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Revisions Await V.I. Beautification Bill Following Mixed Reactions

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A proposed legislation, aimed at initiating the Virgin Islands beautification tax credit, has been temporarily set aside for revisions following a mixed reception during the recent Senate Committee on Budget, Appropriations, and Finance hearing. Spearheaded by Senator Novelle Francis, Bill No. 35-0097 seeks to foster corporate involvement in local beautification endeavors by promoting collaborative efforts between local businesses and the Department of Public Works towards a cleaner community.

Senator Francis emphasized that the bill isn’t a “corporate giveaway,” but a channel to engage the private sector in enhancing the region’s living standards. Drawing parallels to historical incentives for business attraction as part of economic development strategies, he proposed extending this model to territory beautification. He envisions this initiative fostering public-private partnerships that could usher in substantial economic, social, and environmental gains for the Virgin Islands, while bolstering its tourism appeal.

However, the Director of the Bureau of Internal Revenue, Joel Lee, expressed reservations, highlighting potential loopholes for gross receipts tax evasion. His queries delved into the application and approval processes for participating entities, raising concerns over procurement laws adherence, and the implications of allowing participants to subcontract the beautification tasks. Mr. Lee also scrutinized the potential fiscal impact, fearing an indeterminate decrease in gross receipts tax collections from other businesses, which could potentially violate bond covenants and risk default status for the government of the U.S. Virgin Islands.

Senator Marvin Blyden sought clarification on the bonding concerns, which Mr. Lee described as “nerve-wracking” due to the strong bond covenants in place. However, supporting voices like attorney Alex Golubitsky and business owner Jose Rasario pointed out the provision for a $1.5 million per district allocation from the Tourism Advertising Revolving Fund to cushion against bond default. They, alongside DPW Commissioner Derek Gabriel, recognized the importance of beautification in attracting visitors, although Gabriel withheld specific comments on the tax aspects, suggesting instead a structured approach to implementing such a program if passed.

Despite the support, skepticism prevailed among some legislators like Senator Marise James and Senator Samuel Carrion, who critiqued the bill’s vagueness and its indirect approach to utilizing the Tourism Revolving Fund, respectively. They proposed direct expenditure on beautification projects or channeling funds to existing non-profit organizations engaged in similar efforts.

Acknowledging the feedback, Senator Francis showed openness to amendments for strengthening the bill but remained committed to propelling the change forward. He stressed the urgency of addressing the islands’ aesthetic appeal through both governmental and private sector contributions. Post-debate, the bill was retained in committee for further amendments, a move unanimously agreed upon by committee members.

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Senate

Extensive Efforts and Over $1 Million Expenditure in Bovoni Landfill Fire Mitigation Detailed to Lawmakers

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In a detailed briefing on Wednesday, lawmakers were informed about the extensive multi-agency response to the prolonged Bovoni Landfill fire that occurred in September. Daryl Jaschen, the V.I. Territorial Management Agency Director, represented various government bodies in his testimony.

Jaschen highlighted the unified command’s rigorous efforts, which met bi-daily until October 4, utilizing over 1.85 million gallons of water amidst challenging dry conditions at the landfill. He emphasized the crucial support from Puerto Rico’s National Guard, facilitated by an Emergency Management Assistance Compact, for which $74,000 will be reimbursed. This amount is additional to the over $1 million expended locally on the response.

Furthermore, Jaschen shed light on the qualitative data collection during the firefighting operations, aimed at providing vital information on health conditions, safety, clean water access, and evacuation procedures. This data was pivotal for the V.I. Department of Health’s educational campaigns on health risks from smoke and pollutants. Plans for a townhall meeting by VIFEMS, VITEMA, and the Department of Health were disclosed, focusing on using this data to identify community priorities and solutions.

Preventative measures were also discussed. Since October 1, approximately 22,500 cubic yards of green waste have been relocated within the landfill. An ongoing effort involves covering this area with over 30,000 cubic yards of material to avert future fires. The landfill has resumed normal operations, albeit with a temporary suspension in accepting green waste.

The Waste Management Authority plans to utilize a recent $6 million grant for developing territory-wide standard operating procedures for waste management. Jaschen also paid homage to the late Daryl George, former VIFEMS director, for his significant role in the emergency response and coordination efforts.

