Congressional Record, Volume 150 Issue 115 (Wednesday, September 22, 2004)

[Congressional Record Volume 150, Number 115 (Wednesday, September 22, 2004)]
[House]
[Pages H7397-H7399]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

CREATING OFFICE OF CHIEF FINANCIAL OFFICER OF THE GOVERNMENT OF THE
VIRGIN ISLANDS

Mr. NEUGEBAUER. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 3589) to create the Office of Chief Financial Officer of the
Government of the Virgin Islands, as amended.
The Clerk read as follows:

H.R. 3589

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,

SECTION 1. CHIEF FINANCIAL OFFICER OF THE VIRGIN ISLANDS.

(a) Appointment of Chief Financial Officer.--
(1) In general.--The Governor of the Virgin Islands shall
appoint a Chief Financial Officer, with the advice and
consent of the Legislature of the Virgin Islands, from the
names on the list required under section 2(d). If the
Governor has nominated a person for Chief Financial Officer
but the Legislature of the Virgin Islands has not confirmed a
nominee within 90 days after receiving the list pursuant to
section 2(d), the Governor shall appoint from such list a
Chief Financial Officer on an acting basis until the
Legislature consents to a Chief Financial Officer.
(2) Acting chief financial officer.--If a Chief Financial
Officer has not been appointed under paragraph (1) within 180
days after the date of the enactment of this Act, the Virgin
Islands Chief Financial Officer Search Commission, by
majority vote, shall appoint from the names on the list
submitted under section 2(d), an Acting Chief Financial
Officer to serve in that capacity until a Chief Financial
Officer is appointed under the first sentence of paragraph
(1). In either case, if the Acting Chief Financial Officer
serves in an acting capacity for 180 consecutive days,
without further action the Acting Chief Financial Officer
shall become the Chief Financial Officer.
(b) Transfer of Functions.--
(1) In general.--Upon the appointment of a Chief Financial
Officer under subsection (a), the functions of the Director
of the Office of Management and Budget established under the
laws of the Virgin Islands shall be transferred to the Chief
Financial Officer. All employees of the Office of Management
and Budget become employees of the Office of the Chief
Financial Officer.
(2) Documents provided.--The heads of each department of
the Government of the Virgin Islands, in particular the head
of the Department of Finance of the Virgin Islands and the
head of the Internal Revenue Bureau of the Virgin Islands
shall provide all documents and information under the
jurisdiction of that head that the Chief Financial Officer
considers required to carry out his or her functions to the
Chief Financial Officer.
(c) Duties of Chief Financial Officer.--The duties of the
Chief Financial Officer shall include the following:
(1) Assume the functions and authority of the office of the
Office of Management and Budget established under the laws of
the Virgin Islands as transferred under subsection (b).
(2) Develop a report on the financial status of the
Government of the Virgin Islands not later than 6 months
after appointment and quarterly thereafter. Such reports
shall be available to the public and shall be submitted to
the Committee on Resources in the House of Representatives
and the Committee on Energy and Natural Resources in the
Senate.
(3) Each year certify spending limits of the annual budget
and whether or not the annual budget is balanced.
(4) Monitor operations of budget for compliance with
spending limits, appropriations, and laws, and direct
adjustments where necessary.
(5) Develop standards for financial management, including
inventory and contracting, for the government of the Virgin
Islands in general and for each agency in conjunction with
the agency head.
(6) Oversee all aspects of the implementation of the
financial management system provided pursuant to section 3 to
ensure the coordination, transparency, and networking of all
agencies' financial, personnel, and budget functions.
(7) Provide technical staff to the Governor and legislature
of the Virgin Islands for development of a deficit reduction
and financial recovery plan.
(d) Deputy Chief Financial Officer.--Until the date that is
5 years after the date of the enactment of this Act, the
position of the Director of the Office of Management and
Budget of the Virgin Islands shall--
(1) have the duties, salary (as specified in subsection
(f)(3)), and other conditions of the Deputy Chief Financial
Officer in lieu of the duties, salary, and other conditions
of the Director of the Office of Management and Budget of the
Virgin Islands as such functions existed before the
appointment of the Chief Financial Officer; and

[[Page H7398]]

