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DLCA Operations, Performance, and Initiatives November 10, 2025 1 Good day Honorable Senator Hubert L. Frederick, Chair of the Committee on Economic 1 Development and Agriculture, esteemed members of the 36th Legislature of the Virgin Islands, 2 committee members, non-committee members present, and the listening and viewing audience. 3 My name is H. Nathalie Hodge, Commissioner of the Department of Licensing and 4 Consumer Affairs (DLCA). I am accompanied today by Horace Graham, Assistant Commissioner; 5 Myrna George, Deputy Commissioner; Geraldine Vaval, Esq., General Counsel; Wilbur Francis, 6 Director of Enforcement; Keisha Culpepper-Smith, Director of Administration and Business 7 Management; and Sarah Maynard, Director of the Office of Boards and Commissions. 8 My team and I appear before you to provide testimony on the current status and 9 modernization of the business licensing and permitting system; enforcement of consumer 10 protection laws and monitoring of price regulations; oversight and compliance mechanisms for 11 licensed businesses within the Territory; programs and initiatives designed to support small 12 businesses and entrepreneurs; and operational challenges and legislative support required to 13 enhance our service delivery. 14 15 Current Status and Modernization of the DLCA Integrated Management System 16 Last year, the Department of Property and Procurement (P&P), on behalf of the DLCA, 17 issued a Request for Proposal (RFP) for the development of a comprehensive, web-based 18 application to modernize the agency’s holistic digital presence. The response attracted eleven 19 proposals, and after a rigorous and competitive evaluation process, a vendor was selected and 20 awarded. 21 We are now in the final stages of the contracting process, pending legal review by the 22 Department of Justice and the Governor’s signature for execution. Work is anticipated to 23 DLCA Operations, Performance, and Initiatives November 10, 2025 2 commence before the end of this calendar year. This modernization effort represents a complete 24 transformation of DLCA’s entire scope of operations. The new platform will integrate business 25 and professional licensing, consumer complaints, consumer protection, weights and measures, 26 alcohol violation tracking, enforcement citations, and legal case management into one unified 27 system. 28 Importantly, this initiative will strengthen the Department’s capacity to capture and 29 manage consumer complaints, track citations, and oversee workflow management across critical 30 divisions; including consumer protection, weights and measures, alcohol enforcement, and legal 31 case management, all within a single integrated platform. 32 Key features include: 33 • Real-time license verification 34 • Secure online payments 35 • Automated renewal reminders 36 • Voice over Internet Protocol (VoIP) integration 37 • Advanced reporting dashboards 38 • A mobile application for field officers 39 40 This modernization will deliver faster, more efficient inspections and license processing. 41 End-to-end online applications and renewals will eliminate paper submissions and in-person visits. 42 Automated workflows and real-time verification will streamline processing, while mobile tools 43 will allow staff to update records directly from the field. 44 With these enhancements, the DLCA expects to meet measurable performance goals: 95 45 percent of license renewals processed within 24 to 48 hours, and 85 percent of new licenses 46 DLCA Operations, Performance, and Initiatives November 10, 2025 3 processed within 10 business days. Beyond licensing, the system will also improve timeliness, 47 efficiency, and transparency across all the DLCA’s services, strengthening consumer protection, 48 enforcement, and overall public trust. 49 Enforcement of Consumer Protection Laws and Monitoring of Price Regulations 50 The DLCA remains steadfast in its mission to protect consumers and ensure fair market 51 practices. Through routine inspections, complaint investigations, and targeted enforcement 52 actions, the Department works to ensure that businesses operate within the parameters of the law. 53 Our authority to control prices derives from Title 11 V.I.C., which activates anti-price 54 gouging measures during an emergency declaration. Outside of such declarations, DLCA monitors 55 prices to promote transparency in the cost of essential goods, including food and fuel. 56 During Fiscal Year 2025, the DLCA conducted fifty-three (53) fuel surveys and nine (9) 57 grocery store price comparisons. We continue to collaborate with local and federal partners to 58 ensure compliance with all applicable regulations and to safeguard consumer interests. Residents 59 are encouraged to report suspected violations through the Department’s Consumer Complaint 60 Portal to help us maintain a fair and transparent marketplace. 61 The DLCA remains vigilant in its monitoring efforts to prevent exploitative practices, 62 particularly during times of economic strain when price gouging can occur. In keeping with our 63 commitment to data-driven oversight and consumer transparency, the Department formally 64 requested that all gas retailers in the Territory produce verified records of their operational and 65 pricing costs. This includes Bills of Lading, invoices, and contracts relating to the importation, 66 retail, and transportation of conventional regular, premium, and diesel gasoline for the period 67 beginning May 1, 2020, to the present. I am pleased to report that the majority of gas retailers have 68 DLCA Operations, Performance, and Initiatives November 10, 2025 4 submitted the required documentation for review. Those who have not complied have been 69 referred to the Department of Justice for further action. 