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I 110TH CONGRESS 1ST SESSION H. R. 2107 To create the Office of Chief Financial Officer of the Government of the Virgin Islands, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 2, 2007 Mrs. CHRISTENSEN introduced the following bill; which was referred to the Committee on Natural Resources A BILL To create the Office of Chief Financial Officer of the Government of the Virgin Islands, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. CHIEF FINANCIAL OFFICER OF THE VIRGIN IS- 3 LANDS. 4 (a) APPOINTMENT OF CHIEF FINANCIAL OFFICER.— 5 (1) IN GENERAL.—The Governor of the Virgin 6 Islands shall appoint a Chief Financial Officer, with 7 the advice and consent of the Legislature of the Vir- 8 gin Islands, from the names on the list required 9 under section 2(d). If the Governor has nominated 10 VerDate Aug 31 2005 22:41 May 10, 2007 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2107.IH H2107 jlentini on PROD1PC65 with BILLS 2 •HR 2107 IH a person for Chief Financial Officer but the Legisla- 1 ture of the Virgin Islands has not confirmed a nomi- 2 nee within 90 days after receiving the list pursuant 3 to section 2(d), the Governor shall appoint from 4 such list a Chief Financial Officer on an acting basis 5 until the Legislature consents to a Chief Financial 6 Officer. 7 (2) ACTING CHIEF FINANCIAL OFFICER.—If a 8 Chief Financial Officer has not been appointed 9 under paragraph (1) within 180 days after the date 10 of the enactment of this Act, the Virgin Islands 11 Chief Financial Officer Search Commission, by ma- 12 jority vote, shall appoint from the names on the list 13 submitted under section 2(d), an Acting Chief Fi- 14 nancial Officer to serve in that capacity until a Chief 15 Financial Officer is appointed under the first sen- 16 tence of paragraph (1). In either case, if the Acting 17 Chief Financial Officer serves in an acting capacity 18 for 180 consecutive days, without further action the 19 Acting Chief Financial Officer shall become the 20 Chief Financial Officer. 21 (b) TRANSFER OF FUNCTIONS.— 22 (1) IN GENERAL.—Upon the appointment of a 23 Chief Financial Officer under subsection (a), the 24 functions of the Director of the Office of Manage- 25 VerDate Aug 31 2005 22:41 May 10, 2007 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2107.IH H2107 jlentini on PROD1PC65 with BILLS 3 •HR 2107 IH ment and Budget established under the laws of the 1 Virgin Islands shall be transferred to the Chief Fi- 2 nancial Officer. All employees of the Office of Man- 3 agement and Budget become employees of the Office 4 of the Chief Financial Officer. 5 (2) DOCUMENTS PROVIDED.—The heads of 6 each department of the Government of the Virgin Is- 7 lands, in particular the head of the Department of 8 Finance of the Virgin Islands and the head of the 9 Internal Revenue Bureau of the Virgin Islands shall 10 provide all documents and information under the ju- 11 risdiction of that head that the Chief Financial Offi- 12 cer considers required to carry out his or her func- 13 tions to the Chief Financial Officer. 14 (c) DUTIES OF CHIEF FINANCIAL OFFICER.—The 15 duties of the Chief Financial Officer shall include the fol- 16 lowing: 17 (1) Assume the functions and authority of the 18 office of the Office of Management and Budget es- 19 tablished under the laws of the Virgin Islands as 20 transferred under subsection (b). 21 (2) Develop a report on the financial status of 22 the Government of the Virgin Islands not later than 23 6 months after appointment and quarterly there- 24 VerDate Aug 31 2005 22:41 May 10, 2007 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2107.IH H2107 jlentini on PROD1PC65 with BILLS 4 •HR 2107 IH after. Such reports shall be available to the public 1 and shall be submitted to— 2 (A) the Governor of the Virgin Islands; 3 (B) the legislature of the Virgin Islands; 4 (C) the Committee on Natural Resources 5 in the House of Representatives; and 6 (D) the Committee on Energy and Natural 7 Resources in the Senate. 8 (3) Each year certify spending limits of the an- 9 nual budget and whether or not the annual budget 10 is balanced. 11 (4) Monitor operations of budget for compliance 12 with spending limits, appropriations, and laws, and, 13 in consultation with the Governor, direct adjust- 14 ments where necessary. 15 (5) Develop standards for financial manage- 16 ment, including inventory and contracting, for the 17 government of the Virgin Islands in general and for 18 each agency in conjunction with the agency head. 19 (6) Oversee all aspects of the implementation of 20 the financial management system provided pursuant 21 to section 3 to ensure the coordination, trans- 22 parency, and networking of all agencies’ financial, 23 personnel, and budget functions. 