ST. CROIX, VI – The Committee on Budget, Appropriations, and Finance, led by Senator Novelle E. Francis, Jr. met in the Earle B. Ottley Legislative Hall. Lawmakers considered various lease agreements for the island of St. Thomas. Additionally, lawmakers vetted measures that would redesign the funding source for several entities, modify renewal provisions for insurance producer licenses, and a measure that would establish the “Impaired Driving and Highway Sobriety Checkpoint Program Safety Fund.” Approved items on today’s agenda will be forwarded to the Committee on Rules and Judiciary for further consideration and action.

Lawmakers considered the following lease agreements:

Bill No. 36-0199, An act approving the lease agreement between the Government of the Virgin

Islands, acting through the Commissioner of the Department of Property and Procurement, and

Accent Property Management, LLC, for Parcel Nos. 123 and 129 Subbase, South Side Quarter,

St. Thomas, to develop the premises to operate, establish, and manage a slate of subtenants,

pursuant to an approved development plan.

Bill No. 36-0204, An act approving a multi-year lease agreement between the Government of the Virgin Islands, acting through its Commissioner of the Department of Property and

Procurement, and Commercial Investments LLC, for Parcel No. 30 Submarine Base, No. 6

Southside Quarter, St. Thomas, Virgin Islands, for a logistics storage warehouse and other

related purposes.

Bill No. 36-0205, An act approving the lease agreement the lease agreement between the

Government of the Virgin Islands, acting through the Commissioner of the Department of

Property and Procurement, and Submarine Base Warehouse, LLC for Parcel Nos. 12 and 12A

Submarine Base (Crown Bay Fill), No. 6 Southside Quarter, St. Thomas, and 145 (Consolidated) (Crown Bay Fill) Submarine base, No. 6 Southside Quarter, St. Thomas, for the purpose of bulk storage, establishing a slate of subtenants on the premises, parking, and other permitted purposes.

Bill No. 36-0237, An act approving the lease agreement between the Government of the Virgin Islands, acting through the Commissioner of the Department of Property and Procurement, and DM Hospitality, LLC to work a food and beverage management company and other related purposes.

All lease agreements were 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 lease agreements.

For Bill No. 36-0199, the lease agreement states that Accent will perform major capital improvements to the hurricane damaged buildings and will conduct a phased redevelopment of the property. Accent will then establish and manage a slate of subtenants on the property. The term of the lease agreement is for 30 years, with additional terms if the lessee is not in default. The annual rent will be $144,000 annually. However, the lessee will pay a reduced rent during the construction and financial stabilization period of the lease. The lessee will be required to pay additional rent of up to thirty percent of all base rent collected from its subtenants. Accent will undertake approximately three million dollars in phased property improvements. The project is expected to bring an additional 40,000 square feet of warehouse and office space back online.

For Bill No. 36-0204, the property will be used as a logistics storage warehouse and related purposes. The lease agreement is for 30 years, with renewal options once the lessee is not in default. The annual rent will be $60,000, payable in instalments of $5,000 a month. The lessee shall be allowed to pay reduced rent during a permitting and construction period of up to 12 months. If the lessee subleases any part of the premises, they shall pay additional rent of up to thirty percent of all base rent collected from its subtenants. Commercial Investments will provide up to $500,000 in improvements. When completed, this will bring an additional 4,500 square feet of warehouse and office space online.

For Bill No. 36-0205, the tenant will develop two new buildings, which will be used as a bulk storage warehouse and or flex space along with parking and other permitted uses. The lease term is for 30 years, with optional terms if the lessee is not in default. The annual rent is $36,000, and payable in monthly instalments of $3,000. The lessee, Subbase Warehouses, will demolish the current structures and clear debris, which is expected to save the GVI approximately $250,000. The project is expected to bring an additional 30,000 square feet of new warehouse and flexible space online.

For Bill No. 36-0237, the lessee will operate a food and beverage management company with a bakery and deli, jewelry business management, and other related purposes. The term of the lease is for 30 years, with additional terms if the lessee is not in default. The annual rent will be $12,000. A reduced rent will be paid during the construction and stabilization period of the lease while DM Hospitality will undertake phased property improvements, valued at approximately $250,000.

Bill No. 36-0199, 36-0204, and 36-0237 were voted upon favorably. Bill No. 36-0205 failed for a lack of second and will remain in Committee at the call of the Chair.

Lawmakers considered Bill No. 36-0198,An act amending Act No. 9035 by redesigning the funding source for several entities and correcting a typographical error and amending Act No. 9045 by inserting and striking appropriations. The measure was sponsored by Senator Kurt A. Vialet.

