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Service Improvement Act of 1999
Bill 13-161

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Title I, Procurement Authority of Mayor
Title II, Reorganization Authority of Mayor
Title III, Personnel Reform
Title IV, Technology Center
Title V, Child and Youth Partnership Program
Title VI, Health Care Commission
Title VII, National Capital Revitalization
Title VIII, Business Tax Restructuring
Title IX, Fiscal Impact Statement
Title X, Effective Date

Chairman Cropp at the Request of the Mayor

A BILL IN THE COUNCIL OF THE DISTRICT OF COLUMBIA

Chairman Cropp, at the request of the Mayor, introduced the following bill, which was referred to the Committee on

To provide the Mayor with an expedited procurement process; to amend the Governmental Reorganization Act of 1981 to exempt, for a period of 24 months, the requirement of Council approval for reorganizations; to amend the District of Columbia Comprehensive Merit Personnel Act of 1978 to modify options for Management Supervisory Service Employees and to establish an early-out retirement incentive program for employees under the personnel authority of the Mayor; to establish a Technology Center to provide comprehensive educational and employment services to District residents; to establish a Child and Youth Partnership Program to provide educational, developmental, training, and recreational resources to District children and youth; to establish a Health Care Commission to make recommendations to the Mayor to improve the delivery of health care services to District residents; to amend The National Capital Revitalization Corporation Act of 1998; to amend Title 47 of the District of Columbia Code to eliminate the franchise tax on business with gross incomes below $2,000,000, to accelerate depreciation of computer equipment under the personal property tax, to change the net operating loss deduction to allow businesses to take District-specific deductions, to eliminate the professional license fee, to eliminate the arena fee for businesses with gross receipts under $2,000,000, to reduce the commercial real property tax rate for Commercial Development Taxing Jurisdictions, and to eliminate the sales tax on internet access.

BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may be cited as the "Service Improvement Act of 1999."

TITLE I — PROCUREMENT AUTHORITY OF MAYOR

Sec. 101. Section 451 of the District of Columbia Home Rule Act, is amended as follows:

(a) By adding a new paragraph (3) to read as follows:

"(3) Notwithstanding paragraph (1) of this subsection, the Mayor may enter into contracts involving expenditures in excess of $1,000,000 during a 12-month period without Council approval.".

(b) Subsection (a) shall take effect upon approval by Congress of identical legislation.

(c) Subsection (a) shall remain in effect for twenty-four months following the effective date provided for in subsection (b).

TITLE II — REORGANIZATION AUTHORITY OF MAYOR

Sec. 201. Sections of the Governmental Reorganization Procedures Act of 1981, effective October 17, 1981 (D.C. Law. 4-42; D.C. Code §1-299.4), is amended as follows:

(a) By adding a new subsection (e) to read as follows:

"(e) Notwithstanding subsections (c) and (d) or any other provision of law or regulation, the reorganization plan shall become effective on the 31st day following publication in the District of Columbia Register."

(b) Subsection (a) shall remain in effect for twenty-four months following the effective date of the Service Improvement Act of 1999.

TITLE III — PERSONNEL REFORM

Sec. 301. The District of Columbia Comprehensive Merit Personnel Act of 1978, effective March 3, 1979 (D.C. Law 2-139; D.C Code §1.601.1 et seq.), is amended as follows:

(a) Section 954(a) (D.C.) Code §1-610.54) is amended to read as follows:

"(a) Notwithstanding any other provision of law or regulation, Management Supervisory Service employees shall serve at the pleasure of the Mayor. Management Supervisory Service employees shall be given a 15-day notice prior to termination."

(b) Subsection (a) shall remain in effect for twenty-four months following the effective date of the Service Improvement Act of 1999.

(c) Section 856 (D.C Code §1-609.56) is amended to read as follows:

"Sec. 856. Notwithstanding any other provision of law or regulation, all Legal Service employees shall serve at the pleasure of their appointing officer."

Sec 302. Early out retirement incentive.

(a) Notwithstanding section 1106 of the District of Columbia Government Comprehensive Merit Personnel Act of 1978, effective March 3, 1979 (D.C. Law 2-139; D.C. Code §1-612.6), the Council of the District of Columbia adopts changes to the Career and Excepted Service compensation system under section 1104 of the District of Columbia Government Comprehensive Merit Personnel Act of 1978, effective March 3, 1979 (D.C Law 2-139; D.C Code §11512A), that authorize the Mayor to establish a retirement incentive program for certain District employees.