70 Status Update: Gas, Food, and Housing Market Analysis Contract. The information 71 collected from these fuel retailers will be provided to the Analysis Group, Inc., the firm contracted 72 by the Department of Property and Procurement, on behalf of the DLCA, to conduct a 73 comprehensive cost-of-living study to include gas, food, and housing market analyses. This 74 contract was executed on October 17, 2025, and represents a significant step forward in our 75 ongoing efforts to better understand price behavior and market forces within the Territory. The 76 goal of the analysis is to deliver an in-depth evaluation of price trends, market competitiveness, 77 and affordability across the essential goods and housing sectors. Once completed, the findings will 78 serve as a vital tool in guiding the DLCA’s consumer protection policies, informing price 79 monitoring practices, and shaping future legislative and regulatory reforms aimed at promoting 80 market fairness, consumer confidence, and economic stability. 81 Oversight and Compliance Mechanisms 82 Making sure that businesses follow the law and operate responsibly is a core part of 83 DLCA’s mission. Our Enforcement Division, Consumer Protection Unit, Weights and Measures 84 Unit, Alcohol and Tobacco Unit, and the Boards and Commissions work together to make sure 85 businesses and professionals are properly licensed and in good standing. Through regular 86 inspections and compliance checks across all districts, we verify that licenses are valid and that 87 businesses meet all legal requirements. When violations are found, we are authorized to issue 88 citations, notices of violation, cease-and-desist orders, or administrative fines. However, our main 89 goal is to help businesses maintain compliance. In most cases, we reach out to owners, explain the 90 issue, and work with them to correct it. 91 DLCA Operations, Performance, and Initiatives November 10, 2025 5 The DLCA also partners with other government agencies, including the Bureau of Internal 92 Revenue, Department of Labor, Division of Corporations and Trademarks, Virgin Islands 93 Department of Health, Department of Planning and Natural Resources and the Virgin Islands 94 Police Department to share data and quickly identify noncompliant or delinquent businesses. 95 When a business becomes delinquent, whether for failing to renew a license or pay required 96 fees, the DLCA follows a clear process to bring businesses back into compliance: 97 • Notice: A written reminder is sent, giving the business time to fix the issue. 98 • Penalties: If there’s no response, late fees and penalties apply. 99 • Inspection: Enforcement officers visit the location to confirm if the business is still 100 operating. 101 • Escalation: Ongoing violations are referred to the DLCA’s Legal Division for due process 102 hearings, and ultimately to the Department of Justice for further action if no compliance is 103 met. Additionally, where violators have willfully disobeyed an order of the Commissioner 104 after attempts have been made to ensure compliance, the DLCA may effectuate an arrest. 105 106 To strengthen follow-up and collections efforts, the DLCA has established an in-house 107 dedicated collections team to track outstanding fines, payment plans, and delinquent accounts. 108 This team works alongside the Legal Division and ensures penalties are collected, agreements 109 are honored, and cases are resolved quickly and fairly. DLCA’s Integrated Management 110 System will make collections more efficient. It will allow us to track compliance in real time, 111 flag delinquent accounts automatically, and link directly with the collection teams for faster 112 updates and reporting. 113 Through outreach, strong partnerships, technology, and our new Collections Unit, the 114 DLCA continues to make sure businesses operate fairly, consumers are protected, and the 115 Virgin Islands marketplace remains transparent and accountable. 116 117 DLCA Operations, Performance, and Initiatives November 10, 2025 6 Programs and Initiatives 118 The DLCA is committed to fostering a thriving small business ecosystem. We offer a 119 variety of programs and services designed to support entrepreneurs, including: 120 • The publishing of The Regulatory Roundup newsletter as a means of fostering 121 communication, sharing valuable information, and celebrating the vital work we do to 122 protect and serve consumers and businesses alike. The most recent issue was released 123 earlier this month. 124 • Published press releases on matters affecting consumers: 125 o The DLCA Reminds Businesses of Required Payment Options Under VI Law. 126 o The DLCA Warns Against Illegal Credit Card Processing Surcharges on Debit, 127 Prepaid and Gift Cards. 128 o The DLCA Clarifies Fuel Pricing Disparities. 129 o Hurricane Price Lists are due June 1, 2025. 130 • DLCA Goes to the Fair: For the first time ever, the DLCA participated in Agrifest 131 2025. The initiative gave the DLCA an opportunity to directly engage with the public, 132 share consumer protection resources, highlight licensing services, and promote 133 educational campaigns in a community setting. The initiative combined public 134 education, community presence, and consumer outreach, positioning the DLCA as 135 approachable and proactive in meeting residents where they are, rather than only in 136 formal office settings. 