 16 In response to these concerns, ABRA issued emergency and proposed rules regarding pub crawls on January 13, 2016. The proposed rules amended 23 DCMR § 712 by: revising pub crawl licensing requirements; establishing a pub crawl licensing fee; giving the ABC Board more authority to manage pub crawls; and strengthening the requirements for pub crawl events regarding their responsibilities before, during, and after pub crawl events, to include having a litter removal plan in place. 17 The rules still need to be approved on a permanent basis by the Council. The Committee believes the proposed subtitle, along with the new pub crawl rules recently adopted by the ABC Board, will address the community’s concerns surrounding pub crawls. c. Summary of Fiscal Year 2017 Budget Hearing Testimony The FY17 Budget Hearing for ABRA was held on April 20, 2016. Copies of the witness testimony are available by request from the Council Secretary’s or Committee’s offices.

12

Page 3, testimony of Fred P. Moosally, Director, ABRA (April 20, 2016). Id. 14 Id. 15 See Attachment C. 16 Id. 17 Page 15, Question 52, ABRA FY15-16 Performance Oversight Hearing Questions. 13

28

Government Witness 1. Mr. Fred Moosally, Director, Alcoholic Beverage Regulation Administration 2. COMMITTEE RECOMMENDATIONS a. Fiscal Year 2017 Operating Budget Recommendations The Committee approves the FY17 operating budget for ABRA as proposed by the Mayor. b. Fiscal Year 2017 Capital Budget Recommendations The Committee has no capital budget recommendations. c. Fiscal Year 2017 Policy Recommendations For FY17, the Committee recommends the following: 1. Approval of the Mayor’s Budget Support Act proposal contained in Title II, Subtitle A, the “Inaugural Celebration Amendment Act of 2016”. The proposed subtitle would extend the length of the designated Inauguration Week by two days for 2017 only. 2. Approval of the Mayor’s Budget Support Act proposal contained in Title II, Subtitle C, the “Reimbursable Detail Subsidy Program Amendment Act of 2016”. The proposed subtitle would allow pub crawl organizers to participate in the RDO program. 3. ABRA should continue to work collectively with MPD and DCRA on the Noise Task Force. 4. ABRA should continue to support the enforcement of underage drinking laws within the District in collaboration with MPD. d. Fiscal Year 2017 Performance Measure Recommendations For FY17, the Committee recommends the following: 1. ABRA should increase its projections for the number of establishments inspected to ensure compliance with underage drinking laws to 850. Given that the number of establishments inspected in FY15 was 905 and thus far in FY16 they have inspected 253 establishments, the Committee believes that 850 is the appropriate target for FY17.

29

C.

DEPARTMENT OF CONSUMER AND REGULATORY AFFAIRS

1. COMMITTEE ANALYSIS AND COMMENTS a. Agency Mission and Overview The mission of the Department of Consumer and Regulatory Affairs (“DCRA”) is to protect the health, safety, economic interests, and quality of life of residents, businesses, and visitors in the District of Columbia by issuing licenses and permits, conducting inspections, enforcing building, housing, and safety codes, regulating land use and development, and providing consumer education and advocacy services. This is an extensive mission that annually sees the agency issue over 35,000 building permits, 4,000 occupancy permits, and 50,000 business and professional licenses. The agency files over 65,000 corporate documents and conducts over 55,000 residential, commercial, and business-related inspections and investigations. DCRA is charged with ensuring that all businesses, professionals, and property owners adhere to District laws and regulations. DCRA operates through seven divisions. First, the Permitting division certifies compliance with current building and land use codes, manages a consolidated permit application intake center that hosts multiple agencies, issues permits for District construction projects, and maintains land records. The permitting division contains five activities. Plan review conducts technical building plan reviews for approval and issues building permits; the homeowner center functions as a dedicated resource center for District homeowners conducting small interior and exterior renovations to their personal residences; the development ambassador assists large-scale projects through the permit processing to the issuance of a permit; permits serves as the District’s central intake and issuance center for building permits and certificates of occupancy; and the surveyor produces and maintains the District’s land records. The Enforcement division coordinates and monitors enforcement of violations cited by the agency’s regulatory programs and works closely with the Office of the Attorney General to ensure that actions taken are legally sufficient. The division also registers vacant properties to encourage their return to productive use and condemns existing properties that are unsafe and deteriorating. This division houses the scheduling and enforcement unit, which is responsible for processing all civil infractions with the Office of Administrative Hearings and representing DCRA in most hearings. It also houses the vacant property unit which registers the District’s vacant properties and the regulatory investigations unit, which investigates unlicensed business activity. The rehabilitation unit abates housing and building code violations when cited property owners fail to do so, processes abatement contracts and collects unpaid abatement costs. The consumer protection unit serves as the District’s central clearinghouse for consumer complaints. Finally, the weights and measures unit inspects all commercially used weighing and measuring devices in the District. The Inspections division protects District residents and visitors and ensures habitable housing by performing residential inspections and by inspecting construction sites for code violations and proper permits. There are three activities in this unit, building inspections, residential inspections and construction compliance. The building inspections division manages commercial building and permit-related inspection requests and issues citations for violations of the District’s building codes and zoning regulations to correct construction code violations. The residential inspection 30

division manages the requests for inspection of residential properties and issues housing code violations. The Zoning and Construction Compliance division manages and coordinates revisions to the District’s building and trade codes to meet current demands. The zoning and construction compliance unit houses the zoning administrator and construction compliance divisions which provide zoning interpretation, inspections, and enforcement services to contractors, developers, and property owners so that they can be in compliance with the zoning ordinances of the District and provide inspections of developers and property owners so that they can comply with construction regulations and laws of the District of Columbia. The licensing unit contains the business service center which serves as the public-facing office where customers can inquire about, apply for and receive business licenses. The Licensing division protects the health, safety and welfare of District residents through maintenance services and timely registration, including trade name registration of corporations. The license and registration renewal office processes and conducts research for business license applications, renewals and certifications for those conducting business in the District. Finally, the occupational and professional licensing division develops licensing standards administers examinations. Processes license applications, make recommendations for board rulings and issues licenses and certificates. The Administrative Services division and the Agency Financial Operations division provide administrative support and financial management services to the agency. b. Mayor’s Proposed Fiscal Year 2017 Operating Budget i. Proposed Operating Budget Summary The Mayor’s proposed FY17 budget for DCRA is $55,526,209, an increase of $11,515,000 from its FY16 approved budget. The FY17 proposed budget includes the authority for 395 FTEs, which is an 11 percent increase from its FY16 approved level. Local Funds: The Mayor’s proposed FY17 budget for DCRA includes $20,008,282 in Local funds, which is a $4,956,251 or 32.9 percent increase from DCRA’s FY16 budget. Special Purpose Revenue Funds: The Mayor's proposed FY17 budget for DCRA includes $35,517,927 in Special Purpose Revenue funds, which is a $6,559,000 or 22.6 percent increase from DCRA’s FY16 budget. Federal Grant Funds: The Mayor’s proposed FY17 budget for DCRA includes no Federal Grant funds. Intra-District Funds: The Mayor’s proposed FY17 budget for DCRA includes no IntraDistrict funds. Private Donations: The Mayor’s proposed FY17 budget for DCRA includes no Private Donations. ii. Committee Analysis and Comments 31

The Committee approves of DCRA’s budget with the following increases: $172,515 to hire two community relations outreach specialists; $128,002 to hire two housing inspectors, and $77,107 to hire a plan review coordinator. The Committee would also like to note that even though the budget reflects a significant increase in funding and FTEs, these changes are more technical than substantive. Director Bolling noted at the April 20, 2016 budget hearing that the increase in staff is due to hiring contract staff in permanent positions. 18 This change will provide increased job security and benefits to these individuals. 19 Community Outreach and Customer Service The agency’s community outreach and customer service division will now employ eight FTEs, a decrease of two FTEs from FY16. The division is responsible for the agency’s community outreach efforts. While the budget reflects a loss of four FTEs in the customer service division, two FTEs will be contractors who are converted to full-time employees at the agency. 20 This means that the customer service division will only see a reduction of two FTEs. The Committee notes that the agency has intensified job training activities in different areas of human resource performance; in order, to improve the agency’s customer service. It is an area that will continue to receive priority attention. According to Grade.DC.Gov, which allows the public to provide feedback on agencies’ customer service efficiency, DCRA was rated a “B” average as of February 2016. The Committee is pleased with the progress made by DCRA in its Customer Service Division, including the implementation of a centralized call center to better improve service. DCRA has also worked to reduce dropped calls to the agency by 75%. However, there have been complaints about the timeliness of returned phone calls and requests for information. DCRA has been working to train its customer service representatives on what information must be shared with residents in regards to construction permits; as well as, ongoing training on how to properly respond to other inquiries from the public. The agency continues to make improvements in service and reductions in customer wait times, despite ever increasing work load demands. The loss of two FTEs in this division also creates concerns about the division’s ability to handle the volume of calls and inquiries they receive on a regular basis. Due to the numerous complaints received from the community regarding the responsiveness from DCRA, the Committee believes that DCRA should be more proactive in reaching out to the community to address these complaints. In order to help DCRA achieve these goals, the Committee is recommending that funding be provided to hire two new community relations outreach specialists. These positions will help DCRA send representatives to meet with constituents and to attend community meetings across the District and to help address many of the complaints that are being brought to the attention of the Committee and to Director Bolling. Information Technology In a January 29, 2016 advisory opinion, the Office for Open Government (“OOG”) found that DCRA is not in compliance with FOIA laws requiring that all District agencies allow the public to inspect and copy any public record without a FOIA request. 21 The opinion also found that DCRA has not complied with the requirement that public records not requiring a FOIA request for 18

Page 3, testimony of Melinda Bolling, Director, DCRA (April 20, 2016). Id. 20 Id. 21 D.C. Official Code §2-532(a). 19

32

inspection be posted to the agency’s website. 22 The OOG’s opinion cited systematic failures that has prevented DCRA from being able to comply with the District’s FOIA law. The agency’s FileNet and ProjectDox systems are particularly in need of updating in order for DCRA to be able to fully comply with District laws and regulations. FileNet contains all of the approved building permit applications and plans prior to 2013, and ProjectDox contains records submitted to DCRA from 2013 to the present. 23 The opinion discussed the current process for receiving permitting documents from DCRA, citing that any requests for drawings and plans having to do with permits authorized within less than three years are sent to Blue Boy Printing Corporation. Customers are then charged a minimum of $15.90 to copy these records. OOG found that the absence of these records from DCRA’s website needed to be addressed; in order, to be in compliance with District law. The OOG also advised that DCRA make FileNet and ProjectDox interoperable, although the opinion recognized the cost and data capacity necessary to update the systems infrastructure, as well as provide an aggressive agency-wide FOIA training program. 24 Traci Hughes, Esq., Director of the OOG, testified, at the April 20th budget hearing, that while DCRA was extremely forthcoming during their internal review, DCRA is at risk for litigation for non-compliance with FOIA laws. 25 She asked that the Committee allocate funding to digitize, publish and maintain the electronic records of authorized building permits, applications and corresponding permit files. She noted that the District’s FOIA laws have been in existence since 2001, and DCRA has not been able to comply with them since their inception. 26 Ms. Hughes also cautioned the Committee that while the funding for systems upgrades may seem high, it is a small number in comparison to what the District could spend in litigation due to DCRA’s noncompliance. In light of the above information, the FY17 budget provides $3,000,000 for upgrades to DCRA’s information technology systems. DCRA will be making upgrades to various applications used by the public, most notably the Public Information Verification System (“PIVS”). PIVS provides customers and the public with access to information on ownership, issued permits, inspections, and licensing for properties throughout the District. The permit tracker portion of the system was taken down because the information being disseminated was incorrect on various occasions. As such, the first phase of information technology upgrades will be focused on restoring the permit tracker. DCRA will be addressing the inaccurate data the system was displaying; as well as, improving the quantity and quality of what will be available. 27 The upgrades will allow customers to not only see the permits, but also to see when a stop work order has been placed on the project. The goal of these upgrades is to ensure that customers can access useful information quickly and accurately. DCRA will also be making more documents available online. This will assist customers in accessing the information they need quickly and without having to submit a FOIA request or be charged. To accomplish this goal, DCRA will be combining Filenet with the current permit and licensing management system ProjectDox. 28 The capacity to view documents within PIVS will also be expanded and the agency will be undertaking the process of scanning and uploading legacy documents so that they will be readily accessible to the public. It is imperative that these updates 22

See Attachment D. Id. at page 3. 24 Id. at page 5. 25 Page 3, testimony of Traci Hughes, Esq., Director, OOG (April 20, 2016). 26 Id. at page 2. 27 Page 5, testimony of Melinda Bolling, Director, DCRA (April 20, 2016). 28 Id. at page 6. 23

33

are made in order to better serve the public as well as to ensure that DCRA is in compliance with District law. Permitting DCRA’s permitting division issues permits for District construction projects, reviews plans, certifies code compliance for large and small-scale building and renovation projects, and produces and maintains land records. The division hosts a consolidated permit application intake center, homeowner center, and a “development ambassador” program, which assists with large-scale projects. The permit intake, application and issuance process varies depending upon the scope of the project. An applicant seeking a permit must submit an application and building plans to the Permit Review Center, where the application is then categorized as a “walk-through”, “file-job”, or “large scale project” that requires the review of other agencies prior to permit issuance. Five agencies that are involved in the building permit review process are co-located at the Permit Review Center. Walk-through permits may be issued on the same day that the permit is requested, whereas file-job permits will take between 14 to 30 days to complete. The Committee has raised concerns about the permitting process for residential construction that results in dangerous illegal construction. The Committee has heard from various constituents about construction that is beyond the scope of the permit and construction that could potentially damage neighboring homes. To address this issue DCRA will provide inspectors with more mobile capabilities, including the ability to access agency licensing and permitting systems remotely. 29 This will provide staff with the information they need to more adequately respond to situations at any time. Overall, the agency continues to improve the expediency and efficiency of its permit application process through a number of automated systems and consolidated processes. Director Bolling stated, at the April 20, 2016 budget hearing, that in response to customer complaints about the permitting review process, the agency has implemented an online scheduling system for DCRA’s on-site permitting and licensing centers. This means that customers will no longer have to call to make an appointment, and while they are still able to walk in to these centers, the wait times with a scheduled appointment will be much shorter. This also allows customers to choose times that best fit their busy schedules. 30 In addition, to the changes being proposed by DCRA, the Committee is proposing to fund one new additional FTE in the permitting division. The new FTE would be designated as a plan review coordinator and would be responsible for helping DCRA expedite its permitting approval process. The Committee hopes this will help address the issues raised about the time it takes for DCRA to approve permits. Boxing and Wrestling Commission The mission of the D.C. Boxing and Wrestling Commission (“BWC”) is to effectively regulate all boxing, wrestling, and mixed martial arts events in the District of Columbia. BWC is committed to establishing and maintaining the highest ethical practices and conduct of boxing, wrestling and other combative sports in the District. BWC is also dedicated to protecting the health, safety and welfare of its licensees; promoting public confidence in the sports industry; establishing trust in 29 30

Id. at page 7. Id. at page 6.

34

the regulatory process; and achieving the ultimate goal of making the District of Columbia the industry’s sports capital. In addition, the BWC’s mission is to encourage youth to get involved in boxing and wrestling. During FY16, the Boxing and Wrestling Commission certified the Belfast to the Beltway Boxing Match which took place in D.C. this year. The boxing match alternates between D.C. and Belfast and features boxers of all ages in exhibition fights. This boxing match encourages District youth to participate in the sport and exposes them to different cultures while giving them positive athletic activities to participate in after school. In order to support more programs like this the Committee is recommending a $100,000 increase for the budget of BWC. The BWC will use these funds to purchase equipment for recreation centers across the District to get more youth involved in boxing and wrestling. The Committee sees this as a prudent investment to get youth off of the streets and into a structured environment. Inspections The agency’s inspection division performs building, residential and construction site inspections for code, zoning and permit compliance. It also monitors elevators and boilers in District buildings and maintains the District’s construction codes. One of the agency’s critical missions is ensuring the safety of residential and commercial buildings and rental units. In addition, this division works to enhance compliance by property owners of the District’s housing and building codes and to ensure that they maintain their properties in a safe and habitable condition, DCRA is working to develop a robust inspection process. DCRA is working to restore the staff strength of the inspection division to a level which existed prior to the Great Recession of 2008. The agency has focused its resources on outreach efforts to housing and tenant advocates and improving the professionalization of its inspection force. The mobile inspection capabilities may assist inspectors in responding to issues in the community in a more effective and dynamic way. The Committee recognizes the progress made in this area, but notes that continued improvement is needed. The budget proposes to increase the funding for the inspection division’s by $509,000. Funding for the building inspection division will be increased by $911,000 and four FTEs. The residential inspections division’s funding will be decreased by $1,241,000. The funding for the construction compliance division will be increased by $839,000 and will gain seven FTEs. The inspections division has a large amount of ground to cover between identifying vacant buildings, illegal construction, and rental unit safety. The Committee is concerned that DCRA does not have the resources to make sure that all areas needing inspection receive it in a timely manner. With so many complaints of rental housing violations, illegal construction and damage to neighboring homes because of it, the Committee is concerned that the inspections division will not have the man power to continue to build on their laudable track record from the previous years. The Committee would like to see DCRA continue these efforts in FY17. The Committee is also concerned that it takes on average of two weeks for DCRA to conduct housing inspections, for non-emergency situations. In order to cut down on that wait time and to provide more efficient services for the residents of the District, the Committee is recommending funding for two new FTEs in the housing inspection division. c. Mayor’s Proposed Fiscal Year 2017 Capital Budget i. Proposed Capital Budget Summary 35

The proposed capital budget is $4,342,103. DCRA’s capital budget is comprised solely from Local funds. ii. Committee Analysis and Comments The Committee supports and recommends approval of DCRA’s capital budget plan. $4,153,808 is provided to help DCRA maintain and upgrade its IT systems for the next six years. The Committee believes this is a necessary investment as seen with the recent issues with DCRA over its IT systems. In addition, $188,295 is for Vacant Property Inspection and Abatement. DCRA uses these funds to remediate dangerous conditions caused to an adjoining property if a developer or contractor refuses to fix these issues on an immediate basis. d. Summary Fiscal Year 2017 Budget Hearing Testimony The FY17 Budget Hearing for DCRA was held on April 20, 2016. Copies of witness testimony are available by request in the Council Secretary’s and Committee’s offices. Public Witnesses 1. Traci L. Hughes, Esq., Director, D.C. Office of Open Government 2. Kevin Cummins, Public Witness 3. Rebecca Miller, DC Preservation League 4. Alan Gambrell, Commissioner, ANC 1C-05 5. Betsy McDaniel, Public Witness 6. Florence Martelli, Interim Director, D.C. Women’s Center, National Community Reinvestment Coalition Government Witness 1. Melinda Bolling, Director, Department of Consumer and Regulatory Affairs 2. COMMITTEE RECOMMENDATIONS a. Fiscal Year 2017 Operating Budget Recommendations The Committee approves the FY17 operating budget for DCRA as proposed by the Mayor with the following changes: 1. Transfer-in of $377,624 from the Committee on Transportation and the Environment to be used as follows: - Create 5 new positions: o (Two) Housing Inspectors (Grade 9 @ $64,001 = $128,002) Program 4000 – Inspections (3080-Residential Inspections) o (Two) Community Relations Specialist (Grade 11-$77,107 & Grade 12-$95,408) Program 1000 – Administrative Services (1085-Customer Service) o (One) Plan Review Coordinator (Grade 11-$77,107) 36

Program 2000 – Permitting (2020-Plan Review) 2. Decrease of $100,000 from DCRA Program 1000 – Administrative Services (Activity Code: 1040-Information Technology) 3. Increase of $100,000 for Boxing and Wrestling Commission within DCRA to purchase boxing equipment for youth @DC Recreation Centers Program 7000 – Licensing (Activity Code: 2095 – Occupational and Professional Licensing) b. Fiscal Year 2017 Capital Budget Recommendations The Committee approves the FY17 capital budget for DCRA as proposed by the Mayor. c. Fiscal Year 2017 Policy Recommendations For FY17, the Committee recommends the following: 1. Approval of the Mayor’s Budget Support Act proposal contained in Title III, Subtitle G, the “Anatomical Board Repeal Amendment Act of 2016”. The proposed subtitle eliminates the Anatomical Board, which is no longer active. 2. DCRA should establish a finite process used by the permitting division to determine whether construction that changes the original layout of a property will cause damage to adjacent properties and specific questions that must be answered before these types of permits are approved as well as ensure that the paperwork submitted for the receipt of a permit is truthful and all parties involved are properly notified. 3. DCRA should examine possible ways to ensure that inspections are being done on a regular basis in order to prevent illegal construction. 4. DCRA should reconfigure the notification given to homeowners about construction taking place on the adjacent properties so that they are not responsible for damage caused to their home by the construction if they do not sign the notification within 30 days of receipt. 5. DCRA should continue to make sound-proofing recommendations to be included in the Construction Codes as they are updated in order to address noise issues in entertainment areas. d. Fiscal Year 2017 Performance Measure Recommendations For FY17, the Committee recommends the following: 1. DCRA should increase the number of surprise inspections at various construction sites in order to determine whether illegal construction is taking place as a performance indicator for the Inspections division. 2. DCRA should provide all public records on the DCRA website without cost to residents and customers. 37

3. DCRA should provide the number of community meetings attended and outreach events held and include it as a performance indicator.