(b) The changes to the compensation system are as follows:

(1) The Mayor is authorized to establish an early out retirement incentive program ("Early Out Program") which shall apply to eligible employees under the personnel authority of the Mayor, and employees of any other personnel authority that is under the pay authority of the Mayor if the personnel authority chooses to participate in the Early Out Program.

(2) The Early Out Program shall be effective for 120 days after the effective date of the Service Improvement Act of 1999.

(3) The Early Out Program shall be limited to employees retiring under the voluntary early out provisions of 5 U.S.C. 8336(d)(2).

(4) The Early Out Program shall offer a retirement incentive of 50% of an employee's annual rate of basic pay from the employee's salary or pay schedule which was in effect on October 1, 1999, not to exceed $30,000, to be paid within 1 year of the employee's retirement.

(5) Retirement incentive payments shall be prorated in the case of a part-time employee.

(6) Retirement incentive payments shall not be considered basic pay for computing retirement entitlement, insurance entitlement, any category of premium pay entitlement, lump-sum leave, or any other entitlement that is computed on basic pay.

(7) No incentive payments shall be paid to:

(A) An employee retiring under the law enforcement or firefighter provisions of 5 U.S.C. §8336(c), the discontinued service/involuntary retirement provisions of 5 U.S.C. §8336(d)(l), or the disability retirement provisions of 5 U.S.C. 8337;

(B) An employee who is a reemployed annuitant under the provisions of 5 U.S.C. § 8344;

(C) An employee who is in a critical position as defined by regulations promulgated by the Mayor;

(D) An employee who is a sworn member of the Metropolitan Police Department or the Fire and Emergency Medical Services Department;

(E) An employee who, for charges related to his or her employment duties, is under indictment for a felony, who has been convicted of a felony, or who plead guilty to a felony or who has been convicted after a plea of nolo contendere to a felony; or

(F) An employee who, based on conduct related to his or her employment duties, has been convicted of a misdemeanor or who has plead guilty or has been convicted after a plea of nolo contendere to a misdemeanor.

(8) For the purpose of paragraph (7)(E) of this subsection, the term "felony" means a crime for which the penalty is at least imprisonment for 1 year or a fine of at least $1,000.

(9) An employee who receives an incentive payment under the Early Out Program shall not be eligible for reemployment with the District government for 5 years from the date of retirement, or hired or retained as a sole source consultant or personal services contractor for 5 years from the date of retirement.

TITLE IV — TECHNOLOGY CENTER

Sec. 401. Technology Center.

(a) The Mayor is authorized to establish a Technology Center to provide comprehensive educational and employment services to District residents.

(b) The Technology Center shall be centrally located east of the Anacostia River.

(c) The Technology Center shall include the following components:

(1) The University of the District of Columbia;

(2) The Department of Employment Services; and

(3) The District of Columbia Technology High School.

(d) The components of the Technology Center referenced in subsection (c) shall be located east of the Anacostia River in the District.

(e) The Mayor is authorized to issue regulations implementing this section and such regulations shall include the time and location of the relocation of the entities referred in subsection (c).

TITLE V — CHILD AND YOUTH PARTNERSHIP PROGRAM

Sec 501. There is established a Child and Youth Partnership Program ("Program") which shall provide educational, developmental, training, and recreational resources to District children and youth.

Sec 502. (a) The Mayor is authorized to establish a Child and Youth Partnership Foundation ("Foundation"), a private-public nonprofit corporation organized pursuant to section 501(c)(3) of the Internal Revenue Code, to carry out the purposes of this Program.

(b) The Foundation shall be governed by a Board of Directors ("Board") to meet the objectives of the Foundation and to administer the Fund.

(c) The Board shall be composed of residents of the District of Columbia who are collectively representative of the geographical, ethnic, economic, and social diversity of the District of Columbia. Advisory committees and subcommittees that may be established by the Foundation may be composed of residents and nonresidents of the District.

(d) The Board shall be composed of the following members:

(1) Two members appointed by the Mayor, one of whom shall serve as Chairperson;

(2) The Chairman of the Council or his or her designee;

(3) One member appointed by the Board of Education; and

(4) The Director of the Department of Public Recreation and Parks or his or her designee.

