Such notes may be renewed from time to time, but all such notes, together with the renewals, shall mature and be paid not later than the end of the fiscal year for which the original notes have been issued.

NOTES REDEEMABLE PRIOR TO MATURITY

SEC. 623. No notes issued pursuant to this part shall be made payable on demand, but any note may be made subject to redemption prior to maturity on such notice and at such time as may be stated in the note.

SALE OF NOTES

SEC. 624. All notes issued pursuant to this part may be sold at not less than par and accrued interest at private sale without previous advertising.

PART 3-PAYMENT OF BONDS AND NOTES

PAYMENT OF BONDS AND NOTES

SEC. 631. (a) The act of the Assembly authorizing the issuance of bonds pursuant to this title shall, where necessary, provide for the levy annually of a special tax without limitation as to rate or amount upon all the taxable real and personal tangible property within the District in amounts which, together with other revenues of the District available and applicable for said purposes, will be sufficient to pay the principal of and interest on said bonds and the premium, if any, upon the redemption thereof, as the same respectively become due and payable, which tax shall be levied and collected at the same time and in the same manner as other District taxes are levied and collected, and when collected shall be set aside for the purpose of paying such principal, interest, and premium. (b) The full faith and credit of the District shall be and is hereby pledged for the payment of the principal of and the interest on all bonds and notes of the District hereafter issued pursuant to this title whether or not such pledge be stated in the bonds or notes or in the act authorizing the issuance thereof. PART 4-TAX EXEMPTION-LEGAL INVESTMENT

TAX EXEMPTION

SEC. 641. Bonds and notes issued by the Assembly pursuant to this title and the interest thereon shall be exempt from all Federal and District taxation except estate, inheritance, and gift taxes.

LEGAL INVESTMENT

SEC. 642. Notwithstanding any restrictions on the investment of funds by fiduciaries contained in any other laws, all domestic insurance companies, domestic insurance associations, executors, administrators, guardians, trustees, and other fiduciaries within the District of Columbia may legally invest any sinking funds, moneys, trust funds, or other funds belonging to them or under or within their control in any bonds issued pursuant to this title, it being the purpose of this section to authorize the investment in such bonds or notes of all sinking, insurance, retirement, compensation, pension and trust funds. National banking associations are authorized to deal in, underwrite, purchase and sell, for their own accounts or for the accounts of customers, bonds and notes issued by the Assembly to the same extent as national banking associations are authorized by paragraph seven of section 5136 of the Revised Statutes (title 12, U.S.C., sec. 24), to deal in, underwrite, purchase and sell obligations of the United States, States, or political subdivisions thereof. All Federal building and loan associations and Federal savings and loan associations; and banks, trust companies, building and loan associations, and savings and loan associations, domiciled in the District of Columbia, may purchase, sell, underwrite, and deal in, for their own account or for the account of others, all bonds or notes issued pursuant to this title: Provided, That nothing contained in this section shall be construed as relieving any person, firm, association, or corporation from any duty of exercising due and reasonable care in selecting securities for purchase or investment.

TITLE VII-FINANCIAL AFFAIRS OF THE DISTRICT

PART 1-FINANCIAL ADMINISTRATION

SURETY BONDS

SEC. 701. Such officers and employees of the District as the Assembly shall require shall be bonded with such sureties and in such amounts as the Assembly may prescribe. The premiums for all such bonds shall be paid out of appropriations of the District.

FINANCIAL DUTIES OF THE GOVERNOR

SEC. 702. The Governor, through his duly designated subordinates, shall have charge of the administration of the financial affairs of the District and to that end he shall

(1) prepare and submit in the form prescribed by the Assembly under section 502 the annual budget estimates and budget message;

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

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

(A) full disclosure of the financial results of the District govern ment's activities,

(B) adequate financial information needed by the District government for management purposes,

(C) effective control over and accountability for all funds, property, and other assets: Provided, That as soon as practicable after the date of enactment of this Act, the Governor shall cause the accounts of the District of Columbia to be maintained on an accrual basis that will show the resources, liabilities, and costs of operations of the District of Columbia and its agencies, and that will facilitate the preparation of costs-based budgets. The accounting system of the District of Columbia shall be approved by the Comptroller General of the United States when deemed to be adequate and in conformity with acceptable principles and standards of accounting.