24 VerDate Aug 31 2005 22:41 May 10, 2007 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2107.IH H2107 jlentini on PROD1PC65 with BILLS 5 •HR 2107 IH (7) Provide technical staff to the Governor and 1 legislature of the Virgin Islands for development of 2 a deficit reduction and financial recovery plan. 3 (d) DEPUTY CHIEF FINANCIAL OFFICER.—Until the 4 date that is 5 years after the date of the enactment of 5 this Act, the position of the Director of the Office of Man- 6 agement and Budget of the Virgin Islands shall— 7 (1) have the duties, salary (as specified in sub- 8 section (f)(3)), and other conditions of the Deputy 9 Chief Financial Officer in lieu of the duties, salary, 10 and other conditions of the Director of the Office of 11 Management and Budget of the Virgin Islands as 12 such functions existed before the appointment of the 13 Chief Financial Officer; and 14 (2) assist the Chief Financial Officer in car- 15 rying out the duties of the Chief Financial Officer. 16 (e) CONDITIONS RELATED TO CHIEF FINANCIAL OF- 17 FICER.— 18 (1) TERM.—The Chief Financial Officer shall 19 be appointed for a term of 5 years or until the adop- 20 tion and ratification of a Constitution by the Virgin 21 Islands, whichever occurs first. 22 (2) REMOVAL.—The Chief Financial Officer 23 shall not be removed except for cause. An Acting 24 Chief Financial Officer may be removed for cause or 25 VerDate Aug 31 2005 22:41 May 10, 2007 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2107.IH H2107 jlentini on PROD1PC65 with BILLS 6 •HR 2107 IH by a Chief Financial Officer appointed with the ad- 1 vice and consent of the Legislature of the Virgin Is- 2 lands. 3 (3) REPLACEMENT.—If the Chief Financial Of- 4 ficer is unable to continue acting in that capacity 5 due to removal, illness, death, or otherwise, another 6 Chief Financial Officer shall be selected in accord- 7 ance with subsection (a). 8 (4) SALARY.—The Chief Financial Officer shall 9 be paid at a salary to be determined by the Governor 10 of the Virgin Islands, except such rate may not be 11 less than the highest rate of pay for a cabinet officer 12 of the Government of the Virgin Islands or a Chief 13 Financial Officer serving in any government or semi 14 autonomous agency. 15 (f) CONDITIONS RELATED TO DEPUTY CHIEF FI- 16 NANCIAL OFFICER.— 17 (1) TERM; REMOVAL.—The Deputy Chief Fi- 18 nancial Officer shall serve at the pleasure of the 19 Chief Financial Officer. 20 (2) REPLACEMENT.—If the Deputy Chief Fi- 21 nancial Officer is unable to continue acting in that 22 capacity due to removal, illness, death, or otherwise, 23 another person shall be selected by the Governor of 24 VerDate Aug 31 2005 22:41 May 10, 2007 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2107.IH H2107 jlentini on PROD1PC65 with BILLS 7 •HR 2107 IH the Virgin Islands to serve as Deputy Chief Finan- 1 cial Officer. 2 (3) SALARY.—The Deputy Chief Financial Offi- 3 cer shall be paid at a salary to be determined by the 4 Chief Financial Officer, except such rate may not be 5 less than the rate of pay of the Director of the Of- 6 fice of Management and Budget. 7 (g) RESUMPTION OF FUNCTIONS.—On the date that 8 is 5 years after the date of the enactment of this Act or 9 upon the adoption and ratification of a Constitution by 10 the Virgin Islands, whichever occurs first, the functions 11 of the Chief Financial Officer shall be transferred to the 12 Director of the Office of Management and Budget of the 13 Virgin Islands. 14 (h) SUNSET.—This section shall cease to have effect 15 after the date that is 5 years after the date of the enact- 16 ment of this Act. 17 SEC. 2. ESTABLISHMENT OF COMMISSION. 18 (a) ESTABLISHMENT.—There is established a com- 19 mission to be known as the ‘‘Virgin Islands Chief Finan- 20 cial Officer Search Commission’’. 21 (b) DUTY OF COMMISSION.—The Commission shall 22 recommend to the Governor not less than 3 candidates for 23 nomination as Chief Financial Officer of the Virgin Is- 24 lands. Each candidate must have demonstrated ability in 25 VerDate Aug 31 2005 22:41 May 10, 2007 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2107.IH H2107 jlentini on PROD1PC65 with BILLS 8 •HR 2107 IH general management of, knowledge of, and extensive prac- 1 tical experience at the highest levels of financial manage- 2 ment in governmental or business entities and experience 3 in the development, implementation, and operation of fi- 4 nancial management systems. Candidates shall not have 5 served in a policy making or unclassified position of the 6 Government of the Virgin Islands in the 10 years imme- 7 diately preceding appointment as Chief Financial Officer. 8 (c) MEMBERSHIP.— 9 (1) NUMBER AND APPOINTMENT.