V.I. Code tit. 33, § 3036 (2019)
2019 US Virgin Islands Code|Title 33 - Taxation and Finance|Subtitle 3 - Finance|Chapter 111 - Government Funds|§ 3036. Molasses Subsidy Fund

 (a) There is established in the Treasury of the Virgin Islands a special fund to be designated the “Molasses Subsidy Fund”, which shall be administered by the Commissioner of Finance. The Fund shall consist of monies appropriated thereto by the Legislature, which funds shall remain available until expended. (b) Monies from the Molasses Subsidy Fund shall be paid to established industries engaged in the processing of molasses into rum within the Virgin Islands in accordance with the following formula and procedure: (1) The molasses processing industry shall notify the Commissioner of Finance of each proposed importation of molasses into the Virgin Islands at least ten days in advance of the date on which delivery of shipment is anticipated. Said notification shall include information as to the approximate number of gallons in the shipment and the estimated cost of same. (2) Upon receipt of the notification required by paragraph (1) hereof, the Commissioner of Finance shall immediately proceed to allocate from the Fund monies sufficient to cover the amount of the subsidy to be granted the industry-purchaser, plus a reasonable additional sum to cover any contingent costs. (3) The industry-purchaser shall, as soon as possible after receipt of the molasses shipment, submit certified vouchers to the Commissioner of Finance covering the total c.i.f. cost of the molasses purchased. (4) The Commissioner of Finance shall, upon receipt of certified vouchers from the industry-producer verify the correctness of same and thereupon, not more than three days after receipt of said vouchers, make payment of the proper subsidy to the industry-producer. (c) The molasses subsidy granted pursuant to this section shall be equal to the difference between (1) 16 cents (U.S.) per gallon and (2) the total cost per gallon to the industry-purchaser. For purposes of this subsection, total cost per gallon to the industry-purchaser shall be the c.i.f. Virgin Islands' cost of the molasses delivered in the first place of storage within the Virgin Islands, including, where applicable any duties and other verifiable costs of placing said molasses into the first Virgin Islands' storage facility. The subsidy shall not include any charges applicable to the handling or delivery of the molasses from the first place of storage in the Virgin Islands to the industry-purchaser. No subsidy shall be paid on any island at a rate higher than the lowest rate of such subsidy paid on such island by the Government. (d) The Commissioner of Finance shall be empowered to require from any manufacturer claiming or receiving subsidies under the provisions of this section any and all vouchers, statements, certificates, consular invoices, or other pertinent documents as he may consider necessary and proper for effectively verifying and determining the exact amount of each and every subsidy claimed or for implementing any other provision of this section. The Commissioner of Finance is likewise authorized whenever deemed necessary, and in the interest of the Government of the United States Virgin Islands, to inspect all business records of persons or firms claiming or granted subsidies under the provisions of this law. (e)  (1) All molasses purchased under this subsidy program shall be converted into rum by an established rum-producing industry within the Virgin Islands. (2) Each industry-producer receiving a subsidy under this Act shall file a quarterly statement on the 15th day of January, April, July and October of each and every year hereafter in which a subsidy is granted showing the use and disposition of all molasses purchased hereunder. (f) The Governor is authorized and directed to conduct such studies from time to time, and after notice and hearing to all interested parties, as shall be necessary to determine the specific quantity of molasses to be subsidized in any fiscal year, as well as how the subsidy should be apportioned among the industry, based upon estimates of rum production, molasses requirements and any other relevant factors; and the subsidy shall be apportioned among the rum-producing industries in the Virgin Islands on the basis of such studies and determination. (g) Any person who shall willfully or knowingly present any false claim for subsidies under the provisions of this section with intent to defraud the Government of the United States Virgin Islands of monies authorized to be disbursed by the Commissioner of Finance for assistance to the said industries shall be guilty of a felony, and upon conviction therefor shall be punished by a fine not to exceed $20,000.00, or imprisonment for not more than 10 years, or both. (h)  (1) Subject to paragraph (7) of this subsection, the Governor, on behalf of the Government of the United States Virgin Islands, and in conformity with the provisions of Title 33, section 3101, Virgin Islands Code, is hereby authorized and empowered to negotiate, execute and deliver contracts with an established industry engaged in the processing of molasses into rum within the Virgin Islands which is a recipient