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April 13, 2008
GOVERNOR ACTS ON VARIOUS BILLS PASSED BY THE SENATE IN MARCH Governor John P. deJongh, Jr. took action Saturday on sixteen bills passed by the 27th Legislature in its March session. The measures were due back to the Senate on April 12, 2008. DeJongh signed into law Bill No. 27-0101 which increases the percentage paid to the Government Employees Retirement System for retirement contributions for government employees. The bill increases the amount to 17.5%. This measure is a positive and necessary step towards updating the V.I. Government’s employee retirement savings plan. "While this step will not resolve the unfunded liability facing the GERS, it represents a positive action towards addressing the matter," deJongh said. Also signed into law was Bill No. 27-0112 which authorizes the negotiation of the purchase, joint development, or exchange of parcel lots in the area of the Donoe Housing Community on St. Thomas and the Louis E. Brown Villas in Estate Paradise on St. Croix for the construction of mixed income and mixed-use affordable housing units. "I remain committed to the principle that the Virgin Islands must regain control of the properties titled in the name of the Virgin Islands Housing Authority which remains under federal receivership," deJongh said in a transmittal letter to Senate President Usie Richards. But deJongh said he maintains the position that one branch cannot order specific actions by another branch as set forth in one section of the bill. "I will continue my efforts as with the Department of Housing and Urban Development, which I already authorized to do as Governor." DeJongh acknowledged the Senate’s passing of Bill No. 27-0114 which provides a mechanism for persons living in public housing who are displaced due to disaster to be able to reoccupy their units upon reconstruction. Also approved was Bill No. 27-0134 which provides for the Virgin Islands Medical Practice Act and grants the Board of Medical Examiners additional powers for practicing medicine in the territory. This provision establishes a clearer set of guidelines of the pre-existing law and allows greater leeway for the medical community to set standards towards further establishing important guidelines for the health and well-bring of Virgin Islands residents. "This measure is needed to properly regulate the medical industry," deJongh explained. Also approved was Bill No. 27-0146 which removes the Bureau of Corrections form the Department of Justice and makes the BOC a separate agency. "I agree that this move will result in an increased focus on the myriad of issues which face our correctional facilities and programs," deJongh said noting, that the establishment of the Bureau of Corrections will result in increased costs which must be properly budgeted for in order to make the change effective. DeJongh also signed Bill No. 27-0149 which increases the cap on non-economic damages available to parties in an automobile accident from $75,000 to $100,000. "This change is timely as the cap has not increased since 1999." The governor also approved the update to the V.I. Uniform Unclaimed Property Act contained in Bill 27-0161 and a rezoning request contained in Bill 27-0172. DeJongh acknowledged the Senate’s passage of this legislation towards the "overall forward progress and economic development of the island of St. Croix." While deJongh applauded the intent of Bill 27-0071, he vetoed the legislation citing its being duplicative of efforts already underway by Ten Thousand Helpers of St. Croix. The organization recently received block grant funding to establish a shelter on St. Croix. "It is not clear that $400,000 is sufficient funding to acquire the property targeted by the bill, assuming that the owner is prepared to sell the property and to also renovate any existing structures to a condition that is adequate to serve as a location for overnight shelter and assisted living. My support for the programs of The Village is unwavering and we are working with them to meet the current year appropriations." Saying that he fully supports the need to educate persons while incarcerated for criminal violations, deJongh said he was constrained to veto Bill 27-0023. "As noted by the Attorney General, there is a program currently in place at the BOC which addresses this area of concern. Therefore, this legislation is not needed." DeJongh further wrote that by mandating such a program through legislation, the "new" Bureau of Corrections will have decreased flexibility to tailor the current program, or implement new program of inmate education in the future. Though he recognized the concern behind Bill 27-0058, deJongh vetoed the measure as the issue of safety around school campuses is adequately addressed by the presence of crossing guards at schools during the times students arrive and leave their respective campuses. "This blanket speed reduction for nine hours every day of the year, even at times when school is not in session, and given the location of our schools along our primary roads, will needlessly impact the flow of traffic." DeJongh vetoed Bill 27-0110 out of concern that the measure may