Legislation establishing uniform accountability, transparency and performance reporting requirements for the Virgin Islands' autonomous and semi-autonomous government agencies advanced unanimously Monday, despite objections from the Water and Power Authority and the Economic Development Authority that the measure would impose additional costs and duplicate existing obligations.
Bill 36-0353, sponsored by Senator Hubert Frederick, would establish governance standards for public corporations and other government instrumentalities that manage substantial public resources. The measure would require annual board assessments, executive performance evaluations, strategic plans, performance reporting and community reinvestment programs.
The proposed Quasi-Public Enterprise Governance Reform Act of 2026 would apply to entities including WAPA, EDA, the Virgin Islands Lottery, the Port Authority, the Waste Management Authority, the Public Finance Authority and the West Indian Company Limited.
Mr. Frederick told the Committee on Government Operations, Veterans Affairs and Consumer Protection that because these entities manage “significant public resources,” the government “must have clear standards and measurements to ensure that our public entities are operating responsibly.”
Under the legislation, governing boards would conduct annual self-assessments addressing financial oversight, strategic leadership, ethical conduct and risk management. They would also be required to evaluate their chief executives annually, establish measurable performance objectives and adopt strategic plans updated at least every three years.
The plans would be published on agency websites, while annual governance reports detailing performance, board assessments and community reinvestment activities would be submitted to the governor and Legislature.
WAPA and EDA Warn of Additional Costs and Duplication
Dionne Sinclair, WAPA's general counsel, questioned whether the proposed requirements would improve operations or simply create additional administrative work for an agency already struggling with financial challenges.
She argued that the Legislature “should not establish prescriptive checklists that become outdated or prioritize paperwork over results.”
Ms. Sinclair also objected to the absence of implementation funding, warning that compliance would require resources that would otherwise be available for fuel, maintenance and other operational needs.
“Transparency is important, but additional plans and reports cannot resolve WAPA’s underlying fiscal challenges,” she stated.
EDA Chief Executive Officer Wayne Biggs Jr. raised similar concerns, telling lawmakers that the proposed requirements “are largely unnecessary and potentially duplicative of existing organizational practices and legal obligations.”
Mr. Biggs argued that well-managed agencies should already have policies, procedures and systems for monitoring performance and maintaining accountability. He encouraged lawmakers to identify deficiencies in existing requirements rather than establish another set of rules across multiple agencies.
He said additional mandates should be examined to determine whether they address actual shortcomings or duplicate existing obligations.
Mr. Biggs suggested that a more “prudent” approach would be to review current laws and implement “narrowly tailored amendments where warranted.”
Virgin Islands Lottery Executive Director Raymond Williams, however, expressed general support for the legislation, acknowledging that his agency has areas requiring improvement.
“I do commend the bill sponsor because I recognize that we too have shortcomings,” Mr. Williams said.
Senators Point to Missing Information and Overdue Audits
Lawmakers disagreed with the suggestion that the legislation would merely duplicate existing requirements, arguing that consistent reporting standards are necessary because the Legislature often struggles to obtain information from autonomous and semi-autonomous agencies.
Senator Carla Joseph pointed to delayed financial audits among the agencies represented at the hearing, questioning how lawmakers could properly assess their operations without current financial information.
WAPA's most recently completed financial audit covers fiscal year 2020, according to testimony during Monday's hearing. Ms. Sinclair attributed the delays to the effects of the 2017 hurricanes and the COVID-19 pandemic.
Senator Franklin Johnson said the issue was not simply whether agencies already maintain the information internally, but whether lawmakers can obtain it when conducting oversight.
“I respect those of you who said that you're doing this already. But what about the legislature getting it?” Mr. Johnson asked.
“What he's trying to do with this measure is for us to get more information, so we can be responsible to our constituents and be able to answer questions…. We can't come in your agency and just drag it out.”
Senator Kenneth Gittens also supported establishing consistent standards, regardless of who happens to lead a government entity.
“Good governance should not depend on who is simply leading the agency, but it should establish a consistent standard across this government, and I believe that this is what the bill sponsor is trying to do here,” he said.
Mr. Gittens emphasized that the proposed requirements were not intended to penalize agencies but to establish expectations that apply consistently throughout government.
Mr. Biggs maintained that lawmakers should address deficiencies within each agency's governing statutes rather than impose a broad set of requirements.
“If an agency doesn't have it codified in their statutes, maybe you need to go into their statutes and codify it there, and not just put a blanket across,” he suggested.
Mr. Gittens disagreed.
“We having problems across this government, and it is our responsibility here in the Legislature to pass legislation to hold people accountable,” he said.
Senator Milton Potter also supported the proposal, saying lawmakers should establish “some baseline level of reporting and accountability standards” for government instrumentalities.
Although the agency representatives maintained their concerns about compliance costs and duplication, Senator Joseph rejected the suggestion that the legislation would impose an unreasonable administrative burden.
The committee ultimately voted unanimously in favor of Bill 36-0353, advancing the proposed accountability requirements for further legislative consideration.
