The Department of Licensing and Consumer Affairs (DLCA) faced scrutiny over its budgetary allocations and operational needs during a recent Senate Committee hearing. Commissioner H. Nathalie Hodge presented the DLCA’s proposed fiscal year 2025 budget, which totals $4,947,746 from the General Fund alongside $500,000 from Consumer Protection Funds. This marks a decrease of $669,002 compared to the fiscal year 2024 budget.
The General Fund allocation will primarily cover salaries amounting to $3,068,616.03, fringe benefits totaling $1,444,844.15, and operational expenses of $434,287. The Consumer Protection Fund, sourced from license penalties and citation fines, supports additional operational costs.
Currently, the DLCA operates with 45 employees across nine divisions, including Licensing, which approved 8,314 businesses in FY 2024, reflecting a seven percent decrease from the previous year.
Among the divisions is the newly established Office of Cannabis Regulation (OCR), which emerged from a decade-old public referendum and formally began operations in January 2022. Joanne Moorehead, OCR’s executive director, highlighted the challenges in establishing regulatory frameworks and infrastructure, noting the necessity of a dedicated testing laboratory before cannabis cultivation and usage can commence.
Moorehead, who assumed her role in May after a period of vacancy, emphasized the office’s financial appropriations and expenditure. OCR received a $500,000 loan in 2021 and an additional $250,000 in 2022 for software development, with approximately $800,000 remaining from legislative funding. Plans include hiring enforcement officers, administrative staff, and a public safety coordinator by FY 2026.
During the hearing, senators expressed support for OCR’s expansion efforts, advising on resource allocation and operational strategies. Sen. Donna Frett-Gregory encouraged immediate procurement of vehicles and recruitment of staff while funding is available. Meanwhile, Sen. Dwayne DeGraff proposed securing a permanent location separate from DLCA, enhancing OCR’s operational autonomy.
Reflecting on the committee’s engagement, Commissioner Hodge acknowledged the necessity for increased staffing and funding to meet growing regulatory demands across DLCA’s divisions. Senate members, including Sens. Frett-Gregory, Francis, Blyden, Carrión, Fonseca, and James, participated in the deliberations, underscoring the legislative interest in bolstering consumer protection and regulatory oversight.
The DLCA’s budget deliberations underscored ongoing efforts to balance operational needs with fiscal constraints, highlighting the agency’s pivotal role in safeguarding consumer interests and regulatory compliance across the Virgin Islands.
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In summary, the Senate Committee on Budget, Appropriations, and Finance’s scrutiny of the DLCA’s fiscal proposals reflects broader legislative efforts to enhance regulatory frameworks and resource allocations amidst evolving public sector demands.
