[Congressional Record Volume 158, Number 115 (Tuesday, July 31, 2012)]
[House]
[Pages H5435-H5437]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   AUTHORIZING APPOINTMENT OF CHIEF FINANCIAL OFFICER FOR THE VIRGIN 
                                ISLANDS

  Mr. LAMBORN. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 3706) to create the Office of Chief Financial Officer of the 
Government of the Virgin Islands, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 3706

       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) Duties of Chief Financial Officer.--The duties of the 
     Chief Financial Officer shall include the following:
       (1) Develop and 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.
       (2) Each year prepare and certify spending limits of the 
     annual budget, including annual estimates of all revenues of 
     the territory without regard to sources, and whether or not 
     the annual budget is balanced.
       (3) Revise and update 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.
       (c) 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.
       (d) 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.
       (e) Referendum.--As part of the closest regularly 
     scheduled, islands-wide election in the Virgin Islands to the 
     expiration of the fourth year of the five-year term of the 
     Chief Financial Officer, the Board of Elections of the Virgin 
     Islands shall hold a referendum to seek the approval of the 
     people of the Virgin Islands regarding whether the position 
     of Chief Financial Officer of the Government of the Virgin 
     Islands shall be made a permanent part of the executive 
     branch of the Government of the Virgin Islands. The 
     referendum shall be binding and conducted according to the 
     laws of the Virgin Islands, except that the results shall be 
     determined by a majority of the ballots cast.

     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.
       (c) Membership.--
       (1) Number and appointment.--The Commission shall be 
     composed of 8 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, who is a resident of St. John, appointed 
     by the At-Large Member of the Legislature of the Virgin 
     Islands.
       (H) 1 individual appointed by the President of AARP Virgin 
     islands.
       (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 Justice of the Supreme Court of the United 
     States Virgin Islands or the designee of the Chief Justice. 
     The Chairperson 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).
       (d) Report; Recommendations.--The Commission shall transmit 
     a report to the Governor, the Committee on Natural Resources 
     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 upon the 
     nomination and confirmation of the Chief Financial Officer.

     SEC. 3. 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.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Colorado (Mr. Lamborn) and the gentleman from the Northern Mariana 
Islands (Mr. Sablan) each will control 20 minutes.
  The Chair recognizes the gentleman from Colorado.


                             General Leave

  Mr. LAMBORN. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days to revise

[[Page H5436]]

and extend their remarks and include extraneous materials on the bill 
under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Colorado?
  There was no objection.
  Mr. LAMBORN. Mr. Speaker, I yield myself such time as I may consume.
  H.R. 3706 would create the Office of Chief Financial Officer of the 
Government of the Virgin Islands to assist in the development of a 
balanced budget through a review of incoming revenues and recommend 
spending limits to the Governor and legislature. The intent behind the 
bill is to create more fiscal certainty and address concerns regarding 
the overestimation of incoming revenues, which leads to overspending 
and a budget deficit in the Virgin Islands. The bill would allow Virgin 
Islands voters to have the final say on the office. If they find this 
to be a successful process, they will vote in a referendum to determine 
if the office should be retained in the long term.
  I reserve the balance of my time.
  Mr. SABLAN. I yield myself as much time as I may consume.
  (Mr. SABLAN asked and was given permission to revise and extend his 
remarks.)
  Mr. SABLAN. Mr. Speaker, I rise in support of H.R. 3706, to create an 
Office of Chief Financial Officer for the Government of the United 
States Virgin Islands.
  Delegate Christensen is to be commended for her hard work on behalf 
of her constituents. Today marks the fourth time--the fourth time--the 
House will vote on legislation she sponsored to provide greater 
accountability and transparency in the management of her district's 
finances.
  This is a good bill, I urge my colleagues to support its adoption, 
and I reserve the balance of my time.
  Mr. LAMBORN. Mr. Speaker, I continue to reserve the balance of my 
time.
  Mr. SABLAN. Mr. Speaker, at this time, I yield as much time as she 
may consume to the distinguished gentlewoman from the United States 
Virgin Islands, Dr. Christensen.
  Mrs. CHRISTENSEN. I thank the ranking member for yielding.
  Mr. Speaker, I rise to speak in strong support of H.R. 3706, 
legislation I introduced to provide for a Chief Financial Officer for 
the Government of the Virgin Islands. I want to begin by thanking 
Chairman Hastings and Ranking Member Markey of the Natural Resources 
Committee for their support in making it possible for H.R. 3706 to be 
on the floor today. I also want to thank Subcommittee on Fisheries, 
Wildlife, Oceans and Insular Affairs Chairman John Fleming and, of 
course, Ranking Member Kilili Sablan for their support, as well.
  Mr. Speaker, today, as you heard, marks the fourth time in 9 years 
that this House will consider legislation that I have sponsored to 
provide for a CFO for my congressional district, the U.S. Virgin 
Islands. It has passed the previous three times.
  While I have been severely criticized by some for its introduction, 
there are many who support it. But I continue to believe that having an 
independent professional third party being responsible for determining 
the amount of revenues that the local government has available to spend 
for an ensuing fiscal year would be a positive development for our 
government and is also generally supported by a broad cross-section of 
our electorate.
  When I first sponsored the first CFO bill in 2003, the Territory was 
technically insolvent, and urgent action was necessary to avoid needing 
a Federal bailout and all that would entail. After studying the 
experience of the District of Columbia, which sought and obtained a 
Federal bailout and the accompanying loss of political autonomy through 
a financial control board, I concluded then that it would have been 
better if we avoided being taken over by a control board, and I crafted 
my original CFO bill to do that.
  Unlike H.R. 3706, my first chief financial officer bill did involve a 
loss of authority for the Governor and legislature to accumulate public 
debt, but it was temporary and would have prevented a complete loss of 
political autonomy. Today, while the territory is experiencing very 
serious fiscal challenges, the government is not on the verge of 
imminent fiscal collapse and no longer has a structural deficit over $1 
billion or annual deficits in excess of $100 million.
  In view of this, one could reasonably ask, then, why the need for the 
current bill? First of all, H.R. 3706 seeks to end the acrimony and 
mistrust among the different branches of Virgin Islands Government and 
the public at large and provide for revenue projections from a highly 
qualified person. This individual would be appointed by the Governor 
and confirmed by the legislature but does not serve at the pleasure of 
the Governor.
  This is the process that is used by the District of Columbia 
currently through its CFO, and there have been no complaints from the 
chief executive of D.C., the mayor, about a loss of sovereignty or of a 
return to colonialism.
  Since last year, when the Virgin Islands Governor John de Jongh, Jr., 
announced a pending $135 million deficit in his budget projections for 
fiscal year 2012, several members of the 29th legislature questioned 
the Governor's numbers and they have continued to do so, pointing to 
differences in figures between reports done by auditors and figures 
presented in budget documents.