(2) assist the Chief Financial Officer in carrying out the
duties of the Chief Financial Officer.
(e) Conditions Related to Chief Financial Officer.--
(1) Term.--The Chief Financial Officer shall be appointed
for a term of 5 years.
(2) Removal.--The Chief Financial Officer shall not be
removed except for cause. An Acting Chief Financial Officer
may be removed for cause or by a Chief Financial Officer
appointed with the advice and consent of the Legislature of
the Virgin Islands.
(3) Replacement.--If the Chief Financial Officer is unable
to continue acting in that capacity due to removal, illness,
death, or otherwise, another Chief Financial Officer shall be
selected in accordance with subsection (a).
(4) Salary.--The Chief Financial Officer shall be paid at a
salary to be determined by the Governor of the Virgin
Islands, except such rate may not be less than the highest
rate of pay for a cabinet officer of the Government of the
Virgin Islands or a Chief Financial Officer serving in any
government or semiautonomous agency.
(f) Conditions Related to Deputy Chief Financial Officer.--
(1) Term; removal.--The Deputy Chief Financial Officer
shall serve at the pleasure of the Chief Financial Officer.
(2) Replacement.--If the Deputy Chief Financial Officer is
unable to continue acting in that capacity due to removal,
illness, death, or otherwise, another person shall be
selected by the Governor of the Virgin Islands to serve as
Deputy Chief Financial Officer.
(3) Salary.--The Deputy Chief Financial Officer shall be
paid at a salary to be determined by the Chief Financial
Officer, except such rate may not be less than the rate of
pay of the Director of the Office of Management and Budget.
(g) Resumption of Functions.--On the date that is 5 years
after the date of the enactment of this Act, the functions of
the Chief Financial Officer shall be transferred to the
Director of the Office of Management and Budget of the Virgin
Islands.
(h) Sunset.--This section shall cease to have effect after
the date that is 5 years after the date of the enactment of
this Act.

SEC. 2. ESTABLISHMENT OF COMMISSION.

(a) Establishment.--There is established a commission to be
known as the ``Virgin Islands Chief Financial Officer Search
Commission''.
(b) Duty of Commission.--The Commission shall recommend to
the Governor not less than 3 candidates for nomination as
Chief Financial Officer of the Virgin Islands. Each candidate
must have demonstrated ability in general management of,
knowledge of, and extensive practical experience at the
highest levels of financial management in governmental or
business entities and must have experience in the
development, implementation, and operation of financial
management systems. Candidates shall not have served in a
policy making or unclassified position of the Government of
the Virgin Islands in the 10 years immediately preceding
appointment as Chief Financial Officer.
(c) Membership.--
(1) Number and appointment.--The Commission shall be
composed of 9 members appointed not later than 30 days after
the date of the enactment of this Act. Persons appointed as
members must have recognized business, government, or
financial expertise and experience and shall be appointed as
follows:
(A) 1 individual appointed by the Governor of the Virgin
Islands.
(B) 1 individual appointed by the President of the
Legislature of the Virgin Islands.
(C) 1 individual, who is an employee of the Government of
the Virgin Islands, appointed by the Central Labor Council of
the Virgin Islands.
(D) 1 individual appointed by the Chamber of Commerce of
St. Thomas-St. John.
(E) 1 individual appointed by the Chamber of Commerce of
St. Croix.
(F) 1 individual appointed by the President of the
University of the Virgin Islands.
(G) 1 individual appointed by the Chief Judge of the Virgin
Islands Territorial Court.
(H) 1 individual, who is a resident of St. John, appointed
by the At-Large Member of the Legislature of the Virgin
Islands.
(I) 1 individual appointed by the Advocates for the
Preservation of the Retirement System.
(2) Terms.--
(A) In general.--Each member shall be appointed for the
life of the Commission.
(B) Vacancies.--A vacancy in the Commission shall be filled
in the manner in which the original appointment was made. Any
member appointed to fill a vacancy shall be appointed for the
remainder of that term.
(3) Basic pay.--Members shall serve without pay.
(4) Quorum.--Five members of the Commission shall
constitute a quorum.
(5) Chairperson.--The Chairperson of the Commission shall
be the Chief Judge of the Territorial Court or her designee
and shall serve as an ex officio member of the Commission and
shall vote only in the case of a tie.
(6) Meetings.--The Commission shall meet at the call of the
Chairperson. The Commission shall meet for the first time not
later than 15 days after all members have been appointed
under this subsection.
(7) Government employment.--Members may not be current
government employees, except for the member appointed under
paragraph (1)(C); and
(d) Report; Recommendations.--The Commission shall transmit
a report to the Governor and the Resources Committee of the
House of Representatives and the Committee on Energy and
Natural Resources of the Senate not later than 60 days after
its first meeting. The report shall name the Commission's
recommendations for candidates for nomination as Chief
Financial Officer of the Virgin Islands.
(e) Termination.--The Commission shall terminate 210 days
after its first meeting.

SEC. 3. FINANCIAL MANAGEMENT SYSTEM.

