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COMMITTEE ON ECONOMIC DEVELOPMENT AND AGRICULTURE BILL NO. 36-0259 Thirty-Sixth Legislature of the Virgin Islands February 26, 2026 An act amending title 29 Virgin Islands Code, chapter 23, section 1313 by expanding benefits under the Hotel Development Program for hotel improvement and expansion projects on St. Croix PROPOSED BY: Senators Kurt A. Vialet, Novelle E. Francis, Jr., Clifford A. Joseph and Marvin A. Blyden Be it enacted by the Legislature of the Virgin Islands: 1 SECTION 1. Title 29 Virgin Islands Code, chapter 23, section 1313 is amended as 2 follows: 3 (a) In subsection (a): 4 (1) strike paragraphs (1) and (2) in their entirety and insert new paragraphs (1) 5 and (2): 6 “(1)(A) For new hotel development projects where all non-appealable 7 permits for development have not been finalized prior to the effective date of this 8 act, 9 (B) for hotel facility improvement or expansion projects which: (i) are 10 located on the island of St. Croix; (ii) commit to a capital investment in excess of 11 $25 million; and (iii) result in the expansion of an existing hotel property room 12 inventory by at least 25 percent, 100 percent of the revenues generated from the 13 2 Designated Hotel Room Occupancy Tax, Designated Casino Tax on Gross 1 Revenue, and the Economic Recovery Fee, if applicable, shall be allocated to and 2 deposited into the Project’s Fund; 3 (2)(A) For hotel projects where not less than 70 percent of the units have 4 not been able to be occupied due to natural events and related effects, or (B) for 5 hotel facility improvement or expansion projects which: 6 (i) are located on the island of St. Croix; and 7 (ii) commit to a capital investment in excess of $10 million, 50 8 percent of the revenues generated from the Designated Hotel 9 Room Occupancy Tax and the Designated Casino Tax on Gross Revenue, 10 and 100 percent of the revenues generated from the Economic Recovery Fee, 11 if applicable, shall be allocated to and deposited into the Project’s Fund; and”. 12 (2) in paragraph (3): 13 (A) strike all the language before “100% of the revenues” and insert the 14 following new language: 15 “For hotel facility improvement or expansion projects not satisfying the 16 requirements in paragraphs (1) or (2),” 17 (B) strike “Project’s Fund” and insert “ERF Trust Account”. 18 (b) In subsection (b), strike “, at the election of the applicant, one hundred percent 19 (100%)” and insert “100 percent”. 20 (c) Re-designate subsection (b) as subsection (d) and insert the following new 21 subsections (b) and (c): 22 “(b) To qualify for the revenue allocation in subsection (a)(1)(B), the applicant 23 shall, as part of the applicant’s original application for benefits under the Program, submit 24 3 a detailed plan of the proposed hotel facility improvement or expansion project which 1 includes: 2 (1) a detailed scope of work that demonstrates a projected capital 3 investment that exceeds $25 million; and 4 (2) an anticipated schedule for completion which reflects substantial 5 completion within five years following execution of the Program agreement. 6 Failure to substantially complete the project within the time results in the project 7 being eligible only for the revenue allocation applicable under subsection (a)(2) 8 beginning on the first day of the sixth year following execution of the Program 9 agreement. 10 (c) To qualify for the revenue allocation in subsection (a)(2)(B), the applicant 11 shall, as part of the applicant’s original application for benefits under the Program, submit 12 a detailed plan of the proposed hotel facility improvement or expansion project which 13 includes: 14 (1) a detailed scope of work that demonstrates a projected capital 15 investment that exceeds $10 million; and 16 (2) an anticipated schedule for completion which reflects substantial 17 completion within two years following execution of the Program agreement.” 18 (d) Add subsection (e): 19 “(e)(1) The term “hotel facility improvement or expansion project” as used in this 20 section includes the construction of additional hotel rooms, event spaces, business 21 centers, dining venues, fitness gyms, wellness spas, and other recreation areas. 22 4 (2) The term “room inventory” as used in this section includes both additional 1 guest rooms and dedicated staff lodging as compared to the property room inventory at 2 time of filing the application for benefits under the Program.” 3 BILL SUMMARY 4 The bill amends title 29 Virgin Islands Code, chapter 23, section 1313 by expanding 5 benefits under the Hotel Development Program for hotel improvement and expansion projects 6 on St. Croix. 7 BR26-0968/February 4, 2026/GC 8