                              {time}  1710

  Similarly, public sector union members who have been greatly impacted 
by various austerity measures also scoffed at the budget projections, 
saying:

       there had not been enough transparency to truly demonstrate 
     that there really was a financial crisis and (that there was) 
     no other way to solve it but layoffs or pay cuts.

  H.R. 3706 does not affect in any way the Governor or the 
legislature's ability to spend the territory's funds as they see fit. 
It simply attempts to end questions on what the exact revenue of the 
territory is so that we can move forward on a sound economic recovery.
  I'm not under any allusion that my CFO bill will be a cure-all for 
all that ails the Virgin Islands. I am, however, proposing it as a 5-
year pilot program for improving transparency and trust in our 
budgetary and fiscal practices. If Virgin Islanders approve of the 
process and system for determining our annual budget limits that the 
bill provides, they can vote to make it permanent through a referendum 
that is provided for after 4 years of the CFO's 5-year term.
  Each time I have introduced this or one of the earlier versions of 
this bill, there have been concerns that the United States Congress is 
imposing itself into the governance of the territory. There are some 
that would wish that this were the case, but I am not one of them, and 
this bill would not do that.
  Because we do not have a constitution, the people of the Virgin 
Islands have come to Congress on a number of occasions, for example, to 
attempt to abolish the Office of Lieutenant Governor; to expand 
borrowing authority, which we did; to limit the number of senators, and 
for other purposes. I don't really see this process as being any 
different coming as a representative of the people of the Virgin 
Islands and representing their interests.
  Moreover, attempts by our local legislature to pass similar 
legislation have failed, and legislative proposals by nonpartisan 
organizations have never been considered. Therefore, as a 
representative of the people of the U.S. Virgin Islands in the 
Congress, it fell to me, and I accept the responsibility. I just regret 
that our Governor and I could not see eye to eye on this.
  The Federal Government has and will be providing significant funds to 
the U.S. Virgin Islands, especially in light of the economic disaster 
that currently exists. I am sure that having such an office as the one 
being proposed by H.R. 3706 will enhance our ability to successfully 
navigate through this very critical time because of the added 
accountability and transparency that it provides.
  So I thank you for the time, and I urge my colleagues to support the 
adoption of H.R. 3706.
  Mr. LAMBORN. Mr. Speaker, I'd like to inquire if my colleague, Mr. 
Sablan, has any further speakers.
  Mr. SABLAN. Mr. Speaker, at this time I have no further speakers, and 
I urge the adoption of the legislation.
  I yield back the balance of my time.
  Mr. LAMBORN. I, too, yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by

[[Page H5437]]

the gentleman from Colorado (Mr. Lamborn) that the House suspend the 
rules and pass the bill, H.R. 3706, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. LAMBORN. Mr. Speaker, I object to the vote on the ground that a 
quorum is not present and make the point of order that a quorum is not 
present.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this question will be postponed.
  The point of no quorum is considered withdrawn.

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