hospitalThe Governor Juan F. Luis Hospital on St. Croix, U.S. Virgin Islands has been hoping to secure a vendor agreement that would help the medical center sort out its revenue cycle. However, due to inadequate paperwork and a lack of quorum at the Territorial Hospital Board meeting on April 4, the Board found itself no closer to coming to an agreement.

The meeting was scheduled as a follow-up to the Board’s regularly scheduled Wednesday meeting, and was planned to ease Board members’ concerns about the hospital’s upcoming “revenue cycle optimization project.” Once initiated, the project will involve hiring an outside company called Advisory Board to improve the hospital’s revenue stream, in addition to teaching hospital staff about the best practices used to generate and improve revenue.

The initial contract with Advisory Board would be $250,000 for the first four months, with a bill totaling $1.27 million for the year. While the estimated savings resulting from Advisory Board’s services hover around $6 million (or $62,000 in monthly invoices), some Board members have expressed doubts about the project, saying that the hospital may be setting itself up to overpay for the service. As evidence of this, they point out that the Schneider Regional Medical Center on St. Thomas is currently receiving a similar service from Advisory Board, but is paying only $300,000 for eight months.

Due to the Board’s lack of quorum, it was unable to make any official decisions on the contract. However, the meeting did end with Chief Executive Officer Kendall Griffith being directed to contact Advisory Board to inquire about the possibility of pursuing a shorter four-month contract, with the option to extend to a one-year contract if the initial outcomes are positive.

Concerns have also been expressed regarding Advisory Board’s nonexistent contract draft, according to Board Chairwoman Lynn Millin-Maduro. Although the company has sent over two versions of its proposal, the document is said to contain no specific provisions or guarantees that might help Board members make an informed decision. If the Board does vote to approve the terms of the agreement, past practice would also require the contract to be reviewed by Board Counsel and the Chair before it could be signed, significantly slowing down the approval process.

In response, hospital officials have reassured the Territorial Hospital Board that while it understands the need to follow strict procedures, they are also feeling the pressure of overwhelming financial concerns that they strongly believe would be alleviated with Advisory Board’s help.

This story highlights the complexities that can come with working with government agencies, especially those that have an appointed Board. Many in the private sector become frustrated with the slow progress associated with many of these types of transactions, but the key is to remain patient and allow the Board to conduct its due diligence.

BoltNagi is a well-established and widely respected government relations law firm serving businesses and organizations throughout the U.S. Virgin Islands.   

broken heartFor many people, the process of divorce can seem overwhelming. This is usually because most people associate divorce with drawn-out, expensive litigation. Fortunately, however, there are alternative dispute resolution options available that make it possible to settle a divorce while avoiding the extra cost, stress and time commitment required for court proceedings. For many divorcing couples living in the U.S. Virgin Islands, mediation is a preferred form of alternative dispute resolution that can be used to amicably settle a divorce.

Mediation refers to the process of settling disputes or family law matters outside of the courtroom. During this process, the divorcing parties work with a neutral, third-party mediator to settle issues related to alimony, child custody, child support, visitation and the division of assets on their own terms. This process is generally ongoing, as it can take some time for both spouses to agree on all points of discussion. Once all issues have been agreed upon, the mediator issues a divorce decree, to be approved by the court.

Alternative dispute resolution methods like mediation may be preferable for many different reasons. It allows the divorcing parties the ability to settle their divorce privately and in the spirit of cooperative problem solving, rather than through difficult, adversarial battling. Mediation also allows spouses to discuss issues that may not be addressed through the traditional litigation process, often leading to results that would be much more difficult to reach otherwise.

The process also offers an increased level of flexibility and significant cost savings. In addition, it’s common for divorcing parties who choose alternative dispute resolution to report that the process leads to a more emotionally satisfying resolution, and one that preserves key relationships with children, family and friends.

If you live in the U.S. Virgin Islands and are considering using alternative dispute resolution to work through your divorce, a skilled family law attorney can help with various aspects of the process. If you choose to use a mediator, your lawyer will likely have experience working with several in the area and will be able to help you choose a professional who will do an excellent job. An attorney will also be able to prepare you for the mediation process, help you evaluate the proposed settlement options and allow you to put the end agreement in writing to avoid any future complications.

