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COMMITTEE ON ECONOMIC DEVELOPMENT AND AGRICULTURE 10/10/2024-AMENDED AND REPORTED OUT TO THE FLOOR 10/09/2024-REPORTED OUT TO THE COMMITTEE ON RULES AND JUDICIARY BILL NO. 35-0257 Thirty-Fifth Legislature of the Virgin Islands April 10, 2024 An Act to develop and produce an annual U.S. Virgin Islands Beer, Wine, and Spirits Festival PROPOSED BY: Senator Diane T. Capehart Co-sponsor: Ray Fonseca WHEREAS, beer, wine, and spirits festivals represent the largest gathering of alcoholic 1 beverages to promote collections of beverages; 2 WHEREAS, through public tasting events coupled with private competition activities, 3 these events draw large crowds to regions all over the world; 4 WHEREAS, festivals, in general, bring communities together, foster local and national 5 pride, and celebrate diversity; 6 WHEREAS, beer, wine, and spirits festivals generate significant economic growth for 7 small and large businesses alike, tourism and other sectors, including hotels, restaurants, 8 transportation services, and clothing stores, increasing the gross domestic product of the 9 destination; 10 WHEREAS, in 2019, festivals attracted an audience of over 896,000; 11 WHEREAS, the average festival enthusiast attends 2.7 festivals per year; 12 WHEREAS, in 2014, 32 million people attended at least one United States music 13 festival; 14 2 WHEREAS, beer, wine, and spirits festivals contribute to the growth and development 1 of the destination's local music industry; 2 WHEREAS, beer, wine, and spirits festivals have proven to be an effective and impactful 3 tool for promoting tourism and attracting visitors to travel to destinations worldwide; 4 WHEREAS, beer, wine, and spirits festivals provide a platform for local artists to 5 showcase their talents and gain exposure, providing them with significant marketing and 6 promotional opportunities; 7 WHEREAS, beer, wine, and spirits festivals have the potential to place the Virgin Islands 8 on the global stage; 9 WHEREAS, the success of previous festivals in the Virgin Islands such as the St. Croix 10 Jazz Festival and Sinbad's Soul Beer, Wine, and Spirits Festival demonstrated the potential for 11 a larger-scale, official beer, wine, and spirits festival; 12 WHEREAS, the Virgin Islands has a rich culture expressed through our vibrant local 13 music scene, worthy of being showcased and celebrated through festivals that promote large 14 gatherings; 15 WHEREAS, the Virgin Islands can benefit from the economic impact of a beer, wine, 16 and spirits festival, which can generate significant revenue for local businesses, including 17 hotels, restaurants, transportation services, and retail establishments; 18 WHEREAS, several Caribbean destinations that compete with the Virgin Islands for 19 visitor arrivals have developed large-scale gathering opportunities such as beer, wine, and 20 spirits festivals, food festivals, and major entertainment concerts, and the territory is without 21 such a powerful economic driver; 22 WHEREAS, the absence of a major beer, wine, and spirits festival in the Virgin Islands 23 puts the destination at a disadvantage compared to other jurisdictions and Caribbean 24 destinations; 25 3 WHEREAS, the Virgin Islands is fully equipped with the expertise necessary to produce, 1 market, and promote a beer, wine, and spirits festival to distinction, including venue and audio- 2 visual capacity, and event production service providers with significant experience developing 3 major music events; 4 WHEREAS, the creation of an annual beer, wine, and spirits festival in the Virgin Islands 5 will contribute to the growth of the local economy, increase tourism, and enhance the 6 destination's global reputation as a tourist destination; Now, Therefore, 7 Be it enacted by the Legislature of the Virgin Islands: 8 SECTION 1. No later than 60 days after the enactment of this act, the Virgin Islands 9 Department of Tourism shall issue an Invitation to Bid for the development, creation, and 10 production of an annual “U.S. Virgin Islands Beer, Wine, and Spirits Festival” on the island of 11 St. Croix that encompasses a vast array of local beers, wines, and spirits and other related 12 features as deemed necessary by the Department. The contractor, in conjunction with the 13 Department of Tourism, Division of Festivals, shall, not later than December 2025, hold the 14 inaugural U.S. Virgin Islands Beer, Wine, and Spirits Festival and may incorporate the 15 inaugural event as part of any festival activity. 16 SECTION 2. In addition to any other requirements for bids the Division of Festivals 17 may establish for proposals requested under section 1, all bids must provide not less than 18 $1,000,000 or 20% of actual festival production costs in cash or value-in-kind sponsorships, 19 whichever is greater. 20 SECTION 3. Within 90 days of enactment, the Commissioner of Tourism shall notify 21 the President of the Legislature and the Chairperson of the Committee on Economic 22 Development and Agriculture of the Department’s intention to host the U.S. Virgin Islands 23 Beer, Wine and Spirits Festival or solicit bids. 24 4 SECTION 4. (a) The sum, of $500,000, or so much thereof as may be necessary, is 1 appropriated annually from the Tourism Advertising Revolving Fund in the Fiscal Year ending 2 September 30, 2026, to the Department of Tourism, Division of Festivals for the purposes 3 outlined in section 1 of this Act. 4 (b) The sum appropriated in subsection (a) remain available until expended. 5 BILL SUMMARY 6 Section 1 of this bill requires the Department of Tourism to issue an Invitation for Bids 7 to develop, create, and produce an annual “U.S. Virgin Islands Beer, Wine, Spirits Festival" on 8 St. Croix and requires the inaugural festival to be held by July 2025. Section 2 of this bill 9 requires that all bids provide not less than $1,000,000 or 20% of actual festival production costs 10 in cash or value-in-kind sponsorships, whichever is greater. 11 BR24-1008/March 5, 2024/GC 12