38

D.

DEPARTMENT OF EMPLOYMENT SERVICES

1. COMMITTEE ANALYSIS AND COMMENTS a. Agency Mission and Overview The Department of Employment Services (“DOES”) fosters and promotes the welfare of job seekers and wage earners by improving their working conditions, advancing opportunities for employment, helping employers find workers and tracking changes in employment and other national economic measurements impacting the District of Columbia. DOES provides District residents with job and life-skill training through its Workforce Development Program made possible through a combination of federal and local funds. In addition, the District of Columbia employs thousands of District youth through the Marion S. Barry Summer Youth Employment Program (“MBSYEP”) and hundreds of youth through the Year-Round Youth Employment Program. DOES’s other primary responsibility is to provide employment-related services for unemployed or underemployed persons, and it provides worker protection and dispute resolution services for workers and employers. The stated objectives of DOES are to: 1) Foster the development of a prepared workforce by increased and focused provision of comprehensive workforce development services and offering access to user-friendly business, labor market, and training information; 2) Reduce wait time and increase timeliness and accuracy of unemployment compensation benefits and services to unemployment insurance claimants; and 3) Provide a more efficient, effective, and improved system to prevent workers from being exposed to unsafe working environments (“Occupational, Safety and Health program”) and from falling beneath an unacceptable income level at times of unemployment due to injury/illness (“Workers’ Compensation Program”). The agency implements these objectives through 5 divisions: 1) Unemployment Insurance, which provides basic income replacement insurance to workers unemployed through no fault of their own; 2) Labor Standards, which provides worker protection and dispute resolution services for the workers and employers of the District so that disputes are resolved fairly and the safety of the workplace is ensured; 3) Workforce Development, which provides employment-related services for unemployed or underemployed persons so that they can achieve economic security and compete in the global economy; 4) Agency Management, which provides for administrative support and the required tools to achieve operational programmatic results; and 5) Agency Financial Operations, which provides comprehensive and efficient financial management services to, and on behalf of, District agencies so that the financial integrity of the District of Columbia is maintained. b. Mayor’s Proposed Fiscal Year 2017 Operating Budget i. Proposed Operating Budget Summary The Mayor’s proposed FY17 operating budget for the DOES is $143,477,675, which represents a 2.2 percent decrease from its FY16 approved budget of $146,694,971. The budget is comprised of $64,022,170 in Local funds, $35,349,506 in Federal Grant funds, $1,000 in Private Donations, and $44,104,999 in Special Purpose Revenue Funds. 39

Local Funds: The Mayor’s proposed FY17 budget for DOES includes $64,022,170 in Local funds, which is a $4,831,000 or 8.2 percent increase from its FY16 budget. Special Purpose Revenue Funds: The Mayor's proposed FY17 budget for DOES includes $44,104,999 in Special Purpose Revenue funds, which is a $4,981,000 or 12.7 percent increase from its FY16 budget. Federal Grant Funds: The Mayor’s proposed FY17 budget for DOES includes $35,349,506 in Federal Grant funds, which is a $13,029,000 or 26.9 percent decrease from its FY16 budget. Intra-District Funds: The Mayor’s proposed FY17 budget for DOES includes no IntraDistrict funds. Private Donations: The Mayor’s proposed FY17 budget for DOES includes $1,000 in Private Donations, which is the same amount that was approved in its FY16 budget. The agency uses the Private Donations to fund the MBSYEP. ii. Committee Analysis and Comments The Committee supports and recommends approval of the Mayor’s proposed FY17 budget for DOES with a minor change. The FY17 proposed budget for DOES is $143,477,675. DOES’ budget will be decreased by $3,217,296 or 2.2 percent from the agency’s FY16 approved budget. The agency’s budget is decreased due to a reduction in Federal funds. The proposed budget also allows for the addition of 24 FTEs, which represents a 4.1 percent increase from FY16. The Committee recommends accepting $125,000 from the Committee of the Whole so DOES can hire one new FTE and provide additional resources for a contractor to perform the sick and safe leave audit of District employers. The Repeal of Outdated and Unnecessary Audit Mandates Amendment Act of 2016, passed on 2nd reading on April 19, 2016 (Enrolled version of Bill 21377), shifted the mandate to conduct this audit from the DC Auditor to DOES. The Committee supports the increases in funds to provide additional resources to support the Workforce Development division. There is also an increase in funds for projected salary steps and fringe benefit costs. In addition, there is an increase in Local funds to support additional youth to take part in the MBSYEP. There is also an increase in funding to support FTEs whose salaries are no longer being funded through Federal Grant funds. DOES will see a decrease of $13,029,000 in Federal Grant funds. There is a $10.2 million decrease in projected grant awards as it relates to Unemployment Insurance and UI Modernization Incentive Stimulus grants. $7 million in Federal Grant funds are being transferred to Capital funds so DOES can begin the process of modernizing its Unemployment Insurance system. There is also a decrease in Federal Grant funds due to reduction in projected costs for personal and non-personal services. The Committee is pleased that funding is provided to implement the “Unemployment Profile Act of 2015”, effective December 15, 2015 (D.C. Law 21-038; 62 DCR 13742). However, the Committee is disappointed that the agency only agreed to fund the law for FY17 and urges the agency to provide additional funding in FY18 and beyond to fully implement this law. 40

Labor Standards The Committee received testimony at the April 25, 2016 budget hearing that raised concerns about the funding level for the Office of Wage Hour (“OWH”). The DC Fiscal Policy Institute testified that the addition of only one FTE in OWH is not enough to handle the increase in claims that DOES will have to investigate. 31 The Committee is also concerned about the staffing levels at OWH. However, the Committee does note that Director Carroll stated that the Mayor’s FY17 budget provides the funding needed to enforce the District’s labor laws to ensure worker protections are maintained. 32 The Committee will continue to monitor the agency to see if more funding is needed in the future to hire staff and whether more educational outreach to workers and employers is needed to properly implement these new laws. Workforce Development DOES’ FY17 proposed budget will see a $9.3 million increase in Local funds to support the workforce development division. The Committee supports the increase in funding as it will be used to support to important job training and workforce development programs at DOES. $4.5 million will be used to support the DC Career Connection program and $4.8 million will be used to support the accommodation of additional youth to participate in the MBSYEP. The Committee is pleased that DOES will continue to provide funding for resources for two initiatives that were started last year, the Learn Earn Advance Prosper Academy (“L.E.A.P. Academy”) and the DC Jail Work Readiness Program. The L.E.A.P. Academy trains District residents for jobs in the District government’s in-demand areas while allowing them to earn wages, accumulate work experience, and obtain stackable credentials. At the April 25th budget hearing, Director Carroll stated that 111 long term unemployed residents participated in the program this year. 33 Of those 111 participants, 56 obtained full-time employment with the District government. 34 Under the DC Jail Work Readiness Program, DOES and the Department of Corrections work together to connect returning citizens to existing American Job Centers and enable them to continue work-related programs post-release. This past year 71 participants participated in the program and 31 participants have engaged DOES upon release. 35 As discussed above, $4.5 million will be used to support the DC Career Connections program. DC Career Connections is a work readiness program designed to provide more than 400 disconnected youth ages 20-24, primarily living in police priority services areas, with work experience, training, and professional development to support them in obtaining full-time employment. 36 Youth who participate in the program will have the opportunity to work up to nine months for up to 25 hours per week, while earning at least $8.25 per hour. 37 Youth will also be offered transportation subsidies. To date, 310 youth are being served and DOES is still enrolling individuals. 38 The Committee supports funding for the program as it will address the needs of out-of-school youth who face a significant barrier to employment. As this is a new program, the Committee in its performance recommendations is requesting DOES to provide a comprehensive analysis of the 31

Page 5, testimony of Ilana Boivie, Senior Policy Institute, DC Fiscal Policy Institute (April 25, 2016). Page 7, testimony of Deborah Carroll, Director, DOES (April 25, 2016). 33 Id. at page 4. 34 Id. 35 Id. 36 “DC Career Connections.” http://does.dc.gov/service/dc%20career%20connection-0. DOES. (April 28, 2016). 37 Id. 38 Page 5, testimony of Deborah Carroll, Director, DOES (April 25, 2016). 32

41

FY16 DC Career Connections program. The Committee is interested in the outcomes of the program to determine if the program has been successful. Earlier this year, the Council approved the Marion S. Barry Summer Youth Employment Expansion Amendment Act of 2015, enacted March 4, 2016 (D.C. Act 21-340; 63 DCR 4326) (“MBSYEP Act”). The MBSYEP Act authorized 1,000 youth aged 22 to 24 to take part in the MBSYEP for FY16 and FY17. In addition, the MBSYEP Act required youth aged 22 to 24 to be paid the District’s minimum wage. In order to pay for the expansion of the MBSYEP in FY17, there is an increase of $4.8 million in Local funds. In FY17, it is expected that 12,200 14 to 21 years olds and 1,000 22 to 24 year olds will take part in the MBSYEP. Of the $4.8 million, $2.1 million will be used to pay the salaries and cost of transportation for the youth aged 22 to 24. $2.7 million of these local funds will be used to support additional youth aged 14 to 21 to take part in the MBSYEP. The Committee is supportive of this funding request, especially to support the expansion of youth aged 22 to 24, because of the results seen from last year’s MBSYEP. When considering the MBSYEP Act the Committee analyzed DOES’ outcomes for the 2015 MBSYEP. First the Committee found, as was stated in the recent Auditor’s report on the MBSYEP, that DC was not the only major city to expand its program to include youth up to age 24. The Committee also noted that when DOES expanded the program in 2015, they received over 2,526 applications from youth in that age group. In addition, almost 60% of the applications from participants ages 22 to 24 were from Wards 7 and 8. Further, the Committee found that of the 844 youth aged 22 to 24 years old that took part in the program, DOES was able to find year-round employment for 247 of those youth. 174 youth in that age group returned to college, and were not looking for year-round employment, and DOES continues to engage the 413 participants providing them with training and assisting them with their job search. The Committee believes continuing to fund the expansion program will help DOES to continue to engage this age group and connect them with jobs or with other year-round programs, such as the programs funded under the Workforce Innovation and Opportunity Act, approved July 22, 2014 (128 Stat. 1425; 29 U.S.C § 3101 et seq.) (“WIOA”). BSA Proposals The Committee supports adding the “Accrued Sick and Safe Leave Amendment Act of 2016” to the Fiscal Year 2017 Budget Support Act of 2016 (“BSA”). The Committee views the new subtitle as a technical change. It would amend Section 7(b) of the Accrued Sick and Safe Leave Act of 2008 to clarify that employees in the building and construction industry covered by a bona fide collective bargaining agreement shall be exempted from the paid leave requirements of the act only if the agreement expressly waives those requirements. When the Council approved the “Wage Theft Prevention Amendment Act of 2014” effective February 26, 2015 (D.C. Law 20157; 61 DCR 10157) (“Act”), it unintentionally deleted language that allowed employees in the building and construction industry to bargain to waive provisions of the Accrued Sick and Safe Leave Act of 2008 through a bona fide collective bargaining agreement. The proposed subtitle will correct the inadvertent change made in the Act. The Committee also supports adding the “Protecting Pregnant Workers Fairness Amendment Act of 2016” to the BSA. The proposed subtitle would require an employer to make reasonable accommodations for an employee whose ability to perform the functions of the employee’s job are affected by a pre-birth complication. When the Council passed the Protecting Pregnant 42

Workers Fairness Act of 2014, effective March 3, 2015 (D.C. Law 20-168; D.C. Official Code § 32-1231.01 et seq.), the bill did not adequately address pre-birth complications hence the need for the amendment. This amendment would strengthen the law by the increasing the protections for pregnant workers suffering from pre-birth complications. Finally, the Committee supports adding the “Unemployment Benefits Modernization Amendment Act of 2016” to the BSA. The proposed subtitle would increase the maximum weekly benefit to $425 and to provide for cost of living adjustments; as long as, the raise will not negatively affect the Unemployment Insurance Trust Fund (“UI Trust Fund”). In addition, the bill standardizes the number of weeks claimants can receive benefits. Furthermore, the bill raises benefits for recipients who are part-time workers. The role of unemployment insurance (“UI”) is to help involuntarily unemployed people maintain basic living standards while they look for new work. Currently, the District has a maximum weekly benefit amount of $359. This benefit amount is lower than the maximum benefit in 38 states, including Maryland which is at $430 and Virginia which is at $378. 39 The last time the District increased its weekly maximum benefit was in 2005. The Committee believes with the rising costs with living in the District and with the District’s UI Trust Fund being one of the strongest in the nation the Council should approve an increase of the maximum weekly benefit to $425 and to provide for cost of living adjustments; as long as, the raise will not negatively affect the UI Trust Fund. Additionally, the Committee recommends standardizing the number of weeks a claimant can receive benefits. This means, as long as an individual’s meets the requirements under the law, they will be able to receive up to 26 weeks of UI benefits. By standardizing the weeks one may receive UI benefits creates more stability for individuals receiving these benefits. These individuals tend to be the lowest income and most vulnerable District residents. The Committee also recommends to raise the benefits for recipients who are part-time workers. The legislation would allow claimants to receive UI benefits if two-thirds of their earnings from parttime work are less than their usual benefit plus $50. c. Mayor’s Proposed Fiscal Year 2017 Capital Budget i. Proposed Capital Budget Summary The proposed capital budget is $17,276,849. $16,716,849 is from Federal Grant funds and $560,000 is from Paygo Capital funds. ii. Committee Analysis and Comments $16.7 million is being allocated for the modernization of the Unemployment Insurance Business System. The project is focused on developing and deploying a fully integrated electronic Unemployment Benefits and Tax system to keep up with its current technology, implement new legal requirements, and help improve efficiency. Under this plan, all systems within Unemployment Insurance will be integrated including the Document Imaging system and the ACD/IVR system. On December 18, 2015, the Office of Contracting and Procurement on behalf of DOES issued a Request for Information on a solution that provides a total replacement of the Unemployment Insurance Business System. 40 The Committee views the issuance of the Request

39 40

Page 2, testimony of Ilana Boivie, Senior Policy Analyst, DC Fiscal Policy Institute (April 27, 2016). DOES, Request for Information, RFI Number: DOC#236889. (December 18, 2015).

43

for Information by DOES as the right move forward in the agency’s attempt to modernize its outdated Unemployment Insurance Business System. The $560,000 in Paygo Capital funds will be used to support job training programs at the Department of Youth Rehabilitation Services and the Department of Public Works. The Committee supports the use of these funds for the job training programs at those agencies. d. Summary of Fiscal Year 2017 Budget Hearing Testimony The FY17 Budget Hearing for DOES was held on April 25, 2016. Copies of the witness testimony are available by request from the Council Secretary’s or Committee’s offices. Public Witnesses 1. Ilana Boivie, Senior Policy Analyst, D.C. Fiscal Policy Institute 2. Josue Salmeron, Deputy Director, Collaborative Solutions for Communities 3. Marcia Huff, Director, Youth Poverty Programs, Young Women’s Project 4. Latonya Anderson, Student 5. Monica Carter, Student 6. Victoria Leonard, LiUNA, Mid-Atlantic Region 7. Ana Hageage, Director, External Partnerships and Community Schools, Latin American Youth Center 8. Gable Barmer, President of J & G Consultants, LLC 9. Hannah Kane, Worker Justice Organizer, Many Languages One Voice 10. Carlaye Hayling-Williams, Ph.D., Director of Programs and Strategic Partnerships, Contemporary Family Services, Inc. 11. Amy Dudas, Policy Analyst, DC Alliance of Youth Advocates 12. Joanna Blotner, Paid Family Leave Campaign Manager, Jews United for Justice 13. Aaron Goggans, Just Pay Coalition 14. Jennifer McLaughlin, Public Witness 15. Reginald Black, Public Witness 16. Robert Warren, Public Witness Government Witness 1. Ms. Deborah Carroll, Director, Department of Employment Services 2. COMMITTEE RECOMMENDATIONS a. Fiscal Year 2017 Operating Budget Recommendations The Committee approves the FY17 operating budget for DOES as proposed by the Mayor with the following changes: 1. Transfer-in of $125,000 from the Committee of the Whole: - Fund 1 FTE and provide resources for a contractor to perform the sick and safe leave audit of District employers b. Fiscal Year 2017 Capital Budget Recommendations 44

The Committee approves the FY17 capital budget for DOES as proposed by the Mayor. c. Fiscal Year 2017 Policy Recommendations For FY17, the Committee recommends the following: 1. Approval of the new Budget Support Act provision proposed by the Committee entitled the “Protecting Pregnant Workers Fairness Amendment Act of 2016”. The proposed subtitle would require an employer to make reasonable accommodations for an employee whose ability to perform the functions of the employee’s job are affected by a pre-birth complication. 2. Approval of the new Budget Support Act provision proposed by the Committee entitled the “Accrued Sick and Safe Leave Amendment Act of 2016”. The proposed subtitle would clarify that employees in the building and construction industry covered by a bona fide collective bargaining agreement shall be exempted from the paid leave requirements of the act only if the agreement expressly waives those requirements. 3. Approval of the new Budget Support Act provision proposed by the Committee entitled the “Unemployment Benefits Modernization Amendment Act of 2016”. The proposed subtitle would increase the maximum weekly benefit to $425 and to provide for cost of living adjustments as determined by the Director of DOES. In addition, the bill standardizes the number of weeks claimants can receive benefits. Furthermore, the bill raises benefits for recipients who are parttime workers. d. Fiscal Year 2017 Performance Measure Recommendations For FY17, the Committee recommends the following: 1. DOES should provide quarterly reports to the Council on the number of youth enrolled in programming through and served by the OYP including but not limited to the Year-Round Youth Program, Marion Barry Youth Leadership Institute, Pathways for Young Adults, Career Connections, and the Youth Earn and Learn Program. DOES will submit reports for all programs-locally, federally and privately funded. Reports should be submitted according the following schedule: • Quarter 1: October 1, 2016-December 31, 2016 by January 31, 2017 • Quarter 2: January 1, 2017-April 30, 2017 by May 31, 2017 • Quarter 3: May 1, 2017-July 31, 2017 by August 31, 2017 • Quarter 4: August 1-September 30, 2017 by October 31, 2017 2. DOES should provide a comprehensive analysis on the Career Connections program covering operations from November 2015 through December 2016. The analysis should include: • Complete logic model for the program; • Overview of evaluation process including target outputs and outcomes including job readiness, skills gains, program completion rates, and permanent employment placement; • Progress made on all outputs and outcomes and program satisfaction data from participating youth and employers; 45

• Overview of approach and support mechanisms for participating youth and employers; • Details on all program costs including--wages, transportation stipends, bonuses, and any other related costs; • Number of participants who enrolled in educational or vocational programs; and • Number of youth who exited the program before completion and the reason for exit. 3. DOES should implement the provisions of the Youth Apprenticeship Advisory Committee Amendment Act of 2016, enacted March 18, 2016 (D.C. Act 21-337; 63 DCR 4319) (“Act”) and should submit a report to the Council by December 1, 2016, as required by the Act.

46

E.

DEPARTMENT OF INSURANCE, SECURITIES, AND BANKING

1. COMMITTEE ANALYSIS AND COMMENTS a. Agency Mission and Overview The Department of Insurance, Securities, and Banking (“DISB”) was created under the Consolidation of Financial Services Amendment Act of 2004, effective June 11, 2004 (D.C. Law 15-166; D.C. Official Code § 31-101 et seq.). The legislation transferred the functions of the Department of Banking and Financial Institutions into the Department of Insurance and Securities Regulation and renamed the agency the Department of Insurance, Securities, and Banking.

