Taxicab commission tells Legislature illegal operators, staffing shortfalls harm safety and revenue

Acting Executive Director Melissa Smith of the Virgin Islands Taxi Commission told the Legislature's Committee on Government Operations on June 1 that illegal, unlicensed taxi operators and a short enforcement staff are the commission's most urgent problems.

Smith cited seven citations issued so far this fiscal year for unregulated operations and said only one of those fines had been paid; hearings to pursue penalties are pending. "We have only seven citations for the year," she said on the record. "We haven't had hearings yet." She added that fines cited in the testimony include $150 for fare infractions and $300 for posing as a licensed operator.

The commission, Smith said, lacks enforcement personnel across the territory and has multiple vacant inspector positions. "My priority position to fill is the chief inspector," she said, and described a vacancy listing that includes six enforcement positions (including a chief inspector) and additional administrative vacancies. Smith said current enforcement gaps have delayed hearings and reduced the commission's ability to deter illegal operators.

Why it matters: illegal or "gypsy" taxis undermine passenger safety, create uninspected vehicles on the road and undercut licensed medallion holders who follow tariff and licensing rules, Smith and several senators told the committee. The issue affects tourism and locals who rely on regulated transportation.

What the commission reported

- Medallions and operators: Smith said the territory has 1,923 medallions territorywide (1,280 on St. Thomas, 178 on St. John and 565 on St. Croix). She said about 776 operators were registered in St. Thomas and estimated roughly 165 active operators in St. Croix; the number of active operators territorywide was not provided as a single confirmed total. Smith explained that not every medallion has an attached active operator.

- Licensing and fees: The commission collects for business licenses and other categories. Smith said a testing data pull showed $85,000 in business-license receipts for a sample period, and that the standard renewal fee is $130 (she said that fee has not been revisited for more than 10 years).

- Enforcement and complaints: Smith said the commission has received few formal complaints (one or two filed directly with the office during the fiscal year) despite widespread informal reports and social‑media posts showing unlicensed activity. She said the commission will research implementing an anonymous complaint option to encourage reporting.

- Training and recruitment: The commission is working with the University of the Virgin Islands Center for Excellence in Leadership and Learning (UVI CELL) and the Department of Tourism to deliver free driver‑training classes (sponsored by Tourism) in late June or early July, with plans for classes in all three districts. Smith said more than 70 aspirants had been vetted and that classes will include territory history, hospitality, and regulatory requirements.

- Digitization and operations: Smith said the commission is pursuing automation and a medallion/owner database and has discussed modernization with the Bureau of Information Technology (BIT) and earlier integrator vendors; efforts stalled previously for budget reasons. She described current work to extract collection data from the government ERP system and produce regular reports for oversight.

Board composition and legal questions

Committee members asked whether the commission's board had a lawful quorum when it replaced the prior executive director. Legal counsel told the committee that Title 3, section 274(d)(quoting the statute) requires five members for a quorum (the commission is established with nine members). Smith said the commission's board currently has five members (she named members present), and she deferred to the chair to obtain formal documentation about how the prior leadership transition was handled. The committee asked the chair to request a written statement from the board chair.

Budget and staffing requests

Smith said the commission's current budget ceiling is about $556,000 and recommended additional funding to hire enforcement leadership and other staff, modernize technology, and expand territorywide enforcement visits and public awareness. She told senators an illustrative funding need for a broader operational improvement would be roughly $1.5 million (a projection to support staffing, travel, IT upgrades and enforcement); she said the commission planned to submit budget requests and PRFs to OMB and Division of Personnel.

Concerns and follow-ups requested by the committee

Senators pressed for documentation and timelines. Committee members asked Smith to provide: (1) minutes of the taxi commission for Dec. 1, 2024 through March 30, 2025; (2) four months of recent collections reports; (3) the commission's vacancy listing and planned PRF submissions; and (4) the UVI CELL curriculum for the upcoming operator classes. The chair also agreed to request a formal statement from the taxi commission board about membership and whether a quorum existed for the prior leadership change.

Ending

Smith said enforcement leadership would be her hiring priority and urged legislative support for funding and interagency memorandums of understanding with VIPD, DLCA and other entities to augment enforcement capacity. "My ask today is definitely funding support and the encouragement of all law enforcement agencies to actively collaborate with the commission," she told the committee.