BoltNagi is a well-established and widely respected family law firm serving individuals and families throughout the U.S. Virgin Islands.

hiringIn many industries, businesses find themselves competing for the top employees, and it has become increasingly common in recent years for employers to ask or require staff members to sign non-compete agreements. By signing these documents, an employee agrees not to work for a direct competitor for a specified amount of time after leaving the organization in question. Non-compete agreements can help prevent loss of revenue, in addition to protecting your company’s confidential information and trade secrets.

Before asking your employees to sign a non-compete agreement, however, you should consider the following:

Local laws

Restrictions related to non-compete agreements are governed by state or territorial laws rather than federal laws. In the U.S. Virgin Islands, non-compete employment contracts may be deemed legally void if the restraint is found to be greater than necessary to safeguard the company’s business interest, or if the company’s need is outweighed by the hardship it creates for the new employee. Recently, a company that was acquiring a Virgin Islands business was requiring that our client, the local business owner, execute a worldwide non-compete. We advised against it as it was “over reaching” and greater than necessary to safeguard the acquiring company’s business interest.

Industry need

Non-compete agreements tend to be more necessary for industries that rely on sales professionals for leads or to handle patented technologies. If you are not sure whether your company needs to use non-compete agreements, consider researching if your direct competitors require their employees to sign them.

If you do decide to use a non-compete agreement, it’s best to make sure that it contains similar terms to other agreements used within your industry. By doing so, you’ll help ensure that a promising job candidate doesn’t back out because your non-compete agreement is more restrictive than a competitor’s.

Fairness

It’s important for non-competes to be fair, with reasonable limitations regarding time limits and geographical areas. An unreasonably strict non-compete agreement will be difficult to enforce, potentially requiring the employer to address with frequent violations — and even lawsuits. In addition, a non-compete should not prevent an employee from being able to make a living after leaving your organization.

Hiring process

It’s important to discuss non-compete agreements during the hiring process. At the very least, it should be communicated to candidates as soon as mutual interest has been expressed, but it may also be a good idea to consider making it a part of your job descriptions. By doing this, you’ll be able to ensure that no job deal falls through at the last minute because the candidate is surprised by the non-compete requirements.

Non-compete agreements are a common part of modern business practices, but they might not always be appropriate. Consider these factors and consult an employment attorney for further guidance specific to your business or organization.

BoltNagi is a well-established and widely respected employment law firm serving businesses and organizations throughout the U.S. Virgin Islands.

e-cigaretteA recent bill put forth in the U.S. Virgin Islands legislature would make it illegal to sell e-cigarettes and nicotine vaporizers to minors. The bill also bans other alternative tobacco products, such as chewing tobacco and snuff.

Senator Sammuel Sanes sponsored Bill 30-0268, as did co-sponsors Senators Kenneth Gittens and Diane Capehart. On March 21, the U.S. Virgin Islands Senate Rules and Judiciary Committee voted to send the bill, along with a number of other proposed bills for a final vote by the full Legislature. The Legislature voted to adopt the Bill on April 24.

Because e-cigarettes were first introduced into the Chinese market in 2004, their alleged safety has been a topic of heated debate. Many experts had hoped that e-cigarettes would help heavy smokers quit, but it appears that the presumed safety of the products has created a new category of addiction. While proponents claim that e-cigarettes are much safer than tobacco, others believe that the device is simply a high-tech way to encourage new generations to become addicted to nicotine. Research on the topic is still frustratingly minimal, while the industry continues to grow at an exponential rate. In fact, it’s estimated that within 10 years, the sale of electronic cigarettes will outpace tobacco products — something that would have been unimaginable just a few years ago.

The use of e-cigarettes is becoming increasingly popular among minors. Between 2011 and 2012, the number of adolescents and teens using electronic cigarettes doubled. Although the products produce vapor instead of smoke containing carbon monoxide and tar, their cartridges do still contain addictive nicotine. This means that ceasing to use e-cigarettes can produce the same withdrawal symptoms that quitting smoking produces, including irritability, depression, anxiety and restlessness. In addition, nicotine can be very dangerous for those with heart problems, and it may damage arteries over time.