(e) The Board shall:

(1) Have the power to adopt, amend, or repeal by-laws for operation of the Foundation;

(2) Meet not less than quarterly at times to be determined;

(3) Prepare and submit to the Council annual reports on the progress of the Foundation's fundraising;

(4) Be authorized to hire staff; and

(5) Be authorized to exercise all powers conferred upon a nonprofit corporation pursuant to Chapter 5 of Title 29 of D.C Code.

Sec. 503. (a) There is established a special trust fund to be known as the Child and Youth Partnership Trust Fund ("Fund").

(b) The Corporation shall be responsible for administering the Fund.

(c) The monies deposited into the Fund shall not be a part of, nor lapse into, the General Fund of the District.

(d) Monies in the Fund may derive from any of the following sources:

(1) District of Columbia appropriated funds;

(2) Private donations;

(3) Federal grants;

(4) Other funds received by the Corporation; and

(5) Interest or other investment earnings on monies deposited in the Fund.

(e) The Corporation shall ensure that monies deposited in the Fund earn the highest and safest rate of return as practicable.

(f) The Fund shall be used to provide educational, developmental, training, and recreational resources to District children and youth.

Sec. 504. (a) The Mayor is authorized to utilize a corporation established pursuant to section 501(c)(3) of the Internal Revenue Code in the implementation of the Program.

(b) Any entity used in the implementation of the Program pursuant to subsection (a) of this section shall be authorized to accept and disburse District of Columbia appropriated funds for the purposes of this act.

Sec. 505. The Mayor shall issue rules necessary to carry out the provisions of this act.

TITLE VI — HEALTH CARE COMMISSION

Sec. 601. Establishment; purpose.

(a) There is established a Health Care Commission ("Commission") as an independent Commission to develop recommendations and use a fast-track process for approving the recommendations.

(b) The Commission shall advise the Mayor and make recommendations for increasing the effectiveness and efficiency of the District's health care system and ensuring access to quality health care services for every District resident regardless of their economic status or geographic location

Sec. 602. Qualifications; membership; terms of office.

(a) The Commission shall consist of seven members appointed by the Mayor, with the advice and consent of the Council. Appointments shall be deemed effective after 30 days following the introduction of a nomination to the Council by the Mayor unless disapproved by the Council.

(b) The Mayor shall consult with the Chairman of the Council and the Chairman of the District of Columbia Financial Responsibility and Management Authority in the nomination of individuals to the Commission.

(c) Members of the Commission shall be residents of the District.

(d) The Commission shall select a chair from among its members.

(e) Three members of the Commission shall constitute a quorum.

(f) A vacancy on the Commission shall be filled in the same manner that the original appointment was made.

(g) The term of members shall end 120 days after a majority of the members have been appointed by the Mayor and confirmed by the Council.

(h) The term of office referred to in subsection (g) of this section may be extended for a period of 90 days by the Mayor.

Sec. 603. Compensation.

Members of the Commission shall receive no compensation but may be reimbursed for actual expenses incurred in the performance of official duties, pursuant to rules issued by the Mayor in accordance with section 1108 of the District of Columbia Government Comprehensive Merit Personnel Act of 1978, effective March 3, 1979 (D.C. Law 2-139; D.C. Code §1-612.8).

Sec. 604. Duties.

(a) The Commission shall establish criteria to be used in the development of recommendations.

(b) The criteria shall include, but not be limited to, the following:

(1) Efficiency and effectiveness of the District's health care system;

(2) Access to quality health care services;

(3) Consistency with financial plan and budget of the District;

(4) Community impact; and

(5) Economic benefits.

(c) The criteria developed by the Commission shall be made available to the public.

(d) Within 120 days after a majority of the members of the Commission have been appointed and confirmed by the Council, the Commission shall develop a set of recommendations for increasing the effectiveness and efficiency of the District's health care system and forward the recommendations to the Mayor. The recommendations shall be developed in accordance with the criteria established in this section. The Commission shall consult with the Mayor in the development of the recommendations

Sec. 605. Powers.

(a) The Commission shall have the authority to create and operate under its own rules of procedures, consistent with this act and the Administrative Procedures Act, approved October 21, 1968 (82 Stat. 1204; D.C. Code §1-1501 et seq.).

