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COMMITTEE ON BUDGET, APPROPRIATIONS AND FINANCE BILL NO. 36-0078 Thirty-Fifth Legislature of the Virgin Islands May 8, 2025 An act amending title 3 Virgin Islands Code, chapters 8 and 37 to enumerate the duties and functions of the Virgin Islands Commission on Ethics and Conflicts of Interest; appropriating $1,000,000 from the General Fund of the Treasury of the Government of the Virgin Islands to the Virgin Islands Commission on Ethics and Conflicts of Interest and for other related purposes PROPOSED BY: Senator Kenneth L. Gittens Be it enacted by the Legislature of the Virgin Islands: 1 SECTION 1. Title 3 Virgin Islands Code, chapter 8 section 114, subsection (a), 2 paragraph (17) is amended by striking “administer and” and after “enforces” by inserting “in 3 conjunction with the Virgin Islands Commission on Ethics and Conflicts of Interest,”. 4 SECTION 2. Title 3 Virgin Islands Code, chapter 37 is amended in the following 5 instances: 6 (a) Section 1102 is amended by adding designating the exiting paragraph as subsection 7 (b) and adding subsection (a) that reads: 8 “(a) For a period of one year after a territorial officer or employee employment has 9 ended with the Government of the Virgin Islands, the former territorial officer or 10 employee may not have any involvement, either directly or indirectly, with any 11 negotiations, discussions, contracts, claims or any other matter with which the territorial 12 officer or employee was previously involved in the person’s capacity, as a territorial 13 2 officer or employee. This subsection does not apply to a former employee who is 1 subsequently reemployed in a governmental capacity where no substantial conflict of 2 interest has occurred as prescribed in §1103.” 3 (b) Section 1105(a)(4) is amended by striking both occurrences of the word 4 “Committee” and inserting “Attorney General”; 5 (c) Section 1106 is amended by striking “Attorney General” and inserting “Virgin 6 Islands Commission on Ethics and Conflicts of Interest”; and before “file actions” inserting 7 “submit criminal matters to the Attorney General or the United States Attorney”; add a new 8 sentence that reads, “The Commission, in conjunction with the Attorney General, may certify 9 to the Superior Court the facts evidencing the disobedience or resistance by a person to comply 10 with a lawful order, or the refusal to be examined, or the misconduct of a person during a 11 hearing, and the Commission may seek the assistance of the Court in enforcing the 12 commission’s orders and processes.” 13 (d) Section 1108 is amended by striking “a provision” and inserting “sections 1102, 14 1103, 1104, 1105 and 1107” 15 (e) Sections 1109 to 1115 are repealed and reenacted as follows: 16 §1109. Requirements, Powers and Duties of Commission 17 In addition to other powers and duties prescribed by law, the Commission shall: 18 (a) Determine whether an individual is a public official for purposes of this 19 chapter; 20 (1) A “public official” is any person elected by the public or elected or 21 appointed by a governmental body, or an appointed official in the executive, 22 legislative, or judicial branch of the Virgin Islands or any political subdivision 23 thereof, provided that a public official does not include members of advisory boards 24 that have no authority to expend public funds other than reimbursement for personal 25 3 expense, or to otherwise exercise the power of the Territory or any political 1 subdivision thereof. 2 (b) Provide a training course of not less than two hours for public officials on the 3 requirements of this chapter for an individual who has been identified as a public official; 4 (c) A public official as defined in paragraph (a)(1) shall complete a training 5 course provided by the Commission on Ethics and Conflicts of Interest no later than 30 6 days after being elected or appointed as a public official. The training requirement does 7 not apply to an individual who is a public official only as a member of a commission, 8 task force, or similar entity; or has completed a training course provided by the 9 Commission on Ethics and Conflicts of Interest while serving in another public official 10 position once not more than three years has elapsed since the training; 11 (d) Promulgate regulations to carry out the provisions of this chapter; 12 (e) Draft a “Code of Official Conduct” not later than six months after the 13 establishment of a quorum of the Commission, which Code must be ratified by the 14 Legislature; 15 (f) Promulgate model regulations that address conflicts of interest and financial 16 disclosure; 17 (g) Prescribe forms