Specific requirements for granting of benefits

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  • In order to qualify and remain eligible for benefits provided under this subchapter, an applicant specified in sections 713a through 715 of this subchapter must fulfill the following specific qualifications and requirements. The Commission may not require an applicant to meet qualifications or requirements in excess of those representations made by the applicant to the Commission during the application process as a condition of granting an initial certificate.
    • (a) Invest at least $100,000, exclusive of inventory, in an approved industry or business that the Commission has determined to advance the economic well-being of the Virgin Islands and its people. The approved industries or businesses and their established categories are:

      • Category I — Legacy Virgin Islands Industries — including Rum Production, Milk/Dairy Production, Watch and Jewelry Manufacturing and Assembly. Category II — Product Assembly, Manufacturing, Repair and Maintenance and/or Export Operations (other than Historic VI industries) — including but not limited to Agriculture/Mariculture and Food Processing, Marine and Aircraft Industry, Machine and Heavy Equipment, and Bottling and Packing. Category III — Facilities, Tourism and Communications Developments — including Hotel/Guesthouses, Health Care, Recreation and Retirement Facilities, Transportation, Utilities (including Alternative Energy Industry) and Telecommunication. Category IV — Designated Services Businesses — as defined in section 703(g).
        • (1) The Commission may approve other such industries or businesses as may be considered appropriate by the Commission and which a finding by the Commission has determined will advance the economic well-being of the Virgin Islands and its people, and the applicant of such industry or business has agreed to the investment and employment requirements along with any other such special conditions as agreed between the applicant and the Commission.

        • (2) Any application that qualifies in two categories under this section, however, must be considered to be in the highest payment fee and term category for the purpose of this chapter. An applicant may apply in more than one approved industry or business, but two categories may not be combined in one certificate unless the businesses are integral to each other.

        • (3) In determining the amount of the investment undertaken by the applicant for purposes of this section:

          • (A) The assessed value of land and previously existing buildings (as assessed for tax purposes) used in the industry or business shall be included only to the extent that it does not exceed twenty (20%) percent of the investment undertaken; however, this provision does not apply to an industry or business of a nature in which investment in land and alteration or improvement thereof represents its primary investment factor.

          • (B) The fair market value of all equipment leased for a term of at least five years must be included in determining compliance with the investment requirement.

          • (C) The minimum investment required by this section may be reduced, if the Commission finds that the proposed industry or business will provide sufficient additional investment in workforce development and/or public educational projects, Enterprise Zone community redevelopment and revitalization projects, or community based organizations to justify the lower investment.

        Category V —International Financial Service Entity—as defined in section 703(g).
    • (b) In the case of a natural person, be a bona fide resident of the Virgin Islands with his principal place of business in the Virgin Islands and a citizen or legal resident of the United States; in the case of a partnership, limited liability company, trust or similar entity, be a partnership, limited liability company, trust or similar entity within the meaning of that term under the laws of the Virgin Islands with its principal place of business in the Virgin Islands; in the case of a corporation, be either incorporated under the laws of the Virgin Islands with its principal place of business in the Virgin Islands or under the laws of the United States, a state, territory, or commonwealth thereof, or a foreign country, and be duly registered to conduct business in the Virgin Islands.

    • (c)

      • (1) In the case of a Virgin Islands corporation, receive income that is covered by section 934 of the Internal Revenue Code of 1986, as amended, as applicable in the Virgin Islands, and meet the requirements of any other applicable federal or local law, any implementation agreement, as amended from time to time, required under federal law, the provisions of this subchapter, and any rules or regulations promulgated under such laws of this subchapter.

      • (2) In the case of a partnership, limited liability company, trust or similar entity, meet the requirements of any applicable federal or local law, the provisions of this chapter and any rules or regulations promulgated under such laws or under this subchapter.

    • (d) Be the actual investor in the enterprise for which economic development benefits are sought and not a contractor, subcontractor or other person or corporation acting as an agent or in a similar capacity to the investor; provided, that corporate affiliates who are actual investors may also qualify for individual benefits.

    • (e) Meet such standards of ecological compatibility as may be established by federal and/or local law.

    • (f)

      • (1) Employ at least ten (10) persons on a full time basis in such enterprise; and all employees in such enterprise shall, subject to the exceptions contained in section 711 of this subchapter, be residents of the Virgin Islands (as defined in section 703(e) of this subchapter); provided, however, that the applicant may employ fewer than ten such persons upon demonstrating to the Commission that the employment of this number of persons in his particular enterprise would not be economically feasible or practical, and upon a further finding by the Commission that the desirability of the proposed enterprise outweighs the fact that it is not labor intensive.

      • (2) An enterprise which is applying for economic development benefits as a Category IIA Enterprise engaged in non-labor intensive financial services shall be required to employ a minimum of five (5) full-time persons who, subject to the exceptions contained in section 711 of this subchapter, must be residents of the Virgin Islands.

    • (g) Comply with all federal and local laws, including anti-discrimination laws.