The mission of DISB is two-fold: 1) protect consumers by providing equitable, thorough, efficient, and prompt regulatory supervision of the financial services companies, firms, and individuals operating in the District of Columbia; and 2) develop and improve market conditions to attract and retain financial services firms to the District of Columbia. DISB operates through the following 9 divisions: 1) Insurance Bureau which licenses and regulates insurance providers; 2) Securities Bureau which oversees the regulatory activities of stock brokerage and investment firms; 3) Enforcement Bureau which takes enforcement actions against individuals and companies engaged in fraudulent financial operations and services; 4) Banking Bureau which regulates the depository and non-depository financial institutions within the District; 5) Risk Finance Bureau which licenses and regulates captive insurance companies; 6) Market Examinations Bureau which conducts on-site examinations of all domiciled insurance companies, inspects investment advisers and broker-dealers, banks, and non-depository financial services institutions, and monitors financial solvency of financial firms; 7) Compliance Analysis Bureau which resolves consumer complaints and provides research and analysis of industry sectors to establish best practices; 8) Agency Management which provides for administrative support and the required tools to achieve operational and programmatic results; and 9) Agency Financial Operations which provides comprehensive and efficient financial management services. b. Mayor’s Proposed Fiscal Year 2017 Operating Budget i. Proposed Operating Budget Summary The Mayor’s proposed FY17 operating budget for the DISB is $26,404,148 which represents a 2.3 percent increase over its FY16 approved budget of $25,820,775.The budget is comprised of $26,279,148 in Special Purpose Revenue funds and $125,000 in Intra-District funds. Local Funds: The Mayor’s proposed FY17 budget for DISB includes no Local funds. Special Purpose Revenue Funds: The Mayor's proposed FY17 budget for DISB includes $26,279,148 in Special Purpose Revenue funds, which is a $669,000 or 2.6 percent increase from DISB’s FY16 budget. Federal Grant Funds: The Mayor’s proposed FY17 budget for DISB includes no Federal Grant funds.

47

Intra-District Funds: The Mayor’s proposed FY17 budget for DISB includes $125,000 in Intra-District funds, which is an $85,310 or 40.6 percent decrease from DISB’s FY16 budget.

Private Donations: The Mayor’s proposed FY17 budget for DISB includes no Private Donations. ii. Committee Analysis and Comments The Committee supports and recommends approval of the proposed FY17 budget for DISB. The FY17 budget proposed for DISB is $26,404,148. DISB’s budget will be increased by $583,373 or 2.3 percent from the agency’s FY16 approved budget. 99 percent of the agency’s budget comes from Special Purpose Revenue funds and one percent comes from Intra-District funds. There is an increase of $359,854 in Special Purpose Revenue funds to support projected salary step increases and fringe benefit costs. In addition, there is an increase of $308,830 in Special Purpose Revenue funds for non-personal services, which include contractual services: to modernize and streamline the District’s banking code; for actuarial services to assist with health insurance rate reviews; for local advertising for DISB programs and services; for membership dues; and for IT assessments. 41 In Intra-District funds, the agency will received $44,000 from the Department of Employment Services and $81,000 from the Department of Healthcare Finance. The funds from the Department of Employment Services will be allocated to the Bank on DC program to support MBSYEP participants. Furthermore, the funds from the Department of Healthcare Finance will be used for insurers’ assessment services. Banking The Committee is pleased that funding is being provided to contract for services to assist with the modernization of the District’s banking code. Updating and streamlining the banking code will help ensure the District is in the forefront of consumer protection and banking innovation. In addition, DISB can use this opportunity to update the law to attract additional bank branch locations in the District, especially in Wards 5, 7, and 8. In fact, one of the revisions to the banking code DISB is considering is restoring the District’s authority to charter credit unions. 42 DISB provided that this change could serve as a lower capital option for attracting financial institutions to Wards 7 and 8. 43 The Committee believes this effort, along with DISB’s Bank on DC program, will help mainstream financial services for the unbanked and underbanked District residents and small businesses. However, the Committee directs DISB to keep working to obtain its accreditation from the Conference of State Bank Supervisors (“CSBS”). Being accredited by the CSBS is important to create more opportunities to attract financial institutions to the District. Last year, the Council provided funds for DISB to implement two new programs under the State Small Business Credit Initiative program (“SSBCI”). The SSBCI was created when Congress passed the Small Business Jobs Act of 2010 (“Act”) and the funds for the SSBCI are distributed by the U.S. Department of Treasury. The purpose of the SSBCI is to strengthen state programs that support lending to small businesses. 44 The program allows states to build on successful 41

Page 3, testimony of Stephen Taylor, Commissioner, DISB (April 20, 2016). Page 28, Question 44, DISB FY15-16 Performance Oversight Hearing Questions. 43 Id. 44 http://www.treasury.gov/resource-center/sb-programs/Pages/ssbci.aspx (May 1, 2015). 42

48

models for state small business programs, including collateral support programs, capital access programs, and loan guarantee programs. 45 The two new programs created were the Loan Participation Program (“LPP”) and the DC Innovation Finance Program (“DCIFP”). These two new programs would support businesses faced with short-term cash flow problems or that need equity investments. The Committee supports the increased funding to provide DISB more resources to promote these programs to District residents and businesses. At the April 20th budget hearing, Commissioner Taylor stated that DISB has already started to promote these programs in FY16. DISB will be holding an event during National Small Business Week for small businesses to learn more about the District’s financing programs. BSA Proposal The Committee supports adding the “Risk-Based Capital Amendment Act of 2016” to the Fiscal Year 2017 Budget Support Act of 2016 (“BSA”). The proposed subtitle would ensure that DISB retains its accreditation with the National Association of Insurance Commissioners (“NAIC”) by conforming to key, nationally accepted risk-based capital standards. The risk-based capital standard gauges an insurer’s financial strength. This subtitle would amend the Risk-Based Capital Act of 1996, effective April 9, 1997 (D.C. Law 11-233; D.C. Official Code § 31-2001 et seq.), as follows: changing the trigger point for the Risk-Based Capital trend test or life insurers from 2.5 to 3.0; making the trend test more conservative and thus more protective for policyholders; and clarifying that risk-based capital standards apply to fraternal benefit societies licensed in the District will eliminate any potential confusion about the applicable standards and enhances consumer protection. If the new risk-based capital trend is not adopted by the end of this year, DISB could lose its accreditation and it could call into question the effectiveness of the agency’s solvency regulation. Not being accredited by NAIC means District-domiciled life insurers would then be subject to examination of other states, which would be burdensome. This would negatively impact the agency’s ability to attract life insurance companies to the District of Columbia, which threatens possible revenue generating for the District. c. Summary of Fiscal Year 2017 Budget Hearing Testimony The FY17 Budget Hearing for DISB was held on April 20, 2016. Copies of the witness testimony are available by request from the Council Secretary’s or Committee’s offices. Government Witness 1. Mr. Stephen Taylor, Commissioner, Department of Insurance, Securities, and Banking. 2. COMMITTEE RECOMMENDATIONS a. Fiscal Year 2017 Operating Budget Recommendations The Committee approves the FY17 operating budget for DISB as proposed by the Mayor. b. Fiscal Year 2017 Capital Budget Recommendations The Committee has no capital budget recommendations. 45

Id.

49

c. Fiscal Year 2017 Policy Recommendations For FY17, the Committee recommends the following: 1. DISB should continue to expand the Bank on DC program and modernize the Banking Code to provide more banking opportunities for the unbanked and underbanked residents in the District. 2. DISB should continue to work with the Superior Court of the District of Columbia to improve the mediation program for District residents going through the judicial foreclosure process. 3. Approval of the new Budget Support Act provision proposed by the Committee that is titled the “Risk-Based Capital Amendment Act of 2016”. The proposed subtitle would ensure that DISB retains its accreditation with the National Association of Insurance Commissioners by conforming to key, nationally accepted risk-based capital standards. d. Fiscal Year 2017 Performance Measure Recommendations For FY17, the Committee recommends the following: 1. DISB should order Group Hospitalization and Medical Services, Inc. to implement a plan for reinvesting $56 million in excess 2011 surplus. Specifically, the agency shall follow the timeline as provided in Section 3 of the Sense of the Council Regarding the 2011 Surplus Review of Group Hospitalization and Medical Services, Inc. Emergency Resolution of 2016, effective April 5, 2016 (Res. 21-462; 63 DCR 5953). 2. DISB should finish promulgating regulations for DCIFP and should host more events for District businesses, especially for CBEs, to educate them on different financing options that the agency provides. 3. DISB should complete its strategy to obtain accreditation with the CSBS.

50

F.

DEPARTMENT OF SMALL AND LOCAL BUSINESS DEVELOPMENT

1. COMMITTEE ANALYSIS AND COMMENTS a. Agency Mission and Activities The Department of Small and Local Business Development (“DSLBD”) was created pursuant to the “Small, Local, and Disadvantaged Business Enterprise Development and Assistance Act of 2005.” 46 The legislation converted the Office of Local Business Development to full Department status, and created new programmatic areas and expanded the agency’s mission to involve comprehensive small business development. DSLBD’s mission is to support the development, economic growth, and retention of Districtbased businesses, and promotes economic development throughout the District’s commercial districts. DSLBD’s vision is a business environment in which: D.C. businesses are connected in real-time with local, federal, and global business opportunities; businesses navigate government quickly, confidently, and effectively; and, every entrepreneur and business with a great idea and a great plan has the capital to make it happen. DSLBD operates through the following four divisions: • Certification; • Business Opportunities and Access to Capital; • Commercial Revitalization; and • Agency Management The Certification Division processes applicants into the Certified Business Enterprise (“CBE”) program. It also monitors, tracks, and reports the activities of District government agencies and non-government project partners to ensure compliance with set-aside goals regarding the utilization and participation of CBEs. The Certification Division contains the following activities: •

Certification – processes and issues certifications designating a District-based small business as a CBE, conducts inspections to ensure businesses are in compliance with District regulations, and monitors, tracks, and reports the activities with certification regulations. It also responds to complaints regarding non-compliant certified companies; and



Compliance – provides oversight of District Government agencies and non-government projects to ensure compliance with District regulations regarding CBE utilization and participation pursuant to District Law 16-33, the “Small, Local, and Disadvantaged Business Enterprise Development and Assistance Act of 2005”.

The Business Opportunities and Access to Capital Division provides District-based businesses with the knowledge and capacity-building tools necessary to form, develop, grow, and expand by offering and providing classes, training, technical assistance, and advocacy to promote greater participation in local, federal, and private-sector opportunities. This division contains the following five activities:

46

“Small, Local, and Disadvantaged Business Enterprise Development and Assistance Act of 2005”, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code §2-218.01 et. seq).

51



Capital Acquisition – expands business opportunities for CBE’s by increasing the availability of start-up, working equity, and development capital bonding; this division partners with lending institutions to provide financial tools; and providing targeted technical assistance that will allow for greater opportunities in the lending process;



Procurement Technical Assistance – provides District-based small businesses with support to prepare for and gain access to federal government procurement opportunities;



Business Development – provides support, resources, and technical assistance to current or prospective business owners by providing one-on-one counseling, monthly training courses, and workshops to address a broad variety of start-up and development issues from establishing a business to building business credit and finding loans; promotes and advocates for small and local businesses headquartered in the District of Columbia; and is responsible for increasing opportunities for small business participation in the procurement process within the public and private sectors and communicating industryspecific business opportunities;



Trade and Export – provides training, targeted services, trade mission support, and business opportunity identification in order to increase the number of District small businesses that export, grow the dollar value of exports from District businesses, and coordinate trade missions for qualified District-based businesses; and



Technology and Innovation – provides support and assistance for technology companies pursuing opportunities in the development of Small Business Innovation and Research (“SBIR”) and Small Business Technology Transfer (“STTR”) program applications; develops and delivers training and technical assistance sessions, as well as unique multisector events designed to support District technology entrepreneurs launch and grow their businesses; leverages expertise in federal and private commercialization practices to generate competitive grant applications for District-base small business.

The Commercial Revitalization Division provides technical and funding assistance that supports, promotes, and fosters economic development in commercial districts as well as the retention, recruitment, and enhancement of small businesses throughout the city. The division contains the following activities: •

Capacity Building – provides oversight, funding, compliance monitoring, and support for the growth and development of neighborhood businesses, and manages grants to community-based organizations;



Main Streets – fosters retail investment in the District by providing services and funding to help communities retain and recruit businesses, improve commercial properties and streetscapes, and attract consumers;



Commercial Clean Teams – maintains commercial corridors; enhances litter clean-up efforts through the removal of debris from streets, sidewalks and storefronts; and removes graffiti and illegal sign postings within designated clean team service-delivery areas; and



Healthy Food Programs – facilitates increased supply and demand for healthy foods in accordance with the Food, Environment, and Economic Development (“FEED”) DC Act 52

through the provision of technical assistance with regard to the purchase, marketing, and maintenance of health foods in District of Columbia food deserts. The Agency Management division provides for administrative support and the required tools to achieve operational and programmatic results. This division is standard for all agencies using performance-based budgeting. b. Mayor’s Proposed FY 2017 Operating Budget: i. Proposed Operating Budget Summary The Mayor’s proposed FY17 operating budget for DSLBD is $10,993,325. The proposed budget is a 6.3 percent increase of $655,000 from the agency’s FY16 approved budget. The number of authorized FTEs supported by the proposed budget is 48, which is an increase of two FTE’s than in its FY16 approved budget. Local Funds: The Mayor’s proposed FY17 budget for DSLBD includes $10,415,000 in Local funds, which is an increase of $772,000 from its approved FY16 budget. Special Purpose Revenue Funds: The Mayor’s proposed FY17 for DSLBD budget includes no Special Purpose Revenue funds. Federal Grant Funds: The Mayor’s proposed FY17 budget for DSLBD includes $578,662 in Federal Grant funds, which is a decrease of $117,000 from its FY16 approved budget. Intra-District Funds: The Mayor’s proposed FY17 budget for DSLBD includes no IntraDistrict funds. Private Donations: The Mayor’s proposed FY17 budget for DSLBD includes no Private Donations. ii. Committee Analysis and Comments The Committee supports and recommends approval of the FY17 proposed budget for DSLBD and with some minor changes. The proposed FY17 budget for DSLBD is $10,993,325, an increase of $655,000 from its FY16 approved budget. The number of authorized FTEs supported by the proposed budget is 48, which is an increase of two FTE’s from its FY16 approved budget. The Committee supports the increase of two additional FTE’s to strengthen the certification division. Commercial Revitalization The proposed budget increases funding for the Commercial Revitalization division by $920,000. $520,000 would be used to support the living wage increase for the Clean Teams and to support the creation of four new Clean Teams. Clean Teams have been a huge success, with over 85 District residents being hired. 47 In addition, in FY16 the Clean Teams were responsible for collecting over five million pounds of litter and recyclables and abated graffiti from 2,500

47

Page 4, testimony of Ana Harvey, Director, DSLBD (April 20, 2016).

53

properties. 48 The Committee supports the funding for the four new Clean Teams which will be located in the following areas: 1) Upper Georgia Avenue Clean Team (Ward 4) -Georgia Avenue, NW between Quackenbos Street and Eastern Avenue. 2) Eastern Avenue Clean Team (Ward 7) -Western side of Eastern Avenue, NE from Sherriff Road to Division Avenue -Western side of Eastern Avenue, NE at Dix Street 3) Bellevue Clean Team (Ward 8) -3700 block of Martin Luther King Jr. Avenue SE -South Capitol Street from Xenia Street SE to Brandywine Street, SW/SE -Atlantic Street, SE/SW -Intersection of Elmira Street SW and South Capitol Street SW/SE 4) Lower Georgia Avenue Clean Team (Ward 1) -Georgia Avenue, NW between Florida and New Hampshire Avenues -11th Street, NW from Kenyon Street to Monroe Street -1000 block of Harvard Street, NW The Committee recommends accepting $120,000 from the Committee on Health and Human Services to fund the Ward 7 Clean Teams. The Committee also recommends accepting $135,000 from the Committee on Transportation and the Environment for the creation of a Glover Park Clean Team. Furthermore, the Committee recommends transferring $19,000 from the Clean Teams program to the Office of Tenant Advocate (“OTA”). The funds will be used to fix an employee misclassification issue at OTA. Furthermore, the Committee recommends maintaining the funding for the current Main Street Organizations from $125,000 to $129,636. Also, the Committee recommends providing $204,636 to fund the creation of a Columbia Heights-Mount Pleasant Main Street in Ward 1. Funding for the eleven Main Streets are as follows: Barracks Row Main Street

$129,636.00

Ward 6

Congress Heights Main Street

$129,636.00

Ward 8

Deanwood Heights Main Street

$129,636.00

Ward 7

H Street Main Street

$129,636.00

Ward 6

North Capitol Main Street

$129,636.00

Ward 5

Tenleytown Main Street

$129,636.00

Ward 3

48

Id.

54

Shaw Main Street

$129,636.00

Wards 1, 2, & 6

$129,636.00

Wards 1 & 2

$129,636.00

Ward 5

$129,636.00

Ward 3

$204,636.00

Ward 1

Dupont Circle Main Street Rhode Island Avenue NE Main Street Van Ness Main Streets Columbia Heights-Mount Pleasant (New Main Street for FY17) Procurement Technical Assistance The Committee supports the proposed budget of $535,000 for the Procurement Technical Assistance Program (“PTAP”). The Committee believes this funding level is sufficient, even though there is a $35,000 decrease from the agency’s FY16 approved budget. This is an important program that connects CBE’s with federal contracting opportunities. Trade and Export The Committee raises concerns about the proposed budget decrease of $289,000 to support the Trade and Export program at DSLBD. The program funding in the proposed budget is $116,000. The Committee supports DSLBD’s commitment to help CBE’s export more goods and services and to help them succeed globally and create more prosperity in the District. Business Opportunities and Access to Capital The Committee is pleased with the administration’s efforts to expand CBE opportunities by increasing the use of business startup capital, working equity, bonding and developmental capital. The Committee would like to see DSLBD focus on providing access to capital to District CBE’s to help them grow into successful businesses. The Committee also supports the increase of $300,000 in one-time funding to support Emerging BIDs. Director Harvey, at the April 20, 2016 budget hearing, stated that this funding will help the agency continue its work in bolstering our businesses. 49 DSLBD will use the funding to help Historic Dupont Circle Main Street, H Street Main Street, Shaw Main Street, Congress Heights Community and Training Development Corporation, and Mid-City Business Improvement District with their BID application process. The Committee also recommends accepting $221,194 in recurring funds from the Committee on Transportation and the Environment to fund the Made in DC Program Establishment Act of 2016, passed on 2nd reading on April 19, 2016 (Enrolled version of Bill 21-514) (“Made in DC Act”). The funds will be used to hire two new FTEs for this division and to provide $60,000 in nonpersonal services to help implement the bill. Certification and Compliance 49

Id.

55

The Committee applauds the initial improvements identified in this area and will continue to monitor ongoing progress with the certification division. In addition, the Committee supports the efforts of DSLBD to increase customer service training for employees, while providing additional workshop training for the CBE community. The Committee will continue to monitor progress in customer service and certification very closely. The Committee applauds the noticeable progress that District agencies have made in meeting their 50% certified business enterprise (“CBE”) expendable budget spending goals thus far in FY16. In addition, the Committee supports the additional $170,000 in Local funds to hire two FTEs in the Compliance division. According to Director Harvey, these new resources will bolster DSLBD’s efforts to monitor compliance of CBE utilization on public and public-private development projects. 50 BSA proposal The Committee recommends including a new subtitle in the Fiscal Year 2017 Budget Support Act of 2016 (“BSA”), entitled the “Business Improvement Districts Charter Renewal Amendment Act of 2016”. This new proposed subtitle would: 1) modernize and clarify the Business Improvement District (“BID”) charter renewal process under the Business Improvement Districts Amendment Act of 2014, effective February 25, 2015 (D.C. Law 20-161, D.C. Official Code § 2-1215.01 et seq.) (“2014 Act”), and 2) eliminate the 20 year sunset provision that was enacted in the Business Improvement District Act of 1996, effective May 29, 1996 (D.C. Law 11-134; D.C. Official Code § 2-1215.01 et seq.)("1996 Act"). The Committee also recommends adding the “Made in DC Program Subject to Appropriations Repealer Amendment Act of 2016” to the BSA. The proposed subtitle would amend the Made in DC Act by repealing the subject to appropriation section. Since the Committee is allocating money to fund the Made in DC Act in the FY17 budget, this amendment needed to ensure the bill becomes effective at the beginning of the fiscal year. c. Summary of Fiscal Year 2017 Budget Hearing Testimony The FY17 Budget Hearing for DSLBD was held on April 20, 2016. Copies of witness testimony are available by request in the Council Secretary’s and Committee’s offices. Public Witnesses 1. Florence Martelli, Interim Director, DC Women’s Center, National Community Reinvestment Coalition 2. Alexander M. Padro, Executive Director, Shaw Main Streets, Inc. 3. Anwar Saleem, CMSM, Executive Director, H Street Main Street, Inc. 4. Kyle Todd, Executive Director, RIA Main Street 5. Bill McLeod, Executive Director, Historic Dupont Circle Main Streets 6. Kristen Barden, Executive Director, Adams Morgan Partnership BID 7. Martin Smith, Executive Director, Barracks Row Main Street 8. Leigh Catherine Miles, Executive Director, Tenleytown Main Street 50

Id. at page 6.

