Businesses in the territory are in for a welcome surprise from cyberspace come January 2001, according to Licensing and Consumer Affairs commissioner Andrew Rutnik.
Rutnik testified Tuesday at continuing Fiscal Year 2001 budget hearings before the Senate Finance Committee, which also heard testimony from the Public Services Commission and the Taxi Commission. The latter two agencies fall under the aegis of DLCA.
Rutnik said a DLCA web site that will allow businesses to apply for a new license, renew an existing license or cancel a license, all from their own computers, is in the final stage of construction.
He said the innovative procedure started almost a year ago when the agency decided to take the lead in introducing online licensing in the territory — a daunting project, Rutnik said. However, with the installation of the agency's Y2K-compliant computer system, its plan was "off and running."
Annual e-mails will remind businesses of renewal dates, or penalties for late renewals. New applicants can check the status of their license online. Rutnik said the department plans to work with the V.I. Internal Revenue Bureau to include a method for applying for tax-clearance letters online, and having them e-mailed to DLCA. "Don't wait in line, go online," is our motto, he said.
Rutnik also had some bad news. "I would like to publicly admit failure," he said, "in eliminating gypsy taxis." His initial effort to get rid of the cabs had limited effect, he said, adding that "this in no way reflects the hard work of Harold Baker, our new director."
Rutnik explained that although the agency had licensed 48 of the cabs, they rarely serve the local population as planned. He said the taxi industry doesn't want the responsibility of serving the entire community, and he and Baker are working to come up with a mandatory plan that is fair to all taxis and local customers.
Rutnik outlined a three-pronged plan to aggressively generate revenue. With enforced licensing compliance, the underground (unlicensed) economy could bring a 30 percent increase in government revenues from licensing, FICA taxes, gross receipts and unemployment taxes, he said.
The department is also proposing legislation that would fine anyone who hires or contracts with an unlicensed business. Another piece of legislation would require businesses to inform the agency 30 days before ceasing operation; Rutnik said chasing down these businesses wastes about 35 percent of the agency's workload a month.
Rutnik said if his new measures could be implemented, he estimates they could realize about $980,000 annually, which could go back to the General Fund.
Committee chairwoman Lorraine Berry smiled and said, "Oh, we'd probably give some of that back to your department."
Rutnik wasn't getting off easy, however. He faced a barrage of questions on everything from hair-braiding issues to prostitution. DLCA oversees 12 boards, which include a vast range of responsibilities including the Board of Barbers, Beauticians and Manicurists. This latter board has a letter before Gov. Charles W. Turnbull now, Rutnik said, which he hopes will strike a compromise between the hair braiders and the board.
Harold Baker, director of the Taxicab Commission, said his goals for FY 2001 include eliminating gypsy cabs and implementing a training program for operators. He also mentioned several revenue-generating measures, including increasing the annual medallion license fee from $100 to $200. With 1,786 registered taxis now in the territory, that would represent an additional $178,600. Baker also wants to increase the bi-annual inspection fee from $15 to $25, which would generate $44,650 annually.
He said if the division is required to reduce its overall budget by 5 percent, it will come from the director's salary and travel projections.
Keithley Joseph, executive director of the Public Services Commission, said the commission makes assessments on utilities to facilitate investigations, analysis and complaint resolution. In FY 2000 a total of $400,000 was collected from the V.I. Telephone Corp., the V.I. Water and Power Authority, Transportation Services of St. John, Varlack Ventures, and St. Thomas-St. John Cable TV to cover the commission's operating expenses.
None of the agencies' budgets adhered to the recommended cuts in the governor's proposed FY 2001 budget. Now, Berry said, after all department budgets are heard, the Finance Committee will be ready for the budget "mark-up," the final paring down of funds.
Committee members attending Tuesday's hearing were Sens. Berry, Gregory Bennerson, Violet Anne Golden, George Goodwin and David Jones. Non-members Donald "Ducks" Cole and Vargrave Richards also attended.
At 10 a.m Wednesday in St. Thomas, the committee will hear testimony on the Office of the Inspector General, WTJX public television, and the V.I. Council on the Arts.
