,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #chba  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,janu>y #h1 #bjad,mrs4
 ,*ri/5s5 introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ,ways &      
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to assi/ 9 !      
recov]y & developm5t ( ! ,virg9 ,isl&s  
by provid+ = a r$uction 9 ! tax impos$  
on di/ributions f c]ta9 retirem5t plans'
 assets :i* are inve/$ = at lea/ #cj    
ye>s1 subject to def9$ )drawals1 "u a   
,virg9 ,isl&s inve/m5t program4  #a4    
,%ort title ,?is ,act may be cit$ z !   
,d]ek ,m4 ,hodge ,virg9 ,isl&s          
,improvem5t ,act ( #bjac4  #b4 ,tax-free
 di/ributions f c]ta9 retirem5t plan    
assets inve/$ "u a virg9 isl&s inve/m5t 
program  7a7 ,9 g5]al ,"p ,i ( sub*apt] 
,d ( *apt] #a ( ! ,int]nal ,rev5ue ,code
 ( #aihf 7relat+ to p5sion1 pr(it-%>+1  
/ock bonus plans1 etc47 is am5d$ by add+
 at ! end ! foll[+ new section3         
#dji;,b4 ,treatm5t ( di/ributions f     
c]ta9 retirem5t plan assets inve/$ "u a 

virg9 isl&s inve/m5t program  7a7 ,9    
g5]al ,if an individual "u ! age ( #fa  
makes a "o-"t designation ( an am\nt (  
qualifi$ retirem5t sav+s z be+ "u       
inve/m5t by ! ,virg9 ,isl&s ,inve/m5t   
,program = at lea/ #cj ye>s1 !n1 z ( !  
close ( ! #aj? ye>1 su* am\nt 7& any    
e>n+s prop]ly allocable to su* am\nt7   
%all be treat$ = purposes ( ?is title-- 
7#a7 z a designat$ ,ro? acc\nt 9 ! case 
( qualifi$ retirem5t sav+s describ$ 9   
subsection 7b77#a71 or  7#b7 z a ,ro?   
,,ira 9 ! case ( qualifi$ retirem5t     
sav+s describ$ 9 subsection 7b77#b74    
,no am\nt %all be includible 9 gross    
income by reason ( ! *ange 9 treatm5t "u
 ! prec$+ s5t5ce4  7b7 ,qualifi$        
retirem5t sav+s ,= purposes ( ?is       
section1 ! t]m qualifi$ retirem5t sav+s 
means-- 7#a7 am\nts attributable to     
elective def]rals "u an applicable      
retirem5t plan1 &  7#b7 am\nts held 9 an
 individual retirem5t plan :i* is n a   
,ro? ,,ira4  7c7 ,virg9 isl&s inve/m5t  
program ,= purposes ( ?is section-- 7#a7

 ,9 g5]al ,! t]m ,virg9 ,isl&s ,inve/m5t
 ,program means a program ( ! ,virg9    
,isl&s :i* meets ! requirem5ts (        
p>agraphs 7#b71 7#c71 7#d71 & 7#e74     
7#b7 ,maximum am\nt accept$ = managem5t 
,a program meets ! requirem5ts ( ?is    
p>agraph if ! am\nt accept$ = managem5t 
"u ! program does n exce$               
#ej1jjj1jjj1jjj4  7#c7 ,fees & taxes ,a 
program meets ! requirem5ts ( ?is       
p>agraph if-- 7,a7 ! fees *>g$ by       
inve/m5t manag]s "u ! program d n exce$ 
! fees cu/om>ily impos$ by inve/m5t     
manag]s = manag+ l qualifi$ retirem5t   
sav+s outside ! ,virg9 ,isl&s ,inve/m5t 
,program1  7,b7 ! program imposes an    
annual tax 79 addition to ! fees p]mitt$
 "u subp>agraph 7,a77 equal to-- 7i7    
#a4e p]c5t ( ! am\nt designat$ =        
managem5t "u ! program = ! fir/ #aj ye>s
 ( ! acc\nt1 &  7ii7 #a p]c5t ( ! am\nt 
designat$ = managem5t "u ! program = !  
rema9d] ( ! life ( ! acc\nt )\t reg>d to
 acc\nt balance1 &  7,c7 ! #a p]c5t tax 
is impos$ not)/&+ ! ,ro? designation4   

7#d7 ,inve/m5t manag] ,a program meets !
 requirem5ts ( ?is p>agraph if !        
inve/m5t manag]s "u ! program are *os5  
by ! ,gov]nor ( ! ,virg9 ,isl&s4  7#e7  
,sep>ate acc\nt+ ,a program meets !     
requirem5ts ( ?is p>agraph if !         
program-- 7,a7 e/abli%es sep>ate acc\nts
 = ea* type ( qualifi$ retirem5t sav+s  
held = ! b5efit ( ea* individual & any  
e>n+s prop]ly allocable to su* assets1 &
  7,b7 ma9ta9s sep>ate recordkeep+ )    
respect to ea* acc\nt4  7d7 ,use ( #a   
p]c5t annual tax  7#a7 ,rev5ues to !    
virg9 isl&s dur+ fir/ #bj ye>s  7,a7 ,9 
g5]al ,rev5ues f ! tax ref]r$ to 9      
subsection 7c77#c77;,b7 %all be         
collect$1 held1 & di/ribut$ = ! b5efit (
 ! ,virg9 ,isl&s 9 a mann] simil> to    
section #gfeb7;b7 7relat+ to rum excise 
tax74  7,b7 ,di/ributions to virg9 isl&s
 ,funds & accru$ int]e/ describ$ 9      
subsection 7d77#a77;,a7 may be paid f   
escr[ to ! ,virg9 ,isl&s = exp5diture   
only if-- 7i7 ! exp5diture is pursuant  
to a qualifi$ infra/ructure developm5t  