for statements and reports that must be filed and furnish the 18 forms to public officials required to file the statements and reports; 19 (h) Prepare and publish guidelines setting forth uniform methods of accounting 20 and reporting for use by persons required to file statements and reports; 21 (i) Accept and file any information voluntarily supplied that exceeds the 22 requirements of this chapter; 23 (j) Inspect financial interest statements that have been filed to ascertain whether 24 any public official has failed to file the statement or has filed a deficient statement. If it 25 is determined that a reporting person has failed to file a financial interest statement or 26 4 that any statement that has been filed fails to conform with the requirements of section 1 1105, the Commission shall notify the person in writing. The notice must state in detail 2 the deficiency and the penalties for failure to file or for filing a deficient statement of 3 financial interests; 4 (k) Make statements and reports available for inspection and copying during 5 regular office hours and make copying facilities available at a charge not to exceed actual 6 cost for law enforcement agencies with legitimate reasons for the reports; 7 (l) Compile and maintain an index of all reports and statements filed with the 8 Commission to facilitate public access to the reports and statements and instruct other 9 local agencies that receive and file financial interest statements in the maintenance of 10 systems that facilitate public access to the statements; 11 (m) Prepare and publish annual summaries of statements and reports filed with 12 the Commission; 13 (n) Preserve statements and reports for five years from the date of their receipt 14 and advise other local agencies that receive and store financial interest statements to 15 preserve the statements for five years from date of receipt; 16 (o) Issue to any person upon the person’s request, or to the appointing authority 17 or employer of that person, upon the request of the appointing authority or an employer, 18 an opinion with respect to the person’s duties under this chapter. Not later than 14 days 19 after the request is made, the Commission shall either issue the opinion or advise the 20 person who requested whether an opinion will be issued. A person who acts in good faith 21 on an opinion issued by the Commission is not subject to criminal or civil penalties for 22 so acting, if the material facts are as stated in the opinion request. The Commission’s 23 opinions are public records and may, from time to time, be published. The person 24 requesting the opinion may, however, require that the opinion contain such deletions and 25 changes as necessary to protect the identity of the persons involved; 26 5 (p) Provide written advice to any person or the appointing authority or employer 1 of a person upon a request with respect to the employee’s duties under this chapter. The 2 Commission shall provide the advice not later than 21 working days after the request, but 3 the time may be extended for good cause. It is a rebuttable presumption in any 4 enforcement proceeding initiated by the Commission and evidence of good faith conduct 5 in any other civil or criminal proceeding, if the requester at least 21 working days before 6 the alleged violation requested written advice from the Commission in good faith, 7 disclosed truthfully all material facts and committed the acts complained of either in 8 reliance on the advice or because of the failure of the Commission to provide advice 9 within 21 days after the request or such later extended time. The person requesting the 10 advice may, however, require that the advice contain deletions and changes as are 11 necessary to protect the identity of the person involved; 12 (q) Initiate an inquiry under section 1110, where a complaint has not been filed 13 where there is a reasonable belief that a conflict may exist; 14 (r) Issue findings, reports, and orders relating to investigations initiated pursuant 15 to section 1110, which set forth the alleged violation, findings of fact, and conclusions of 16 law. An order may include recommendations to law enforcement officials. Any order 17 resulting from a finding that a public employee has obtained a financial gain in violation 18 of this chapter may require the restitution plus interest of that gain to the appropriate 19 governmental body. The Attorney General or the Commission may apply to the Superior 20 Court of the Virgin Islands to seek enforcement of an order requiring such restitution. 