—The Com- 10 mission shall be composed of 9 members appointed 11 not later than 30 days after the date of the enact- 12 ment of this Act. Persons appointed as members 13 must have recognized business, government, or fi- 14 nancial expertise and experience, and shall be ap- 15 pointed as follows: 16 (A) 1 individual appointed by the Governor 17 of the Virgin Islands. 18 (B) 1 individual appointed by the Presi- 19 dent of the Legislature of the Virgin Islands. 20 (C) 1 individual, who is an employee of the 21 Government of the Virgin Islands, appointed by 22 the Central Labor Council of the Virgin Is- 23 lands. 24 VerDate Aug 31 2005 22:41 May 10, 2007 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2107.IH H2107 jlentini on PROD1PC65 with BILLS 9 •HR 2107 IH (D) 1 individual appointed by the Chamber 1 of Commerce of St. Thomas-St. John. 2 (E) 1 individual appointed by the Chamber 3 of Commerce of St. Croix. 4 (F) 1 individual appointed by the Presi- 5 dent of the University of the Virgin Islands. 6 (G) 1 individual appointed by the Chief 7 Judge of the Virgin Islands Supreme Court. 8 (H) 1 individual, who is a resident of St. 9 John, jointly appointed by the At-Large Mem- 10 ber of the Legislature of the Virgin Islands and 11 the St. John administrator. 12 (I) 1 individual appointed by the Advocates 13 for the Preservation of the Retirement System. 14 (2) TERMS.— 15 (A) IN GENERAL.—Each member shall be 16 appointed for the life of the Commission. 17 (B) VACANCIES.—A vacancy in the Com- 18 mission shall be filled in the manner in which 19 the original appointment was made. Any mem- 20 ber appointed to fill a vacancy shall be ap- 21 pointed for the remainder of that term. 22 (3) BASIC PAY.—Members shall serve without 23 pay. 24 VerDate Aug 31 2005 22:41 May 10, 2007 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2107.IH H2107 jlentini on PROD1PC65 with BILLS 10 •HR 2107 IH (4) QUORUM.—Five members of the Commis- 1 sion shall constitute a quorum. 2 (5) CHAIRPERSON.— 3 (A) IN GENERAL.—The Chairperson of the 4 Commission shall be determined by a majority 5 vote of the members of the Commission. 6 (B) CHAIRPERSON PRO TEM.—Until the 7 Commission elects a Chairperson under sub- 8 paragraph (A), the Chairperson pro tem shall 9 be the individual appointed under paragraph 10 (1)(G). 11 (6) MEETINGS.— 12 (A) IN GENERAL.—The Commission shall 13 meet at the call of the Chairperson or the 14 Chairperson pro tem. 15 (B) INITIAL MEETING.—Not later than 15 16 days after all members have been appointed 17 under this subsection, the Commission shall 18 have its initial meeting at the call of the Chair- 19 person pro tem. 20 (7) GOVERNMENT EMPLOYMENT.—Members 21 may not be current government employees, except 22 for the member appointed under paragraph (1)(C). 23 (d) REPORT; RECOMMENDATIONS.—The Commission 24 shall transmit a report to the Governor and the Natural 25 VerDate Aug 31 2005 22:41 May 10, 2007 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2107.IH H2107 jlentini on PROD1PC65 with BILLS 11 •HR 2107 IH Resources Committee of the House of Representatives and 1 the Committee on Energy and Natural Resources of the 2 Senate not later than 60 days after its first meeting. The 3 report shall name the Commission’s recommendations for 4 candidates for nomination as Chief Financial Officer of 5 the Virgin Islands. 6 (e) TERMINATION.—The Commission shall terminate 7 210 days after its first meeting. 8 SEC. 3. DEFINITIONS. 9 For the purposes of this Act, the following definitions 10 apply: 11 (1) CHIEF FINANCIAL OFFICER.—In sections 1 12 and 2, the term ‘‘Chief Financial Officer’’ means a 13 Chief Financial Officer or Acting Chief Financial 14 Officer, as the case may be, appointed under section 15 1(a). 16 (2) COMMISSION.—The term ‘‘Commission’’ 17 means the Virgin Islands Chief Financial Officer 18 Search Commission established pursuant to section 19 2. 20 (3) GOVERNOR.—The term ‘‘Governor’’ means 21 the Governor of the Virgin Islands. 22 (4) REMOVAL FOR CAUSE.—The term ‘‘removal 23 for cause’’ means removal based upon misconduct, 24 failure to meet job requirements, or any grounds 25 VerDate Aug 31 2005 22:41 May 10, 2007 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H2107.IH H2107 jlentini on PROD1PC65 with BILLS 12 •HR 2107 IH that a reasonable person would find grounds for dis- 1 charge. 2 SEC. 4. NO ABROGATION OF POWERS. 3 Nothing in this Act shall be construed to allow the 4 Governor and Legislature of the Virgin Islands to dilute, 5 delegate, or otherwise alter or weaken the powers and au- 6 thority of the Office of Management and Budget estab- 7 lished under the laws of the Virgin Islands. 8 Æ VerDate Aug 31 2005 22:41 May 10, 2007 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6301 E:\BILLS\H2107.IH H2107 jlentini on PROD1PC65 with BILLS