It is hereby authorized to be appropriated such sums as
necessary for the installation of a Financial Management
System, including appropriate computer hardware and software,
to the Government of the Virgin Islands. Upon becoming
available, the financial management system shall be available
to the Chief Financial Officer and, after the date that is 5
years after the date of the enactment of this Act, the
Director of the Office of Management and Budget of the Virgin
Islands, to assist the Chief Financial Officer or the
Director of the Office of Management and Budget of the Virgin
Islands, as the case may be, to carry out the official duties
of that office.

SEC. 4. DEFINITIONS.

For the purposes of this Act, the following definitions
apply:
(1) Chief financial officer.--In sections 1 and 2, the term
``Chief Financial Officer'' means a Chief Financial Officer
or Acting Chief Financial Officer, as the case may be,
appointed under section 1(a).
(2) Commission.--The term ``Commission'' means the Virgin
Islands Chief Financial Officer Search Commission established
pursuant to section 2.
(3) Governor.--The term ``Governor'' means the Governor of
the Virgin Islands.
(4) Removal for cause.--The term ``removal for cause''
means removal based upon misconduct, failure to meet job
requirements, or any grounds that a reasonable person would
find grounds for discharge.

SEC. 5. NO ABROGATION OF POWERS.

Nothing in this Act shall be construed to permit the
Governor and Legislature of the Virgin Islands to dilute,
delegate, or otherwise alter or weaken the powers and
authority of the Office of Management and Budget established
under the laws of the Virgin Islands.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Texas (Mr. Neugebauer) and the gentlewoman from the Virgin Islands
(Mrs. Christensen) each will control 20 minutes.
The Chair recognizes the gentleman from Texas (Mr. Neugebauer).

General Leave

Mr. NEUGEBAUER. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks and include extraneous material on H.R. 3589.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Texas?
There was no objection.
Mr. NEUGEBAUER. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, the gentlewoman from the Virgin Islands (Mrs.
Christensen) has introduced this legislation to address a potentially
serious problem relating to her territory's financial future. Her
legislation, H.R. 3589, will create an Office of the Chief Financial
Officer for the United States Virgin Islands.
For over a decade now, multiple factors have lead to a worsening
financial outlook in this territory. Natural disasters, a gradually
declining tourism industry, and the resulting spending decisions by the
local government have left the U.S. Virgin Islands with significant
annual deficits. Further, this territory now faces a debt totaling $1
billion.
Given this economic instability and the worsening conditions, serious
actions should be considered. For this reason, the Delegate has
introduced 3589. This legislation uses local and Federal input to
select an Office of the Chief Financial Officer. The CFO will tackle
the difficult fiscal and related political decisions with regard to
spending on these islands.
It is important to note that this individual and his or her staff
will functionally be independent of the executive and legislative
branches of the local government. This position will be temporary and
will be empowered to stop wasteful spending and put this territory back
on the track to more sound economic footing.
Without this legislation, one must worry that the Federal Government
may have to take an even more serious action if this debt continues to
increase. I am thus hopeful that the House can support the gentlewoman
from the Virgin Islands' (Mrs. Christensen) bill so that we can begin
to address the dire financial situation in this territory.
Finally, I would like to point out that H.R. 3589, as amended, was
passed by the Committee on Resources by voice vote on July 14, and I
appreciate the bipartisan work of the committee in acting quickly on
this legislation.
I hope we can act in the same bipartisan fashion. I urge adoption of
this bill.

[[Page H7399]]

Mr. Speaker, I reserve the balance of my time.
(Mrs. CHRISTENSEN asked and was given permission to revise and extend
her remarks.)
Mrs. CHRISTENSEN. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I want to begin by thanking the gentleman from
California (Mr. Pombo) and the ranking member, the gentleman from West
Virginia (Mr. Rahall), for their support in making it possible for H.R.
3589 to get through the committee and be on the floor of the House
today. I am really heartened by the support I received from both sides
of the leadership and the members of my committee, the hard work of the
staff, as well as from the gentlewoman from the District of Columbia
(Ms. Norton), and members of the Congressional Black Caucus on this
issue, which I believe to be important to the short and long term well-
being of the Virgin Islands.
I want to thank the ranking member, the gentleman from West Virginia
(Mr. Rahall), for standing shoulder to shoulder with me on this issue
in the face of significant opposition and insisting that my bill be a
top priority of the Democratic Caucus of our committee.
Mr. Speaker, today is a day of great moment for the people of the
Virgin Islands and for me because with passage of this bill we are a
significant step closer to achieving a goal to put in place a mechanism
to address the fiscal challenges that continue to face our territory.
Many Members' districts have been in similar situations, and Members
have addressed them in similar ways.
I have introduced this bill before us today, H.R. 3589, because
throughout my tenure as the Representative of the people of the Virgin
Islands in the House of Representatives, I have seen the territory's
fiscal condition come dangerously close to collapse on several
occasions.
In the absence of any similar local action being taken, I believe
that the only course to reverse this trend is to create an office with
the independence and the authority to help us exercise the fiscal
restraint and better fiscal management of both Federal and local funds,
something all of our local leadership agrees must be done.
Mr. Speaker, it has not been easy for me to watch the fiscal health
of the territory steadily decline since I have been in office. Since
the middle 1990s, successive administrations and legislatures have, for
good reason, not been able to maintain sound fiscal management and
financial policies.

