ST. THOMAS, VI – The Committee on Budget, Appropriations, and Finance, chaired by Senator Novelle E. Francis Jr. met in the Earle B. Ottley Legislative Hall. Lawmakers received testimony on measures to purchase real property, a measure that would establish civil penalties for disregarding marine advisories and create the Territorial Safety Fund, appropriating monies for the repair, replacement and operation of streetlights in the territory, and implementing revisions that were made to the National Association of Insurance Commissioners. Approved items on today’s agenda will be forwarded to the Committee on Rules and Judiciary for further action and consideration.
Lawmakers voted to remove the following measures from the agenda. These items will be heard at a later date:
All measures were sponsored by Senator Milton E. Potter by request of the Governor.
Lawmakers considered 36-0217, An act ratifying the contract for the purchase and sale of real property between the Government of the Virgin Islands and Z Property VI LLC. The measure was sponsored by Senator Milton E. Potter by request of the Governor.
Vincent Richards, Assistant Commissioner of the Department of Property and Procurement delivered testimony on the proposed measure. The Department of Property and Procurement seeks approval to sell Parcel 20-A Hospital Street, Christiansted St. Croix to Z Property VI LLC for the agreed purchase price of $260,000. The parcel was acquired by the Government of the Virgin Islands by a Deed of Gift from Ms. Gwyneth Francis Civil in 1997 and the GVI has no current or future need for the property. Z Property VI intends to redevelop the property and has submitted a deposit of $26,000 to the department. The redevelopment would provide numerous economic and community benefits, by increasing economic activity, improving safety, and improving the appearance of the area. Peter Zielke, Owner of Z Property VI, stated that the acquisition and planned redevelopment of the property are aligned with the longstanding vision to revitalize Hospital Street. Zielke stated that the redevelopment of the property would also support the expansion of affordable housing in the town core of Christiansted. The measure was voted upon favorably.
Senators considered Bill No. 36-0209, An Act amending title 23 Virgin Islands Code, chapter 10 to establish civil penalties for disregarding marine advisories and to create the Territorial Marine Safety Fund. The measure was sponsored by Senator Hubert L. Frederick.
Sean Santos, Assistant Commissioner of the Virgin Islands Department of Police delivered testimony supporting the proposed measure. Santos stated that imposing civil penalties for those who neglect marine advisories creates a powerful deterrent against reckless behavior in territorial waters. Santos stated that the proposed penalty of $500 for acts that result in emergency response mobilization send a message that safety is paramount. Santos also said that the establishment of the Territorial Marine Fund is a significant step forward and would ensure that financial resources collected from the penalties are reinvested into the communities as well as improving emergency response capabilities, purchasing necessary equipment and maintaining vessels.
Testimony was read into the record from Daryl D. Jaschen, Director of VITEMA, who supported the proposed measure. Jaschen outlined the role of the US Coast Guard, which uses systems like Rescue 21 to locate distressed vessels and Marine Safety Information Bulletins during tropical storms and hurricanes to restrict port activity. VITEMA focuses mainly on land-based advisories, and marine advisories are usually limited to coastal hazards such as rip currents. These advisories are distributed through official media outlets, such as the National Weather Service and Facebook.
While Jaschen supported the measure, he reminded the body that VITEMA is not an enforcement agency and deferred such enforcement to the Department of Planning and Natural Resources.
Testimony was read into the record from Jean-Pierre L. Oriol, Commissioner of the Department of Planning and Natural Resources, who supported the measure. Oriol stated that there have been several incidents over the last several years where small craft advisories have been issued, but members of the public still choose to go out on to the water. Oriol states these negligent actions harm officers in the Department and agrees that a civil penalty should be placed on those who ignore the warnings. Additionally, Oriol had concerns about language of the proposed measure, asking to clarify language that referred to “public safety notices issued by any of the following agencies” to avoid legal loopholes, and recommended tying penalties to US Coast Guard port conditions, such as Yankee and Zulu closings, rather than general small craft advisories, which don’t always prohibit boating. Oriol recommended that the proposed penalty be increased to $1,500 instead of $500 to serve as a stronger deterrent and that VITEMA and VIFEMS be removed because they are not usually first responders. The measure was voted upon favorably.
Policymakers also considered Bill No. 36-0210, An act appropriating the sum of $4,000,000 from the Virgin Islands Insurance Guaranty Fund to the Virgin Islands Water and Power Authority for the repair, replacement, and operation of streetlights throughout the Territory. The measure was sponsored by Senator Kurt A. Vialet.
In his testimony, Julio Rhymer, Sr., Director of the Virgin Islands Office of Management and Budget spoke of the important of streetlights for public safety but opposed appropriating $4 million from the Virgin Islands Insurance Guaranty Fund to the Water and Power Authority. Rhymer stated that the fund is intended to safeguard against insurer insolvency and natural disasters, and not to serve as one time fix. Rhymer reminded the body that streetlights are already funded through property taxes, providing about $2.4 Million annually and that a sustainable strategy is needed to address long term maintenance rather than using temporary allocations. Rhymer recommended that a funding strategy is needed to cover the true maintenance cost, ensure proper allocation of revenues, and prevent spending on private lighting.
Karl Knight, Executive Director and Chief Executive Officer of the Virgin Islands Water and Power Authority delivered testimony. Knight said that the USVI possessed 17,767 streetlights, with 10,169 in St. Croix, 6,814 in St. Thomas and 595 in St. John. After the 2017 storms, lights were repaired and replaced. 437 areas which were lit before the storms are still dark. These includes 189 areas in St. Croix, 207 in St. Thomas, and 41 in St. John. Excluding the damaged lamps, they consume 8,543,281 kWh annually. Knight stated that streetlight maintenance has been incredibly underfunded, and that the government is $8.3 Million past due on streetlight payments based on a charge of 1.25 cents per kWh. Knight stated that the allocation was necessary for public safety, economic and tourism impacts, and operational reality. Additionally, Knight said that the funds would be used to replace damaged lights and light poles as well as procuring essential spare parts and other needed equipment. The measure was voted upon favorably.
Lawmakers considered Bill No. 36-0184, An Act amending title 22 Virgin Islands Code, chapter 14, The Virgin Islands Insurance Holding Company System Regulatory Act to implement revisions that were made to the National Association of Insurance Commissioners. The measure was sponsored by Senator Milton E. Potter, by request of the Governor.
Suzette Richards, Esq., Legal Counsel, Office of the Lt. Governor, Division of Banking, Insurance and Financial Regulation, testified in strong support of the measure, which would amend the Virgin Islands Insurance Holding Company Act to align with 2020-2021 revisions to the NAIC Insurance Holding Company. The measure would introduce group capital calculation and liquidity stress test requirements, which would become effective in January of 2026 as accreditation standards strengthen oversight of insurance groups and protect policy holders, while also adding receivership provisions to ensure continuity of critical services if an insurer enters delinquency proceedings. Richards stated that these updates are important for maintaining NAIC accreditation, modernizing the territory’s insurance laws, and safeguarding policyholders. The measure was voted upon favorably.
Senators present at today’s Committee hearing were Novelle E. Francis Jr., Marvin A. Blyden, Dwayne M. Degraff, Ray Fonseca, Hubert L. Frederick, Marise C. James, Avery L. Lewis, Kurt A. Vialet, and Milton E. Potter.
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