unintentionally harm the financial ability of persons who borrow from small loan lenders. "Additional discussions should be hand with members of the industry to ensure that such unintended consequences are addressed." DeJongh said he supports ensuring that consumers of the Virgin Islands have access to a wide array of competitive credit products, but there was not overwhelming evidence of borrower performance or lender constraints to support this piece of legislation at this time. DeJongh approved the majority of Bill No. 27-0140, which enables the Government and its instrumentalities to pool funds to be invested by the Public Finance Authority ("PFA"). However, there were sections which altered the constitution of the PFA board and imposed detrimental requirements on the PFA which would negatively affect its performance of its duties, which are critical to the Virgin Islands. "Therefore, I line-item vetoed section 5, which requires the PFA to hire an executive director and limits the compensation which may be paid to the director of the PFA. I note that no other instrumentality of the Government has such a restriction. I line-item vetoed Section 14 as it attempts to appropriate from the General Fund certain bond proceeds. As bond proceeds are not placed into the General Fund, this provision cannot be executed. Section 15, which alters the makeup of the PFA board also was vetoed. While I do not object to adding additional board members, I do not believe that deleting board members and decreasing the input of the Government’s financial personnel is a positive step. Section 16 also places undue restrictions on the PFA which may adversely affect the ability of the agency to effectively perform its duties. In Section 17, I line-item vetoed "daily" from proposed subsection (l), as that requirement is unduly burdensome. I also line-item vetoed proposed subsection (m), as that proposal may have the unintended consequence of limiting the ability of the Government to enter into "design-and-build" contracts," deJongh wrote. He reminded the Senate that the PFA is the government’s primary access to the capital markets for bond proceeds to fund critical projects. Since its inception it has been successful in development and expanding relationships with the rating agencies, bond issuers, and, most importantly, investors. "In this period of serious market upheaval and uncertainty, I do not suggest we now change what has worked for our community’s benefit." In Bill No. 27-0171, DeJongh approved sections 1, 2, 4, 5, 6, 7, 8, 9, 11, and 20, and line-item vetoed the remaining provisions. "I specifically note that my veto of Section 17 does not reflect my lack of support for the Fifth Constitutional Convention, but rather, my concern that it would be unfair to the process to approve an appropriation of $2,000,000 when such funds are not available to be allotted. At this time, a sum of approximately $200,000 is available for allotment to the Constitutional Convention, given the myriad of other items which must be paid for of the General Fund, I will approve such an appropriation if it is submitted." DeJongh also pointed out that my veto of Section 10 is due to the impossibility of obtained bond proceeds for the Cardiac Center by May 1, 2008. "In reality, this section will result in an appropriation from the principal of the Insurance Guaranty Fund, which I cannot condone. I pledge to work with the Juan F. Luis Hospital and the Legislature to secure funding to ensure that the Cardiac Center becomes a reality." The decision to line-item many sections of Bill 27-0171 came about as the result of the present precarious condition of the V.I. Government’s finances. DeJongh explained that in some instances he authorized spending where necessary to provide services and facilities needed in the Territory. But he was as cognizant that some proposals replicated services or programs which are already in existence. To avoid duplicative spending and to acknowledge the reality that the General Fund appropriations exceed available revenues, DeJongh said he exercised the veto power of his office even when he favored the motivation behind such bills. "We have received a favorable report from the Special Master and finally, we are heading on the road to some finalization of our real property taxes. Once the real property tax bills are issued and we begin to see a flow of budgeted revenues to the General Fund, many of these worthy projects will be funded, but at the present time, money is simply not available to approve additional spending." In addition, Governor DeJongh signed into law Resolution No. 1722, Bill No. 0173 which honors and commends the Virgin Islands Salvation Army for 90 years of service in the territory, as well as Resolution No. 1723, Bill No. 27-0141 which petitions the United States Congress and the President of the United States to support a House measure, H.R. 56, mandating that Virgin Islands residents be eligible to receive Supplementary Security Income (S.S.I.). "The continuing exclusion of Virgin Islands residents from the SSI program is unjust, and I look forward to working with the Delegate to obtain evenhanded treatment for our residents," deJongh wrote. |
