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The Jones Act Waiver for Puerto Rico Expires Today – Now What?

Show of hands: who here knew about the Jones Act before Vox ran a headline after Hurricane Maria?

Image result for puerto rico shipping port imagesIf you said yes, then you’re probably a maritime lawyer or shipping magnate – in which case, welcome!

If you said no, then you’re more like me – and I’m a lawyer who cut my teeth on a pretty major catastrophe in the Caribbean.  So don’t sweat it.

Anyway, I won’t belabor the details of the Jones Act now that we’re all arm-chair experts.  Besides, the purpose of this post is to explain proposed legislation that aims to reform or repeal the Act in the wake of Hurricane Maria.

But first we need to highlight some basics for friends who just climbed on board.  So let’s dive in.

The Jones Act is THIS bad

By most accounts, the Jones Act is a disaster for Puerto Rico that helped plunge the island into debt, and push the cost of living higher than most major metro areas in the US.  According to one study, it has drained $17 billion from the island economy over 20 years.

Related imageEverything from apples to i-phones are more expensive because of the Act.  Basic necessities are about to get even pricier now that Hurricane Maria destroyed the supply chain but accelerated demand.  That’s an incalculable burden for most Puerto Rico consumers whose annual income averages $18,000 per year.

Here’s how it works

The Jones Act stipulates

Continue reading “The Jones Act Waiver for Puerto Rico Expires Today – Now What?”

NYC Passes New Disaster Legislation After Hurricane Sandy. Now The Hard Part.

Property owners and other qualifying individuals in New York City will be given additional time following a disaster to repair and clear their property, without incurring penalties for certain municipal code violations.  New disaster legislation passed by the City Council takes effect August 8, 2016, and applies retroactively to fines imposed after Hurricane Sandy.

Sandy - homes destroyedI’ve posted a detailed summary of new developments here.  In this post, I’ll explain why the scope of protection under one of those laws, Int. 1037, depends on how quickly and effectively the City implements a recovery program following the next major disaster.  The record from Hurricane Sandy is not encouraging, but perhaps the benefit of that experience will produce better results in the future.

 

 

A Quick Review of Int. 1037

Continue reading “NYC Passes New Disaster Legislation After Hurricane Sandy. Now The Hard Part.”

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