{time} 1900

While some of the reasons for this condition have been outside of our
control, such as recurrent catastrophic hurricanes and the tax cuts and
credits passed by Congress, much of the blame for this condition can be
traced to the unfortunate reality that the territory's managers and
lawmakers have not substantively addressed the imbalance between the
needs and demands of the community and its revenues.
It was not, and still is not, my intention in introducing H.R. 3589
to cast aspersions on the fiscal policies of the current administration
or the legislature or past ones. However, I feel very strongly that I
could not sit idly by while we continue to face fiscal crisis after
fiscal crisis without offering some solution to temper or soften the
difficult decisions that we ourselves, not the Federal Government, have
to make to get us out of this roller-coaster approach to managing our
fiscal affairs.
Nevertheless, in taking this action, I was opposed by the governor
and lieutenant governor, as well as my party leadership back home, who
disagreed with this approach. A resolution that went so far as to
condemn my action was passed by the Members of the 25th legislature,
but the people of the Virgin Islands, who have long called for
accountability and transparency in our government, have supported this
bill strongly from the outset.
As I reflect on what led me to this point today, I am reminded of a
quote by Dr. Martin Luther King, Jr., which was brought to my attention
by a local attorney, in which Dr. King said, ``The ultimate measure of
a man is not where he,'' or she, I would say, ``stands in moments of
comfort and convenience, but where they stand in times of challenge and
controversy.''
Mr. Speaker, we are indeed facing challenging and difficult times in
the Virgin Islands. The actions of those of us in leadership today will
have profound effects for our future.
While H.R. 3589 will not be a panacea or solve all of our problems,
it will help to keep our finances in order and prevent us from sinking
further into a fiscal black hole.
I urge my colleagues to support this bill, and I again want to thank
the gentleman from California (Chairman Pombo) and the gentleman from
West Virginia (Ranking Member Rahall) and the staff.
Mr. Speaker, I yield back the balance of my time.
Mr. NEUGEBAUER. Mr. Speaker, I yield myself such time as I may
consume.
I would just like to commend the gentlewoman for bringing this
solution forward and for taking on the responsibility of representing
and making sure that the folks in her island are represented correctly.
So I commend her for that and for her great work on this.
Mr. RAHALL. Mr. Speaker, in my capacity as the Ranking Democratic
Member of the Resources Committee, I would like to register my strong
support of H.R. 3589, to create the office of chief financial officer
for the territory of the U.S. Virgin Islands. I commend the gentlelady
from the U.S. Virgin Islands, Donna Christensen, for her tireless work
in getting this legislation to the floor for our consideration.
As has been noted this evening, the financial condition of the Virgin
Islands is in trouble. Skyrocketing deficits coupled with inadequate
fiscal controls have left the local government struggling to provide
basic services to the people of the Virgin Islands.
The potential financial insolvency of the territory did not occur
overnight. Nevertheless the introduction of this measure, by the
distinguished representative of the Virgin Islands, Donna Christensen,
was still met with controversy and opposition from many local political
leaders.
Donna Christensen has made it clear that this legislation is
something that she would rather not have done, but the circumstances of
her territory have made the choices for her. She is a brave woman for
fighting for what she believes is in the best interest of her
constituents and for her island and she should be commended.
Virgin Islands history will show that this legislation was a turning
point in the fundamental approach that the territory handles its
financial affairs. Indeed, this evening may one day be looked upon by
the residents of the Virgin Islands as one of those rare moments when
history itself seemed to hold its breath. When the voice of the people,
on that beautiful Carribean island, rose louder and louder and
thundered over various political obstacles and was heard, and acted
upon, in this hallowed chamber that is the U.S. House of
Representatives.
I have said it before, and I will say it again this evening. When the
next chapter in Profiles in Courage is written, it will be about the
gentlelady from the Virgin Islands, Donna Christensen.
I urge my colleagues to support favorable passage by this body of
H.R. 3589.
Mr. NEUGEBAUER.Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Terry). The question is on the motion
offered by the gentleman from Texas (Mr. Neugebauer) that the House
suspend the rules and pass the bill, H.R. 3589, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.

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