56

9. Edward Grandis, Executive Director, Anacostia Bid 10. Josue Salmeron, Deputy Director, Collaborative Solutions for Communities 11. Demetris Cheatham, Executive Director, North Capitol Main Street 12. Evette Banfield, Director of Economic Development Policy, Coalition for Nonprofit Housing and Economic Development 13. Deborah Jones, Executive Director, Ward 7 Business Partnership 14. Sylvia Robinson, Public Witness 15. Manuel Cortes, Public Witness 16. Terry McDonald, Public Witness 17. Alex Golding, Public Witness 18. Mary Quillian, Public Witness 19. Kathleen Donahue, Public Witness 20. Chuck Burger, Public Witness 21. Charlie Whitaker, Chief Executive Officer, Career Path DC 22. Vincent Garrett, Crew Member 23. Lonnid Jackson, Crew Member 24. Darnell Jackson, Crew Member 25. Ryan Whisonant, Crew Member 26. Dorian Duvall, Crew Member 27. Montel Simon, Crew Member 28. Michael Jackson, Crew Member 29. Paul Willis, Crew Member 30. Wendell Ricks, Crew Member 31. Neville Johnson, Crew Member 32. Richard Mize, Crew Member 33. Romeo Morgan, Morgan’s Seafood 34. Phil Lepanto, Old School Hardware 35. Andre” Byers, President & CEO, Development Corporation of Columbia Heights Government Witnesses 1. Ana Harvey, Director, Department of Small and Local Business Development 2. COMMITTEE RECOMMENDATIONS a. Fiscal Year 2017 Operating Budget Recommendation The Committee approves the FY17 operating budget for DSLBD as proposed by the Mayor with the following changes: 1. Transfer-in of $356,194 from the Committee on Transportation and the Environment: - $135,000 to create Glover Park Clean Team in Ward 3 Program 4000 – Commercial Revitalization (Activity Code: 4040-Commercial Clean Teams) - $221,194 for the Made in DC Program o $161,194 (Two) Positions (Grade 13-Program Manager & Grade 11-Staff Assistant) for the Made in DC Program o $60,000 in NPS Cost for Made in DC Program 57

Program 3000 – Business Opportunities (Activity Code 3060 – Business Development) 2. Transfer-in of $120,000 from the Committee on Health and Human Services: - Ward 7 Clean Teams Program 4000 – Commercial Revitalization (Activity Code: 4040-Commercial Clean Teams) 3. Decrease of $120,000 from Clean Teams to Main Streets ($101,000) and Office of Tenant Advocate ($19,000) Program 4000 – Commercial Revitalization (Activity Code: 4040-Commercial Clean Teams) 4. Create Columbia Heights-Mount Pleasant Main Street in Ward 1 @ $204,636 b. Fiscal Year 2017 Capital Budget Recommendations The Committee has no capital budget recommendations. c. Fiscal Year 2017 Policy Recommendations For FY17, the Committee recommends the following: 1. Approval of the new Budget Support Act provision proposed by the Committee entitled the “Business Improvement Districts Charter Renewal Amendment Act of 2016”. The proposed subtitle would: 1) clarify the Business Improvement District charter renewal process and 2) eliminate the 20 year sunset provision. 2. Approval of the new Budget Support Act provision proposed by the Committee entitled the “Made in DC Program Subject to Appropriations Repealer Amendment Act of 2016”. The proposed subtitle would amend the Made in DC Program Establishment Act of 2016 by repealing the subject to appropriation section. 3. DSLBD should ensure District agencies meet and exceed the District-wide CBE expenditures goals. 4. DSLBD should increase training and oversight to reduce the number of agency CBE waivers and special exceptions. 5. DLSBD should expand the newly launched CEO Growth Academy. d. Fiscal Year 2017 Performance Measure Recommendations For FY17, the Committee recommends the following: 1. DSLBD’s Commercial Revitalization Division should target 3,000 graffiti removals. 2. DSLBD should reduce the average number of days to complete new CBE certifications to 25 business days. 58

G.

OFFICE OF CABLE TELEVISION, FILM, MUSIC, AND ENTERTAINMENT

1. COMMITTEE ANALYSIS AND COMMENTS a. Agency Mission and Overview The mission of Office of Cable Television, Film, Music, and Entertainment (“OCTFME”) is to create a sustainable entertainment industry in the District. In addition, the agency (1) regulates the provision of “cable service” in the District of Columbia; (2) protects and advances the cable television-related interests of the District and its residents; and (3) produces live and recorded video and other programming by way of the District’s public, educational, and government (“PEG”) cable channels. Lastly, OCTFME implements, manages, and administrates programs, initiatives, and services that support the film, television, music, and entertainment industry’s economic activity, growth, and employment in the District of Columbia. OCTFME offers various services to local and out-of-state film, television, video, music, entertainment, interactive, multimedia, and digital media content creators, including: production and parking permitting; location scouting; production support; hotel, restaurant, and transportation assistance; and job placement assistance. The office will engage the community to create a greater understanding of the media industry as a whole, the content/media-making process, and the professional skills required to become a marketable media industry professional. Lastly it serves as a liaison between the media industry and District residents, local government, federal government, local businesses, business development groups, and non-profits. In addition, OCTFME is responsible for regulating cable television in the District. OCFTME is also responsible for the administration of the District’s government access channels, District Council Channel (“DCC”), District of Columbia Network (“DCN”), District's Education Access Channel, and the District Knowledge Network (“DKN”). OCTFME creates content that informs, educates, and entertains viewers via the District of Columbia’s public, educational, and government channels and other forms of content outlets. OCFTME operates through 3 programs: 1) Office of Cable Television, which provides programming and regulates cable television in the District; 2) Office of Motion Picture, which promotes the movie and entertainment industry in the District; and 3) Agency Management which provides administrative support and the required tools to achieve operational and programmatic results. b. Mayor’s Proposed Fiscal Year 2017 Operating Budget i. Proposed Operating Budget Summary The Mayor’s proposed FY17 operating budget for OCTFME is $11,964,082, which is a 12 percent decrease from its FY16 approved budget. The budget is comprised of $1,624,586 in Local funds and $10,339,496 in Special Purpose Revenue funds. Local Funds: The Mayor’s proposed FY17 budget for OCTFME includes $1,624,586 in Local funds. 59

Special Purpose Revenue Funds: The Mayor’s proposed FY17 budget for OCTFME includes $10,339,496 in Special Purpose Revenue funds. Federal Grant Funds: The Mayor’s proposed FY17 budget for OCTFME includes no Federal Grant funds. Intra-District Funds: The Mayor’s proposed FY17 budget for OCTFME includes no IntraDistrict funds. Private Donations: The Mayor’s proposed FY17 budget for OCTFME includes no Private Donations. ii. Committee Analysis and Comments The Committee supports and recommends approval of the proposed FY17 proposed budget for OCTFME. The proposed budget for the agency is $11,964,082. The proposed funding supports 48.5 FTE’s. The FY17 budget is comprised of $1,624,586 in Local funds and $10,339,496 in Special Purpose Revenue funds. The agency will see a 12 percent decrease of $1,637,000 from its approved FY16 budget. Cable Television The Committee is pleased and supports the funding that is provided in the FY17 budget for the Cable Television division at OCTFME. The division will see a minimal increase in its budget and will be provided funding to hire additional employees. The main mission of the agency is the regulation of Cable Television. Over 80 percent of OCTFME’s budget comes from the franchise payments made by RCN, Comcast, and Verizon. Currently, the District government is in franchise renewal negotiations with Comcast and RCN. As expressed last year in the Committee’s budget report, this Committee is concerned that these negotiations have taken so long to be completed. The Comcast franchise agreement expired more than three years ago. The Committee urges the agency to complete negotiations and transmit the renewal package to the Council as soon as possible, and certainly by the end of the year. Film, Music, and Entertainment The Committee continues to believe that the funding level proposed for the DC Film Incentive Fund is insufficient to aggressively market the District as a major player to recruit more film and television productions in the nation’s capital. Once again, the District lags far behind both Maryland and Virginia in state investments in the movie and entertainment industry. The District has the third largest film industry in the country; however, it is declining because the lack of a functioning and profitable incentive program is depriving the local industry of a base load of work and talent. A well ran successful film incentive fund could bring in a net return of .50 cents for every $1.00 invested. According to Deputy Director Niles, at the April 25 budget hearing, the agency’s re-activated production incentive rebate program has been a success and the agency anticipates it that will 60

assign all available program funds by the end of FY16. 51 Furthermore, based on the anticipated impact of the investments, the agency expects a total of 1,142 District resident hires and up to $4.1 million in wages paid to District residents. 52 With these returns on the dollars invested in the program in FY16 the Committee is disappointed in the amount of money put into the fund in FY17. BSA proposal The Committee supports the legislative proposal in the Fiscal Year 2017 Budget Support Act of 2016 entitled the “Office of Cable Television, Film, Music, and Entertainment Amendment Act of 2016” The proposed subtitle provides for several technical and conforming amendments to the current law to address the agency’s statutory authority. In addition, the proposed subtitle aligns the powers and responsibilities of the agency to the budgetary authority given to the agency when it was created by the consolidation of the Office of Cable Television and the Office of Motion Picture and Television Development. c. Summary of Fiscal Year 2017 Budget Hearing Testimony The FY17 Budget Hearing for OCTFME was held on April 25, 2016. Copies of the witness testimony are available by request from the Council Secretary’s or Committee’s offices. Government Witness 1. Herbert Niles, Deputy Director, Office of Cable Television, Film, Music, and Entertainment 2. COMMITTEE RECOMMENDATIONS a. Fiscal Year 2017 Operating Budget Recommendations The Committee approves the FY17 operating budget for OCTFME as proposed by the Mayor. b. Fiscal Year 2017 Capital Budget Recommendations The Committee approves the FY17 capital budget for OCTFME as proposed by the Mayor. c. Fiscal Year 2017 Policy Recommendations For FY17, the Committee recommends the following: 1. Approval of the Mayor’s Budget Support Act proposal contained in Title II, Subtitle F, the “Office of Cable Television, Film, Music, and Entertainment Clarification Amendment Act of 2016”. The proposed subtitle provides several technical and conforming amendments to the current law to address the agency’s statutory authority. 2. OCTFME should continue to work with other District agencies to craft a comprehensive and targeted strategic plan to aggressively expand the “creative economy” in the District.

51 52

Page 5, testimony of Herbert Niles, Deputy Director, OCTFME (April 25, 2016). Id.

61

3. OCTFME should continue to engage, promote, and support local, aspiring, young, and emerging filmmakers in the District. 4. OCTFME should expand its outreach to more District public schools to nurture and cultivate more District youth in the film, music, and entertainment industry. d. Fiscal Year 2017 Performance Measure Recommendations For FY17, the Committee recommends the following: 1. OCTFME should add the number and amount of funds distributed from the Film, Television and Entertainment Rebate Fund as a key performance indicator to track the District’s ability to use the Film, Television and Entertainment Rebate Fund to attract film and television productions to the District. 2. OCFTME should complete the franchise renewal negotiations with Comcast and RCN.

62

H.

OFFICE OF THE DEPUTY MAYOR FOR GREATER ECONOMIC OPPORTUNITY

1. COMMITTEE ANALYSIS AND COMMENTS a. Agency Mission and Overview The Office of the Deputy Mayor for Greater Economic Opportunity (“DMGEO”) is a new agency created by the Mayor. The mission of the office is to facilitate investment and job creation in underserved communities in the District in order to improve economic opportunities for residents in those communities. In addition, the office is charged with helping tailor and coordinate District economic development tools and other programs to spur growth and expand opportunity in District neighborhoods. The DMGEO will have oversight of the following agencies: the Department of Employment Services, the Department of Small and Local Business Development, the Office of African American Affairs, the Commission on Fathers, Men, and Boys, and the Workforce Investment Council. b. Mayor’s Proposed Fiscal Year 2017 Operating Budget i. Proposed Operating Budget Summary The Mayor’s proposed FY17 operating budget for DMGEO is $3,341,304, which is a 378.7% increase over its FY16 approved budget of $698,000. This budget is comprised of $2,946,433 in Local funds and $394,871 in Intra-District funds. Local Funds: The Mayor’s proposed FY17 budget for DMGEO includes $2,946,433 in Local funds. The proposed funding supports 14 FTE’s. Special Purpose Revenue Funds: The Mayor’s proposed FY17 budget for DMGEO includes no Special Purpose Revenue funds. Federal Grant Funds: The Mayor’s proposed FY17 budget for DMGEO includes no Federal Grant funds. Intra-District Funds: The Mayor’s proposed FY17 budget for DMGEO includes $394,871 in Intra-District Grant funds, to support 4 FTE’s. Private Donations: The Mayor’s proposed FY17 budget for DMGEO includes no Private Donations ii. Committee Analysis and Comments The Committee supports and recommends approval of the Mayor’s proposed FY17 budget for the DMGEO. The proposed budget is $3,341,304 for a total of 18 FTE’s in several different offices. The DMGEO has an important charge to ensure that government is most effectively and efficiently serving the District’s most vulnerable residents and communities. The Committee supports the additional funding to provide resources and strengthen the oversight capacity of DMGEO. Specifically, DMGEO added 3 FTE’s to increase the office staff to 8. The budget also 63

provides $121,000 and one FTE for the Office of African-American Affairs. In addition, the budget provides for $188,000 and two FTE’s for the Commission of Fathers, Men and Boys. The Committee applauds the Mayor for moving oversight of the WIC from the Office of the Deputy Mayor for Planning and Economic Development to DMGEO. 53 Providing the DMGEO with oversight of the WIC, the Department of Employment Services, and the Department of Small and Local Business Development will give Deputy Mayor Snowden the opportunity to work at the forefront of workforce development, training, and small business development issues to make sure residents are connected with employment and entrepreneurship opportunities. 54 Further, this move is consistent with the pronounced mandate to create real economic development opportunities in underserved communities in the District, particularly in Wards 7 and 8. The Committee believes that an important component of greater employment opportunities is a fully functional workforce development plan. The WIC is a private-sector led board that works on creating an effective workforce investment system and is under the purview of this Committee. The Committee is pleased that substantial progress is being made, namely that the DC WIOA United State Plan has been submitted to the U.S. Department of Labor and U.S. Department of Education on March 31, 2016. 55 The Committee also believes that placing the oversight of WIC under the DMGEO, gives the DMGEO the tools necessary to get the District off of the U.S. Department of Labor’s “high-risk” designation list. The Committee is pleased that the DMGEO has taken lead to address this effort and is making sure the District is spending its Federal Grant funds for its workforce development programs. BSA proposal The Committee recommends approval of the “Adult Career Pathways Implementation Amendment Act of 2016”, which was included in the Fiscal Year 2017 Budget Support Act of 2016. The proposed subtitle would allow for alternative sources of funding for the Adult Career Pathways program. This amendment is necessary to allow the WIC to use alternative sources of funding for the Adult Career Pathways program in the event there are insufficient monies available in the Unemployment and Workforce Development Administrative Fund (“Fund”). The Fund is projected to run a spending pressure so this change will allow the WIC to use alternative sources of to implement the Adult Career Pathways program. c. Summary Fiscal Year 2017 Budget Hearing Testimony The FY17 Budget Hearing for DMGEO was held on April 20, 2016. Copies of witness testimony are available by request from the Council Secretary’s and Committee’s offices. Public Witness 1. Ilana Boivie, Senior Policy Analyst, DC Fiscal Policy Institute 53

Mayor’s Order 2015-232, October 20, 2015. Page 4, testimony of Courtney Snowden, Deputy Mayor, DMGEO (April 20, 2015). 55 Id. at page 3. 54

64

Government Witness 1. Courtney R. Snowden, Deputy Mayor, Office of Deputy Mayor for Greater Economic Opportunity. 2. COMMITTEE RECOMMENDATIONS a. Fiscal Year 2017 Operating Budget Recommendations The Committee approves the FY17 operating budget for DMGEO as proposed by the Mayor. b. Fiscal Year 2017 Capital Budget Recommendations The Committee has no capital budget recommendations. c. Fiscal Year 2017 Policy Recommendations For FY17, the Committee recommends the following: 1. Approval of the Budget Support Act proposal contained in Title II, Subtitle J, the “Adult Career Pathways Amendment Act of 2016”. The proposed subtitle would allow the Workforce Investment Council to find alternative sources of funding for the Adult Career Pathways program. 2. DMGEO should continue to support the creation of more businesses in Wards 7 and 8. 3. DMGEO should continue to find solutions to provide more employment opportunities for District residents residing in Ward 7 and 8. d. Fiscal Year 2017 Performance Measure Recommendations For FY17, the Committee recommends the following: 1. DMGEO should strive to get the District off of the U.S. Department of Labor’s “high-risk” designation list.

65

I.

OFFICE OF THE PEOPLE’S COUNSEL

1. COMMITTEE ANALYSIS AND COMMENTS a. Agency Mission and Overview The mission of the Office of the People’s Counsel (“OPC”) is to advocate for the provision of safe and reliable quality utility service and equitable treatment at rates that are just, reasonable, and nondiscriminatory; assist individual consumers in disputes with utility providers; provide technical assistance, education and outreach to consumers and ratepayers, community groups, associations and the Consumer Utility Board; and provide legislative analysis and information to the Council of the District of Columbia on matters relating to utilities. OPC’s mission further includes consideration of the District’s economy and promotion of the environmental sustainability of the District. OPC is a party to all utility-related proceedings before the PSC and represents the interests of District ratepayers before local and federal regulatory agencies and courts. OPC may represent and appear for petitioners appearing before the PSC for the purpose of complaining in matters of rates or services. 56 In determining whether to represent a petitioner, OPC reviews the facts and law of the case and determines whether the petitioner’s complaint has merit. Furthermore, OPC assists individual consumers in disputes with utility companies about billing or services and provides consumer education and outreach to community groups and associations on emerging issues impacting the quality, reliability, and affordability of their utility services and associated environmental issues. OPC provides technical assistance to consumers, the Consumer Utility Board (“CUB”), as well as other District community groups. Also, OPC provides legislative analysis for, assistance to, and testimony before, the Council of the District of Columbia on utility matters. OPC operates three programs: 1) Office of People’s Counsel, which provides consumer advocacy for utility consumers in the District; 2) Agency Management, which provides administrative support and the required tools to achieve operational and programmatic results; and 3) Agency Financial Operations, which provides comprehensive and efficient financial management services to, and on behalf of, OPC so that the financial integrity of OPC is maintained.

b. Mayor’s Proposed Fiscal Year 2017 Operating Budget i. Proposed Operating Budget Summary The Mayor’s proposed FY17 operating budget for OPC is $7,436,354, which represents a 2.8 percent reduction from its FY16 approved budget of $7,648,091. The budget is comprised entirely of Special Purpose Revenue funds. Local Funds: The Mayor’s proposed FY17 budget for OPC includes no Local funds. Special Purpose Revenue Funds: The Mayor's proposed FY17 budget for OPC includes $7,436,354 in Special Purpose Revenue funds.

56

D.C. Official Code § 34-804(d)(3).

