The Committee on Budget, Appropriations, and Finance told the Department of Licensing and Consumer Affairs and the Virgin Islands Territorial Emergency Management Agency to amend their 2024 budget requests to clarify certain line items.
On Tuesday morning, DLCA Commissioner Richard Evangelista read through a 25-page budget justification before senators questioned him about various operations of several divisions within the department.
The total budget request for the department is $5,627,200 for fiscal year 2024 with an increase of $294,631 over last year’s appropriation, Evangelista said. They are requesting $5,004,410 from the General Fund for personnel services, fringe benefits, and operating expenses. Additionally, he outlined $500,000 in Consumer Protection Fund appropriations, including a revolving fund of license penalties and citation fines. The Consumer Protection Fund covers costs associated with investigation, resolving consumer disputes, complaints, and consumer education.
During his testimony, Evangelista said the number of business licenses so far in 2023 is 7,834 which is a decrease of 21 percent from 2022. Business renewals decreased by 28 percent compared to the previous year.
“In terms of business license revenues collected during this period, the division has collected $2,888,538, reflecting a decrease of 19 percent compared to the previous fiscal year’s value of $3,560,109,” he said, adding the licenses have continued to dwindle in 2023.
Evangelista reported the division of enforcement issued $91,650 in citations, including $25,950 to businesses operating without a license or proper license and $11,100 to businesses operating with an expired license.
The Office of Cannabis Regulation falls under the administration of DLCA. The commissioner reported that the office has been working to finalize the patient registry contract, organizing forms and applications, understanding the new law, and coordinating with the Office of the Governor to start communication education. They are also working with the V.I. Police Department, he said.
“Funding and staffing will be critical to the successful roll-out of the cannabis program,” Evangelista said.
The commissioner said OCR plans to hire at least 16 full-time employees with 11 for compliance. He said the first year expenditures could be $1,485,500 almost a half million less than existing funding. In the second year, he estimated a budget of $1,608,843.
There was a lot of interest from the senators about the Office of Cannabis Regulation. Several asked when the rules and regulations will be available for those who want to do business. Executive director Hannah Carty said a draft of the proposed rules and regulations are in the hands of the Department of Justice for review. It could take two months to discuss and have them approved, she said, when pressed. She also said the seed money set aside to set up the department will not be enough.
“We need a timeline from DOJ. This body was pushed, so we need a timeline,” Sen. Samual Carrion said.
Senators were not happy that there is no deadline to complete the review and forward the rules and regulations to the Cannabis Advisory Board for approval. Sen. Novelle Francis said someone asks him every day about the cannabis board.
The Alcohol Control Unit under DCLA reports monthly rum exported by Cruzan Rum and Diageo. In April, Cruzan produced 1,073,120 proof gallons and 1,102,549 proof gallons by Diageo, Evangelista said.
Senators were also interested in the enforcement division and several wanted to know why there isn’t a night shift to monitor businesses that open after 5 p.m. Sen. Javan James said the department could cut down the $75,000 in overtime by instituting night shifts.
“I told you years back to change shifts, “ Sen. Dwayne DeGraff, a former police officer said emphatically. “You’re going to get someone killed.”
During the afternoon hearing, Daryl Jaschen, executive director of the V.I. Territorial Emergency Management Agency, presented his agency’s budget proposal for 2024-2025 totaling $9,944,838 and $9,871,502 – one half of one percent more than last year.
Jaschen requested the General Fund allocate $6,359,725 both years with $2,605,618 and $2,532,283 coming from federal funds. Another $979,394 would come from the Emergency Services Fund – a fund that holds $2 surcharges on communication lines.
“This budget is adequate to address the immediate priorities of the Administration for the upcoming fiscal year. If a need arises for additional resources, we will have that discussion with Gov. Bryan and the OMB director,” Jaschen said.
VITEMA has a total of 156 employees with 86 funded federally. The agency has oversight of the 9-1-1 emergency systems on St.Thomas and St. Croix and the V.I. Office of Homeland Security Fusion Center.
Jaschen said challenges include retaining staff. Especially, staff for the 9-1-1 centers turns over frequently and other employees realize emergency management is fast paced and stressful. Aging furniture and vehicles are also issues.
Jaschen explained to senators that the increases in supplies is due to having to buy emergency meals whereas in the past they were paid for with emergency disaster funds.
Sen. Ray Fonseca made a plea to hire a meteorologist, but Jaschen said he is in frequent contact with NOAA and the National Weather Service experts in San Juan.
At the end of the hearing, Chairperson Donna Frett-Gregory directed Jaschen to provide a list of all the vacancies and positions available in the agency. Throughout the hearing, some were confused by the various categories of employees – exempt, classified, federally funded, or funded through the General Fund.
Sen. Frett-Gregory, Carrion, Fonseca, Francis, DeGraff, Javan James, and non-members Sen. Kenneth Gittens and Sen. Angel Bolques were in attendance at Tuesday’s hearing.