(b) The Commission shall have the authority to request directly from each department, agency, or instrumentality of the District Government, and each department, agency, or instrumentality is hereby authorized to furnish directly to the Commission upon its request, any information deemed necessary by the Commission to carry out its functions under this act.

(c) The Commission is authorized to use space and supplies owned or rented by the District Government. The Commission is further authorized to use staff loaned by any department, agency, or instrumentality of the District Government for such purposes consistent with this act as the Commission may determine.

(d) The Commission's operations shall be funded by annual appropriations, private sector assistance, or both.

(e) The Commission is authorized to hire staff to carry out functions under this act.

Sec. 606. Approval of recommendations.

(a) The Mayor may submit recommendations reported by the Commission to the Council for approval.

(b) The Council may approve or disapprove the recommendation by resolution without amendment.

(c) The recommendations shall go into effect unless the Council passes a resolution of disapproval, without amendment, within 45 days of the recommendations being submitted to the Council by the Mayor. The Council may approve the recommendations submitted by the Mayor by resolution; without amendment, at any time within the 45 days following submission of the recommendations by the Mayor.

Sec. 607. Rules.

The Mayor shall issue rules necessary to carry out the provisions of this act.

TITLE VII — NATIONAL CAPITAL REVITALIZATION

Sec.701. Short Title.

This act may be cited as the "National Capital Revitalization Corporation Amendment Act of 1999".

Sec. 702. The National Capital Revitalization Corporation Act of 1998, effective _____ (D.C. Law 12-355; D.C. Code §_____), is amended as follows:

(a) Section 2(a)(5) is amended to read as follows; ""Available Revenues" means gross revenues and receipts of the Corporation lawfully available for the purposes to which they are to be applied under this act, and not otherwise exclusively committed to another purpose, including, but not limited to, those gross revenues and receipts made available to the Corporation from grants, subsidies, contributions, fees, dedicated taxes and fees, and proceeds of bonds issued pursuant to this act."

(b) Section 6(b) is amended to strike the following sentences: "The Council shall adopt a resolution approving or disapproving the rules and procedures within a 45-day period of review excluding days of Council recess. If the Council does not adopt a resolution within the 45-day period, the rules and procedures shall be deemed disapproved."

(c) Section 6(c) is amended to read; "No later than 60 days after installation of a majority of the authorized number of Board members, the Corporation shall appoint a chief executive officer, who shall direct and supervise the general management and administrative affairs of the Corporation under terms and conditions prescribed by the Board. The Board may appoint other senior officers of the Corporation as the Board deems necessary or desirable. The chief executive officer may appoint additional officers and employees as he or she determines appropriate, subject to the budget of the Corporation or any other limitations prescribed by the Board. The chief executive officer, and each senior officer and senior employee of the corporation shall be residents of the District or shall become residents within six (6) months of his or her hiring date and shall remain District residents for the duration of his or her employment by the Corporation."

(d) Section 13(a) is amended by striking the word "disapproved" and inserting the word "approved".

(e) Section 13(c) is repealed.

(f) Subsection 14(b) is amended as follows:

(1) By striking the word "operations" in the first sentence and inserting the word "performance" in its place

(2) Subsection 14(b) is further amended by striking the word "operations" in the last sentence of this subsection and inserting the word "performance" in its place.

(g) The first sentence of Subsection 15(a) is amended by striking the number "90" and inserting "18O" in its place.

(h) Section 17 is amended by striking the last sentence.

(i) The last sentence of Section 22(h) is amended by striking the word "disapproved" and inserting the word "approved" in its place.

TITLE VIII — BUSINESS TAX RESTRUCTURING

Sec 801. Short Title.

This title may be cited as the "Business Tax Restructuring and Incentive Amendment Act of 1999".

Sec. 802. Title 47 of the District of Columbia Code is amended as follows;

(a) By amending section 47-l803.3(c) by inserting after the phrase "Every individual who itemizes deductions on his or her federal income tax return shall itemize the deductions permissible under this chapter" the phrase "in the event that an individual's permissive itemized deductions fall below the applicable standard deduction, the individual may take the standard deduction specified in §47-1801(26).".

(b) By amending section 47-1803.3(a)(14) by striking the punctuation and phrase ", and as reported on any federal tax return for the same taxable period, except that no net operating losses may be carried back to any year ending before January 1, 1988" and inserting the punctuation".".