21 This restitution requirement is in addition to any other penalties provided for in this 22 chapter; 23 (s) Hold hearings, take testimony, issue subpoenas, and compel the attendance 24 of witnesses; 25 6 (t) Make recommendations to law enforcement officials for criminal 1 investigation of violations of this chapter; 2 (u) Make recommendations to the Attorney General or the United States 3 Attorney either for criminal prosecution or filing of charges arising out of violations of 4 this chapter; 5 (v) Prepare and publish special reports, educational materials, and technical 6 studies to further the purposes of this chapter; 7 (w) Prepare and publish, before June 1 of each year, an annual report 8 summarizing the activities of the Commission; 9 (x) Transmit quarterly, free of charge, copies of each order, advisement and 10 opinion that has become a matter of public record to all law libraries in the Virgin Islands 11 and each authority appointing Commission members; 12 (y) Hold at least two public hearings each year, of which at least one must be 13 held in the district of St. Croix and at least one must be held in the district of St. Thomas 14 and St. John, to seek input from persons and organizations who represent any individual 15 subject to the provisions of this chapter and from other interested parties. 16 §1110. Investigation by Commission 17 (a) Upon a complaint signed by any person or upon its own motion, the Commission, 18 through its executive director, shall conduct a preliminary inquiry into any alleged violation of 19 this chapter. The Commission shall keep information, records, and proceedings relating to a 20 preliminary inquiry confidential. The Commission may, however, refer the case to law 21 enforcement officials, the Attorney General or United States Attorney during a preliminary 22 inquiry or anytime thereafter without providing notice to the subject of the inquiry. The 23 Commission shall complete its preliminary inquiry no later than 60 days after its initiation. On 24 request of the Commission, an official of a department, agency, division, semi-autonomous 25 agency, or instrumentality of the Government of the Virgin Islands shall provide the 26 7 Commission, in a timely manner, with any information necessary for the Commission to 1 perform its duties under this subsection. 2 (b) If a preliminary inquiry fails to establish reason to believe that this chapter has been 3 violated, the Commission may terminate the inquiry and notify the complainant and the person 4 who had been the subject of the inquiry. If the Commission determines that a complaint is 5 frivolous, it shall so state. 6 (c) If a preliminary inquiry establishes reason to believe this chapter has been violated, 7 the Commission shall initiate an investigation through its executive director to determine if 8 there has been a violation. The Commission shall keep information, records, and proceedings 9 relating to an investigation confidential until a final determination is made, except as otherwise 10 provided in subsection (g). Service of notice is complete upon mailing and must be by certified 11 or registered mail. The Commission shall notify the complainant not later than 60 days after 12 the commencement of an investigation, and thereafter, the Commission shall advise the 13 complainant and the person who is the subject of the investigation of the status of the 14 investigation at least every 90 days until the investigation is terminated. Not later than 180 15 days after the initiation of an investigation, the Commission shall either terminate the 16 investigation pursuant to subsection (d) or issue a findings report under subsection (e). Upon 17 a showing by the executive director of the need for an extension of this period, the Commission 18 may extend an investigation for up to two 90-day periods. A majority vote of members, a 19 quorum being present, must approve each 90-day extension. A findings report may not be 20 issued later than 360 days after initiation of an investigation. The Commission shall refer the 21 complaint to the Commission on Judicial Conduct promptly if the complaint concerns a judge 22 of a court established under title 4 of the Virgin Islands Code. On request of the Commission 23 of Judicial Conduct, the Commission shall provide any information or assistance that is not 24 prohibited by law. The Commission shall promptly refer the complaint to the Legislature’s 25 8 Standing Committee on Ethical Conduct or any successor committee having jurisdiction if the 1 complaint concerns a senator or employee of the legislative branch. 2 (d) If an investigation indicates that no violation has been committed, the Commission 3 shall immediately terminate the investigation and send written notice of the determination to 4 the complainant and the person who was the subject of the investigation. 