(4) submit to the Assembly a monthly financial statement, by appropriation and department, and in any further detail the Assembly may specify; (5) prepare, as of the end of each fiscal year, a complete financial statement and report;

(6) supervise and be responsible for the assessment of all property subject to assessment within the corporate limits of the District for taxation, make all special assessments for the District government, prepare tax maps, and give such notice of taxes and special assessments as may be required by law;

(7) supervise and be responsible for the assessment and collection of all taxes, special assessments, license fees, and other revenues of the District for the collection of which the District is responsible and receive all money receivable by the District from the Federal Government, or from any courts, or from any agency of the District;

(8) have custody of all public funds belonging to or under the control of the District, or any agency of the District government, and deposit all funds coming into his hands, in such depositories as may be designated and under such terms and conditions as may be prescribed by act of the Assembly; and

(9) have custody of all investments and invested funds of the District government, or in possession of such government in a fiduciary capacity, and have the safekeeping of all bonds and notes of the District and the receipt and delivery of District bonds and notes of transfer, registration, or exchange.

CONTROLS OF APPROPRIATIONS

SEC. 703. The Assembly may provide (1) the transfer during the budget year of any appropriation balance then available for one item of appropriation to another item of appropriation, and (2) the allocation of new items of funds appropriated for contingent expenditure.

ACCOUNTING SUPERVISION AND CONTROL

SEC. 704. (a) The Governor, through his duly authorized subordinates, shall(1) prescribe the forms of receipts, vouchers, bills, and claims to be used by all the agencies of the District government;

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

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

(4) perform internal audits of central accounting and department and agency records of the District government, including the examination of any accounts or records of financial transactions, and giving due consideration to the effectiveness of accounting systems, internal control, and related administrative practices of the respective agencies.

WHEN CONTRACTS AND EXPENDITURES PROHIBITED

SEC. 705. No officer or agency of the District shall, during any budget year, expend or contract to expend any money or incur any liability, or enter into any contract which by its terms involves the expenditure of money, for any purpose, in excess of amounts available under appropriations therefor. Any contract, oral or written, made in violation of this Act shall be null and void. Any officer or employee of the District who shall violate this section, upon conviction thereof, may be summarily removed from office. Nothing in this section, however, shall prevent the making of contracts or of expenditures for capital improvements to be financed in whole or in part by the issuance of bonds, nor the making of contracts of lease or for services for a period exceeding the budget year in which such contract is made, when such contract is permitted by law.

GENERAL FUND

SEC. 706. The general fund of the District shall be composed of the revenues of the District other than the revenues applied by law to special funds. All moneys received by any agency, officer, or employee of the District in its or his official capacity shall belong to the District government and shall be paid promptly to the Governor, or his duly authorized subordinates, for deposit in the appropriate funds.

CONTRACTS EXTENDING BEYOND ONE YEAR

SEC. 707. No contract involving expenditure out of the appropriations of more than one year shall be made for a period of more than five years; nor shall any such contract be valid unless made or approved by act of the Assembly.

PART 2-AUDIT BY GENERAL ACCOUNTING OFFICE

INDEPENDENT AUDIT

SEC. 721. (a) The financial transactions shall be audited by the General Accounting Office in accordance with such principles and procedures and under such rules and regulations as may be prescribed by the Comptroller General of the United States. In the determination of the auditing procedures to be followed and the extent of the examination of vouchers and other documents, the Comptroller General shall give due regard to generally accepted principles of auditing, including consideration of the effectiveness of the accounting organizations and systems, internal audit and control, and related administrative practices. The audit shall be conducted at the place or places where the accounts are normally kept. The representatives of the General Accounting Office shall have access to all books, accounts, financial records, reports, files, and all other papers, things, or property belonging to or in use by the District and necessary to facilitate the audit, and they shall be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians.

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

(2) After the Governor and his duly authorized subordinates have had an opportunity to be heard, the Assembly shall make such report, together with such other material as it deems pertinent thereto, available for public inspection.

(3) The Governor, within ninety days after the report has been made to him and the Assembly, shall state in writing to the Assembly what has been done to comply with the recommendations made by the Comptroller General in the report.

AMENDMENT OF BUDGET AND ACCOUNTING ACT

SEC. 722. Section 2 of the Budget and Accounting Act, 1921 (U.S.C. 1952 edition, title 31, sec. 2), is hereby amended by striking out "and the municipal government of the District of Columbia".