66

Federal Grant Funds: The Mayor’s proposed FY17 budget for OPC includes no Federal Grant funds. Intra-District Funds: The Mayor’s proposed FY17 budget for OPC includes no IntraDistrict funds. Private Donations: The Mayor’s proposed FY17 budget for OPC includes no Private Donations. ii. Committee Analysis and Comments The Committee supports and recommends approval of the proposed FY17 budget for OPC, with a minor increase of $60,931 to allow OPC to hire its DC LEAP intern on a full-time basis. The FY17 proposed budget for OPC is $7,436,354. OPC’s budget is comprised solely from Special Purpose Revenue funds which are derived from assessing utility companies in the District. OPC’s budget is decreased by $212,000 or 2.8 percent from OPC’s FY16 approved budget. There is an increase of $368,048 in personal services to fund projected salary adjustments, step increases, and fringe benefit costs associated with salary adjustments. The agency has taken full advantage of the District’s LEAP Program, which provides District agencies with interns who are paid by the Department of Employment Services. OPC plans to hire one intern to a permanent position in the energy efficiency and sustainability section in FY17. 57 The Committee recommends accepting $60,931 from the Committee on Transportation and the Environment to provide the necessary funds to increase OPC’s FTE level from 40.4 to 41.4 for FY17 in order to accommodate this new hire. The agency’s non-personal services budget for FY17 is $2,129,000, a reduction of $580,000 from the FY16 budget. This decrease reflects the elimination of one-time funding of $250,000 in contractual services designated for two Council mandated studies, a reduction of $374,000 in building rent due to the renegotiation of the agency’s building lease, and a net reduction of $26,000 in equipment. The two studies mandated by the Council are “Emerging Alternatives for Energy Choice for Residential Customers” and “Outreach and Education of Low-Income Elderly Residents Regarding the Benefits of Energy-Efficiency Programs”. OPC has selected a nationally recognized utility industry specialist who will work in conjunction with a local CBE vendor in order to produce a white paper on current solar value, capacity and policy. 58 OPC convened a focus group in 2016 with senior advocates in order to determine what makes it difficult for senior and low income consumers to receive energy efficiency services. OPC is preparing a report on its findings that will guide the agency in the preparation of the final RFP. 59 OPC has been busy with consumer and education outreach completing over 80 outreach events in FY16 to date, dealing with 1,400 consumer complaints, and working on cases which include rate case proceedings, the Exelon Acquisition of Pepco, the DC Power Line Undergrounding Project, and the Washington Gas Light Accelerated Pipeline Replacement project in an effort to save consumers thousands of dollars. 60 Through outreach and education, OPC continues to

57

Page 3, testimony of Sandra Mattavous-Frye, People’s Counsel, OPC (April 25, 2016). Id. at page 5. 59 Id. 60 Id. at page 7. 58

67

develop a collaborative network of providers to prevent consumers from falling through the cracks and losing access to their utilities.61 The Committee believes, that with the exception of the need for one FTE to provide the agency’s LEAP Program Intern with a permanent position, OPC has sufficient staffing and funding levels. The Committee notes that in the FY15 budget, OPC was provided funds to hire two new FTEs to provide support OPC’s work on the DC Power Line Undergrounding Project and on the Washington Gas Light Accelerated Pipeline Replacement proceeding. 62 The Committee will continue to monitor the budget of OPC as they provide an invaluable service to the residents of the District of Columbia. c. Summary of Fiscal Year 2017 Budget Hearing Testimony The FY17 Budget Hearing for OPC was held on April 25, 2016. Copies of the witness testimony are available by request from the Council Secretary’s or Committee’s offices. Public Witnesses 1. Rebekah D. Mason, Staff Attorney, AARP/Legal Counsel for the Elderly 2. Anna Bobo, Columbus Property Management Government Witness 1. Ms. Sandra Mattavous-Frye, People’s Counsel, Office of the People’s Counsel 2. COMMITTEE RECOMMENDATIONS a. Fiscal Year 2017 Operating Budget Recommendations The Committee approves the FY17 operating budget for OPC as proposed by the Mayor with the following changes: 1. Transfer-in of $60,931 from the Committee on Transportation and the Environment: - Convert DOES Leap Positon into a permanent position (Salary and Fringe) b. Fiscal Year 2017 Capital Budget Recommendations The Committee has no capital budget recommendations. c. Fiscal Year 2017 Policy Recommendations The Committee has no policy recommendations. d. Fiscal Year 2017 Performance Measure Recommendations The Committee has no performance measure recommendations.

61 62

Id. Page 93, Committee on Government Operations FY 2015 Budget Report.

68

J.

OFFICE OF RISK MANAGEMENT

1. COMMITTEE ANALYSIS AND COMMENTS a. Agency Mission and Overview The mission of the Office of Risk Management (“ORM”) is to reduce the probability, occurrence and cost of risk to the District of Columbia government through the provision of risk identification and insurance analysis and support to District agencies by efficiently and fairly administering the District’s public sector workers’ compensation, tort liability, and captive insurance programs.

ORM operates through the following 5 divisions: The Risk Prevention and Safety division conducts risk management assessments of District agencies’ facilities and operations by identifying gaps in risk management practices, conducting building inspections, making related recommendations and overseeing their implementation, providing risk management training to District employees, and overseeing the formulation of agency emergency response plans. The risk control measures are implemented to reduce the District’s liability associated with the particular risk. The Insurance division administers the Captive Insurance Agency. The mission of the Captive Insurance Agency is to provide medical malpractice insurance for local non-profit health centers, as well as property insurance for District government real property assets. The Captive was created by statute in 2008 and is administered by the Chief Risk Officer. The Public Sector Workers’ Compensation division responds to workplace injuries with the best, most appropriate medical care at a reasonable cost, and it attempts to return employees to work as soon as medically possible. ORM oversees this program through a third-party administrator. This program contains two activities: 1) The Return-to-Work program, which designed to provide injured employees with the best medical treatment as well as avenues by which the employees can quickly return to the workforce; and 2) the Claims Examination and Management program, which oversees the processing of claims for public sector workers’ compensation benefits that are filed. The Tort Liability division investigates and resolve tort liability claims filed against the District. This division also pursues subrogation claims against third parties who acts have damaged District government property. The Agency Management Division provides for administrative support and the required tools to achieve operational and programmatic results. ORM also oversees the Employees’ Compensation Fund, which provides fiscal resources to administer the Workers’ Compensation Program for District of Columbia public sector employees and to pay the required claims costs of eligible claimants, pursuant to applicable District laws. b. Mayor’s Proposed Fiscal Year 2017 Operating Budget i. Proposed Operating Budget Summary

69

The Mayor’s proposed FY17 budget for ORM is $4,051,897, which is an increase of 38.6 percent from its FY16 approved budget. This funding supports 36 FTE’s, which is an increase of 11 additional FTE’s from FY16. The Captive Insurance Agency’s operating budget has increased 55 percent from its FY16 budget, making the proposed FY17 budget $2,308,123. The increase in funding from FY16 totals $819,590. The increase in funding provides the authority to hire an Executive Director to manage the Captive Insurance Agency. The proposed budget for the Employees’ Compensation Fund is $21,521,002, which represents an increase of $1,300,000 or 6.4% over its FY16 approved budget. The staff managing the fund is funded through ORM’s budget. The proposed budget is comprised entirely of Local funds. Local Funds: The Mayor’s proposed FY17 budget in Local funds are as follows: 1) $4,051,897 for ORM. 2) $2,308,123 for the Captive Insurance Agency. 3) $21,521,002 for the Employees’ Compensation Fund. Special Purpose Revenue Funds: The Mayor’s proposed FY17 budget for the Captive Insurance Agency includes $236,590 in Special Purpose Revenue funds. ORM and the Employee’s Compensation Fund includes no Special Purpose Revenue funds. Federal Grant Funds: The Mayor’s proposed FY17 budget for ORM, the Captive Insurance Agency and the Employees’ Compensation Fund includes no Federal Grant funds. Intra-District Funds: The Mayor’s proposed FY17 budget for ORM, the Captive Insurance Agency and the Employees’ Compensation Fund includes no Intra-District funds. Private Donations: The Mayor’s proposed FY17 budget for ORM, the Captive Insurance Agency and the Employees’ Compensation Fund includes no Private Donations. ii. Committee Analysis and Comments The Committee supports and recommends approval of the Mayor’s proposed FY17 budget for ORM. The proposed budget is $4,051,897 with 36 FTE’s, which is an increase of 11 additional FTE’s from FY16. The proposed budget is an increase of $1,129,000 from its FY16 approved budget. The Committee supports the funding to authorize ORM to hire 11 FTEs. Three of the FTEs will conduct Occupational Safety and Health inspections to ensure District employees have a safe working environment. Also, three of the FTEs will be committed to the Subrogation Task Force to increase the subrogation recovery efforts of the agency. The Committee supports the increased staffing for the Subrogation Task Force because the objective of this increase is to reduce overall taxpayer expenditures and fully collect on damages to District property caused by a third-party. 63 ORM will assign three FTEs to the Risk Insurance Division to help streamline insurance procedures and review contracts. Finally, two of the FTEs will support the Workers’ Compensation Program, specifically the Return-To-Work program to provide opportunities for District employees who were injured to return to employment.

63

Page 2, testimony of Jed Ross, Chief Risk Office, ORM (April 25, 2016).

70

The Committee supports and recommends approval of the proposed budget for the Captive Insurance Agency. The proposed budget is $2,308,123 which represents a 55% increase from its FY16 approved budget of $1,488,533, and the addition of one FTE. The agency funding is derived from Local funds with a budget of $2,071,533 and $236,590 in Special Purpose Revenue funds. The hiring of the new FTE will help facilitate the Captive Insurance activities, specifically help the agency manage its medical malpractice insurance program. Also, the new FTE will help provide insurance advice regarding District procurements. 64 The Committee supports and recommends approval of the proposed budget for the Employees’ Compensation Fund. The proposed budget is $21,521,002 which is a 6.4% increase from its FY16 approved budget. The Committee is pleased that the proposed increase supports funding of the “Injured Worker Fair Pay Amendment Act of 2015, effective December 11, 2015 (D.C. Law 21-39; D.C. Official Code 1-623.41).” The Committee approved this legislation last year. The legislation requires the Public Workers’ Compensation Program participants receive raises anytime District workers receive raises. Further, $850,000 is provided to support the proposed settlement for the Jones Class Action Lawsuit. Under the Employees’ Compensation Fund, ORM operates the Public Sector Workers Compensation Program, largely through the use of a third party claims administrator (“TPA”) CorVel. The Committee has conveyed numerous complaints regarding claims management by CorVel to ORM. Although this contract is more expensive and purportedly includes a more advanced TPA system, ORM acknowledged the ongoing challenges of the TPA CorVel and agreed to keep the Committee apprised of its next steps going forward. The Committee will continue to monitor the performance issues of the TPA to determine tangible improvement and oversight by ORM. BSA proposals The Committee recommends approval of the “District of Columbia Captive Insurance Agency Budget Technical Amendment Act of 2016”, which was included in the Fiscal Year 2017 Budget Support Act of 2016 (“BSA”). The proposed subtitle allows the Chief Risk Officer of ORM to purchase any type of insurance deemed appropriate for the District. It also makes a technical amendment to ensure that ORM can continue to use the Captive Insurance Fund (“Fund”) to purchase the insurance. Currently, ORM may only use the Fund to purchase insurance for the District’s real property assets. This amendment is needed to allow ORM to use the Fund to not only purchase insurance for real property assets, but also purchase insurance for personal property assets to shift and mitigate the risk associated with assets such as its fleet, equipment, and artwork. The Committee also recommends approval of the “Subrogation Fund Establishment Act of 2016”, which is also included in the BSA. The proposed subtitle creates a non-lapsing special purpose revenue fund called the Subrogation Fund. This fund will be managed by the Chief Risk Officer of ORM. ORM will be able to use these funds to hire staff and for other operational purposes to advance the District’s subrogation efforts. Furthermore, ORM will be able to use these fund to repair and replace damage done to District property by a third-party. c. Mayor’s Proposed Fiscal Year 2017 Capital Budget 64

Id. at page 3.

71

i. Proposed Capital Budget Summary The proposed capital budget for ORM is $3 million. The capital budget is comprised solely of Local funds. ii. Committee Analysis and Comments The Committee supports and recommends approval of ORM’s capital budget. ORM will use these funds to upgrade its IT systems. d. Summary of Fiscal Year 2017 Budget Hearing Testimony The FY17 Budget Hearing for the ORM was held on April 25, 2016. Copies of witness testimony are available by request in the Council Secretary’s and Committee’s offices. Public Witnesses 1. Geraldine Hobby, DC Injured Workers’ Committee, Civil Service Status-Fed DC 2. Gaynell Nixon, Injured Worker Advocate 3. Constance Ware, Injured Worker Advocate 4. Phil Fornaci, Executive Director, Employment Justice Center Government Witness 1. Mr. Jed Ross, Chief Risk Officer, Office of Risk Management 2. COMMITTEE RECOMMENDATIONS a. Fiscal Year 2017 Operating Budget Recommendations The Committee approves the FY17 operating budget for ORM as proposed by the Mayor. b. Fiscal Year 2017 Capital Budget Recommendations The Committee approves the FY17 capital budget for ORM as proposed by the Mayor. c. Fiscal Year 2017 Policy Recommendations For FY17, the Committee recommends the following: 1. Approval of the Budget Support Act proposal contained in Title I, Subtitle F, the “District of Columbia Captive Insurance Agency Budget Technical Amendment Act of 2016”. The proposed subtitle allows the Chief Risk Officer to purchase any type of insurance for the District. 2. Approval of the Budget Support Act proposal contained in Title I, Subtitle H, the “District of Columbia Subrogation Fund Establishment Act of 2016”. The proposed subtitle will create a non-lapsing Subrogation Fund so ORM can hire staff to prosecute outstanding claims and 72

provide for operational costs to advance the District’s subrogation efforts. In addition, it provides that the fund will receive all claim judgments received in litigation. d. Fiscal Year 2017 Performance Measure Recommendations For FY17, the Committee recommends the following: 1. ORM shall provide a detailed progress report on the improvement of the third party administrator CorVel that details a plan for greater management and efficiency of the Public Sector Workers’ Compensation program. 2. ORM should improve the tort claims case resolution rate from 59 percent to 65 percent.

73

K.

OFFICE OF THE TENANT ADVOCATE

1. COMMITTEE ANALYSIS AND COMMENTS a. Agency Mission and Overview Established as an independent agency effective October 1, 2007, the mission of the Office of the Tenant Advocate (“OTA”) is to advocate for the rights and interests of the District’s tenants, and to educate and inform tenants, tenant organizations, and the people of the District about tenantrelated laws, rules, and policy matters. According to the “Office of the Chief Tenant Advocate Establishment Act of 2005”, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 42-3531.07), OTA: (1) provides education and outreach to the tenant community about laws, rules and other policy matters involving rental housing and tenant rights; (2) represents the interests of tenants in legislative, regulatory, and judicial matters; (3) advises tenants on filing complaints and petitions regarding disputes with landlords; and (4) refers tenants who seek representation in administrative or judicial actions to attorneys or legal services and provides funding for representation in certain instances. OTA provides a broad range of services to approximately, 350,000 renters. 65 The number of District renters also continues to rise. 66 Although a small agency in terms of staffing and budget, this mandate is expansive as it affects approximately 60% of the District’s residents and crosses into the jurisdictions of several agencies and Council Committees. For instance, the District’s rent control laws fall within the purview of the Department of Housing and Community Development, but the health and safety issues fall within the jurisdiction of the Department of Health, DCRA, and even Metropolitan Police and Fire and Emergency Medical Services. Further, federal housing programs implicate another layer of jurisdiction. b. Mayor’s Proposed Fiscal Year 2017 Operating Budget i. Proposed Operating Budget Summary The Mayor’s proposed FY17 budget for OTA is $2,788,415 which represents a 4.1 percent decrease from its approved FY16 budget. Local Funds: The Mayor’s proposed FY17 budget for OTA includes $2,788,415 in Local funds. There is an increase of $105,617 for the Legal Representation program to support one additional FTE due to reallocation of personal services resources from the Administrative Services program. Special Purpose Revenue Funds: The Mayor’s proposed FY17 budget for OTA includes no Special Purpose Revenue funds. Federal Grant Funds: The Mayor’s proposed FY17 budget for OTA includes no Federal Grant funds.

65 66

Page 4, testimony of Johanna Shreve, Chief Tenant Advocate, OTA (April 20, 2016). Id.

74

Intra-District Funds: The Mayor’s proposed FY17 budget for OTA includes no IntraDistrict funds. Private Donations: The Mayor’s proposed FY17 budget for OTA includes no Private Donations. ii. Committee Analysis and Comments OTA’s operating budget for FY17 will decrease overall by $119,000 from $2,907,415 to $2,788,415. The decrease reflects savings in its programs and activities, and a decrease of $176,000 for OTA’s Emergency Housing Assistance Program (“EHAP”). The Mayor’s proposed budget reflects an increase for one additional FTE. The agency has 6 programmatic divisions: Legal Representation, Policy Advocacy, OTA Educational Institute, Emergency Housing, Case Management Administration and Community Outreach, and Administrative Services. Legal and Policy This division provides case management services and legal advice to tenants about their rights and remedies regarding landlord-tenant disputes. In FY15, OTA’s attorneys served 1,043 District tenants and tenant associations. 67 This representation has resulted in $1,761,046 being returned to the tenants, a 196% return on the District’s investment of $899,906. 68 Ms. Shreve, Chief Tenant Advocate, testified that the proposed FY17 budget maintains the FY16 staffing level at 18 FTEs. 69 Ms. Shreve explained that OTA is in the final stages of hiring 3 attorney advisors, 2 will fill the positions created in the FY16 budget, and one will fill a vacancy created by a departing attorney advisor. 70 The budget for the policy advocacy office was decreased by $19,000 from $237,000 to $218,000. The reduction was made in error. The decrease was made due to a miscommunication with the Department of Human Resources regarding the grade level for a legislative counsel position in this office. The Committee recommends addressing this error by increasing the budget for this office by $19,000. Education and Outreach Tenant rights education and outreach efforts are a critical part of OTA’s mission. In FY 15, OTA participated in over 40 outreach events that were attended by over 5,400 people. 71 In FY12, OTA established the “Tenant Education Institute.” The Institute’s curriculum includes workshops on the foundations of tenants’ rights, empowering tenant associations, rent control for the elderly and disabled, Tenant Opportunity to Purchase Act rights, and lease fundamentals. In FY15, and now in FY16, OTA continued to hold a variety of workshops on these issues. The Committee is pleased that there is more money in the budget for OTA to continue its outreach to District tenants, as it will see a $40,000 increase in Local funding. Emergency Housing 67

OTA, Fiscal Year 2015 Annual Report: DC Office of the Tenant Advocate, (April 11, 2016). Id. 69 Page 2, testimony of Johanna Shreve, Chief Tenant Advocate, OTA (April 20, 2016). 70 Id. 71 OTA, Fiscal Year 2015 Annual Report: DC Office of the Tenant Advocate, (April 11, 2016). 68

75

Demand for OTA’s EHAP services continues to grow. EHAP provides emergency housing assistance to tenants displaced due to the closure of the unit by a government agency, a fire, or other circumstance that renders the accommodation uninhabitable. Assistance can take the form of hotel or motel accommodations for up to 14 days; help with moving and storage of personal property; first month’s rent; and security and utility deposits. In her testimony, Ms. Shreve stressed the importance of this program, highlighting that it is one-of-a-kind in the US and that it primarily benefits tenants in areas where poor housing conditions are predominant. 72 In FY15, there were 347 individuals displaced, by no fault of their own, and a total of 143 households were affected. In FY13, the OTA handled 104 emergency housing cases, and by the end of April of 2013, the agency spent its full fiscal year allocation of $250,000 for EHAP. OTA had to seek an additional $150,000 from a reprogramming action. The Executive recognized the necessity of this program and increased EHAP funding in FY 2015. The Mayor’s proposed FY17 budget has reduced the EHAP budget by $176,000 from $546,000 to $370,000. 73 Due to this cut and the importance of this program, the Committee recommends accepting $176,000 from the Committee on Housing and Community Development to restore funding for the EHAP budget. Interagency Coordination Interagency coordination remains an ongoing challenge. The lack of coordination impedes the administration and enforcement of rental housing laws, and it is wasteful of government resources and public funds. According to the agency’s 2015 Annual Report, “OTA has also developed partnerships with government agencies that focus on the needs of the senior community”. 74 In fact, OTA has “…participated in a variety of housing forums and conduct exemption workshops city-wide to ensure that seniors living in rent stabilized buildings across the District are informed and provided with ways to reduce rental housing costs.” 75 The Committee applauds the agency’s efforts and encourages it to explore developing and implementing joint initiatives to improve interagency communication and coordination to better serve constituent needs. The Committee also recognizes OTA’s willingness to work with its sister agencies in an attempt to contact owners of project based section 8 properties whose Housing Assistance Program (“HAP”) contracts will expire by the end of FY16, in order to ensure that these homes stay affordable for District seniors and disabled residents. c. Summary Fiscal Year 2017 Budget Hearing Testimony The FY17 Budget Hearing for OTA was held on April 20, 2016. Copies of witness testimony are available by request in the Council Secretary’s and Committee’s offices. Public Witnesses 1. Jim McGrath, Chairman, TENAC 72

Page 5, testimony of Johanna Shreve, Chief Tenant Advocate, OTA (April 20, 2016). Id. at page 3. 74 OTA, Fiscal Year 2015 Annual Report: DC Office of the Tenant Advocate, (April 11, 2016). 75 Id. 73

76

2. Kathy Henderson, Commissioner, ANC 5D05 3. Daniel Palchick, Staff Attorney, AARP Legal Counsel for the Elderly 4. William Rearson, Public Witness 5. Ariel Roytenberg, Public Witness 6. Iris Lipkowitz, Tenants Association, 4000 Mass Ave, NW 7. Anne Messner, Tenants Association, 4000 Mass Ave, NW 8. Tom Gregory, Tenants Association, 4000 Mass Ave, NW Government Witness 1. Johanna Shreve, Chief Tenant Advocate, Office of the Tenant Advocate 2. COMMITTEE RECOMMENDATIONS a. Fiscal Year 2017 Operating Budget Recommendations The Committee approves the FY17 operating budget for OTA as proposed by the Mayor with the following changes: 1. Transfer-in of $176,000 from Committee on Housing and Community Development: - Restore EHAP Program 6000 – Emergency Housing (Activity Code: 6010 – Emergency Housing) 2. Increase of $19,000 from Clean Teams for misclassification of Legislative Counsel position Program 4000 – Policy Advocacy Program (Activity Code: 4010 – Policy Advocacy Program) b. Fiscal Year 2017 Capital Budget Recommendations The Committee has no capital budget recommendations. c. Fiscal Year 2017 Policy Recommendations For FY17, the Committee recommends the following: 1. OTA should collaborate with the Department of Housing and Community Development and other sister agencies to contact the owners of project-based section 8 properties whose Housing Assistance Programs (“HAP”) contracts will expire in FY16 in order to ensure continued affordability of these residences for the elderly and tenants with disabilities.

