Bryan Vetoes Wire Transfer Fee Bill and Portions of Epstein Settlement Appropriations, Citing Economic and Legal Concerns
Gov. Albert Bryan Jr. has vetoed two significant bills passed by the Legislature, including a proposal to impose a 3 percent fee on money transfers, as well as portions of an appropriations bill tied to the combined $137.5 million in settlement funds from the estate of Jeffrey Epstein and financier Leon Black, who settled with the territory over his ties to Epstein.
Both measures, which were passed by lawmakers in late September, were intended to bolster the territory’s financial resources, but on Tuesday, Bryan raised concerns about their potential unintended consequences.
Money Transfer Fee Bill
Bill No. 35-0375, introduced by the Senate’s Appropriations and Budget Committee Chair Donna Frett-Gregory, was designed to generate approximately $21 million in new revenue by imposing a 3 percent on wire transfers. The funds were meant to help balance the Virgin Islands’ $1.2 billion budget and establish the Money Laundering and Electronic Transaction Enforcement Fund.
While the measure was intended to combat money laundering and boost government revenues, Bryan vetoed the bill, expressing concerns on Tuesday about its broad scope and impact on the business community and consumers.
“This measure could unfairly shift the burden of additional costs onto consumers,” Bryan said in a transmittal letter to Senate President Novelle Francis, noting that the fee would affect banks, credit unions, money transmitters, and others. He warned that businesses might pass the costs onto consumers, including college students, military personnel, and small business owners, at a time when inflation is already a concern.
Bryan also cited the potential conflict with the U.S. Constitution’s Commerce Clause, which regulates interstate trade, indicating that the wire transfer fee could face legal challenges.
Epstein Settlement Appropriations
Bryan also exercised his line-item veto authority on Bill No. 35-0380, which appropriated Epstein estate and Leon Black settlement funds for a range of infrastructure, health services, and economic development across the islands.
The Senate’s proposal, discussed in two back-to-back meetings on September 26, also included the establishment of the Southern Trust Company Settlement Fund and the Survivors and Mental Health Healing Trust Fund. While Bryan approved many of the bill’s provisions, he issued line-item vetoes for two specific sections, including a section appropriating $10 million to the Economic Development Authority (EDA) for private economic development.
Tuesday, Bryan said he had struck down this allocation, explaining that the EDA had already received $67 million from the federal government through the State Small Business Credit Initiative (SSBCI), making the additional $10 million unnecessary. “Allocating additional funds now would not be an efficient use of resources,” Bryan stated.
Bryan also vetoed Section 15, which directed that the settlement funds be placed into a high-interest-bearing account. The governor explained that the Epstein funds are already in such an account, making this section redundant.
Finally, Bryan vetoed Bill No. 35-0381, which sought to appropriate funds to the Attorney General’s Crime Prevention/Prosecution Fund and establish a new charitable fund for vulnerable and disenfranchised individuals. The bill, tied to $25 million from the Epstein Estate Master Settlement and Release Agreement (MSA), aimed to support crime prevention and prosecution efforts in the territory.
In his veto message, Bryan criticized the bill as “unnecessary and flawed,” pointing out that the MSA already ensures the automatic contribution of $25 million to the Attorney General’s Crime Prevention/Prosecution Fund, making the legislation redundant. Bryan further noted that the bill’s provision allowing the governor to contribute funds through the commissioner of Finance was unnecessary, as the contribution is mandated by the settlement agreement itself.
The bill also included a transfer of $5.3 million to organizations that assist vulnerable individuals, but Bryan’s veto emphasized that the existing structure of the MSA already covers the intended purpose of the bill.
Despite these vetoes, Bryan expressed support for the broader goal of using the settlement funds to improve infrastructure, mental health services, and the economic outlook of the Virgin Islands but emphasized the need for careful management and efficient use of resources.
Meanwhile, the governor approved the majority of fiscal year 2025 budget bills passed during the most recent Senate session, including a measure removing restrictions on the government’s existing $100 million line of credit to allow for outstanding vendor payments, among other things.
To read the governor’s transmittal letter to the senate president, click here.
DOH Talks Fever, VITEMA Talks Weather and DHS Talks SNAP
- St. Croix — Second Floor, former Caribe Home Center Building, in Castle Coakley. Vaccination is available Monday through Thursday between 8 a.m. and 3 p.m. For more information, please call 340-712-0131.
- St. Thomas — Second Floor, Schneider Regional Medical Center, Monday through Thursday between 8 a.m. and 3 p.m. For more information, please call 340-774-7477.
Elections Board Member Ordered to Apologize for Early Voting Incident
A member of the Board of Elections was ordered by her fellow members to apologize after a disruptive incident that took place at the site of early voting on Monday. The order arose from a vote taken at an emergency meeting of the elections board held on Tuesday afternoon.
But one board member described the meeting to address Monday’s alleged incident where Board Member Harriet Mercer disrupted a voting site as stressful, irregular and possibly illegal. The emergency session was held by way of live stream video. Some participants — including board members — struggled with connectivity lapses, while an executive session lasting close to 75 minutes kept the public from observing most of the proceedings.