Considering that the most damaging part of regular cigarettes is the smoke they produce, the limited amount of research available so far does suggest that e-cigarettes might be safer. Laboratory tests have shown that the amount of dangerous chemicals produced by e-cigarettes is only a fraction of those that come from regular cigarettes. However, because the U.S. Food and Drug Administration (FDA) does not yet regulate e-cigarettes, their cartridge contents may vary considerably. And while some experts seem confident that electronic cigarettes are less harmful than regular cigarettes, there is still a severe lack of evidence to show whether or not their long-term effects will prove to be harmful to youth and adults alike.

BoltNagi is a widely respected and well-established government relations law firm serving clients throughout the U.S. Virgin Islands. 

Just_divorcedA child custody agreement, usually part of a final divorce decree, includes court-ordered arrangements related to whether parents share custody, if one parent has primary custody and if noncustodial parents have visitation rights. However, we all know that circumstances in our lives can change quickly, and in these situations it may be necessary to seek a modification of your original child custody agreement.

It’s important to note that this process is not always easy, and you must demonstrate a significant change in your living situation, income or ability to support yourself or your children physically, mentally or financially. Most importantly, time is of the essence when it comes to modifying your child custody court order in the U.S. Virgin Islands. Promptly addressing the issue shows the court the necessity of the situation, and provides for a more compelling argument when seeking the modification.

The next step is to build your case for why the change is necessary. For example, you might have taken a significant pay decrease, lost your employment or have experienced an abrupt change in hours of availability, such as beginning to work nights and weekends instead of weekday hours. Or, your job may require you to move too far away from your children to visit them as often as your custody order dictates.

After you have assembled this information, you should determine whether both parents would agree to the change without any disputes. If so, all that is required is a judge in the Family Division of the Superior Court of the Virgin Islands approving the change, as long as the new terms are legal and are in the children’s best interest. In some cases, the court may allow children over the age of 12 to provide their input on the potential modification.

If you and the other parent do not agree on the modification, you may need to go to court and argue your case before the judge. As an alternative, it may be possible to engage in alternative dispute resolution methods, such as mediation, to work out any areas of disagreement with the other parent.

The final step is the court’s final decision on the modification, which usually takes about 30 days from the hearing. If approved, your new child custody order will go into effect right away. If denied, you may need to appeal the decision, working with your family law attorney.

BoltNagi is a well-established and widely respected family law firm serving clients throughout the U.S. Virgin Islands. 

greenRapidly growing concerns related to environmental protection have resulted in regulations affecting nearly every industry in the United States and its territories, including the U.S. Virgin Islands. The hospitality industry is no exception, and it has been the focus of a great deal of attention from the Environmental Protection Agency (EPA) and other regulators.

The hospitality industry is vital to the U.S. Virgin Islands economy, but certain practices by hotels and resorts have come under increased regulations, particularly over the last several years. When it comes to using resources, adhering to safety standards and meeting consumer demands, organizations in the hospitality sector need to pay close attention to how environmental issues relate to their businesses and how they serve customers and guests.

Both the federal government and local agencies in the U.S. Virgin Islands help determine specific safety and regulation standards related to hotels and restaurants. Non-governmental organizations also pressure government agencies and businesses to adopt new industry-wide environmental protection practices. Investors are concerned about the success of a company as a whole, but are also sensitive to public relations, consumer demands and sustainable practices that can actually increase profitability. Finally, consumers are increasingly demanding to know whether businesses are “green” and eco-friendly, especially in the relatively new phenomena known as “eco-tourism.”

Environmentally friendly practices primarily address aspects of the hospitality industry that have historically been wasteful or damaging to the environment. In fact, the industry used to have a significantly negative reputation for waste. Recent solutions, which have become widely accepted, have attempted to tackle problems like excess waste and the over-consumption of resources. This includes the incorporation of careful food sourcing, increased recycling efforts, low-energy light bulbs and low-flow toilets and showers.

In a way, sustainable tourism has become a frontline related to how environmental issues and the hospitality industry are connected. Hotels, resorts and restaurants must become more sustainable to receive certain certifications — such as EcoGreen Hotel and Green Globe — that show guests that the place in which they’re staying has a minimal impact on the environment. And if previous trends tell us anything, it’s that these types of demands eventually turn into required government regulations.

The U.S. Virgin Islands Hotel & Tourism Association is hoping to implement the Green Key Program with the Foundation for Environmental Education. Green Key is an eco-label program for tourism and leisure establishments such as hotels and resorts.