77

L.

PUBLIC SERVICE COMMISSION

1. COMMITTEE ANALYSIS AND COMMENTS a. Agency Mission and Overview The Public Service Commission (“PSC”) was established in 1913 as an independent agency to regulate the electric, natural gas, and telephone companies serving the District. The mission of the PSC is to serve the public interest by ensuring that financially healthy electric, natural gas, and telecommunications companies provide safe, reliable, and quality services at reasonable rates for District of Columbia residential, business, and government customers. The PSC regulates public utilities operating in the District by issuing orders in formal proceedings that may include written comments or testimony, hearings, studies, and investigations; ensuring fair and appropriate utility prices; fostering competition by licensing utility service providers and supervising the competitive bidding process; ensuring that utility providers meet various environmental regulations and standards by operating in ways that conserve natural resources and preserve environmental quality; and resolving disputes among consumers and utility service providers. In addition to regulatory services, the PSC also conducts outreach to educate consumers and inform the public on utility issues. The agency operates through five programs: 1) Pipeline Safety, which conducts inspections of natural gas construction projects, investigates incidents, audits Washington Gas’ records, and issues notices of probable violations to ensure compliance with federal and District standards; 2) Utility Regulation, which regulates natural gas, electric, and local telecommunications services to ensure providers offer safe, reliable, and quality services at reasonable rates to District of Columbia residential, business, and government customers; 3) Public Service Commission/One Call Grant, which prevents damage to underground facilities and conducts field inspections of underground facility location markings to ensure compliance with the District’s One-Call (811) laws; 4) Agency Management, which provides administrative support and the required tools to achieve operational and programmatic results; and 5) Agency Financial Operations, which provides comprehensive and efficient financial management services to PSC so that the financial integrity of the PSC is maintained. b. Mayor’s Proposed Fiscal Year 2017 Operating Budget i. Proposed Operating Budget Summary The Mayor’s proposed FY17 operating budget for the PSC is $13,889,207, which represents a 5.3 percent increase over its FY16 approved budget of $13,186,187. The budget is comprised of $551,489 in Federal Grant funds, $13,315,718 in Special Purpose Revenue funds, and $22,000 in Private Donations. Local Funds: The Mayor’s proposed FY17 budget for PSC includes no Local funds. Special Purpose Revenue Funds: The Mayor's proposed FY17 budget for PSC includes $13,315,718 in Special Purpose Revenue funds, which is a $587,000 or 4.6 increase from PSC’s FY16 budget. 78

Federal Grant Funds: The Mayor’s proposed FY17 budget for PSC includes $551,489 in Federal Grant funds, which is a $116,000 or 26.7 percent increase from PSC’s FY16 budget. The agency is awarded Pipeline Safety grants by the U.S. Department of Transportation to support pipeline inspections, protection, enforcement, and safety (PIPES). The proposed net increase of $121,177 and 1 FTE will be used across multiple programs in order to support projected salary steps, a Pipeline Safety Engineer position, and fringe benefits. Intra-District Funds: The Mayor’s proposed FY17 budget for PSC includes no IntraDistrict funds. Private Donations: The Mayor’s proposed FY17 budget for PSC includes $22,000 in Private Donations, which remains the same from PSC’s FY16 budget. The Private Donations are used to reimburse PSC for educational travel and training expenses. ii. Committee Analysis and Comments The Committee supports and recommends approval of the proposed FY17 budget for the PSC. The FY17 proposed budget for the PSC is $13,889,207. 97 percent of the agency’s budget is derived from Special Purpose Revenue funds which come from assessments on Pepco, Washington Gas, Verizon, and all competitive electric, natural gas, and telecommunications service providers conducting business in the District. The agency receives nominal funds from Federal Grants and Private Donations. The PSC’s budget is increased $703,000 or 5.3 percent from the agency’s FY16 approved budget. There will be an increase of $564,000 in funding for personal services which is a 5.5 percent increase from FY16. In addition, there will be an increase of $139,000 in funding for non-personal services which is a 4.9 percent increase from FY16. There is an increase in Special Purpose Revenue funds to support projected salary steps and fringe benefits. A net increase of $180,593, which is comprised of $179,021 in professional service fees for temporary engineering and improved audio visual system for PSC’s hearing room, and $1,773 for equipment costs. This is offset by a slight decrease in supply costs. The PSC will also see an increase in funding to support programs related to education and training related costs, and conference fees. In FY15, 95 companies contributed to PSC’s annual budget, including 14 natural gas companies, 53 competitive local exchange carriers and 25 electric companies, and PSC expects a similar number of companies in FY16. 76 The increase in Federal Grant funds will support projected personal services costs in the Pipeline Safety program and PSC’s general operations. Also, the PSC will see increases to support nonpersonal services, which includes money for equipment and other fixed costs. The Committee supports the increase in Federal funding as it helps support the PSC to conduct pipeline inspections to help protect District residents. The Committee notes that in FY15 and to date in FY16, the PSC has been busy with three major cases. The cases include the proposed Exelon acquisition of Pepco, the DC Power Line Undergrounding Project (“DC Plug”), and the Washington Gas Light Accelerated Pipeline Replacement Project (“PROJECTpipes”). The Committee believes that sufficient resources have

76

Page 1, testimony of Betty Anne Kane, Chairman, PSC (April 25, 2016).

79

been provided in the FY17 budget for the Commission to continue to conduct regulatory oversight over DC Plug and PROJECTpipes. A concern about how the District will assess the General Services Administration to help pay for DC Plug has been raised which has delayed the issuance of bonds to fund the project. Chairman Kane stated, at the April 25, 2016 budget hearing, that this is the final hurdle before the project can go forward throughout the District. The Committee looks forward to working with the Commission and the Executive to address this issue. c. Summary of Fiscal Year 2017 Budget Hearing Testimony The FY17 Budget Hearing for PSC was held on April 25, 2016. Copies of the witness testimony are available by request from the Council Secretary’s or Committee’s offices. Government Witness 1. Ms. Betty Ann Kane, Chairman, Public Service Commission 2. COMMITTEE RECOMMENDATIONS a. Fiscal Year 2017 Operating Budget Recommendations The Committee approves the FY17 operating budget for PSC as proposed by the Mayor. b. Fiscal Year 2017 Capital Budget Recommendations The Committee has no capital budget recommendations. c. Fiscal Year 2017 Policy Recommendations The Committee has no policy recommendations. d. Fiscal Year 2017 Performance Measure Recommendations The Committee has no performance measure recommendations.

80

III. FISCAL YEAR 2017 BUDGET FEDERAL PORTION ADOPTION AND REQUEST ACT RECOMMENDATIONS On March 24, 2016, Chairman Phil Mendelson introduced the “Fiscal Year 2017 Budget Federal Portion Adoption and Request Act of 2016”, Bill 21-667, on behalf of the Mayor. The Committee recommends no adjustments.

IV.

FISCAL YEAR 2017 BUDGET LOCAL PORTION ADOPTION ACT RECOMMENDATIONS

On March 24, 2016, Chairman Phil Mendelson introduced the “Fiscal Year 2017 Budget Local Portion Adoption Act of 2016”, Bill 21-668, on behalf of the Mayor. The Committee recommends no adjustments. The Committee’s recommends the following amendments: I. Part B, Economic Development and Regulation, Paragraph (3) Department of Small and Local Business Development, is amended by striking the phrase “$10,993,000 (including $10,415,000” and inserting the phrase “$11,330,194 (including $10,752,194” in its place. Committee Reasoning: The amendment reflects the changes proposed in the Committee’s operating budget recommendation. II. Part B, Economic Development and Regulation, Paragraph (6) Department of Consumer and Regulatory Affairs, is amended by striking the phrase “$55,526,000 (including $20,008,000” and inserting the phrase “$55,903,625 (including $20,385,625” in its place. Committee Reasoning: The amendment reflects the changes proposed in the Committee’s operating budget recommendation. III. Part B, Economic Development and Regulation, Paragraph (7) Department of Employment Services, is amended by striking the phrase “$143,478,000 (including $64,022,000” and inserting the phrase “$143,603,000 (including $64,147,000” in its place. Committee Reasoning: The amendment reflects the changes proposed in the Committee’s operating budget recommendation. IV. Part B, Economic Development and Regulation, Paragraph (10) Office of the Tenant Advocate, is amended by striking the phrase “$2,788,000 from local funds;” and inserting the phrase “2,983,000 from local funds;” in its place. Committee Reasoning: The amendment reflects the changes proposed in the Committee’s operating budget recommendation. V. Part B, Economic Development and Regulation, Paragraph (14) Office of the People’s Counsel, is amended by striking the phrase “$7,436,000 from other funds;” and inserting the phrase “7,496,931 from other funds;” in its place. Committee Reasoning: The amendment reflects the changes proposed in the Committee’s operating budget recommendations. 81

V. FISCAL YEAR 2017 BUDGET SUPPORT ACT RECOMMENDATIONS On behalf of the Mayor, Chairman Phil Mendelson introduced the “Fiscal Year 2017 Budget Support Act of 2016”, Bill 21-669, on March 24, 2016. The Bill was retained by the Committee of the Whole, with the Committee on Business, Consumer, and Regulatory Affairs being assigned the responsibility to make comments on the provisions affecting agencies under the Committee’s jurisdiction. The Committee’s comments on the assigned provisions, along with recommendations for the “Fiscal Year 2017 Budget Support Act of 2016”, appear below.

A.

RECOMMENDATIONS ON BUDGET SUPPORT ACT SUBTITLES PROPOSED BY THE MAYOR

The Committee provides comments and recommendations on the following subtitles of the “Fiscal Year 2017 Budget Support Act of 2016”: 1. Title I. Subtitle F. District of Columbia Captive Insurance Agency Budget Technical Amendment 2. Title I. Subtitle H. Subrogation Fund Establishment 3. Title II. Subtitle B. Inaugural Celebration Amendment 4. Title II. Subtitle C. Reimbursable Detail Subsidy Program Amendment 5. Title II. Subtitle F. Office of Cable Television, Film, Music, and Entertainment Amendment 6. Title II. Subtitle J. Adult Career Pathways Implementation Amendment 7. Title III. Subtitle G. Anatomical Board Repeal Amendment 1. Title I. Subtitle F. District of Columbia Captive Insurance Agency Budget Technical Amendment Act of 2016 a. Purpose, Effect, and Impact on Existing Law The proposed subtitle amends the Captive Insurance Agency Establishment Act of 2008, effective July 18, 2008 (D.C. Law 17-196; D.C. Official Code § 1-307.81, et seq.), to allow the Chief Risk Officer of ORM to purchase any type of insurance deemed appropriate for the District. It makes a technical amendment to ensure that ORM can continue to use the Captive Insurance Fund (“Fund”) to purchase the insurance. In addition, the subtitle proposes to exempt the Captive Insurance Agency from the requirements under the Small and Certified Business Enterprise Development and Assistance Act of 2005 (“CBE Act”). The proposed subtitle also amends the Fire and Casualty Act, approved October 9, 19040 (54 Stat. 1080; D.C. Official Code § 31-2502.40) to exempt insurance brokers from paying surplus line taxes on insurance they have bought on behalf of the District. 82

b. Committee Reasoning The Committee recommends approval of this subtitle. Currently, ORM may only use the Fund to purchase insurance for the District’s real property assets. This amendment is needed to allow ORM to use the Fund to not only purchase insurance for real property assets, but also purchase insurance for personal property assets to shift and mitigate the risk associated with assets such as its fleet, equipment, and artwork. Furthermore, an exemption to the CBE Act is needed because there are no CBE entities with sufficient reserves and that have a satisfactory industry rating that can issue the insurance policies needed to cover the District’s real property portfolio. Exempting the Captive Insurance Agency from this requirement will make the process of procuring insurance more efficient. Finally, the subtitle proposes to exempt an insurance broker selected to purchase insurance on behalf of the District from the surplus lines tax imposed by the Department of Insurance, Securities, and Banking. The Committee views this tax as unnecessary because when an insurance broker is assessed this tax they typically pass on this cost to the District government when it purchases insurance. In essence, under the current law one District agency is imposing a tax on another District agency, which will be eliminated by this amendment. c. Section-by-Section Analysis Sec. 1051. states the short title. Sec. 1052. amends the Captive Insurance Agency Establishment Act of 2008, effective July 18, 2008 (D.C. Law 17-196; D.C. Official Code § 1-307.81, et seq.). Subsection (a) amends the purpose of the Captive Insurance Agency to include the purchase of insurance for the District’s personal property assets. Also, it extends the limitation on the liability to the monies in the Fund to any policy of insurance provided for by the Act. Subsection (b) permits the Captive Insurance Agency to obtain and issues policies of insurance without restriction on type. Subsection (c) provides that the Advisory Council shall assess the needs and interests of the District with respect to obtaining insurance generally without restriction on type. Subsection (d) amends the scope of the Captive Insurance Agency’s plan of operating to include establishing procedures for offering insurance for District real and personal property assets. Subsection (e) amends the scope of insurance coverage the Captive Insurance Agency may offer to protect District assets to include personal property. Subsection (f) amends the permissible uses for the Fund to include the purchase of insurance on behalf of the District government. In addition, the provision is made retroactive to December 1, 2014, which is a date prior to the Captive Insurance Agency’s first insurance policy. 83

Subsection (g) exempts the Act from the requirements under the CBE Act. Sec. 1053. amends section 40 of the Fire and Casualty Act, approved October 9, 19040 (54 Stat. 1080; D.C. Official Code § 31-2502.40) to exempt insurance brokers from paying surplus line taxes on insurance they have bought on behalf of the District. d. Legislative Recommendations for the Committee of the Whole The Committee recommends approval of this subtitle with the following technical amendments: Sec. 1051. Short title. This subtitle may be cited as the “District of Columbia Captive Insurance Agency Budget Technical Amendment Act of 2016”. Sec. 1052. The Captive Insurance Agency Establishment Act of 2008 Act, effective July 18, 2008 (D.C. Law 17-196; D.C. Official Code § 1-307.81, et. seq.), is amended as follows: (a) Section 3 of the Act (D.C. Official Code § 1-307.82) is amended as follows: (1) Subsection (b)(2) is amended to read as follows: “(b)(2) Provide insurance for District real property assets and District personal property assets.” (2) Subsection (c) is amended to read as follows: “(c) The liability of the Agency for medical malpractice liability, property insurance policies, and any other policies provided for pursuant to this act shall be limited to the fund in the Captive Trust Fund.” (b) Section 4(a) of the Act (D.C. Official Code § 1-307.83(a)) is amended as follows: (1) Subsection (a)(1) Paragraph (1) is amended to strike by striking the phrase “By delegation from the Mayor, to exercise” and inserting the word “Exercise” in its place. (2) Subsection (a) Paragraph (4A) is amended to strike by striking the word “property”. (c) Section 6(i)(2A) of the Act (D.C. Official Code § 1-307.85(i)(2A)) is amended as follows: (1) Subsection (i)(2A) is amended to strike by striking the word “property”.

84

(d) Section 8(b)(4A) of the Act (D.C. Official Code § 1-307.87(b)(4A)) is amended to read as follows: (1) Subsection (b)(4A) is amended to read as follows: “(4A) Establish procedures for the offering of insurance for District real property assets and District personal property assets.”. (e) Section 11(a)(2) of the Act (D.C. Official Code § 1-307.90(a)(2)) is amended to read as follows: (1) Subsection (a)(2) is amended to read as follows: “(2) Insurance for the benefit of the District for District real property assets and District personal property assets consistent with coverage offered in the market.” (f) Section 12(b) of the Act (D.C. Official Code § 1-307.91(b)) is amended to add a new subsection (b)(7) to read as follows: (1) Paragraph (5) is amended by striking the word “and” at the end. (2) Paragraph (6) is amended by striking the period and inserting the phrase “; and” in its place. (3) A new paragraph (7) is added to read as follows: “(7) Beginning with payments made from the Fund on or after December 1, 2014, the purchase of insurance on behalf of the District of Columbia government.”. This paragraph shall apply to payments made from the Fund on or after December 1, 2014.” (g) Section 13 of the Act (D.C. Official Code § 1-307.92) is amended to read as follows: “Sec. Exemption from certain laws: “The Agency shall not be subject to the: (a) (1) The Small, Local, and Disadvantaged and Certified Business Enterprise Development and Assistance Act of 2005, effective October 20, 2005 (D.C. Law 16-33; D.C. Official Code § 2-218.01 et seq.); 85

(b) (2) The District of Columbia Procurement Practices Reform Act of 1985 2010, effective February 21, 1986 (D.C. Law 6-85; D.C. Official Code § 2-301.01 et seq.) April 8, 2011 (D.C. Law 18-371; D.C. Official Code § 2-351. 01 et seq.); , or (c) (3) The District of Columbia Government Comprehensive Merit Personnel Act of 1978, effective March 3, 1979 (D.C. Law 2-139; D.C. Official Code § 1-601.01 et seq.).”. Sec. 1053. Section 40 of the Fire and Casualty Act, approved October 9, 1940 (54 Stat. 1080 1063; D.C. Official Code § 31-2502.40), is amended to add by adding a new subsection (c) to read as follows: “(c)(1) Any Each agent or broker engaged by the District of Columbia government to procure insurance on its behalf shall be exempt from the requirement, as set forth in of subsection (a) of this section, to pay the 2 per centum of the amount of the gross premiums upon all kinds of policies procured by him on behalf of the District of Columbia government. “(2) To claim this exemption, the agent or broker must include a statement identifying for each item enumerated in the affidavit required by subsection (a) of this section, as to the portion allocated to policies procured on behalf of the District of Columbia government. “(3) Except as otherwise stated, nothing in this The exemption provided in this subsection shall not be construed to exempt any agent or broker from any other requirement imposed by this section.”. 2. Title I. Subtitle H. Subrogation Fund Establishment Act of 2016 a. Purpose, Effect, and Impact on Existing Law The proposed subtitle creates a non-lapsing special purpose revenue fund called the Subrogation Fund. This fund will be managed by the Chief Risk Officer of ORM. ORM will be able to use these funds to hire staff and for other operational purposes to advance the District’s subrogation efforts. Furthermore, ORM will be able to use these funds to repair and replace damage done to District property by a third-party. b. Committee Reasoning