(c) By amending section 47-1801.4 by inserting the following subsections:

"(34) "Carryover year" shall have the same meaning as defined in §172 of the Internal Revenue Code.

"(35) "Net operating loss" shall have the same meaning as defined in §172(c) of the Internal Revenue Code, subject to limitations and modifications provided in this chapter.

"(36) "Net operating loss deduction" means the aggregate of the apportioned net operating loss carryovers to the taxable year.

"(37) "Apportioned net operating loss" means the net operating loss generated in the year of the loss multiplied by the District of Columbia's apportionment formula for the loss year."

(d) By amending section 47-1803.3(14) by inserting the following subparagraphs at the end:

"(A) For tax years beginning after December 31, 1999, net operating loss carrybacks shall not be allowed. Corporations, unincorporated businesses, or financial institutions, shall be allowed a deduction for apportioned District of Columbia net operating loss carryover to be deducted from the net income after apportionment.

"(B) In the year of the loss, the apportioned District of Columbia net operating loss shall be computed by multiplying the District of Columbia apportionment factor for the loss year against the amount of the net operating loss as defined in D.C Code §47-18O1.4(35)

"(C) The entire amount of the apportioned net operating loss for any taxable year shall be carried forward to the earliest of the succeeding taxable years to which such loss may be carried. The portion of such loss which may be carried to each of the other taxable years shall be the excess, if any, of the amount of such loss over the sum of the apportioned taxable net income, adjusted by any modifications specified in this chapter, for each of the tax years to which such loss may be carried.

"(D) The provisions of sections 381, 382, and 384 of the Internal Revenue Code of 1986 apply to carryovers. The limitation amount determined under section 382 shall be applied to net income, after apportionment, in each postchange year to which loss is carried.

"(E) In case of a merger, acquisition, or consolidation, any prechange losses and built-in losses, to the extent apportioned or allocated to the District of Columbia, with the additions, subtractions, modifications and other adjustments required for purposes of this chapter, shall be carried forward and subtracted in computing District of Columbia taxable income if an affiliated group files a federal consolidated return for District of Columbia net operating loss purposes, the net operating loss is computed as if the federal return has been filed on a separate return basis for the District of Columbia. However, if a company has been given permission by the Mayor to file a consolidated return, only the net operating losses of those corporations filing on the District of Columbia consolidated return may be included in determining the net operating loss deduction,

"(F) No deduction shall be allowed for or with respect to losses connected with income producing activities if the income therefrom would not be required to be either assignable to the District of Columbia or included in computing the taxpayer's District of Columbia net income.

"(G) The Mayor may require a taxpayer to furnish any information necessary to support a claim for deduction under this section, and no deduction shall be allowed unless the information is furnished.".

(e) This section shall be applicable on January 1, 2000.

Sec. 803. Title 47 of the District of Columbia Code is amended by striking "47- 2752. Special public safety fee" and inserting "47-2752. Arena fee".

(a) D.C Code §§47-2752(b) is amended to read as follows:

"(b) Except as provided in subsection (c) of this section, the amount of the fee shall be computed according to the following schedule:

"(1) Each feepayer with annual District gross receipts of $2,000,000 to $3 million shall pay $825;

"(2) Each feepayer with annual District gross receipts of $3,000,001 to $10 million shall pay $2,500;

"(3) Each feepayer with annual District gross receipts of $l0,000,00l to $15 million shall pay $5,000; and

"(4) Each feepayer with annual District gross receipts of over $15 million shall pay $8,400."

(b) [missing]

(c) The section shall be effective beginning with the tax year ending on June 15, 1999.

Sec. 804. Title 47 of the District of Columbia Code is amended as follows:

(a) By amending section 47-1805.2(5)(A) by inserting after the phrase "Every corporation or financial institution engaging in or carrying on any trade or business within the District or from sources within the District within the meaning of §§ 47-1810.1 to 47-18l0.3" the phrase "and having a gross income from whatever source derived of $2,000,000 or more.".