In a series of votes taken Tuesday, a motion was passed directing Mercer to write a letter apologizing to Deputy Elections Supervisor Kevermay Douglas and Elections staff members who witnessed the incident. The apology is to be submitted within 48 hours, and if failing to do so, Mercer will be censured and barred from appearing at any place where balloting for the General Election takes place in 2024.
An amendment posed by Mercer was voted down; had it passed, it would have compelled the board to delay any votes until they could review a written communication submitted by the alleged offender and then to hear from Fawkes about her views on what took place.
Former Board Chairman Raymond Williams described the incident as prompting the demand for an apology without specificity. “There was a matter that Harriet was causing disruptions at the start of early voting to the point that it was scaring the voters and scaring the elections workers, and Kevermay had to call the police,” Williams said.
Monday’s incident had nothing to do with Fawkes, Williams said, so any report she could make to the board was unnecessary. “We have a responsibility to our community at large, so you can’t go on like that,” he said.
Early voting on St. Thomas and St. Croix takes place between Oct. 14 and Oct. 28; voters wishing to cast ballots in early voting on St. John can do so starting Oct. 21. Williams said the balloting is conducted by Elections System workers and election board members are supposed to serve only as observers.
Having police on site at voting events is a routine procedure. Attempts to reach V.I. Police Department Communications Director Glen Dratte about Monday’s police response at St. Thomas Election Systems headquarters did not receive a reply.
VIPA Hosts Public Hearing To Discuss Upcoming Cruise Ship Fee Increases
The Virgin Islands Port Authority held a public hearing Tuesday evening on St. Thomas to discuss increases in cruise ship fees expected to occur in 2025 in the St. Thomas-St. John district, as the authority, seeks to fund its upcoming projects and operations.
According to the authority’s Director, Carlton Dowe, the marine tariffs were last amended on Jan. 21, 2023. The cruise ship fees are established by tariffs via contracts with cruise lines and are applied according to the date of board approval. The latest increase was approved by the Port Authority board in September. According to the amendment, port dues will increase by $3 per passenger and will fund the Charlotte Amalie Harbor Dredging Project. The current rate is $6.84 cents and the new rate will be $9.84 per passenger. The Port Authority collects these fees directly. Additionally, the wharfage fees will increase by $0.44 cents per passenger for cruise ships entering the district and will fund the Port Authority’s marine operations and expenses. The current rate is $7.80 and will increase to $8.24. This fee will be collected by the West Indian Company when ships berth at West Indian Company Dock (WICO) in Havensight and by the Port Authority when ships berth at the Austin “Babe” Monsanto Marine Terminal in Crown Bay and on St. John.
“All cruise ships entering the harbors pay port dues to the Virgin Islands Port Authority. WICO collects a wharfage fee of all ships that use their facility,” said Dowe.
The effective date of the increases will be:
Wharfage at the WICO Dock— Jan. 1, 2025
Wharfage in Crown Bay and St. John— by April 1, 2025
Port dues in the St. Thomas- St. John district— by April 1, 2025
The marine terminal tax in the district will also remain at $1. No tariffs apply to cruise ships entering the St. Croix district. Fees in St. Croix are currently $3.45 for port dues and $3.55 for wharfage fees.
According to Dowe, the West Indian Company and the Disney, Norwegian, and Carnival cruise lines requested the Charlotte Amalie Harbor be dredged to 40 feet. But, he added that “there was no dedicated money to dredge the harbor.” Hence, the desire for the tariff increases.
“VIPA is responsible for dredging the USVI’s harbors, but does not have the financial resources to do so,” said Dowe. “The government of the V.I. is assisting with funding the Charlotte Amalie Harbor Dredging, but it will not cover all costs.”
Dowe also mentioned that the central government has set aside $17 million for the project.
Timeline for the Charlotte Amalie Harbor Dredging Project:
Issuance of Request for Proposals— end of October 2024
Request for Proposals due— December 2024
Bid award by the Port Authority board— January 2025,
Project start date— second quarter of 2025
Project completion date— 24 months after the project start date
“There are all kinds of mitigating factors that can occur,” Dowe said, adding world events and local changes can impact a project’s timeline. However, he expects the authority to be able to achieve its anticipated timeline goals.
Attendees at the hearing shared their concerns about the price increases. Some feared cruise lines would decide to go to other Caribbean destinations with lower fees or choose instead to dock at St. Croix.
“We have no written communication from anyone,” replied Dowe in response to a meeting participant inquiring about vessels who might have expressed not wanting to dock in the district due to the fee increase.
Another attendee asked about the risks to cruise lines associated with the price increases.
“We don’t see the risk to any lines in terms of what we’re putting forward,” said Dowe. “None of this was done in some vacuum.” He added, “These fees that we’re talking about in terms of doing this project, the risk of not doing it is greater than the risk that we’re embarking on.”