For hotels and resorts that have not yet engaged in industry certifications for sustainability, there are a number of basic federal requirements they must meet under the Clean Air Act, Clean Water Act, Resource Conservation & Recovery Act and Toxic Substances Control Act, among others. Business and organizations that need to learn more about environmental issues and regulations related to the hospitality industry should speak with a skilled hospitality law or environmental regulation attorney.

BoltNagi is a widely respected and well-established environmental regulation and government relations law firm serving clients throughout the U.S. Virgin Islands.  

houseThere are a number of benefits to investing in residential real estate in the U.S. Virgin Islands, including strong profits, ongoing supplemental income and the access to credit these properties provide. However, there are a few legal considerations you should understand before deciding to make your first investment in residential property in the islands.

The following are some of the most common legal issues surrounding residential real estate:

Title insurance

These policies, provided by title insurance companies, insure the title for the owner of a residential property. They protect against financial losses related to the title and any costs associated with defending the title through litigation. Before finalizing a real estate transaction, you consider obtaining a title report and title insurance.

Deeds

A deed is a legal document that verifies the ownership of property by an individual or organization. There are several different types of deeds, including the following:

  • General warranty deed: This guarantees to the buyer that the seller has the legal right to sell the property in question. It also signifies that the real estate does not have any liens or debt attached to it.
  • Special warranty deed: This type of deed only applies to damage done to the property while the seller has owned it, and not for the entire life of the property. While it is more common in commercial real estate transactions, there are certain applications in the residential realm, as well, especially foreclosed residential property.
  • Quitclaim deed: This allows one party to transfer any real estate rights or claims it may have to another party, typically without the exchange of money. A quitclaim deed is most appropriate when transferring property to a family member or close friend.

Zoning issues

Even though you own a property, you may be limited to what you can do with it due to local zoning laws. Running a business out of a house or apartment, for example, may be illegal as the property is not zoned for business use. Generally, if you own a piece of real estate and the local government later amends the zoning designation after you have bought it, you don’t need to change the way you use the property as it is considered “grandfathered” under the old designation.

These are just a few of the legal matters you may need to consider before investing in residential real estate in the U.S. Virgin Islands. If you have further questions, speak with a knowledgeable real estate attorney.

BoltNagi is a well-established and widely respected real estate law firm serving clients throughout the U.S. Virgin Islands. Alliance Title & Trust Company, LLC is a licensed Virgin Islands title insurance agency, an agent of Stewart Title Guaranty Company and a wholly owned subsidiary of BoltNagi PC.

via Flickr Creative Commons

The U.S. Virgin Islands has recently begun to offer significant corporate tax breaks to small businesses in an attempt to encourage job creation and diversity within the territory’s economy, currently valued at $4.2 billion.

In early March, Governor John P. deJongh toured New York with regional economic development officials to meet with investors and interested business owners. The tour was also an opportunity to promote the U.S. Virgin Islands’ 90 percent cut in federal income taxes to manufacturing organizations, financial firms and other businesses. The territory is also offering a 90 percent cut in personal income tax, along with significant exemptions for property, excise and import taxes.

The need for the Virgin Islands tax incentive program has been highlighted, in part, by the territory’s loss of its largest taxpayer and employer, the HOVENSA oil refinery. When the refinery shut down in 2012, the U.S. Virgin Islands lost approximately 2,000 jobs and $100 million in revenue, worsening an economy already struggling to recover from the global recession.

The tax incentive program is sanctioned by the U.S. Congress and Treasury, distinguishing it from other well-known corporate tax havens like the Cayman Islands and Bermuda and making the U.S. Virgin Islands a legally secure environment for businesses to operate. For a company to take advantage of these tax incentives, it must commit to hiring at least 5 local residents and invest at least $100,000 in the proposed venture. This requirement is designed to help offset any lost tax revenue. So far, the program has attracted at least 85 corporate beneficiaries, with another 15 applications pending.

These types of tax incentives have been shown to be effective in attracting new businesses to specific geographical areas, as demonstrated by the United States Empowerment Zone (EZ) program designed to create jobs and business opportunities by providing tax credits and cash incentives in economically distressed areas. Overall, the EZ program has had a positive and statistically significant impact on attracting new companies, particularly in the retail and service industries.