of monies from the Molasses Subsidy Fund providing that, should the industry-purchaser incur expenditures for capital projects which the Governor determines to be necessary or desirable to maintain or expand the level of rum manufacturing in the Virgin Islands, the Government will agree, in consideration of those expenditures, to maintain (and appropriate sufficient funds for) the Molasses Subsidy Fund program established by this section (from the time such contract is entered into to) and including a date ten (10) years following issuance to the industry-purchaser of the final governmental permit, license, authorization or approval required to commence the commercial use or occupancy of such capital project. (2) If a contract is entered into pursuant to paragraph (1) of this subsection and the industry-purchaser shall fully perform or be in the course of performing its obligation thereunder, but the Molasses Subsidy Fund program is not maintained and fully funded in accordance with that contract, the Government of the United States Virgin Islands shall be liable for either the actual damages to the industry-purchaser resulting from the breach (if ascertainable) or for liquidated damages, according to the following schedule, whichever is the lesser, in an amount which shall be stipulated in the contract, but in no event more than $5 million dollars ($5,000,000);Time at which MolassesSubsidy Fund ProgramIs AlteredReimbursement ofCapital ProjectCost to Industry-PurchaserPrior to or within 1 yr. after industry-purchaser receives final authorization to commence commercial use of capital project (hereinafter “use date”)100% 1–2 yrs. following use date90%2–3 yrs. following use date80%3–4 yrs. following use date70%4–5 yrs. following use date60%5–6 yrs. following use date50%6–7 yrs. following use date40%7–8 yrs. following use date30%8–9 yrs. following use date20%9–10 yrs. following use date10%10 or more yrs. following use date 0% The contract shall require that the industry-purchaser provide to the Governor and the Legislature such records as shall be necessary to verify the expenses it incurs in completing any capital project subject to such contract. (3)  (A) Notwithstanding any other provision of this subsection (h), any contract entered into pursuant to paragraph (1) hereof shall provide that all obligations of the Virgin Islands Government to maintain and fully fund the Molasses Subsidy Fund program shall terminate if, and at such time as, the Virgin Islands Government ceases to receive revenue pursuant to section 28(b) of the Revised Organic Act (or successor legislation) from the bottling or sale in the United States of rum manufactured in the Virgin Islands. (B) Furthermore, any contract entered into pursuant to paragraph (1) of this subsection shall provide that the Virgin Islands Government has no obligation thereunder to pay molasses subsidies to the industry-purchaser for any single fiscal year in excess of eighty-five (85%) of the total cost per gallon, as defined in subsection (c) of this section (as codified on January 1, 1980), of each gallon of molasses purchased by the industry-purchaser during that fiscal year which qualified for payment of the molasses subsidy under subsection (d)(1) of this section (as codified on January 1, 1980); Provided, however, That such subsidy shall in no event reduce the cost to the industry-purchaser to an amount less than sixteen ($0.16) cents per gallon of molasses. (4) The Government of the United States Virgin Islands shall not adopt any legislation impairing or limiting the financial obligations of the parties under any contract entered into pursuant to this subsection. (5) Any industry-purchaser aggrieved by any action or inaction of the Government of the United States Virgin Islands under the provisions of this subsection shall be entitled to review thereof in the District Court of the Virgin Islands. The Legislature of the Virgin Islands may, at any time, however, appropriate such funds as may be necessary fully to satisfy any liability incurred pursuant to paragraph (2) of this subsection, whether or not a judgment for such amount has been rendered by the District Court in favor of the industry-purchaser. (6) For the purposes of facilitating the processing and payment of obligations of the Government of the United States Virgin Islands for damages under contracts entered into pursuant to paragraph (1) of this subsection, notwithstanding any other provision of law to the contrary, the Governor may with the approval of the Legislature authorize the transfer from any of the various funds within the Treasury of the Virgin Islands to an account to be administered by the Commissioner of Finance such amounts as may be necessary to pay the Government's obligations for damages under such contracts. (7) No contract negotiated and executed pursuant to the provisions of paragraph (1) of this subsection shall be delivered to an industry-purchaser until said contract shall have been submitted to and ratified by the Legislature. In the event that the Legislature acts to disapprove such contract, the disapproved contract, with the objections of the Legislature, shall be returned to the Governor within 10 days after the date of disapproval.