    • (h) Agree in writing to employ or contract, and to require all contractors retained by him to employ or subcontract, for services and to purchase goods, materials and supplies with and from those persons, firms and corporations who are residents of the Virgin Islands, or incorporated under the laws of the Virgin Islands, and who are duly licensed to do business in the Virgin Islands and have been so duly licensed for one year or more prior to the initial date of any such employment, contract, subcontract, or purchase. Each applicant shall agree in writing to invite competitive bidding, and require all contractors retained by it to invite competitive bidding for all such services, goods and materials pursuant to the publication requirements of title 31, section 236, of this Code, and to notify each bidder in writing of the name of the successful bidder and amount of its bid. Each applicant shall advise the Economic Development Commission, in writing with a copy to the Commissioner of Licensing and Consumer Affairs when goods and materials are not available under the above-defined Virgin Islands sources and demonstrate in writing of efforts to obtain such services, goods and materials, and to require contractors or subcontractors retained by the applicant to likewise comply with this requirement.

    • (i) For any applicant who proposes to do business on land adjoining any beach or shoreline of the Virgin Islands, agree to grant to the Government of the Virgin Islands a perpetual easement upon and across such land to the beach or shoreline to provide free and unrestricted access thereto to the public, which easement shall be duly recorded in the Recorder of Deeds upon the granting of a certificate of economic development benefits. This provision shall not be construed as requiring free use of private facilities, but only as requiring free access to the beach or shoreline to the general public as a condition precedent to the granting of economic development benefits.

    • (j) Meet any time restraints or deadlines imposed by the Commission with respect to the initiation of operations or construction activity; provided, that the Commission may extend any such time restraints or deadlines upon good cause shown by the beneficiary.

    • (k) Agree in writing to notify the Virgin Islands Employment Service as to the availability of employment by him or his subcontractors, the number of employees required, the occupational classification of such workers, and the applicable wage rate.

    • (l) In the case of an applicant whose investment, pursuant to subsection (a) of this section, is in excess of $500,000.00, agree in writing to employ at least two individuals from the Welfare to Work Program, administered by the Labor and Human Services Department.

    • (m) Provide educational assistance to residents of the Virgin Islands in an amount and form which is acceptable to the Commission or provide a financial contribution to a fund established by the Commission, except that fifty percent of any such financial contribution must be designated for public school programs and initiatives and in addition, any entity receiving benefits under this subchapter shall contribute a minimum of $3,000 annually to the Board of Education to be placed in the Territorial Scholarship Fund and used in accordance with the purpose of the fund; except that, this section shall not apply to beneficiaries under title 29 Virgin Islands Code, chapter 12, section 708b. As used in this subsection, educational assistance included all types of educational assistance including but not limited to vocational and other job training programs.

    • (n) Agree in writing to submit plans for a management-training program for approval by the Commission. The plan shall establish a program through which the beneficiary shall have as managers and officers, residents of the Virgin Islands, as defined in section 703(e) of this subchapter. The Commission shall use the beneficiary's organizational chart and job descriptions as the sole guide as to whether a beneficiary's employee is management or non-management. The Commission shall establish, by regulation, the requirements for management training programs as guidance for all beneficiaries and the reasonable number of Virgin Islands residents to be employed by each beneficiary in accordance with the specific normal requirements of the business cycle involved. The Commission shall report annually to the Governor the titles and compensation of all trainees who are placed in management positions by beneficiaries.

    • (o) The Commission is authorized to impose a monetary penalty for delinquent reports as required by the rules and regulations or by law. Any monetary penalties imposed by the Commission pursuant to this section shall be deposited into the Territorial Scholarship Fund, established pursuant to Title 17, section 171, Virgin Islands Code.

    • (p) Provide their employees additional leave from work, other than time applied to their annual leave, to participate and represent the Virgin Islands in athletic and sporting events.

    • (q) Establish and maintain an employee pension benefit plan, as provided under the Employee Retirement Income Security Act, 29, U.S.C. 1001 et seq., and an employee welfare benefits plan that includes medical insurance, vacation and sick leave or paid time off in amounts that are determined by the Board and reported as required by the Employee Retirement Income Security Act, 29, U.S.C. 1001 et seq.; however, the provisions of this subsection shall not apply to beneficiaries that qualify under section 708b, of this subchapter.

    • (r)

      • (1) Except as provided in paragraph (2) of this subsection, agree in writing and require all contractors retained by him to purchase all insurance from resident insurance companies, agents, or brokers licensed to operate in the Virgin Islands.

      • (2) If a particular type of insurance is not available in the Virgin Islands, the applicant shall submit to the Commission written certification from the Office of Banking and Insurance that the insurance is unavailable.

    • (s) Establish and maintain a Donated Leave Program similar to the program established under title 3, chapter 25, section 583b, Virgin Islands Code.

    • (t) Notwithstanding any other provision of this title, an applicant seeking benefits as a Category V international financial services entity is exempt from this section and its accompanying regulations, but shall comply with 9 V.I.C. §§  727 and 738 and their accompanying regulations.


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