The V.I. government's five main economic development agencies could be combined under one authority if a bill passed by the Senate Finance Committee Monday passes the Rules committee and the full Senate, as its sponsors anticipate it will.
Sen. Violet Anne Golden, the bill's main sponsor, was pleased the measure had passed the Finance Committee. "It will give the agencies greater leverage," she said. "It will allow the agencies to hire consultants if necessary and cut down on their own staffing." It will also provide a venue for the agencies to work together and provide greater unity, she said.
Finance Committee Chairwoman Lorraine Berry said the bill would "provide an umbrella entity." She said with the bill's new fees, the government would be better able to enforce laws governing the entities, and to do more marketing to attract new business to the territory.
The amendment calls for the creation of the Virgin Islands Economic Development Authority. It almost completely rewrites former legislation on Industrial Development Commission reform, and incorporates legislation sent down by the governor to unite the agencies.
It would combine the IDC, the Government Development Bank, the Industrial Park Development Corporation, the Small Business Development Agency and the Bureau of Economic Research under one executive board. The semiautonomous board would be comprised of seven members appointed by the governor with the advice and consent of the Legislature. Three members, one from each island, cannot be government employees, three will be from the cabinet or executive departments and one would be appointed from the Government Employees Retirement System, V.I. Port Authority or the University of the Virgin Islands.
The authority's aim would be to achieve maximum efficiency of operations, and avoid duplication of services and positions. It would also reduce expenses for personnel, physical plant and operations and develop comprehensive programs for the territory's economic development.
The amendment includes several changes in the current IDC law, starting off with a doubled minimum for initial investment from $50,000 to $100,000 for an IDC approved industry or business. The businesses are divided in three categories: 1) mainly industry and production, the marine industry, hotels and transportation and telecommunications; 2) service businesses including investment managers, software developers and e-Commerce; and 3) regulated utilities and other entities including tourism, recreation and health care facilities.
A schedule of application and compliance fees, which range from a $500 Category 1 annual appliance fee to a Category 111 $2,500 fee, would be deposited into an Industrial Promotion Fund under the legislation. Also, the bill establishes that any investigation or proceeding by the IDC to determine compliance by any beneficiary shall be borne by the beneficiary.
The bill retains the option to beneficiaries to have benefits extended by three years upon their agreement to pay all income, excise and gross receipt taxes and other duties and fees for tax years 2001 and 2002.
The measure will go the Rules Committee Tuesday or Wednesday, the final two days of that committee, and then on to the full Senate if it passes Rules. Other sponsors for the bill are Sens. David Jones, Gregory Bennerson, Lorraine Berry, Roosevelt David and George Goodwin.