137 • DLCA Walk, Talk, & Connect: A community engagement program where the DLCA 138 senior leadership intends to meet with business owners at their respective locations, 139 to assess concerns and needs, and to provide real-time support. By walking through 140 DLCA Operations, Performance, and Initiatives November 10, 2025 7 communities, holding conversations, and acting on feedback, the initiative is 141 designed to strengthen partnerships, improve the DLCA’s services, and empower the 142 local economy with smarter, business-driven solutions. 143 • Boards and Commissions Townhall Appearances. The Office of Boards and 144 Commissions has been hosting a series of town hall sessions to connect directly with 145 professionals across the Territory. These sessions give participants the opportunity to 146 learn more about the application and renewal process, ask questions, and receive 147 updates on recent changes in the laws and regulations that govern their respective 148 boards. 149 Looking ahead, the DLCA will continue to enhance its outreach and support to the business 150 community through new initiatives: 151 • Empower & Launch: Your Path to Entrepreneurship: Scheduled for rollout during 152 Fiscal Year 2026, this symposium will inspire and equip aspiring entrepreneurs with 153 the knowledge and tools needed to start and successfully license their businesses. The 154 program will feature keynote speakers, panel discussions, breakout sessions, and on- 155 site licensing assistance, making it a one-stop resource for anyone looking to launch 156 or expand a business in the Virgin Islands. 157 • Expanded Public Awareness and Marketing Campaigns: The Department will 158 strengthen its marketing and public education efforts through a series of public service 159 announcements, press features, and community events to ensure that consumers and 160 businesses alike understand their rights and responsibilities under the law. 161 • Festival Compliance Partnership: As the Crucian Festival approaches, the DLCA will 162 partner with the Virgin Islands Police Department and the VI Department of Tourism 163 DLCA Operations, Performance, and Initiatives November 10, 2025 8 to conduct radio rounds and community discussions focused on compliance during the 164 festival season. These sessions will provide an opportunity for the public to ask 165 questions, raise concerns, and ensure that business operations during the festivities 166 remain lawful and fair. 167 168 Operational Challenges and Legislative Support 169 While the Department continues to make meaningful progress, we also recognize that our 170 ability to deliver on our mission depends heavily on the tools and authority available to us under 171 law. Strengthening our enforcement powers and modernizing the Virgin Islands Code are essential 172 to improving operational efficiency and public service delivery. 173 Adequate staffing continues to pose an operational challenge for the Department. On the 174 island of St. Croix, the Department’s Enforcement Division and Weights and Measures Unit 175 experience significant challenges due to insufficient staffing. These teams perform essential 176 consumer protection and compliance functions but are frequently unable to proficiently meet 177 inspection demands across the district. Additional staffing is critical to strengthening territorial 178 coverage and inspection frequency; ensuring that the Department fulfills its mandate to protect 179 consumers. 180 In mid of 2024, the DLCA participated in a Legislative Symposium aimed at expediting 181 key amendments to sections of the Virgin Islands Code that directly impact the Department’s work. 182 These proposed amendments are designed to align our authority with best practices, enhance 183 enforcement, and streamline administrative processes. Among the proposed changes are the 184 following: 185 DLCA Operations, Performance, and Initiatives November 10, 2025 9 • Expanding the Commissioner’s Authority: Enhancing the Commissioner’s ability to 186 issue civil (administrative) citations and enforce penalties, aligning our enforcement 187 powers with those in other jurisdictions. 188 • Fines and Fees: Empowering the DLCA to adjust licensing fees annually and impose 189 stricter administrative fines for violations, including the ability to issue both civil and 190 criminal citations for the same offense. 191 • Terminology and Structural Updates: Updating references to the Consumer Services 192 Administration and the Alcohol Control Board, integrating these functions into the 193 DLCA’s structure for greater clarity and efficiency. 194 • Board-related Amendments: Revising existing amendments related to the DLCA’s 195 licensing boards for better operational alignment. 196 We continue to collaborate closely with the senators who have oversight into these 197 legislative areas to advance the proposed amendments and align them with the Department’s 198 operational priorities and statutory mandate. 199 200 Conclusion 201 In closing, I thank the Committee for the opportunity to share updates on the 202 DLCA’s Integrated Management System, our enforcement of consumer protection laws, business 203 oversight and compliance efforts, ongoing initiatives, and the legislative support needed to 204 strengthen and improve our service to the people of the Virgin Islands. We extend our gratitude to 205 the Honorable Governor Albert Bryan, Jr., the Honorable Lieutenant Governor Tregenza Roach, 206 Esq., and the Bryan-Roach Administration for their steadfast support. We also thank the 207 DLCA Operations, Performance, and Initiatives November 10, 2025 10 hardworking men and women of the Department of Licensing and Consumer Affairs for their 208 dedication. We welcome any questions this Committee may have. 209