Dowe added that some cruise lines are charging their passengers more fees. According to the director, Royal Caribbean has already agreed, for almost a year, that their passengers will pay an additional $5 per passenger to enter the district, and once dredging is done in St. Croix, to pay an additional $5 to berth there as well.
Dowe also highlighted for attendees that for some time, berthing in St. Croix was free for cruise lines and was not financially gainful for the territory.
“For more than 25 years, all cruise ship passengers going into St. Croix was free,” he said. “It cost the authority about $400,000 every year.”
Dowe also said to attendees that if the harbors were operated by the federal government, the fee increases would not have to be applied.
“Most ports throughout the United States that have this type of activity are funded by the Army Corps of Engineers,” Dowe said. “Their harbors are federalized harbors.”
Though much apprehension was shared by attendees who work as taxi drivers, salesmen, and business owners about the wage increases, Dowe ended the hearing, informing the public that “While we may agree to disagree, leadership dictates sometimes that we do things that are uncomfortable to some. But leaders must lead. And we’re at a place where we can no longer avoid this dredging. We’ve got to move forward with this dredging project.”
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IRS Warns Taxpayers of Charity Scams Following Recent Hurricanes
- Verify the legitimacy of a charity,
- Check its eligibility to receive tax-deductible charitable contributions, and
- Search for information about an organization’s tax-exempt status and filings.
- Always verify. Scammers frequently use names that sound like well-known charities to confuse people. Fake charity promoters may use emails, fake websites or alter or “spoof” their caller ID to make it look like a real charity is calling to solicit donations. Potential donors should ask the fundraiser for the charity’s name, website and mailing address so they can independently confirm the information. Use the Tax-Exempt Organization Search tool to verify if an organization is a legitimate tax-exempt charity.
- Be cautious about how a donation is requested. Never work with charities that ask for donations by giving numbers from a gift card or by wiring money. That’s a scam. It’s safest to pay by credit card or check — and only after verifying the charity is real.
- Don’t share too much information. Scammers are on the lookout for both money and personal information. Never disclose Social Security numbers, credit card numbers or personal identification numbers.
- Don’t give in to pressure. Scammers often pressure people into making an immediate payment. In contrast, legitimate charities are happy to get a donation at any time. Donors should not feel rushed.
U.S. Border Patrol Apprehends 11 Non-Citizens Off Coast of St. Thomas
U.S. Customs and Border Protection’s Border Patrol and Marine Interdiction Agents apprehended 11 non-citizens from Romania, Brazil and the Dominican Republic traveling on a private vessel from St. Thomas, Virgin Islands to Culebra, Puerto Rico, Sunday, the agency announced.
“Smuggling organizations exploit diverse routes and methods to introduce people or contraband throughout Puerto Rico and the US Virgin Islands,” indicated Reggie Johnson, acting chief patrol agent for the Ramey Border Patrol Sector. “We have the collective resolve to address illicit flows and protect our communities by collaborating with local and federal partners.”
On Sunday, Oct. 13, a crew of Marine Interdiction and Border Patrol agents on patrol found a vessel that was having mechanical trouble and was requesting assistance near Botany Bay, USVI. Inside the vessel, the agents found a group of 11 non-citizens who did not have documents to prove an authorized presence in the United States, according to the press release.
The agents transported the group consisting of two adult women and two adult men from Romania, two adult men from Brazil, and five adult men from the Dominican Republic to the USBP/ERO co-location facility at Crown Mountain for processing and removal, the press release stated.
U.S. Border Patrol analyzes and responds to any changes in migration patterns, particularly irregular migration outside of legal pathways and border crossings and works with our federal and international partners to combat human smuggling, the release stated.
The Ramey Sector is one of the twenty-one sectors spread out across the United States. Encompassing the U.S. territorial islands of Puerto Rico and the Virgin Islands, it is the only Border Patrol Sector located outside the continental United States. The sector’s entire border area is made up of coastline, and its area of responsibility is made up of some 6,000 square miles of land and water, including the twelve-mile band of territorial water surrounding the Islands, it said.
For anonymous tips, contact 800-981-1313.
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Repeat Offender Charged with Unlawful Gun Possession After Felony Convictions
Jahmar Frederick, 31, of St. Croix, was charged with unlawful possession of a firearm after having been convicted of felony offenses, United States Attorney Delia L. Smith announced.
According to court documents, on May 11, Virgin Islands Police Officers attempted
to conduct a traffic stop after Frederick was observed operating a Ford F-150 pickup truck with no license plate. Frederick fled from VIPD officers and ultimately lost control of his vehicle and slid off the roadway. Frederick then placed a ski mask over his face and attempted to flee on foot but was apprehended. Officers recovered a loaded Glock Model 22 Gen4 .40 Caliber firearm after taking Frederick into custody. In 2023, Frederick was convicted of obtaining money by false pretenses, and in 2018, he was convicted of forgery, both felonies. If convicted, Frederick faces a maximum sentence of up to 15 years in prison. A district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
