By month’s end, V.I. residents should be able to search a comprehensive database of businesses and professionals licensed to do business in the territory, Licensing and Consumer Affairs Commissioner Wayne Biggs Jr. told senators during budget hearings Monday.
Businesses can already apply for and renew business licenses online, although paperwork from other agencies, such as a tax clearance letter and appropriate inspections, are still necessary, Biggs said.
DLCA should be able to generate internal reports and flag licensees within 90 days, and a mobile phone application that will map "all the licensed businesses throughout the territory" should be complete "in the near future," according to Biggs.
The department—which administers consumer services and programs pursuant to the Consumer Protection Law of 1973 and regulates licensing of private businesses and professions—has also been busy inspecting weekly shipments of rum produced in the territory, Biggs told senators.
Nearly all—$13.25 out of the $13.50 per-proof-gallon federal excise tax on rum produced in the territory—is turned over to the V.I. Treasury, whereupon a portion is spent to purchase molasses, pay for advertising and finance construction bonds for the territory’s two distilleries.
In 2009, 9.6 million proof gallons of rum were shipped from St. Croix to the U.S. mainland generating $127.6 million for the V.I. government. In 2010 that figure increased to 10.7 million gallons, generating $141.9 million. Through the end of the third quarter of fiscal 2012, Biggs said that 6.9 million gallons had been shipped, grossing $83.2 million for the territory. (The figures cited are gross excise tax remittances before various distributions back to the companies.)
Biggs was before the Finance Committee on Monday primarily to discuss DLCA’s 2012 $3.8-million budget request to fund the department’s seven divisions—a figure virtually identical to last year.
That total includes $3.4 million from the General Fund and a $400,000 allotment from the Consumer Protection Fund (CFP), a revolving fund composed of the license fees, penalties and citation fines collected by DLCA.
While CPF money is designated toward costs associated with consumer disputes, complaints and education, it has been diverted (due to recent financial constraints) to defray costs for professional contracts, equipment and supplies, according to Biggs.
Wages and salaries consume $1.9 million, with employer contributions for Social Security, Medicare, health and retirement benefits consuming $756,000, for about 77 percent of the budget. The remaining $686,000 covers operating expenses.
Personnel costs went down slightly from last year, but supplies and other costs have gone up, leaving the budget just a hair—less than 0.5 percent—more than last year’s allotment
The department currently employs 46 staff members, with four positions vacant, Biggs said.
The department would ideally need 63 employees, but DLCA will be able to adequately serve the public with the current staffing, he said.
In fiscal 2009, DLCA issued 12,956 business licenses (1,538 for new businesses) and collected $3 million in fees. In 2010, DLCA issued 15,181 licenses (with 1,181 new—a 17-percent increase) and collected $3.1 million in fees. So far, this year, Biggs said the department has issued 8,827 licenses (1,257 new licenses) and collected $2.3 million in license fees.
No votes were taken at the information-gathering hearing.
Committee members present were Sens. Carlton "Ital" Dowe (chairman), Nereida "Nellie" Rivera- O’Reilly, Janette Millin-Young and Louis Hill. Absent were Sens. Shawn-Michael Malone and Celestino White Sr.