86

The Committee recommends the approval of this subtitle. ORM is tasked with the responsibility of recovering money from individuals responsible for harming District employees or property. This subtitle establishes a new special purpose fund to support the creation and performance of a District-wide subrogation task force. The fund will provide the Office of Risk Management the necessary resources to fulfill this part of its mission. c. Section-by-Section Analysis Sec. 1071. states the short title. Sec. 1072. establishes the Subrogation Fund. Subsection (a) establishes the Subrogation Fund as a special purpose, non-lapsing, and revolving fund. In addition, it charges the Chief Risk Officer with responsibility for administering the Subrogation fund. Subsection (b) establishes the authorized uses for the Subrogation Fund. Subsection (c) directs that the funds recovered by the District in subrogation for loss to District real and personal property be placed in the Subrogation Fund. Subsection (d) provides that monies in the Subrogation Fund shall not revert back to the General Fund. Subsection (e) provides definitions applicable to the Act. d. Legislative Recommendations for the Committee of the Whole The Committee recommends approval of this subtitle with the following technical amendments: Sec. 1071. Short title. This subtitle may be cited as the “District of Columbia Subrogation Fund Establishment Act of 2016”. Sec. 1072. Title 1, Chapter 3, Subchapter XI is amended to add a new part JJ (D.C. Official Code § 1-325.351), which reads as follows: Subrogation Fund. “(a) There is established as a non-lapsing special fund, the Subrogation Fund (“Fund”), which shall be administered by the Chief Risk Officer and used for the purposes set forth in subsection (b) of this section. All funds deposited in the Fund, and any interest thereon, shall not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time, but shall be continually available for the uses and purposes set 87

forth in subsection (b) of this section without regard to fiscal year limitations, subject to authorization in an approved budget and fiscal plan. “(b)(1) The Fund shall be used first to pay for the subrogation costs and expenses incurred by the Chief Risk Officer, including which costs shall include: “(1 A) The hiring of staff; “(2 B) The administration of the day-to-day operations of the unit dedicated by the Chief Risk Officer to undertake the District of Columbia government’s subrogation efforts; “(3 C) The costs and expenses of the representation of the District of Columbia in subrogation proceedings; and “(4 D) The cost of the management, administration, and operation of the Fund. Any remaining funds may be used to repair, restore, or replace damaged District of Columbia government real or personal property. (2) Any remaining funds may be used to repair, restore, and replace damaged District of Columbia government real or personal property. “(c) The Fund shall be administered by the Chief Risk Officer. “(d c) There shall be deposited into the Fund: “(1) a All funds recovered in subrogation against the individual responsible for loss to District of Columbia government real and personal property; . “(2) Appropriated funds; “(3) Any interest earned on monies in the Fund; and “(4) Any other funds received on behalf of the Fund. “(e d)(1) Nothing in this section shall be construed to prohibit or limit the appropriation of additional funds from the revenues of the District of Columbia government for the uses and purposes set forth in this section. All funds deposited in the Fund, and any interest earned, shall

88

not revert to the unrestricted fund balance of the General Fund of the District of Columbia at the end of a fiscal year, or at any other time. “(2) Subject to authorization in an approved budget and fiscal plan, any funds appropriated in the Fund shall be continually available without regard to fiscal year limitation. “(f e) For the purposes of this section, the term: “(1) “Fund” means the Subrogation Fund established by this section. “(2 1) “Chief Risk Officer” means the head of the Office of Risk Management, as established by Reorganization Plan No. 1 of 2003, effective December 15, 2003 (D.C. Official Code, s Subchapter XVIII, Chapter 15, Title 1). “(3 2) “Subrogation” means the right of the District of Columbia government to pursue a third party who has caused a loss to the District of Columbia government by damage to District of Columbia government real or personal property.”. 3. Title II. Subtitle B. Inaugural Celebration Amendment Act of 2016 a. Purpose, Effect, and Impact on Existing Law The Inaugural Celebration Amendment Act of 2016 amends Section 25-723(e)(1) to extend the length of the designated Inauguration Week by two days for 2017 only. Currently, the designated Inauguration Week is from January 15th through January 21st. If approved, the designated Inauguration Week for 2017 would begin on January 14th and end on January 22nd. ABC licensees with an on-premises retailer’s license or a temporary license can sell or serve alcoholic beverages until 4 a.m. and operate 24 hours a day during a designated Inauguration Week. b. Committee Reasoning The Committee supports approval of this subtitle. In 2017, the Presidential Inauguration will occur on Friday, January 20. Expanding the designated Inauguration Week to include January 14 and January 22 will allow registered on-premises licensees to extend their hours during two full weekends while many people are visiting the District. c. Section-by-Section Analysis Sec. 2011. states the short title. Sec 2012. amends Section 25-723(e)(1) of the D.C. Office Code to provide that, for 2017 only, the designated inaugural week will be between January 14 and January 22. 89

d. Legislative Recommendations for the Committee of the Whole The Committee recommends approval of this subtitle with the following technical amendments: Sec. 2011. Short title. This subtitle may be cited as the “Inaugural Celebration Amendment Act of 2016”. Sec. 2012. Section 25-723(e)(1) of the D.C. Official Code is amended by striking the phrase “designated “Inaugural Week.”” and inserting the phrase “designated “Inaugural Week”; except, that in 2017, the time period of January 14 through January 22 shall be designated “Inaugural Week.”” in its place . 4. Title II. Subtitle C. Reimbursable Detail Subsidy Program Amendment Act of 2016 a. Purpose, Effect, and Impact on Existing Law The proposed subtitle amends Section 25-798(b) to allow pub crawl organizers to participate in the reimbursable detail subsidy program (“RDO program”). b. Committee Reasoning The Committee recommends approval of this subtitle. Allowing pub crawl organizers to participate in the RDO program will enhance public safety at pub crawl events. As discussed above, concerns have been raised over the past year about how to regulate pub crawl events. In response to these concerns, ABC Board issued emergency and proposed rules regarding pub crawls. The rules would revise pub crawl licensing requirements; establish a pub crawl licensing fee; give the ABC Board more authority to manage pub crawls; and strengthen the requirements for pub crawl events regarding their responsibilities before, during, and after pub crawl events, to include having a litter remove plan in place. The Committee believes the proposed subtitle, along with the new pub crawl rules recently adopted by the ABC Board, will address the community’s concerns surrounding pub crawls. c. Section-by-Section Analysis Section 2031. states the short title. Section 2032. amends the Youth Employment Act of 1979, effective January 5, 1980 (D.C. Law 3-46; D.C. Official Code § 32-241). d. Legislative Recommendations for the Committee of the Whole The Committee recommends approval of this subtitle with the following technical amendments: Sec. 2031. Short title. 90

This subtitle may be cited as the “Reimbursable Detail Subsidy Program Amendment Act of 2016”. Sec. 2032. Section 25-798(b) of the D.C. Official Code is amended by inserting striking the phrase “or in a group,” and inserting the phrase “or in a group, or a pub crawl organizer” after the phrase “or in a group,” in its place. 5. Title II. Subtitle F. Office of Cable Television, Film, Music, and Entertainment Amendment Act of 2016 a. Purpose, Effect, and Impact on Existing Law The proposed subtitle amends the Office of Cable Television, Film, Music, and Entertainment Act of 2015, effective October 9, 2002 (D.C. Law 14-193; D.C. Official Code § 34-1251 et seq.)(Cable Act”), to address technical changes and clarify statutory authority. In addition, it amends the Film DC Economic Incentive Act of 2006, effective March 3, 2010 (D.C. Law 18111; D.C. Official Code § 2-1204.11 et seq.) to repeal the Film DC Special Account Fund. b. Committee Reasoning Last year, the Council approved the consolidation of the Office of Cable Television (“OCT”) and the Office of Motion Pictures and Television Development (“MPTD”) into one agency called the Office of Cable Television, Film, Music, and Entertainment (“OCTFME”). The mission of OCTFME is to have an expanded focus on the film, television, music, and entertainment industry, thereby creating a new entertainment media market in the District to foster job opportunities and increase tax revenue. OCTFME has identified several provisions in the statute that require corrections in order to effectuate the overall intent of the Mayor and Council. Technical amendments are made to include references to the music or entertainment industry. In addition, the proposed amendments further rename the OCT Special Account to govern operations of the combined agency, and collapse the former MPTD Special Account into the renamed OCTFME Special Account to fully effectuate the fiscal consolidation and simplify agency fiscal operations. In this way the amendments align the powers and responsibilities of the agency to the budgetary authority given the agency when OCT and MPTD were consolidated. c. Section-by-Section Analysis Section 2051. states the short title. Section 2052. amends the Cable Television Reform Act of 2002, effective October 9, 2002 (D.C. Law 14-193; D.C. Official Code § 34-1251.01 et seq.). Subsection (a) amends the statute to clarify the agency’s authority to foster the development of music and entertainment industry. It also provides the agency the authority to closely monitor any entertainment industry changes by allowing the Director to appoint a Director of Programming or “equivalent position.” 91

Subsection (b) provides OCTFME the authority to enter into lease agreements for its facilities, studios and other facility space where OCTFME has usage rights. The amendments also clarify OCTFME’s ability to partner with private and public institutions for the purpose of implementing its statutory mission. Subsection(c) clarifies the special purpose account uses for OCTFME, as well as streamlines OCTFME’s operations by consolidating the former MPTD special account into the current OCTFME special account. Section 2053. repeals the Film DC Special Account Fund. d. Legislative Recommendations for the Committee of the Whole The Committee recommends approval of this subtitle with the following technical amendments: Sec. 2051. Short title. This subtitle may be cited as the “Office of Cable Television, Film, Music and Entertainment Amendment Clarification Amendment Act of 2016.” Sec. 2052. (a) The Cable Television Reform Act of 2002 Office of Cable Television, Film, Music, and Entertainment Amendment Act of 2015, effective October 9, 2002 (D.C. Law 14193; D.C. Official Code § 34-1251.01 et seq.), is amended as follows: (1a) Sec. 201 (D.C. Official Code 34-1252.01) is amended as follows: (A1) Subsection (a)(3) is amended as follows: (iA) The lead-in language is amended by striking the phrase “an entertainment industry in the District” and inserting the phrase “a sustainable creative economy, entertainment, and media industry in the District” in its place. (iiB) Subparagraph (E) is amended by striking the phrase “television shows and films” and inserting the phrase “entertainment industry projects” in its place. (iiiC) Subparagraph (F) is amended by striking the phrase “television shows and films” and inserting the phrase “ entertainment industry projects” in its place. (B2) Subsection (e) is amended by striking the word “Programming” and inserting the phrase “Programming or an equivalent position,” in its place. (2b) Sec. 202 (D.C. Official Code 34-1252.02) is amended as follows: 92

(A 1) Paragraph (8A) is amended by as follows: (A) The lead-in text is amended by striking the phrase “studios and equipment” and inserting the phrase “studios and other facilities and equipment” in its place. (B) Subparagraph (8A)(A) is amended by striking the phrase “studios or” and inserting the phrase “studios, facilities, or” in its place. (C 2) Paragraph (16) is amended by striking the phrase “funds from nonprofit and” and inserting the phrase “funds from private, nonprofit and,” in its place. (D 3) Paragraph (19) is amended by striking phrase “; and” and inserting a semicolon in its place the word “and” at the end. (E 4) Paragraph (20) is amended by striking the semicolon period and inserting the phrase “; and” in its place. (F 5) A new paragraph (21) is added to read as follows: “(21) Establish written formal, collaborative arrangements (sometimes called “partnerships”) in writing with private and nonprofit entities to implement the purpose of this act.”. (3c) Sec. 203 (D.C. Official Code 34-1252.03) is amended as follows: (A1) The heading is amended by striking the phrase “Cable Television”. (B2) Subsection (a) is amended as follows: (iA) Strike the phrase “Cable Television” both times it appears; and (iiB) Strike the phrase “operation of a cable system” and inserting the phrase “operation of the Office” in its place. (C3) Subsection (d) is amended as follows: (i A) Paragraph (3) is amended by striking the word “and” at the end. (ii) Existing paragraph (4) is redesignated as paragraph (5); and (iii B) A new New paragraphs (3A) is and (3B) are added to read as follows: 93

“(3A) Fees derived from film permits applied for or issued pursuant to section 2d of the Film Economic Incentive Act of 2006, effective March 3, 2010 (D.C. Law 18-111; D.C. Official Code § 2-1204.11d)- ; “(3B) other Other funds as may be designated by law, regulation, or reprogramming.” , and all interest earned on all deposits; and”. (C) Paragraph (4) is amended by striking the period and inserting the phrase “; and” in its place. (D) A new paragraph (5) is added to read as follows: “(5) All interest earned on all deposits.” (b) Section Sec. 2053. Section 2e of the Film DC Economic Incentive Act of 2006, effective March 3, 2010 (D.C. Law 18-111; D.C. Official Code § 2-1204.11e), is repealed. 6. Title II, Subtitle J. Adult Career Pathways Implementation Amendment Act of 2016 a. Purpose, Effect, and Impact on Existing Law The proposed subtitle would amend the District of Columbia Unemployment Compensation Act, approved August 28, 1935 (49 Stat. 947; D.C. Official Code § 51-114(d)(2)(“Unemployment Compensation Act”), to allow for alternative sources of funding for the Adult Career Pathways program. b. Committee Reasoning The Committee recommends approval of this subtitle. Last year, the Council approved the Career Pathways Implementation Amendment Act of 2015, effective October 22, 2015 (D.C. Law 21-36; D.C. Official Code § 32-1605.01), which allowed the Workforce Investment Council (“WIC”) to use monies from the Unemployment and Workforce Development Administrative Fund (“Fund”) to issue grants to design, pilot, and scale best practices in the implementation of the Adult Career Pathways program. This amendment is needed to allow the WIC to use alternative sources of funding for the Adult Career Pathways program in the event there are insufficient monies available in the Fund. The Fund is projected to run a spending pressure so this change will allow the WIC to use alternative sources of to implement the Adult Career Pathways program. c. Section-by-Section Analysis Section 2101. states the short title.

94

Section 2102. provides that WIC may use alternative sources of funding for the Adult Career Pathways program. d. Legislative Recommendations for the Committee of the Whole The Committee recommends approval of this subtitle with the following technical amendments: Section 2101. Short title. This subtitle may be cited as the “Adult Career Pathways Implementation Amendment Act of 2016” Section 2102. Section 14(d)(2)(D) of the District of Columbia Unemployment Compensation Act, approved August 28, 1935 (49 Stat. 947; D.C. Official Code § 51-114(d)(2)), is amended by striking the phrase “The following amounts in the Unemployment and Workforce Development Administrative Fund may be used by the Workforce Investment Council, for the purposes set forth in section 6a of the of the Workforce Investment Implementation Act:” and inserting the phrase “The following amounts in the Unemployment and Workforce Development Administrative Fund, or other sources of the workforce development funding, may be used by the Workforce Investment Council, for the purposes set forth in section 6a of the Workforce Investment Implementation Act.” in its place. 7. Title III. Subtitle G. Anatomical Board Repeal Amendment Act of 2016 a. Purpose, Effect, and Impact on Existing Law The proposed subtitle repeals An Act for the promotion of anatomical science and to prevent the desecration of graves in the District of Columbia, approved April 29, 1902 (32 Stat. 173; D.C. Official Code § 3-201, et seq.). In addition, the proposed subtitle makes a conforming amendment to Section 6(h)(4)(C)(i) District of Columbia Funeral Services Regulatory Act of 1984, effective May 22, 1984 (D.C. law 5-84; D.C. Official Code § 3-405(h)(4)(C)(i)) to delete a reference to the Anatomical Board. b. Committee Reasoning The Committee recommends approval of this subtitle as it eliminates the Anatomical Board, which is no longer active. c. Section-by-Section Analysis Section 3071. states the short title. 95

Section 3072. repeals the Anatomical Board. Section 3073. makes a conforming amendment to delete a reference to the Anatomical Board. d. Legislative Recommendations for the Committee of the Whole The Committee recommends approval of this subtitle with the following technical amendments: Sec. 3071. Short title. This subtitle may be cited as the “Anatomical Board Repeal Amendment Act of 2016”. Sec. 3072. An Act For the promotion of anatomical science and to prevent the desecration of graves in the District of Columbia, approved April 29, 1902 (32 Stat.173; D.C. Official Code § 3-201 et seq.), is repealed. Sec. 3073. Section 6(h)(4)(C)(i) of the District of Columbia Funeral Services Regulatory Amendment Act of 1984, effective May 22, 1984 (D.C. Law 5-84; D.C. Official Code § 3-405(h)(4)(C)(i)) is amended as follows: (a) Paragraph (h)(4)(C)(i) is amended by striking the phrase, “The Anatomical Board, human tissue banks, and anatomical gifts;” and inserting the phrase, “Human tissue banks and anatomical gifts;” in its place.

B.

RECOMMENDATIONS FOR NEW BUDGET SUPPORT ACT SUBTITLES

The Committee recommends the following new subtitles to be added to the “Fiscal Year 2017 Budget Support Act of 2016”: 1. XX. Business Improvement Districts Charter Renewal Amendment 2. XX. Pregnant Workers Protection Amendment 3. XX. Risk-Based Capital Amendment 4. XX. Accrued Sick and Safe Leave Amendment 5. XX. Unemployment Benefits Modernization Amendment 6. XX. Made in DC Subject to Appropriations Repealer Amendment

96

XX. Business Improvement Districts Charter Renewal Amendment Act of 2016 a. Purpose, Effect, and Impact on Existing Law This new proposed subtitle would: 1) modernize and clarify the Business Improvement District (“BID”) charter renewal process under the Business Improvement Districts Amendment Act of 2014, effective February 25, 2015 (D.C. Law 20-161, D.C. Official Code § 2-1215.01 et seq.) (“2014 Act”), and 2) eliminate the 20 year sunset provision that was enacted in the Business Improvement District Act of 1996, effective May 29, 1996 (D.C. Law 11-134; D.C. Official Code § 2-1215.01 et seq.) ("1996 Act"). The 1996 Act is the law that authorized the establishment and administration of BIDs. On December 18, 2015 and April 19, 2016 the Council passed emergency bills to address these BID issues. This subtitle will make the amendments, which were passed on an emergency and temporary basis, permanent. b. Committee Reasoning The 2014 Act inadvertently modified the way a BIDs charter extended. The unintentional change requires the Board and the membership of a BID to first approv e a BID plan, and then submit it to the Mayor to request its operations be extended for 5 years. Historically, BID plans were approved and submitted to the Mayor in accordance with a BID’s bylaws. When the 2014 Act altered the timing of charter renewal procedure, it added an administrative burden for BIDs applying to renew their charters. The change will have a negative impact on the BIDs, especially the smaller neighborhood BIDs. The Council has addressed this issue by passing emergency 77 and temporary 78 legislation to revert the BID charter renewal procedure to the way it has been since 2002 when the first BID term extension took place. The 1996 Act included a sunset provision that provided that the law would expire 20 years from the effective date. The repeal of this sunset provision is necessary to ensure that BID services continue without interruption. BIDs have become an integral and appreciated community asset to the District. Over the past 20 years, the District has seen the creation of 10 BIDs, with several more new BIDs anticipated, or being explored. In 2015, BIDS invested over $27 million to serve areas with 475,000 daytime employees and 266,000 residents who live within a half mile of a BID. 79 The BIDs help keep the District beautiful by cleaning 32 acres of parks, 114 miles of sidewalks, empting 2,300 garbage and recycling containers, and removing 7,505 tons of litter. 80 In 2015, BIDs held 400 events that entertained and educated more than 500,000 people. 81 BIDs helped create over 215 entry level jobs in 2015. 82 Failure to repeal the sunset provision would

77

Business Improvement Districts Charter Renewal Emergency Amendment Act of 2015, enacted December 17, 2015 (D.C. Act 21-227; 62 DCR 16249). 78 Business Improvement Districts Charter Renewal Temporary Amendment Act of 2015, effective March 9, 2016 (D.C. Law 21-089; 63 DCR 796). 79 DC BID Council, 20 Years of Urban Transformation: A Retrospective of DC BIDs; 6 (Dec. 2015), available at http://www.dcbidcouncil.org/publications/. 80 Id. 81 Id. at 8. 82 Id.

97

ultimately harm the District. The Council has addressed this issue by passing emergency 83 and temporary 84 legislation to repeal the sunset provision. c. Section-by-Section Analysis Sec. XX01. states the short title. Sec. XX02. amends Section 19(a)(1)(B) of Title 2 of the District of Columbia Official Code. Subsection (a) clarifies that a BID shall submit a plan to the Mayor to request to extend its charter for a period of 5 years. Subsection (b) repeals Section 24(b) (43 DCR 1698) to eliminate the sunset provision. d. Legislative Recommendations for the Committee of the Whole Sec. XX01. This subtitle may be cited as the “Business Improvement Districts Charter Renewal Amendment Act of 2016”. Sec. XX02. The Business Improvement Districts Act of 1996, effective May 29, 1996 (D.C. Law 11-134; D.C. Official Code § 2-1215.01 et seq.), is amended as follows: (a) Section 19(a)(1)(B) (D.C. Official Code § 2-1215.18(a)(1)(B)), is amended by striking the phrase “The Board and membership approve a BID plan for the next 5 years of BID operations and submit that plan to the Mayor; and” and inserting the phrase “The BID submits a plan for the next 5 years of BID operations to the Mayor; and” in its place. (b) Section 24(b) (43 DCR 1698) is repealed. XX. Protecting Pregnant Workers Fairness Amendment Act of 2016 a. Purpose, Effect, and Impact on Existing Law The proposed subtitle would amend the Protecting Pregnant Workers Fairness Act of 2014, effective March 3, 2015 (D.C. Law 20-168; D.C. Official Code § 32-1231.01 et seq.) (“PPWFA”), to require an employer to make reasonable accommodations for an employee whose ability to perform the functions of the employee’s job are affected by a pre-birth complication. 83 Business Improvement Districts Sunset Repeal Emergency Amendment Act of 2016, passed on emergency basis on April 5, 2016 (Enrolled version of Bill 21-699). 84 Business Improvement Districts Sunset Repeal Temporary Amendment Act of 2016, passed on temporary basis on April 19, 2016 (Enrolled version of Bill 21-700).