The committee, chaired by Senator Ray Fonseca, delved into the operational challenges faced, such as the distance of the nearest fire hydrant from the landfill. St. John Deputy Fire Chief Magabe Calixte mentioned ongoing discussions with multiple stakeholders to improve firefighting infrastructure. There were also mentions of alternative water sources for firefighting, ensuring safety from contamination.

Concerns were raised by VIFEMS about outstanding payments to local water haulers, despite legislative support for their compensation. This prompted critical remarks from Senators Milton Potter and Donna Frett-Gregory, with Frett-Gregory particularly questioning the Waste Management Authority’s absence and lack of a clear strategy for green waste management.

Sen. Fonseca urged VIFEMS to formulate a comprehensive plan for the committee’s review and funding, highlighting the urgency of addressing these challenges independently of the already burdened WAPA.

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Uncertainty in Budget Preparedness and Vendor Payment Issues Addressed by Finance Commissioner Nominee

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Kevin McCurdy, the nominee for Commissioner of the Department of Finance, expressed uncertainty about the readiness of Fiscal Year 2024 budgets for various government departments and agencies during his confirmation hearing before the Senate Committee on Rules and Judiciary.

When Senator Donna Frett-Gregory questioned the status of Fiscal Year 2024 budgets, asking if they were “loaded and available for the departments and agencies to expend, obligate etc.,” Mr. McCurdy initially referred the question to the Office of Management and Budget. However, he later admitted, “I can’t say that with 100 percent certainty. I just don’t want to lie to you and say yes.” Senator Frett-Gregory, not satisfied with his response, emphasized the importance of this knowledge.

The hearing also delved into the Department of Finance’s ongoing challenges, especially concerning vendor payments and cash flow management. Mr. McCurdy, in a conversation with Senator Angel Bolques Jr., acknowledged the critical need to address the delays in vendor payments, saying, “It’s not lost on me…we need to find a way to better manage our cash and reduce that long lag time in getting vendor payments out.”

A significant issue identified by Mr. McCurdy was the mismatch between seasonal collections and consistent bill obligations. This challenge was highlighted in response to Senator Kenneth Gittens’s concerns about reports of undelivered checks to vendors. Mr. McCurdy suggested that these delays could be connected to the procedures for federal funds disbursement.

When Senator Carla Joseph asked about specific strategies for resolving the longstanding issue of delayed vendor payments, Mr. McCurdy mentioned ongoing discussions with banking partners to balance cash inflows and outflows, though no final solution had been confirmed.

Mr. McCurdy emphasized the need for greater adherence to policies and procedures within the Department of Finance, noting the community’s tendency to sometimes overlook established protocols.

The urgency of these budgetary and financial management issues was underscored by recent events, including layoffs at the V.I. Dept. of Tourism, attributed to the unavailability of its fiscal year 2024 budget. This situation is not isolated to the D.O.T., as several departments and agencies are reportedly still awaiting their 2024 budget allocations, three months into the new fiscal year, based on information from government officials.

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Court Rejects Legislative Inquiry into Judge’s Term, Sanctions Threatened for Frivolous Motions

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Presiding Judge Renée Gumbs Carty, in a concise ruling, dismissed a motion from defendants in the lawsuit brought by former Senator Steven Payne against the 34th Legislature and its President, Senator Donna Frett-Gregory. The motion, filed on November 22, raised questions about a gap in Judge Gumbs Carty’s appointment—from the end of her official term on November 30, 2022, until her May 15, 2023, appointment as Senior Sitting Judge of the Superior Court.

The defense’s motion sought clarity on the judge’s authority to preside during this interim period. Additionally, a second motion requested a temporary pause in court proceedings for 10 days following the judge’s response.

Judge Gumbs Carty firmly rejected both motions on Thursday. She criticized the defense’s legal strategy, labeling the motions as frivolous and an attempt to undermine the Rules of Civil Procedure by causing unnecessary delays and distractions. The judge sternly warned that any further such motions could lead to a “show cause” hearing, where the attorneys would need to justify their actions to avoid sanctions.

With these motions set aside, the focus shifts back to the upcoming bench trial, scheduled for March 14, 2024. The trial’s timeline remains fixed, barring any new developments or filings that might prompt a reassessment.

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