5 (e) The Commission, upon completing an investigation, shall issue a findings report to 6 the subject of an investigation setting forth the pertinent findings of fact by enumerating each 7 finding of fact by either number or letter. The subject may respond to the findings and request 8 an evidentiary hearing on the matter. The Commission shall grant any request for a hearing. 9 The hearing must be held in either the district of St. Croix or the district of St. Thomas and St. 10 John depending on the subject’s place of residence. Any response to a findings report must 11 either admit or deny the pertinent facts by the corresponding number and letter. The subject of 12 the investigation is entitled to have access to any evidence intended to be used by the 13 Commission at the hearing and any exculpatory evidence developed by the Commission during 14 its investigation. 15 (f) Matters not specifically denied in the response are deemed admitted. The response 16 must be filed no later than 30 business days from the date of issuance of the findings report 17 unless the Commission extends the time for good cause shown. Hearings conducted upon 18 request must be instituted not later than 45 days after the response. 19 (g) Not later than 90 days after the Commission receives the hearing record, or, if no 20 hearing is to be held, not later than 30 days after the Commission receives the response to the 21 findings report, the Commission shall issue a final order. Upon receipt of a final order, the 22 subject of the investigation may file a petition for reconsideration in accordance with the 23 regulations of the Commission. 24 (h) Hearings conducted under this section are closed to the public unless the subject 25 requests an open hearing. 26 9 (i) Any person accused of violating any provision of this chapter is entitled to be 1 represented by counsel before the Commission and has all rights normally accorded a person 2 called to answer an accusation in the Superior Court of the Virgin Islands. All witnesses 3 summoned for hearings are entitled to receive reimbursement for reasonable expenses in 4 accordance with title 5 Virgin Islands Code. At the conclusion of a hearing and in a timely 5 manner, the Commission shall deliberate on the evidence and determine whether there has been 6 a violation of this chapter. At least three Commission members present at a hearing must find 7 a violation by clear and convincing proof. The names of the members finding a violation and 8 those dissenting and abstaining must be listed in the order. The determination of the 9 Commission, in the form of a final order and findings of fact, are a matter of public record. 10 (j) Final orders must be available as public documents, but the files and records of the 11 Commission relating to the case must remain confidential. 12 (k) Any person aggrieved by an opinion or final order who has a direct interest in the 13 opinion or the final order may appeal to the Superior Court of the Virgin Islands. 14 (l) No public official, public employer, or public employee may discharge any 15 employee, change his official rank, grade, or compensation, deny him a promotion, or threaten 16 to do so for filing a complaint with or providing information to the Commission or testifying 17 in any Commission proceeding. No member of the Commission and no employee of the 18 Commission may discharge any employee of the Commission or change his official rank, grade, 19 or compensation or threaten to do so for providing any information about the internal operations 20 of the Commission not required by law to be kept secret, to any senator or legislative staff 21 member or testifying in any legislative proceeding. 22 (m) No person may disclose or acknowledge, to any other person, any information 23 relating to a complaint, preliminary inquiry, investigation, hearing, or petition for 24 reconsideration that is before the Commission. The identity of the person that is the subject of 25 the advisory opinion must not be revealed. Before an advisory opinion may be made public, 26 10 the advisory body shall delete the name of the person that is the subject of the opinion and, to 1 the fullest extent possible, any other information that may identify the person. However, a 2 person may disclose or acknowledge to another person matters held confidential in accordance 3 with this subsection when the matters pertain to any of the following: 4 (1) Final orders of the Commission as provided in subsection (h); 5 (2) Hearing conducted in public under subsection (g); 6 (3) For the purpose of seeking advice of