Senators considered Bill No. 36-0219, An act amending title 22 Virgin Islands Code, chapter 31 relating to the Virgin Islands Producer and Adjuster Licensing Act by modifying renewal provisions for insurance producer licenses. The measure was sponsored by Senator Milton E. Potter by Request of the Governor.

Glendina Matthew, Esq., Director of the Division of Banking, Insurance and Financial Regulation delivered testimony supporting the proposed measure. Matthew requested that the implementation date set forth in Section 2 of the measure be revised from January 1, 2026 to October 1, 2026, stating that the renewal period for the current calendar year has already begun and the next renewal cycle would begin on October 1, 2026. Matthew said that revising the implementation date would ensure a smooth transition and avoid disruption to the existing renewal cycle. As per the Virgin Islands Producer and Adjuster Licensing act, it sets forth the licensing requirements, for producers, formerly known as insurance agents, brokers, solicitors, adjusters and managing general agents.

The Act also governs the qualifications and the procedures for the licensing of insurance producers, adjuster and managing general agents and simplifies and organizes some statutory language to improve efficiency, permits the use of new technology, and reduces costs associated with renewing insurance licenses. The act also creates a new regulatory environment, which allows other states and territories to recognize the Virgin Islands’ insurance provider license in the same matter as other jurisdictions, which would then allow for reciprocity between the Virgin Islands and other states and territories. Within the Act, the following provisions are: 1) twenty (20) hours of pre-licensing courses of study; (2) a standardized examination requirement; (3) a national criminal record check with fingerprinting; and (4) twenty-four (24) hours of Continuing Education coursework requirement every two years as a condition of licensure.

The act also includes provisions which identify violations which can result in the refusal, nonrenewal, suspension or revocation of a license, as well as a provision that would increase the possible penalty for a violation to not less than $250 and not more than $10,000. Additionally, the Act also allows the Virgin Islands to participate in the National Association of Insurance Commissioners online systems. Furthermore, the measure seeks to align the two-year continuing education requirements for individuals’ insurance producers. It eliminates the current one-year licensure term for individual insurance producers and replaces it with the two-year licensure term.

Senators also considered Bill No. 36-0221,An Act amending title 20 Virgin Islands Code, part II, chapter 43, subchapter I, section 493 relating to alcohol consumption and to establish “The Impaired Driving and Highway Sobriety Checkpoint Program Safety Fund”. The measure was sponsored by Senator Ray Fonseca.

Clarina Modeste-Elliott, Executive Assistant Commissioner at the Department of Finance delivered testimony in support of the proposed measure. Modeste-Elliott said that the Safety Fund enhances fiscal transparency by clearly linking fine revenues to highway safety initiatives rather than relying on the General Fund. Modeste-Elliott recommended a formal interagency memorandum to clarify roles, responsibilities, and data sharing expectations among the VIPD, the Office of Highway Safety, the Bureau of Motor Vehicles, and the Judiciary. Modeste-Elliott reminded the body that fine revenues may fluctuate as driver behavior improves. However, she emphasised that careful financial planning would ensure the fund’s sustainability. She reiterated that the proposed measure would serve as an effective long-term tool to save lives and improve roadway conditions in the territory.

Daphne O’Neal, Director of the Office of Highway Safety for the United States Virgin Islands Police Department delivered testimony, supporting the measure. The measure would require at least twelve sobriety checkpoints in the territory. The measure would align with previous legislation that dedicates impaired driving citation fees to a non-lapsing fund that would strengthen enforcement, support traffic safety operations, and enhance annual programs at the Office of Highway Safety. In figures quoted by O’Neal, impaired driving crashes have declined from 101 in FY 2023, 80 in FY 2024, to seventy-three in FY 2025. There was one fatality in FY 2024 and FY 2025.

Data from FY 2023 through Fiscal Year 2025 show 189 DUI arrests, with sixty yielding reported BAC results. 129 were not reported or refused. Most violators are men aged 35-55. The Department recommends seeding the new fund with revenues collected in the year prior to enactment and obtaining citation revenue data from the courts and the Department of Finance. O’Neal urged the body to advance the bill, stating that stronger laws, consistent checkpoints, and public education offer the best path to reducing impaired driving crashes in the US Virgin Islands.

Bill No. 36-0198 and Bill No. 36-0219 were voted upon favorably. Bill No. 36-0221 was held in committee at the call of the chair.

Senators present at today’s committee hearing included Novelle E. Francis Jr., Marvin A. Blyden, Dwayne M. Degraff, Ray Fonseca, Hubert L. Frederick, Clifford L. Joseph, Carla J. Joseph, Avery L. Lewis, Milton E. Potter, and Kurt A. Vialet.

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