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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?”

Flint: Why It’s Not A “Federal” Disaster

Michigan Governor Rick Snyder has asked the federal government to declare Flint a major disaster on account of the city’s lead water crisis. That would make $96 million in sorely needed federal aid available to clean the water, fix the broken infrastructure, and provide health care to people who will suffer the life-long consequences of lead poisoning.  But the Obama Administration said no, prompting an appeal from state and local lawmakers who are desperate for extra cash.

So what gives?

Federal disaster declarations are governed by the Stafford Act, which limits when the President, through executive agencies, can declare a disaster.  The law provides for two types of declarations: an “Emergency” or a “Major Disaster.”  Some federal aid is allocated in an Emergency, but much more is allocated in a Major Disaster.

An “Emergency” is defined as “any occasion or instance” that requires federal assistance to supplement state and local efforts and capacities to save lives, protect property, or avert a catastrophe. Continue reading “Flint: Why It’s Not A “Federal” Disaster”

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