legal counsel; 7 (4) Filing an appeal from a Commission order; 8 (5) Communicating with the Commission or its staff in the course of a 9 preliminary inquiry, investigation, hearing, or petition for reconsideration by the 10 Commission; 11 (6) Consulting with a law enforcement official or agency for the purpose of 12 initiating, participating in, or responding to an investigation or prosecution by the law 13 enforcement official or agency; 14 (7) Testifying under oath before a governmental body or a similar body of the 15 United States of America; 16 (8) Any information, records, or proceedings relating to a complaint, preliminary 17 inquiry, investigation, hearing, or petition for reconsideration which the person is the 18 subject of; or 19 (9) such other exceptions as the Commission by regulation may direct. 20 (n) If a public official or public employee has reason to believe the complaint is 21 frivolous as defined by this chapter, or without probable cause, and made primarily for a 22 purpose other than that of reporting a violation of this chapter, or a person publicly disclosed 23 or caused to be disclosed that a complaint against the public official or public employee has 24 been filed with the Commission, the public official or the public employee shall notify the 25 11 Commission, and the Commission, through its executive director, shall conduct an 1 investigation. 2 (o) The Commission may conduct an investigation not more than five years after the 3 alleged occurrence of any violation of this chapter. 4 §1111. Penalties 5 (a) Any person who obtains financial gain from violating any provision of this chapter, 6 in addition to any other penalty provided by law, shall pay into the Treasury of the Government 7 of the Virgin Islands a sum of money equal to three times the amount of the financial gain 8 resulting from the violation. Treble damages may not be assessed against a person who acted 9 in good faith, reliance on the advice of legal counsel. 10 (b) The penalties prescribed in this chapter do not limit the power of the Legislature of 11 the Virgin Islands to discipline its members or to initiate a recall election of an elected public 12 official, and do not limit the power of agencies or commissions to discipline officials or 13 employees. 14 (c) Any person who violates the confidentiality of a Commission proceeding commits 15 a misdemeanor and shall, upon conviction be sentenced to pay a fine of not more than $1,000 16 or to imprisonment for not more than one year, or both. Any person who engages in retaliatory 17 activity prescribed by section 1110(j) commits a misdemeanor and, in addition to any other 18 penalty provided by law, shall upon conviction be sentenced to pay a fine of not more than 19 $1,000 or to imprisonment for not more than one year, or both Any person who willfully 20 affirms or swears falsely regarding any material matter before a Commission proceeding under 21 section 1110 commits a felony and shall, upon conviction, be sentenced to pay a fine of not 22 more than $5,000 or to imprisonment for not more than five years, or both. 23 (d) In addition to any other civil remedy or criminal penalty provided for in this 24 chapter, the Commission may, after notice has been served in accordance with this chapter and 25 upon a majority vote of its members, levy a civil penalty upon any person subject to this chapter 26 12 who fails to file a statement of financial interests in a timely manner or who files a deficient 1 statement of financial interests, at a rate of not more than $25 for each day the statement remains 2 delinquent or deficient. 3 (e) A public official who acts in good faith reliance on a written, non-confidential 4 opinion of the solicitor general or upon an opinion of the solicitor general publicly stated at an 5 open meeting and recorded in the official minutes of the meeting is not subject to the penalties 6 provided for herein. However, this subsection does not apply in situations where the solicitor’s 7 opinion has been rendered under duress or where the parties seeking and rendering the 8 solicitor’s opinion have conspired to commit a violation of this chapter purposefully. 9 §1112. Wrongful use of this chapter 10 (a) A person who signs a complaint alleging a violation of this chapter is subject to 11 liability for wrongful use of this chapter if: 12 (1) The complaint was frivolous, as defined by this chapter, or without probable 13 cause and made primarily for a purpose other than that of reporting a violation of this 14 chapter; or 15 (2) The complainant publicly disclosed or caused to be disclosed that a complaint 16 against a person had been filed with the Commission. 