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COMMITTEE ON HOUSING, TRANSPORTATION AND TELECOMMUNICATIONS BILL NO. 36-0316 Thirty-Sixth Legislature of the Virgin Islands July 21, 2026 An act amending title 30 Virgin Islands Code, chapter 1, subchapter I to exempt the Virgin Islands Water and Power Authority, the Virgin Islands Port Authority, and the Virgin Islands Waste Management Authority from future assessments by the Public Services Commission PROPOSED BY: Senator Hubert L. Frederick WHEREAS, the Legislature finds that the Virgin Islands Public Services Commission 1 (PSC) assesses regulatory fees against utilities and other regulated entities to support its 2 oversight functions; 3 WHEREAS, the Virgin Islands Water and Power Authority (WAPA), the Virgin Islands 4 Port Authority (VIPA), and the Virgin Islands Waste Management Authority (WMA) are 5 autonomous and semi-autonomous government entities whose operational costs ultimately 6 impact the financial stability of the Government of the Virgin Islands and the people it serves; 7 and 8 WHEREAS, imposing recurring PSC assessments on WAPA, VIPA, and WMA 9 effectively transfers costs within the same governmental framework and does not advance 10 fiscal efficiency; Now, Therefore, 11 2 Be it enacted by the Legislature of the Virgin Islands: 1 SECTION 1. Title 30 Virgin Islands Code, chapter 1, subchapter I, section 25a, 2 subsection (a) is amended by inserting the following language after “cable television 3 companies”: “but does not include the Virgin Islands Water and Power Authority, or the Virgin 4 Islands Port Authority. However, the Public Services Commission shall retain full regulatory 5 and supervisory authority over these entities consistent with this title, including the power to 6 investigate, audit, and review rates, operations, and management practices.” 7 SECTION 2. (a) Any assessment, surcharge, or fee previously imposed upon the entities 8 listed in section 1 that remains unpaid as of the effective date of this act shall be deemed 9 satisfied to the extent of appropriations from the General Fund allotted to the Public Services 10 Commission. 11 Assessment, surcharge, or fees shall be limited to regulatory assessments lawfully 12 invoiced by the Public Services Commission to WAPA, VIPA, and VIWMA for PSC operating 13 costs under title 30 V.I.C. § 25a and related provisions, including any accumulated balances, 14 penalties, or interest that remain unpaid as of the effective date of this act. 15 (b) The following process shall govern the certification and reconciliation of the 16 offsets listed in subsection (a): 17 (1) Identification of Outstanding Balances. Within 60 days of the effective 18 date of this act, the Public Services Commission shall prepare and transmit to the Office 19 of Management and Budget (“OMB”) and the Department of Finance a certified 20 statement itemizing all outstanding PSC assessments, surcharges, fees, penalties, and 21 interest owed by WAPA, VIPA, and VIWMA as of the effective date. 22 3 (2) Verification. The Department of Finance shall verify the amounts against 1 its accounts receivable records, while OMB shall confirm the total appropriations made 2 to the PSC from the General Fund for the corresponding fiscal years. 3 (3) Offset Calculation. The amount of unpaid PSC assessments, surcharges, or 4 fees shall be deemed satisfied only to the extent of General Fund appropriations provided 5 to the PSC for those same fiscal periods. Any balance more than the verified 6 appropriations shall remain subject to reconciliation through a payment plan negotiated 7 between the PSC and the affected entity. 8 (4) Certification of Satisfaction. Upon completion of the reconciliation, OMB 9 shall issue a written certification of the offset amounts, and the Department of Finance 10 shall record the satisfied obligations in the Government’s financial system as a non-cash 11 intergovernmental transfer. 12 (5) Documentation and Reporting. The PSC shall maintain detailed records 13 of all offsets and, within 30 days of certification, submit a report to the Legislature and 14 the Governor documenting: 15 (A) the original amount owed by each entity; 16 (B) the amount satisfied through General Fund appropriations; and 17 (C) any remaining balance, if applicable. 18 The Department of Finance, OMB and the PSC shall coordinate to certify and reconcile 19 any such offsets. 20 (c) Reinstatement of Assessments. The exemption from assessments, surcharges, 21 fees, or other charges imposed by the Public Services Commission under this act shall remain 22 in effect until WAPA, VIPA, and VIWMA receive direct or indirect financial support, 23 4 appropriations, subsidies, guarantees, debt service assistance, or other fiscal assistance from 1 the Government of the Virgin Islands. 2 Upon a determination by OMB that an exempt entity has received no appropriations, 3 subsidies, transfers, debt relief, or other financial assistance from the General Fund of the 4 Treasury of the Government of the Virgin Islands for three consecutive fiscal years, the 5 exemption established by this act shall cease, and all assessments and fees authorized under 6 Title 30 V.I.C. §25a shall resume. 7 The Office of Management and Budget shall provide written notice of such certification 8 to the Governor, the President of the Legislature, the PSC, and the affected entity no later than 9 60 days after making such determination and all appropriations must cease in the next fiscal 10 year. 11 SECTION 3. The PSC, in collaboration with OMB and the Department of Finance, shall 12 establish procedures for verifying outstanding balances, documenting offset amounts, and 13 maintaining financial records consistent with this act. 14 BILL SUMMARY 15 This bill amends title 30 Virgin Islands Code, chapter 1, subchapter I, section 25a, 16 subsection (a), exempting the Virgin Islands Water and Power Authority, the Virgin Islands 17 Port Authority, and the Virgin Islands Waste Management Authority from future assessments 18 by the Public Services Commission and providing for the satisfaction of past-due assessments 19 through appropriations from the General Fund. 20 BR25-0699/March 4, 2026/Revised June 16, 2026/Revised July 17, 2026/PFA 21