The Government of the Virgin Islands is working to attract small businesses rather than large public companies in an attempt to avoid any controversy surrounding alleged corporate tax evasion.

As the U.S. Virgin Islands faces a sluggish economic recovery, a program like this could be a tremendous incentive for more job-creating organizations to relocate to the territory.

BoltNagi is a well-established and widely respected business and corporate law firm serving clients throughout the U.S. Virgin Islands. 

The Government Employee’s Service Commission Health Insurance Board recently passed an important change to territorial government worker health policies in the U.S. Virgin Islands. The new rule stipulates that active government employees and retirees under the age of 65 are required to receive health risk assessments. The alternative is to pay a steep financial penalty, in addition to the health care premiums employees pay.

Currently, Government of the Virgin Islands employees are able to have health risk assessments voluntarily. According to one expert, about 1,400 employees completed a health risk assessment in 2013. By making them mandatory, however, about 11,000 employees will now need to be assessed — or opt out by paying a financial penalty. The penalty is a bi-weekly payment of $20.83 in fiscal year 2015, paid in addition to insurance premiums. This rule applies only to employees, and not family members also covered under the health plans. Furthermore, it only affects current employees and retirees under 65.

The Government Employee’s Service Commission Health Insurance Board has made the change in an effort to lower overall premium costs. These types of health risk assessments are often used to further study environmental stressors, which may include toxins and chemicals introduced either in natural settings or in workplaces. Assessments attempt to determine how stressors impact health in relation to other factors, such as gender and age.

According to information currently available, employees undergoing the health care assessment should expect the entire process to last about 20 minutes, and the first 5,000 people will receive a $25 gift card as an added bonus. By doing this, officials hope they can get the program off to a strong start and encourage people to have their assessment completed right away, rather than waiting until it’s too late.

If you are a current Government of the Virgin Islands employee or retiree under the age of 65, it’s important to understand your rights and obligations under this new rule. This may affect how you approach your health care, and if you fail to get an assessment promptly enough, you may be subject to fees that go beyond your health insurance premiums.

Time will tell whether this new rule makes a difference in terms of health care costs for U.S. Virgin Islands government employees. For now, individuals impacted by the rule change need to remain updated and aware of what they need to do to meet the new requirements.

BoltNagi is a widely respected and well-established government relations law firm serving clients throughout the U.S. Virgin Islands. 

Recent concerns surrounding the U.S. Virgin Islands’ growing debt has led some to wonder whether the territory might soon face bankruptcy issues similar the city of Detroit, Michigan.

Detroit filed for Chapter 9 bankruptcy on July 18, 2013, and was declared eligible on December 3 of the same year. The municipal bankruptcy filing was the largest in U.S. history, with debt reaching an estimated $18.5 billion — or $25,660 per resident. Reactions to this decision were mixed, with some claiming that it was the only course of action and others arguing that the decision was premature. Detroit is currently in the process of determining which of its assets belong to the city outright and can be monetized to settle creditor claims.

The U.S. Virgin Islands has been in significant debt for nearly 30 years, according to some sources. Currently, the territory’s combined debt of $1.74 billion (composed of bond market debt and retirement system unfunded liability) works out to be $29,965 per resident—higher than that of Detroit.

In addition, the Government owes another $300 million in retroactive salary increases previously promised to its employees in the 1990s. However, the issue of retroactive salary increases is controversial — some government officials, who claim that the obligation to pay only exists if the government has enough money, have disputed the increase. If these retroactive increases are factored into the amount owed, the total per-capita debt goes up to $32,578 per resident.

While the government of the Virgin Islands borrowed $120 million in 2012 to be used as working capital over the next few years, the administration has announced that it will not take out any more loans. At the same time, the territory is experiencing a $40 million deficit in this year’s budget.

Although the territorial government has been in debt for decades, some have attributed the drastic borrowing increase in recent years to the global economic recession. Between 2008 and 2009 the Government’s General Fund revenues dropped by about 37 percent. However, there are also concerns that the recession aggravated an existing problem, one that is unlikely to resolve itself unless the Government acts soon to live more within its means.

The financial issues facing the U.S. Virgin Islands government are substantial, and it will be interesting to see how the territory handles them in the years to come.

BoltNagi is a well-respected and established law firm serving clients throughout the U.S. Virgin Islands.