17 (b) A person who signs a complaint alleging a violation of this chapter has probable 18 cause for doing so if the person reasonably believes in the existence of the facts upon which 19 the claim is based and either: 20 (1) reasonably believes that under those facts the complaint may be valid under 21 this chapter; or 22 (2) believes to this effect in reliance upon the advice of counsel, sought in good 23 faith and given after full disclosure of all relevant facts within his knowledge and 24 information. 25 13 (c) When the Commission determines that a complainant has violated subsection (a), 1 the Commission, upon receiving a written request from the subject of the complaint, shall 2 provide the name and address of the complainant to the subject. If the Commission determines 3 that a complainant has not violated the provisions of subsection (a), the Commission shall notify 4 the subject accordingly. The subject may appeal the Commission’s determination, and the 5 Commission shall schedule an appeal hearing. The subject shall provide credible evidence the 6 complainant violated the provisions of this section. If the Commission grants the appeal, the 7 Commission shall immediately release the complainant’s name and address to the subject. If 8 the Commission denies the appeal, it shall present evidence of why the complainant’s name 9 and address may not be released. 10 (d) Upon a successful appeal, the subject is entitled to recover for the following: 11 (1) Monetary damages for harm to the appellant’s reputation by a defamatory 12 matter alleged as the basis of the proceeding. 13 (2) The expenses, including any reasonable attorney fees and costs that the 14 appellant has reasonably incurred in proceedings before the Commission. 15 (3) Any specific pecuniary loss that has resulted from the proceedings. 16 (4) Any emotional distress that has been caused by the proceedings. 17 (5) Any punitive damages according to law in appropriate cases. 18 §1113. Ethics and Conflicts of Interest Commission Fund 19 (a) There is established within the Treasury of the Government of the Virgin Islands a 20 separate and distinct, non-lapsing fund known as the Ethics and Conflicts of Interest 21 Commission Revolving Fund, created for the purpose of funding the activities of the Virgin 22 Islands Commission on Ethics and Conflicts of Interest. 23 (b) The Commissioner of the Department of Finance shall administer the Fund, and no 24 amounts therein may be made available for expenditure except as provided in this section and 25 when authorized by the executive director of the Virgin Islands Commission on Ethics and 26 14 Conflicts of Interest. The Virgin Islands Commission on Ethics and Conflicts of Interest shall 1 establish policies for the expenditures of money contained in the Fund. 2 (c) The Fund consists of all monies appropriated from time to time by the Legislature, 3 all public or private grants, gifts, donations, bequests, and devises to the Commission on Ethics 4 and Conflicts of Interest, and any appropriation transfers to the Fund. 5 (d) Any balance more than $1,000,000 of government funds in any fiscal year must be 6 deposited into the General Fund in the Treasury of the Virgin Islands. 7 §1114. Supplemental provisions 8 Any governmental body may adopt regulations covered in this chapter, but no such 9 regulation may in any way be less restrictive than those provided for in this chapter. 10 §1115. Conflict with other law 11 Except as otherwise provided in this chapter, if any provision of this chapter conflicts 12 with any other statute, the provisions of this chapter controls. 13 SECTION 3. There is appropriated in the fiscal year ending September 30, 2025, the 14 sum of $1,000,000 from the General Fund of the Treasury of the Virgin Islands to the 15 Commission on Ethics and Conflicts of Interest to implement and execute the provisions of this 16 act. 17 BILL SUMMARY 18 Section 1 amends title 3, section 114 of the Virgin Islands Code relating to the duties of 19 the Attorney General. Section 1 divests the Attorney General of the jurisdiction to administer 20 ethics and conflict of interest laws and allows the Attorney General to enforce them in 21 conjunction with the Commission on Ethics and Conflicts of Interest when there is a criminal 22 nexus. 23 Section 2 of establishes procedures for investigating, enforcing, and appealing from 24 ethical and conflict of interest violations of public officers and employees. Section 2 also 25 15 establishes the Ethics Commission Fund. Section 3 makes an appropriation to the Ethics and 1 Conflicts of Interest Commission for its operating expenses. 2 BR25-0276B/April 24, 2025/NS 3