(b) By amending section 47-1805.2(6) by striking the phrase "Every unincorporated businesses engaging in or carrying on any trade or business within the District or receiving income from sources within the District within the meaning of §§ 47-l810.1 to 47-1810.3 and having a gross income of more than $12,000, regardless of whether it has a net income. The return shall be made by the taxpayer or taxpayers liable for the payment of the tax" and inserting "Every unincorporated business engaging in or carrying on trade or business within the District or receiving income from sources within the District within the meaning of §§47-1810.1 through 47-1810.3 and having a gross income from whatever source derived of $2,000,000 or more, even if the business or source income is exempt under other provisions of this chapter. The return shall be made by the taxpayer or taxpayers liable for the payment of the tax."

(c) This section shall be applicable on January 1, 2000.

Sec. 805. (a) D.C. Code § 47-1814 is repealed. (b) This section shall be applicable on January 1, 2000.

Sec. 806. (a) Title 47 of the District of Columbia Code is amended by adding a new section to Chapter 8 that reads as follows:

"812.1 Ward 7 and Ward 8 commercial development taxing jurisdiction."

(b) Title 47 of the District of Columbia Code is amended by adding a new section 812.1 to read as follows: "Sec. 47-812.1. Ward 7 and Ward 8 commercial development taxing jurisdiction.

"(a) Notwithstanding §47-812 or any other provision of law, beginning with tax year 2000 and each tax year thereafter there is established a Ward 7 and Ward 8 commercial development taxing jurisdiction located within the blighted area included in the geographical boundaries of election Ward 7 and election Ward 8, as said Wards are defined in section 4 of the Redistricting Procedure Act of 1981, effective March 16, 1982 D.C. Law 4-87; D.C. Code 1-1333), as amended, and as said Wards may be redefined from time to time by law, to provide for real property tax relief thereby inducing development and use of real property for commercial purposes located within the Ward 7 and Ward 8 commercial development taxing jurisdiction.

"(b) For purposes of this section all taxable real property within the Ward 7 and Ward 8 commercial development taxing jurisdiction, which but for the Ward 7 and Ward 8 commercial development taxing jurisdiction would be categorized as Class 3 Property, Class 4 Property, and Class 5 Property pursuant to §47-813, shall be reclassified as Class 6 Property and shall only be subject to the real property special tax rate for Class 6 Property as stated in subsection (b) and no other real property tax rate.

"(c) Class 6 Property shall be taxed at the real property special tax rate of $1.54 for each $100 of assessed value, in furtherance of section 9 of the General Obligation Bond Act of 1996, effective October 1, 1996 (D.C. Law 11-162; 43 DCR 5432).

"(d) All other taxable real property within the Ward 7 and Ward 8 commercial development taxing jurisdiction, which but for the Ward 7 and Ward 8 commercial development taxing jurisdiction would be categorized as Class I Property and Class 2 Property pursuant to §47-8l3, shall continue to be categorized as Class I Property and Class 2 Property pursuant to §47-813 and shall be taxed at the respective real property tax rates provided in §47-812 for Class 1 Property and Class 2 Property."

(c) This section shall be applicable on January 1, 2000.

Sec. 807. (a) D.C. Code § 47-1522 is amended by inserting after the phrase "The rate of tax shall be $3.40 for tacit $100 of value of the taxable personal property" the phrase "in excess of $50,000 in value.".

(b) This section shall be applicable on January 1, 2000.

Sec. 808. (a) D.C. Code § 47-1523 is amended as follows:

(1) By inserting after the phrase "The current value of the tangible personal property shall be the full and true value less a reasonable allowance for straight line depreciation in accordance with rules promulgated by the Mayor" the phrase "and the provisions under subsections (a), (b) and (c) of this section.";

(2) By adding the phrase Sec. 809. D.C Code §47-1523 is amended by inserting after the phrase "except as permitted under subsection (a) of this section" after the phrase "No proration of value shall be permitted in anticipation of the disposition of an item of tangible personal property. In no event shall the current value reported be less than 25% of the original cost or exchange value of the tangible personal property"; and

(3) By adding new subsections (a), (b),and (c) to read as follows:

"(a) Qualified technological equipment shall be depreciated at the rate of 30% per year, and shall not be depreciated to a value less than 10% of original cost or exchange value.

"(b)(1) The term "qualified technological equipment" means any computer or related peripheral equipment other than the type mentioned in subsection (b)(4) of this section.

"(b)(2) The term "computer" means a programmable electronically activated device which is capable of accepting information, applying prescribed processes to the information, and supplying the results with or without human intervention, and which consists of a central unit containing extensive storage, logic, arithmetic, and control capabilities.