PART 3-ADJUSTMENT OF FEDERAL AND DISTRICT EXPENSES

ADJUSTMENT OF FEDERAL AND DISTRICT EXPENSES

SEC. 732. Subject to section 901 and other provisions of law, the Governor, with the advice and consent of the Assembly, and the Director of the Bureau of the Budget, are authorized and empowered to enter into agreement or agreements concerning the manner and method by which amounts owed by the District to the United States, or by the United States to the District, shall be ascertained and paid. TITLE VIII-ELECTIONS IN THE DISTRICT

BOARD OF ELECTIONS

SEC. 801. (a) The members of the Board of Elections in office on the date of enactment of this Act shall continue in office for the remainder of the terms for which they were appointed. Their successors shall be appointed without regard to political affiliations, by the Governor. The term of each such successor (except in the case of an appointment to fill an unexpired term) shall be three years from the expiration of the term of his predecessor. Any person appointed to fill a vacancy shall be appointed only for the unexpired term of his predecessor. When a member's term of office expires, he may continue to serve until his successor is appointed and has qualified. Section 3 of the District Primary Act is hereby modified to the extent that it is inconsistent herewith. (b) In addition to its other duties, the Board of Elections shall also, for the purposes of this Act-

(1) maintain a permanent registry;

(2) conduct registrations and elections;

(3) in addition to determining appeals with respect to matters referred to in sections 807 and 811, determine appeals with respect to any other matters which (under regulations prescribed by it under subsection (c)) may be appealed to it;

(4) print, distribute, and count ballots, or provide and operate suitable voting machines;

(5) divide the District into five wards as nearly equal as possible in population and of geographic proportions as nearly regular as possible, and establish voting precincts therein;

(6) operate polling places;

(7) certify nominees and the results of elections; and

(8) perform such other functions as are imposed upon it by this Act. (c) The Board of Elections may prescribe such regulations not inconsistent with the provisions of this title, as may be necessary or appropriate for the purposes of this title, including regulations providing for appeals to it on questions arising in connection with nominations, registrations, and elections (in addition to matters referred to it in sections 807 and 811) and for determination by it of appeals.

(d) The officers and agencies of the District government shall furnish to the Board of Elections, upon request of such Board, such space and facilities in public buildings in the District to be used as registration or polling places, and such records, information, services, personnel, offices, and equipment, and such other assistance and facilities, as may be necessary to enable such Board properly to perform its functions.

(e) In the performance of its duties, the Board of Elections shall not be subject to the authority of any nonjudicial officer of the District.

(f) The Board of Elections, and persons authorized by it, may administer oaths to persons executing affidavits pursuant to sections 801 and 807. It may provide for the administering of such other oaths as it considers appropriate to require in the performance of its functions.

(g) The Board of Elections is authorized to employ such permanent and temporary personnel as may be necessary. The appointment, compensation, and other terms of employment may be set by the Board of Elections without regard to the provisions of section 402 of this Act.

(h) Each member of the Board of Elections shall be paid at the rate of $1,500 per annum in periodic installments.

WHAT ELECTIONS SHALL BE HELD

SEC. 802. (a) The Board of Elections shall conduct a general election

(1) in each even-numbered calendar year commencing with 1966; and (2) in any odd-numbered calendar year commencing with 1965, if an act authorizing the issuance of bonds required by section 602 to be submitted for a referendum at an election is enacted at least forty days prior to the date for conducting the election in such year.

(b) Such general elections shall be held on the fourth Tuesday before the Tuesday in November prescribed hereafter for runoff elections.

(c) Any runoff elections required to be held pursuant to section 805 shall be held on the first Tuesday after the first Monday in November.

ELECTIVE OFFICES; TERMS OF OFFICE

SEC. 803. (a) The offices of the District to be filled by election shall be the elective offices of the Assembly and the District Delegate.

(b) The term of an elective office of the Assembly shall be two years beginning on January 1 of the odd-numbered year following such election.

(c) The term of office of the District Delegate shall be two years beginning at noon on January 3 of the odd-numbered year following such election.

VACANCIES

SEC. 804 (a) Vacancies in the Assembly shall be filled at the next general election held pursuant to section 802 for which it is possible for candidates to be nominated following the occurrence of the vacancy. A person elected to fill a vacancy shall take office as soon as practicable following the certification of his election by the Board of Elections and shall hold office for the duration of the unexpired term to which he was elected but not beyond the end of such term. (b) If the office of Delegate becomes vacant at a time when the unexpired term of such office is six months or more, a special election and, if necessary, a runoff election shall be held, at such time and in such manner (comparable to that prescribed for general elections) as the Board of Elections shall prescribe. (c) Until a vacancy in the Assembly can be filled in the manner prescribed in subsection (a) hereof, a vacancy in the Assembly shall be filled by appointment by the Governor. No person shall be qualified for appointment to any office under this subsection unless, if nominated, he would have been a qualified candidate for such office at the last election conducted prior to or on the date the vacancy occurred. A person appointed to fill a vacancy under this subsection shall hold office until the time provided for an elected successor to take office, but not beyond the end of the term during which the vacancy occurred.

WHAT CANDIDATES ARE ELECTED

SEC. 805. At any general election, a candidate for Delegate who receives a majority of the votes validly cast for such office shall be elected. At any general election, each of the three candidates in each ward for positions on the Assembly receiving the highest number of valid votes, shall be elected if he