98

b. Committee Reasoning PPWFA was enacted to protect pregnant workers from having to choose between their health or the health of their pregnancy and their jobs. However, the bill did not adequately address prebirth complications and hence the need for the amendment. This amendment would strengthen the law by the increasing the protections for pregnant workers suffering from pre-birth complications. The amendment is necessary to protect pregnant workers whom suffer from prebirth complications from unjust termination which can result in a myriad of difficulties for these women, their unborn children, their families, and ultimately their livelihood. The Council has already approved this amendment on an emergency 85 and temporary 86 basis. c. Section-by-Section Analysis Sec. XX01. States the short title. Sec. XX02. amends the Protecting Pregnant Workers Fairness Act of 2014, effective March 3, 2015 (D.C. Law 20-168; D.C. Official Code § 32-1231.01 et seq.). Subsection (a) adds a new paragraph to include a provision permitting for time off due to pre-birth complications. Subsection (b) provides that a pre-birth complication is a pregnancy related condition. d. Legislative Recommendations for the Committee of the Whole Sec. XX01. Short title. This subtitle may be cited as the “Protecting Pregnant Workers Fairness Amendment Act of 2016”. Sec. XX02. The Protecting Pregnant Workers Fairness Act of 2014, effective March 3, 2015 (D.C. Law 20-168; D.C. Official Code § 32-1231.01 et seq.), is amended as follows: (a) Section 2(2) (D.C. Official Code § 32-1231.01(2)) is amended as follows: (1) Subparagraph (F) is amended by striking the word “or”. (2) Subparagraph (G) is amended by striking the period and inserting the phrase “; or” in its place

85

Protecting Pregnant Workers Fairness Emergency Amendment Act of 2016, enacted February 18, 2016 (D.C. Act 21-314; 63 DCR 2199). 86 Protecting Pregnant Workers Fairness Temporary Amendment Act of 2016, effective April 20, 2016 (D.C. Law 21-103; 63 DCR 3654).

99

(3) A new subparagraph (H) is added to read as follows: “(H) Time off due to pre-birth complications.”. (b) Section 4 (D.C. Official Code § 32-1231.03) is amended as follows: (1) Paragraph (4) is amended by striking the word “or” at the end. (2) Paragraph (5) is amended by striking the period and inserting the phrase “; or” in its place. (3) A new paragraph (6) is added to read as follows: “(6) Take an adverse action against an employee who has been absent from work as a result of a pregnancy related condition, including a pre-birth complication.”. XX. Risk-Based Capital Amendment Act of 2016 a. Purpose, Effect, and Impact on Existing Law The proposed subtitle would amend the Risk-Based Capital Act of 1996 effective April 9, 1997 (D.C. Law 11-233; D.C. Official Code §§ 31-2001 et seq.), as follows: changing the trigger point for the Risk-Based Capital trend test or life insurers from 2.5 to 3.0; making the trend test more conservative and thus more protective for policyholders; and clarifying that risk-based capital standards apply to fraternal benefit societies licensed in the District will eliminate any potential confusion about the applicable standards and enhances consumer protection. b. Committee Reasoning The proposed subtitle would ensure that DISB retains its accreditation with the National Association of Insurance Commissioners (“NAIC”) by conforming to key, nationally accepted risk-based capital standards. The risk-based capital standard gauges an insurer’s financial strength. Not being accredited by NAIC means life insurers would then be subject to examination of other states, which would be burdensome. This would negatively impact the agency’s ability to attract life insurance companies to the District of Columbia, which threatens possible revenue generating for the District. c. Section-by-Section Analysis Sec. XX01. states the short title. Sec. XX02. amends the Risk-Based Capital Act of 1996, effective April 9, 1997 (D.C. Law 11233; D.C. Official Code §§ 31-2001 et seq.). Subsection (a) adds definitions for the terms “Fraternal benefit society” and “Insurer”. 100

Subsection (b) makes a technical amendment to clarify that the notice relates to an Adjusted RBC Report. Subsection (c) provides that a fraternal benefit society is subject to the District’s RiskBased Capital requirements as it relates to a Company Action Level Event. In addition, changes the trigger point for the Risk-Based Capital trend test for life insurers from 2.5 to 3.0. Subsection (d) provides that a fraternal benefit society is subject to the District’s RiskBased Capital requirements as it relates to a Mandatory Control Level Event. d. Legislative Recommendations for the Committee of the Whole Sec. XX01. Short Title. This subtitle may be cited as the “Risk-Based Capital Amendment Act of 2016”. Sec. XX02. The Risk-Based Capital Act of 1996, effective April 9, 1997 (D.C. Law 11-233; D.C. Official Code § 31-2001 et seq.), is amended as follows: (a) Section 2 (D.C. Official Code § 31-2001) is amended by adding new paragraphs (6A) and (6B) to read as follows: “(6A) “Fraternal benefit society” means any insurance company licensed under the Fraternal Benefit Societies Act of 1998, effective April 29, 1998 (D.C. Law 12-86; D.C. Official Code § 31-5301 et seq.). “(6B) “Insurer” means an insurance company covered by this act. The term “insurer” includes a fraternal benefit society, as defined by this act.”. (b) Section 3(g) (D.C. Official Code § 31-2002(g)) is amended by striking the phrase “insurer of an adjustment.” and inserting the phrase “insurer of an adjustment. An RBC Report so adjusted is an Adjusted RBC Report. in its place”. (c) Section 4(a)(1) (D.C. Official Code § 31-2003(a)(1)) is amended as follows: (1) Subparagraph (B) is amended as follows:

101

(A) Strike the phrase “If a life or health insurer,” and insert the phrase “If a life or health insurer or fraternal benefit society,” in its place. (B) Strike the figure “2.5” and insert the figure “3.0” in its place. (2) Subparagraph (C)) is amended by striking the phrase “licensed as”. (d) Section 7(b)(1) (D.C. Official Code § 31-2006(b)(1)) is amended by striking the phrase “With respect to a life insurer” and inserting the phrase “With respect to a life insurer or fraternal benefit society” in its place. XX. Accrued Sick and Safe Leave Amendment Act of 2016 a. Purpose, Effect, and Impact on Existing Law The proposed subtitle would amend Section 7(b) of the Accrued Sick and Safe Leave Act of 2008, effective May 13, 2008 (D.C. Law 17-152; D.C. Official Code § 32-131.06(b)), to clarify that employees in the building and construction industry covered by a bona fide collective bargaining agreement shall be exempted from the paid leave requirements of the act only if the agreement expressly waives those requirements. b. Committee Reasoning In 2014, the Council approved the “Wage Theft Prevention Amendment Act of 2014” effective February 26, 2015 (D.C. Law 20-157; 61 DCR 10157) (“Act”). Since that time it has come to the Council’s attention that the Act unintentionally deleted language that allowed employees in the building and construction industry to bargain to waive provisions of the Accrued Sick and Safe Leave Act of 2008 through a bona fide collective bargaining agreement. The proposed subtitle will correct the inadvertent change made in the Act. The Council has already approved this amendment to the Act on an emergency 87 and temporary 88 basis. c. Section-by-Section Analysis Sec. XX01. states the short title. Sec. XX02. amends Section 7(b) of the Accrued Sick and Safe Leave Act of 2008 to clarify that employees in the building and construction industry covered by a bona fide collective bargaining agreement shall be exempted from the paid leave requirements of the act only if the agreement expressly waives those requirements. d. Legislative Recommendations for the Committee of the Whole

87

Wage Theft Prevention Clarification Emergency Amendment Act of 2016, enacted January 27, 2016 (D.C. Act 21-291; 63 DCR 1207). 88 Wage Theft Prevention Clarification Temporary Amendment Act of 2016, effective April 6, 2016 (D.C. Law 21101; 63 DCR 2220).

102

Sec. XX01. Short Title. This subtitle may be cited as the “Accrued Sick and Safe Leave Amendment Act of 2016”. Sec. XX02. Section 7(b) of the Accrued Sick and Safe Leave Act of 2008, effective May 13, 2008 (D.C. Law 17-152; D.C. Official Code § 32-131.06(b)), is amended by striking the phrase “agreement.” and inserting the phrase “agreement that expressly waives the requirements in clear and unambiguous terms.” in its place. XX. Unemployment Benefits Modernization Amendment Act of 2016 a. Purpose, Effect, and Impact on Existing Law The proposed subtitle would the District of Columbia Unemployment Compensation Act, approved August 28, 1935 (49 Stat. 946; D.C. Official Code § 51-101 et seq.), to increase the maximum weekly benefit to $425 and to provide for cost of living adjustments; as long as, the increase will not negatively affect the Unemployment Insurance Trust Fund (“UI Trust Fund”). In addition, the bill standardizes the number of weeks claimants can receive benefits. Furthermore, the bill raises benefits for recipients who are part-time workers. b. Committee Reasoning The role of unemployment insurance (“UI”) is to help involuntarily unemployed people maintain basic living standards while they look for new work. Currently, the District has a maximum weekly benefit amount of $359. This benefit amount is lower than the maximum benefit in 38 states, including Maryland which is at $430 and Virginia which is at $378. 89 The last time the District increased its weekly maximum benefit was in 2005. The Committee believes with the rising costs with living in the District and with the District’s UI Trust Fund being one of the strongest in the nation the Council should approve an increase of the maximum weekly benefit to $425 and to provide for cost of living adjustments; as long as, the raise will not negatively affect the UI Trust Fund. Additionally, the Committee recommends standardizing the number of weeks a claimant can receive benefits. This means, as long as an individual’s meets the requirements under the law, they will be able to receive up to 26 weeks of UI benefits. Ms. McKenna of the National Employment Law Project testified, at the April 27, 2016 hearing, that nine other states, including Maryland, already offers this benefit. 90 She also stated providing 26 weeks of benefits gives UI claimants enough time to search for a job that matches their skills and background. The Committee agrees that by standardizing the weeks one may receive UI benefits creates more stability for individuals receiving these benefits. These individuals tend to be the lowest income and most vulnerable District residents. Finally, the Committee recommends to raise the benefits for recipients who are part-time workers. The legislation would allow claimants to receive UI benefits if two-thirds of their 89 90

Page 2, testimony of Ilana Boivie, Senior Policy Analyst, DC Fiscal Policy Institute (April 27, 2016). Page 3, testimony of Claire McKenna, Senior Policy Analyst, National Employment Law Project (April 27, 2016).

103

earnings from part-time work are less than their usual benefit plus $50. According to Ms. Boivie, and the Committee agrees, that this change will help incentivize workers to take on a part-time job to supplement their UI benefits, thus encouraging them to return to the workforce sooner. 91 The Committee would like to note that it held a hearing on the B21-370, the “Unemployment Benefits Modernization Amendment Act of 2015” on April 27, 2016. At that hearing Director Carroll stated the Executive supports increasing the maximum weekly benefits to $425 beginning on January 1, 2017, and increasing the benefit pursuant to the CPI only after a review by the Director to ensure that the financial condition of the fund will not be adversely affected. 92 Furthermore, the Director stated the Executive also supports the standardization of the weeks on UI and raising the benefits for recipients who obtain part-time work. 93 c. Section-by-Section Analysis Sec. XX01. states the short title. Sec XX02. amends the District of Columbia Unemployment Compensation Act, approved August 28, 1935 (49 Stat. 946; D.C. Official Code § 51-101 et seq.). Subsection (a) amends the definition of when an individual is deemed unemployed. Subsection (b) provides that beginning on October 1, 2016, the maximum weekly benefit amount shall be $425. Furthermore, it provides that beginning on January 1, 2018, and for each calendar year thereafter, the maximum weekly benefit amount shall be determined by the Director of DOES. It will allow the Director to increase the UI maximum weekly benefit as long as it does not worsen the condition of the UI Trust Fund. It also standardizes the number of weeks claimants can receive benefits and it raises benefits for recipients who are part-time workers. d. Legislative Recommendations for the Committee of the Whole Sec. XX01. Short title. This subtitle may be cited as the “Unemployment Benefits Modernization Amendment Act of 2016”. Sec. XX02. The District of Columbia Unemployment Compensation Act, approved August 28, 1935 (49 Stat. 946; D.C. Official Code § 51-101 et seq.), is amended as follows: (a) Section 1(5) (D.C. Official Code § 51-101(5)) is amended as follows: (1) Strike the figure “80%” and insert the figure “66%” in its place. (2) Strike the figure “$20” and insert the figure “$50” in its place.

91

Page 2, testimony of Ilana Boivie, Senior Policy Analyst, DC Fiscal Policy Institute (April 27, 2016). Page 4, testimony of Deborah Carroll, Director, DOES (April 27, 2016). 93 Id. 92

104

(b) Section 7 (D.C. Official Code § 51-107) is amended as follows: (1) Subsection (a) is amended by striking the last sentence. (2) Subsection (b) is amended to read as follows: “(b)(1) An individual’s weekly benefit amount is equal to one twenty-sixth (computed to the next higher multiple of $1) of their total wages for insured work paid during the quarter of their base period in which such total wages were highest, with such other following limitations. “(2) Effective October 1, 2016, the maximum weekly benefit amount shall be $425. “(3)(A) Effective January 1, 2018, and for each calendar year thereafter, the maximum weekly benefit amount shall be determined by the Director of the Department of Employment Services by using the Department of Labor State Benefit Financing Model. “(B) The Director shall consider the Consumer Price Index for Urban Consumers in the Washington Metropolitan Statistical Area, published the United States Department of Labor’s Bureau of Labor Statistics, in making a determination. “(C) The recommended maximum weekly benefit amount shall not worsen the condition of the District Unemployment Compensation Trust Fund. “(D) The Director shall recommend the maximum weekly benefit amount which shall become the maximum weekly benefit amount for the next calendar year, unless the Council passes a resolution disapproving the Director recommendation within 45 days after its receipt. “(E) If the Council passes a resolution of disapproval the maximum weekly benefit amount then in effect shall continue in effect for the next calendar year. (3) Subsection (d) is amended by striking the phrase “or 50% of the wages for employment paid to such individual by employers during his base period whichever is the lesser”. 105

(4) Subsection (e) is amended as follows: (A) Strike the figure “80%” and insert the figure “66%” in its place. (B) Strike the figure “$20” and insert the figure “$50” in its place. (5) Subsection (f) is amended by striking the phrase “this section shall not apply” and inserting the phrase “this subsection shall not apply” in its place. XX. Made in DC Program Subject to Appropriations Repealer Amendment Act of 2016 a. Purpose, Effect, and Impact on Existing Law The proposed subtitle would amend the Made in DC Program Establishment Act of 2016, passed on 2nd reading on April 19, 2016 (Enrolled version of Bill 21-514) (“Made in DC Act”), by repealing the subject to appropriation section. b. Committee Reasoning Since the Committee is allocating money to fund the Made in DC Act in the FY17 budget, this amendment needed to ensure the bill becomes effective at the beginning of the fiscal year. c. Section-by-Section Analysis Sec. XX01. states the short title. Sec. XX02. repeals the subject to appropriation language in the Made in DC Act. d. Legislative Recommendations for the Committee of the Whole Sec. XX01. Short title. This subtitle may be cited as the “Made in DC Program Subject to Appropriations Repealer Amendment Act of 2016”. Sec. XX02. Section 7 of the Made in DC Program Establishment Act of 2016, passed on 2nd reading on April 19, 2016 (Enrolled version of Bill 21-514), is repealed.

106

VI.

COMMITTEE ACTION AND VOTE

On Wednesday, May 4, 2016 at 10:04 a.m. in the Council Chambers (Room 500) of the John A. Wilson Building, the Committee on Business, Consumer, and Regulatory Affairs met to consider and vote on the FY17 operating and capital budget for agencies under its jurisdiction, the Committee’s recommendations for the FY17 Budget Federal Portion Adoption and Request Act, the FY17 Budget Local Portion Adoption Act, the FY17 Budget Support Act, and the Committee’s budget report. Chairperson Vincent Orange determined the presence of a quorum consisting of himself and Councilmember Charles Allen (Ward 6), Councilmember Brianne Nadeau (Ward 1), Councilmember Brandon Todd (Ward 4), and At-Large Councilmember Elissa Silverman. Chairperson Orange provided a brief overview of the Committee report and the Committee’s recommended changes to the Mayor’s proposed FY17 budget. After his statement, the Chairperson asked if there was any discussion. Councilmember Silverman thanked the Mayor and Chairman Orange for the investments being made at DCRA. She was also glad that funding was provided for the Emergency Housing Assistance Program (“EHAP”) at OTA. She also thanked the Committee for increasing funding for the Clean Teams and Main Streets. Finally, Councilmember Silverman thanked the Committee for including in the BSA subtitle proposals an update to the unemployment insurance benefits. She stated the increase from $359 to $425 will be the program’s first increase in 11 years. Councilmember Silverman stated that she hoped that going through the budget process that all sides can continue to work together to increase the benefit from $425 to $430. Councilmember Allen commended the work to increase the capacity at DCRA. He was also pleased to see the recommendation to increase funding for the Main Streets. He thanked the Committee on Transportation and the Environment for transferring funds to the Committee to fund the Made in DC bill. Finally, Councilmember Allen said he was disappointed that funding was not provided for a new Eastern Market Main Street, but he will work with the Committee of the Whole to try and procure funding for this new Main Street. Councilmember Todd thanked Chairman Orange for including in the budget a new Clean Team for Upper Georgia Avenue in Ward 4. He was also pleased with the policy recommendations made for DCRA and DSLBD. He hoped the agencies would take these recommendations seriously in an effort to curb illegal construction and to remove graffiti. Lastly, he commended Chairman Orange for proposing to include the Unemployment Benefits Modernization Amendment Act of 2016 in the BSA subtitle. Councilmember Nadeau thanked Chairman Orange for including the increase to the Unemployment Insurance benefits in the BSA. She also was pleased with the funding increases for the Clean Teams and Main Streets and for funding being provided for a new Columbia Heights-Mount Pleasant Main Street. She supported the increases for funding to DCRA and for the Boxing and Wrestling Commission. Finally, Councilmember Nadeau was please that funding was provided for the EHAP program at OTA. Councilmember Orange thanked all the members of the Committee and their staff for their work. In addition, he thanked the Council’s Budget Office, the Council’s General Counsel’s Office, and the Mayor’s Office for working with the Committee in preparing this report. Finally, he said 107

he will continue to work with Councilmember Allen and Councilmember Todd to advocate for funding at the Committee of the Whole for a new Eastern Market Main Street and a new 14th Street Clean Team. There being no further discussion, Chairperson Orange moved for approval of the Committee’s Fiscal Year 2017 budget report, with leave for staff to make technical, editorial, and conforming changes to reflect the Committee’s actions. The Committee’s FY17 budget report was approved by a vote of 5 to 0. Committee Members voted as follows: Committee Members Voting in Favor: Councilmember Vincent B. Orange, Sr., Chair Councilmember Charles Allen (Ward 6) Councilmember Brandon Todd (Ward 4) Councilmember Elissa Silverman (At-Large) Councilmember Brianne Nadeau (Ward 1) Committee Members Voting Against: None Committee Members Voting Present: None Chairperson Orange asked if there was any additional business before the Committee. Hearing none, the meeting adjourned at 10:29 a.m.

VII. ATTACHMENTS Copies of witness testimony are available by request in the Committee Office. A. April 20, 2016 Fiscal Year 2017 Budget Oversight Hearing Witness List and Testimony B. April 25, 2016 Fiscal Year 2017 Budget Oversight Hearing Witness List and Testimony C. Letter from Leona Agouridis, Executive Director, Golden Triangle BID to Donovan Anderson, ABC Chairperson dated December 14, 2015. D. Letter from Traci Hughes, Esq, Director, Office of Open Government to Commissioner Eckenwiler dated January 29, 2016.

108