"(b)(3) The term "related peripheral equipment" means any auxiliary machine (whether on-line or off-line) which is designed to be placed under the control of a computer, and operate in conjunction with such computer.

"(b)(4) The term "computer" or "related peripheral equipment" shall not include:

"(A) any equipment which is an integral part of other property which is not a computer;

"(B) typewriters, calculators, adding and accounting machines, copiers, duplicating equipment, and similar devices;

"(C) equipment of a kind primarily used for amusement or entertainment of the user;

"(D) mainframe computers which are capable of simultaneously supporting multiple transactions and multiple users, and having an original cost in excess of $500,000; including any additional memory units, tape drives, disk drives, power supplies, cooling units, and communication controllers which are related peripheral equipment to such computers; or

"(E) Computers used in operating industrial processing equipment, equipment used in a computer assisted manufacturing system, equipment used in computer assisted design or engineering system integral to an industrial process, or subunit or electronic assembly comprising a component in a computer integrated industrial processing system.

"(c) For personal property tax years beginning July 1, 2000, taxpayers who acquired qualified technological equipment on or before June 30, 2000 may calculate the current value of those assets as if the depreciation rate provided in subsection (a) of this section was used from the acquisition date; however, there shall be no credit or refund of tax paid in earlier tax years under the prior depreciation rate.".

(b) This section shall be applicable on January 1, 2000.

Sec. 809. (a) D.C. Code §47-2001(n)(2) is amended as follows:

(1) By amending subparagraph (D) by striking the word "or" after the phrase "pursuant to a written agreement entered into before January 1, 1963;";

(2) By amending subparagraph (E) by inserting the punctuation and word "; or" after the phrase "and snack food as defined in subsection (g-2) of this section."; and

(3) By adding a new subparagraph (F) to read as follows:

"(F) Sales of Internet access service.

"(i) For the purposes of this paragraph, the term "Internet access service" means a Service that enables users to access content, information, electronic mail, or other services offered over the the Internet and may also include access to proprietary content, information, and other services as part of a package of Internet access services offered to consumers.

"(ii) Such term does not include the sale of or charges for data processing and information services as defined in subsection (N)(i) and (ii) that do not enable users to access content, information, electronic mail, or other services offered over the Internet.

"(iii) Such term does nor include telecommunications services.".

(b) This section shall be applicable on January 1, 2000.

Sec. 810. (a) D.C Code §47-220l(a)(2) is amended as follows:

(1) By amending subparagraph (D) by striking the word "or" after the phrase "pursuant to a written agreement entered into before January 1, 1963;";

(2) By amending subparagraph (E) by inserting the punctuation and word "; or" after the phrase "and snack food as defined in subsection (g-2) of this section."; and

(3) By adding a new subparagraph (F) to read as follows:

"(F) Sales of Internet access service.

"(i) For the purposes of this paragraph, the term "Internet access service" means a service that enables users to access content, information, electronic mail, or other services offered over the Internet and may also include access to proprietary content, information, and other services as part of a package of Internet access services offered to consumers.

"(ii) Such term does not include the sale of or charges for data processing and information services as defined in subsection (K)(i) and (ii) that do not enable users to access content, information, electronic mail, or other services offered over the Internet.

"(iii) Such term does not include telecommunications services."

(b) This section shall be applicable on January 1, 2000.

Sec. 811. The Mayor is authorized to make and promulgate such rules and regulations as he may deem necessary to carry out the intent and purposes of this act.

TITLE lX — FISCAL IMPACT STATEMENT

Sec 901. The Council adopts the fiscal impact statement in the committee report as the fiscal impact statement required by section 602(c)(3) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code §1-233(c)(3)).

TITLE X — EFFECTIVE DATA

Sec. 1001. This act shall take effect following approval by the Mayor (or in the event of veto by the Mayor, action by the Council to override the veto), approval by the Financial Responsibility and Management Assistance Authority as provided in section 203(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995, approved April 17, 1995 (109 Stat 116; D.C. Code §47-392.3(a)), a 30-day period of Congressional review as provided in section 602(c)(l) of the District of Columbia Home Rule Act, approved December 24, 1973 (87 Stat. 813; D.C. Code §1-233(c)(l)), and publication in the District of Columbia Register.

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