IB 
Union Calendar No. 389
108TH CONGRESS 
2D SESSION 
H. R. 3589
[Report No. 108–645] 
To create the Office of Chief Financial Officer of the Government of the 
Virgin Islands. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 21, 2003
Mrs. CHRISTENSEN introduced the following bill; which was referred to the 
Committee on Resources 
SEPTEMBER 7, 2004 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on November 21, 2003] 
A BILL 
To create the Office of Chief Financial Officer of the 
Government of the Virgin Islands.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CHIEF FINANCIAL OFFICER OF THE VIRGIN IS-
LANDS. 
(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 Fi-
nancial 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 Offi-
cer is appointed under the first sentence of paragraph 
(1). In either case, if the Acting Chief Financial Offi-
cer serves in an acting capacity for 180 consecutive 
days, without further action the Acting Chief Finan-
cial 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 Of-
ficer. All employees of the Office of Management and 
Budget become employees of the Office of the Chief Fi-
nancial 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 du-
ties of the Chief Financial Officer shall include the fol-
lowing: 
(1) Assume the functions and authority of the of-
fice of the Office of Management and Budget estab-
lished under the laws of the Virgin Islands as trans-
ferred 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 En-
ergy and Natural Resources in the Senate. 
(3) Each year certify spending limits of the an-
nual 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 govern-
ment 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.
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 Fi-
nancial Officer serving in any government or semi-
autonomous agency. 
(f) CONDITIONS RELATED TO DEPUTY CHIEF FINAN-
CIAL OFFICER.—
(1) TERM; REMOVAL.—The Deputy Chief Finan-
cial Officer shall serve at the pleasure of the Chief Fi-
nancial Officer. 
(2) REPLACEMENT.—If the Deputy Chief Finan-
cial Officer is unable to continue acting in that ca-
pacity due to removal, illness, death, or otherwise, an-
other person shall be selected by the Governor of the 
Virgin Islands to serve as Deputy Chief Financial Of-
ficer. 
(3) SALARY.—The Deputy Chief Financial Offi-
cer 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 func-
tions 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 commis-
sion 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 Is-
lands. Each candidate must have demonstrated ability in 
general management of, knowledge of, and extensive prac-
tical experience at the highest levels of financial manage-
ment in governmental or business entities and must have 
experience in the development, implementation, and oper-
ation 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 Of-
ficer.
(c) MEMBERSHIP.—
(1) NUMBER AND APPOINTMENT.—The Commis-
sion 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 exper-
tise 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 Com-
mission shall be filled in the manner in which 
the original appointment was made. Any mem-
ber appointed to fill a vacancy shall be ap-
pointed 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 sub-
section.
(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 Com-
mittee 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 Is-
lands. 
(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 Manage-
ment 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