plan1 &  7ii7 ! exp5diture is approv$ by
 ! ,secret>y ( ! ,int]ior z be+ pursuant
 to su* plan4  7,c7 ,qualifi$           
infra/ructure developm5t plan ,=        
purposes ( ?is p>agraph1 ! t]m qualifi$ 
infra/ructure developm5t plan means a   
plan = improv+ & enhanc+ ! infra/ructure
 ( ! ,virg9 ,isl&s :i* is-- 7i7 develop$
 & approv$ by ! committee describ$ 9    
subp>agraph 7,d71 &  7ii7 approv$ by !  
,gov]nor ( ! ,virg9 ,isl&s4  7,d7       
,committee ,! committee describ$ 9 ?is  
subp>agraph is a committee-- 7i7        
compris$ ( #e memb]s1 ea* s]v+ a t]m (  
ei!r ?ree or five ye>s-- 7,i7 #b ( :om  
are appo9t$ by ! ,gov]nor ( ! ,virg9    
,isl&s1 "o = a #c-ye> & "o = a #e-ye>   
t]m1  7,,ii7 #b ( :om are appo9t$ by !  
,virg9 ,isl&s legislature1 "o = a #c-ye>
 & "o = a #e-ye> t]m1 &  7,,iii7 #a (   
:om is appo9t$ by ! ,secret>y ( !       
,int]ior = a #e-ye> t]m1 &  7ii7 )      
respect to :i* a vacancy is fill$ 9 !   
mann] 9 :i* ! orig9al appo9tm5t 0 made4 
7#b7 ,rev5ues to ! unit$ /ates & ! virg9

 isl&s  7,a7 ,dur+ fir/ #bj ye>s        
,rev5ues f ! fee ref]r$ to 9 subsection 
7c77#c77;,b7 impos$ on designat$ assets 
aft] ! fir/ #aj ye>s "u managem5t by !  
,virg9 ,isl&s ,inve/m5t ,program %all be
 collect$ by ! ,unit$ ,/ates ,treasury 9
 a mann] simil> to section #gfeb1 ^u    
:i*-- 7i7 #bf4fg p]c5t ( ! proce$s %all 
be di/ribut$ to ! ,virg9 ,isl&s = ! fir/
 #aj ye>s ( managem5t1 &  7ii7 half ( ! 
proce$s %all be di/ribut$ to ! ,virg9   
,isl&s = ! next #aj ye>s ( managem5t4   
7,b7 ,aft] ! fir/ #bj ye>s ,beg9n+ 9 !  
#ba/ ye>1 ! entire #a p]c5t tax collect$
 %all be reta9$ by ! ,unit$ ,/ates      
,treasury4  7,c7 ,m9imum hold+ p]iod ,no
 )drawals may be made by an inve/or f ! 
acc\nt dur+ ! m9imum hold+ p]iod ( t5   
ye>s4 ,%\ld ! inve/or *oose to )draw    
money f ! acc\nt dur+ ! m9imum hold+    
p]iod1 ! inve/or w\ld =feit ! tax       
advantages ( ! ,fund4 ,any funds s      
)drawn w\ld be includ$ 9 gross income & 
subject to ,f$]al income tax1 m9us      
paym5ts ( ! #a p]c5t tax4  7#c7 ,e>ly   

)drawal ,%\ld an inve/or )draw ! entire 
balance ( ! funds aft] ! #aj-ye> m9imum 
hold+ p]iod b be=e ! end ( ! #cj ye>s1 8
 acc\nt w be liable = ! entire #a p]c5t 
tax = ea* ( ! rema9+ ye>s4  7e7 ,o!r    
def9itions ,= purposes ( ?is section--  
7#a7 ,elective def]rals2 applicable     
retirem5t plan ,! t]ms elective def]rals
 & applicable retirem5t plan h !        
respective mean+s giv5 su* t]ms by      
section #djb;,a4  7#b7 ,virg9 isl&s ,!  
t]m ,virg9 ,isl&s means ! ,unit$ ,/ates 
,virg9 ,isl&s4  7#c7 ,secret>y ( !      
int]ior ,! t]m ,secret>y ( ! ,int]ior   
means ! ,secret>y ( ! ,int]ior or 8     
designee4  4  7b7 ,cl]ical am5dm5t ,!   
table ( sections = su* "p ,i is am5d$ by
 add+ at ! end ! foll[+ new item3  ,sec4
 #dji;,b4 ,treatm5t ( di/ributions f    
c]ta9 retirem5t plan assets inve/$ "u a 
,virg9 ,isl&s inve/m5t program4  4  7c7 
,effective date ,! am5dm5ts made by ?is 
section %all take effect on ! date ( !  
enactm5t ( ?is ,act4