[Congressional Record (Bound Edition), Volume 153 (2007), Part 15]
[House]
[Pages 21307-21308]
[From the U.S. Government Publishing Office, www.gpo.gov]




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

  Mrs. CHRISTENSEN. Mr. Speaker, I ask unanimous consent that the 
Committee on Natural Resources be discharged from further consideration 
of the bill (H.R. 2107) to create the Office of Chief Financial Officer 
of the Government of the Virgin Islands, and for other purposes, and 
ask for its immediate consideration in the House.
  Mr. Speaker, H.R. 2107 fulfills my commitment to my constituents to 
continue the effort to create a Chief Financial Officer for the 
Territory. This is the third time that this legislation has been on the 
floor of the House. However, the other body failed to act on it in the 
previous 2 Congresses.
  When I first introduced the idea of a CFO for the Virgin Islands in 
2005, I did so in response to the concerns, complaints and distrust of 
government voiced by my constituents and as a measure to prevent the 
territory, which was experiencing a serious financial crisis, from 
falling into the abyss of fiscal insolvency. I believed then, as I do 
now, that having such an office in our government, free of political 
pressures and with the statutory responsibility and authority to 
certify revenue projections and prevent deficit spending, could assist 
our government to establish sound financial practices which would put 
the Islands on the path to improved financial management going forward. 
Because of our long history of poor financial management and practices, 
an office such as this would also help to immediately restore the 
confidence of the Federal Government and others in our ability to be 
fiscally transparent and accountable.
  As I have said on this floor and in many other settings, in drafting 
H.R. 2017 I looked at the example and record of what having such a 
position has meant to the financial management and fiscal health of the 
District of Columbia.
  After having decades of fiscal mismanagement and protracted deficits, 
the District today enjoys annual balanced budgets and surpluses under 
the stewardship of a Chief Financial Officer; an office that was 
voluntarily retained by the city after the mandated office went away 
with the end of their Financial Control Board. Both the general public 
and elected leadership of the District recognize the benefits of having 
an impartial arbiter, free from the pressures of politics, managing 
their finances--something I strongly believe my community can benefit 
from as well.
  When I first introduced this bill the territory's long-term debt 
totaled $1 billion. Fiscal crises have been narrowly averted through 
repeated borrowing. Such borrowing and debt creation has led to the $3 
billion debt reported by Governor De Jongh in April of this year--a 
practice he has already stated he will not continue.
  There are those, Mr. Speaker, who will ask why I am doing this at 
this time, particularly because the islands just 7 months ago, 
inaugurated a new governor whose background is in financial management 
and who has been a good friend and political ally. I want to be 
perfectly clear that I have every confidence in Governor John de Jongh 
and his administration and believe that they will do a first rate job 
of managing the territory's finances. He has already begun to do so.
  I am re-introducing this bill because my constituents continue to see 
it as a necessary measure, and because, like the CFO in Washington, DC, 
it can assist our governor in his stated goal of paying our obligations 
and bringing the territory's finances into balance. It would also be a 
way to provide apolitical and indisputable information on the financial 
state of our government, as well as bridge any divisions between the 
administration and the legislature in the interests of expediting a 
positive and sustainable agenda for the people of the Virgin Islands.
  As also happens up here, there is often disagreement between the 
Governor (and his financial team) and the Legislature as to the precise 
fiscal condition of the territory and the true revenue projections for 
the coming fiscal year. A CFO, in my view, would take the uncertainty 
out of this equation and allow our legislature and governor to work 
better together because they would both get their numbers from the same 
independent source. Additionally, the departments of government, semi-
autonomous agencies and labor unions would be better able to plan, and 
the people of the Virgin Islands in general would have information on 
how the millions of federal dollars coming to the Virgin Islands are 
being spent.
  The bill as being passed today contains certain changes. I have 
revised it with respect to providing a financial management system 
because such a system is already in the process of being implemented.
  In recognition of and in deference to the upcoming constitution to be 
drafted by the people of the Virgin Islands, the bill before us calls 
for the term of the Chief Financial Officer to expire at the 
implementation of a ratified Virgin Islands Constitution or in 5 years, 
whichever comes first.
  All four previous Constitutional documents have contained a provision 
similar to what is proposed in this legislation, and it is my hope that 
our Fifth Constitutional Convention will present a document for the 
ratification of the people of the Virgin Islands that will make this 
legislation unnecessary.
  In conclusion Mr. Speaker, I want to thank my friend and colleague, 
the Chairman of the Resources Committee, the gentleman from West 
Virginia, Nick Rahall, without whose support this bill would not be on 
the floor today. I also want to thank my friend Ranking Member Don 
Young for his support as well.
  Mr. Speaker, it has been said that ``heavy is the burden that one who 
is called to lead bears''. Pursuing enactment of this bill has not been 
an easy burden to bear but is an important one, which I am proud to 
bear. I urge my colleagues to support passage of H.R. 2107.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from the Virgin Islands?
  There was no objection.
  The Clerk read the bill, as follows:

                               H.R. 2107

       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--
       (A) the Governor of the Virgin Islands;
       (B) the legislature of the Virgin Islands;
       (C) the Committee on Natural Resources in the House of 
     Representatives; and
       (D) 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.

[[Page 21308]]

       (4) Monitor operations of budget for compliance with 
     spending limits, appropriations, and laws, and, in 
     consultation with the Governor, 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
       (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 or until the adoption and ratification 
     of a Constitution by the Virgin Islands, whichever occurs 
     first.
       (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 semi autonomous 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 or upon the 
     adoption and ratification of a Constitution by the Virgin 
     Islands, whichever occurs first, 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 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 Supreme Court.
       (H) 1 individual, who is a resident of St. John, jointly 
     appointed by the At-Large Member of the Legislature of the 
     Virgin Islands and the St. John administrator.
       (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.--
       (A) In general.--The Chairperson of the Commission shall be 
     determined by a majority vote of the members of the 
     Commission.
       (B) Chairperson pro tem.--Until the Commission elects a 
     Chairperson under subparagraph (A), the Chairperson pro tem 
     shall be the individual appointed under paragraph (1)(G).
       (6) Meetings.--
       (A) In general.--The Commission shall meet at the call of 
     the Chairperson or the Chairperson pro tem.
       (B) Initial meeting.--Not later than 15 days after all 
     members have been appointed under this subsection, the 
     Commission shall have its initial meeting at the call of the 
     Chairperson pro tem.
       (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 and the Natural 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. 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. 4. NO ABROGATION OF POWERS.

       Nothing in this Act shall be construed to allow 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 bill was ordered to be engrossed and read a third time, was read 
the third time, and passed, and a motion to reconsider was laid on the 
table.

                          ____________________