Marine Diver. The San Juan Daily Star. Monday, November 23, Self-winding movement. Water-resistant to 300m.

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1 2 Monday, November 23, 2015 Marine Diver Self-winding movement. Water-resistant to 300m. 18 ct rose gold case. Also available in stainless steel. U LY S S E - N A R D I N. C O M The San Juan Daily Star

2 GOOD MORNING The San Juan Daily Star, the only paper with 3 November 23, 2015 News Service in English in Puerto Rico, publishes 7 days a week, with a Monday, Tuesday, Wednesday and Thursday edi on, along with a Weekend Edi on to cover Friday, Saturday and Sunday. Rosselló Prescribes Short- and Longer-Term Remedies for Island s Economic Ills Local Mainland Business Interna onal Viewpoint Entertainment Travel INDEX No cias en Español Legal No ces Sports Games Horoscope Cartoons mirandasanjuanstar@gmial.com Puerto Rico can get out of its economic depression and revive its stagnant economy, New Progressive Party (NPP) gubernatorial hopeful Ricardo Rosselló Nevares told the STAR, but the island has to become more competitive, reduce the costs of doing business and create a new tax reform while boosting the tourism sector in various areas, not just by promoting the island as a beach and resort destination. We have to emphasize the importance of promoting the island s competitiveness, maximizing the growth of productive sectors and reducing the costs of doing business in Puerto Rico, Rosselló Nevares told the STAR. To achieve these objectives, we must simplify the tax system and establish public policy aimed at increasing the capture rate, with the objective of reducing taxes. Rosselló Nevares explained that he is working on a number of projects to address two issues: the lack of development on the island, particularly in the business and construction sectors, and secondly on the inequality of project development funds awarded to most municipalities outside of the San Juan metropolitan area. The metropolitan area receives most of the income for development projects or public works improvements, while the west coast, the central corridor, the southern and southeastern towns receive one-third of the funds in comparison to what the metro area receives, he noted. He proposed to establish a series of strategic regional projects in collaboration with the Department of Transportation and Public Works (DTOP by its Spanish acronym), the non-profit sector and the government. To see which initiative we should start with to quickly boost the economy and help limit existing inequality, he said, in the coming months we are going to visit these areas to continue developing ideas and then we will be implementing them in our government platform this will be one of our economic development plans. He said that if elected he will simplify the tax system and establish public policy aimed at increasing the capture rate of the sales and use tax (IVU by its Spanish acronym), with the purpose of reducing taxes for the salaried working class. We have to find the resources to do this, but we also have to simplify the tax system because the one we have is one of the most complex in the world, Rosselló Nevares said. He also said that if elected he will immediately go to work on energy reform, which he called a New Energy Model aimed at restructuring the Puerto Rico Electric Power Authority (PREPA), modernizing its operations and promoting private investment in renewable energy, which he expects would result in $1 billion in savings for the public utility. Through the energy reform we want to stabilize energy costs and modernize [the power grid], he said. We want to simplify the regulations and study [those areas] that are highly Continues on page 4

3 4 Monday, November 23, 2015 The San Juan Daily Star From page 3 regulated, considering that perhaps there are other areas that can be more viable to make Puerto Rico more competitive, he said. For example, he said, based on the data he has been studying, the island s small and midsize businesses and innovation-based industries are the sectors generating the most wealth. He said more instruments need to be created to help these business sectors, similar to the incentives granted to large enterprises. We want to create a series of instruments [based on current incentives], not just for big business, but rather create a number of incentives for facilities permits -- collaborative incentives, boosting administrative incentives, among others, Rosselló Nevares said. He noted that many small and midsize businesses don t have the capital to purchase bigger spaces, so he plans to award them permits for industrial space given the fact that the government has a lot of empty buildings that could be provided to such businesses to facilitate them with the space which in turn could help them expand their operations and then we would be providing and facilitating this as an incentive and help them export their products. He added that this would be called the Incentives Code and all existing incentives would be evaluated to see if they are in fact helping the economy and creating jobs, and if they are meeting the expectations they were created for. If not, they would be eliminated, Rosselló Nevares said. Other economic development proposals the NPP gubernatorial hopeful will be implementing in his government platform, if he defeats NPP President Pedro Pierluisi in party primaries next summer, are focused on the tourism sector. Rosselló Nevares said he believes the medical tourism sector, which is already up and running, needs to be further promoted. He also plans to incorporate educational internalization, whereby students from the mainland U.S. and Latin America come to the island to pursue their college degrees at much cheaper prices but at equal and sometimes even better educational quality. We also plan to create Puerto Rico as a destination for the elderly to come and live here when they retire, much like Florida, he added. And to further promote the island for people seeking to purchase a second home. Rosselló Nevares noted that already many New Yorkers, for example, have their second homes here in Puerto Rico, but he wants to expand that base to people from other states and countries. He also is working on longerterm plans to develop the island as a strategic logistics exportation center, and a center for innovative development, he added. The 36-year-old college professor said tourism currently has the best short-term economic development potential. But we are creating a four-year plan for increasing the number of non- Puerto Rican visitors, coming and going, from 2 million to 4 million, Rosselló Nevares said. The impact on the economy would be significant, it could bring in $14 to $16 billion annually and we could stabilize the economy and change the focus of what tourism is, not just the beaches and resorts. Another long-term initiative is making Puerto Rico the hub of logistics exportation, where products are created here and then exported. Meanwhile, Rosselló Nevares reiterated that reducing government spending by increasing government effectiveness through the creation of a technology platform and an integrated government services center to ensure accessibility and functionality, as well as zero-based budgeting (which resets spending plans each year to justify agency expenditures), will be some of his top priorities if elected governor. He added that in many cases public workers have to be retrained so they can be transferred to other agencies where they are needed the most while converting the government into a single employer to maximize human resources and avoid layoffs. If agencies are consolidated, millions of dollars will be saved in the human resources area alone, where instead of every agency having its own human resources unit, there would be one, serving a number of consolidated agencies.

4 The San Juan Daily Star Monday, November 23, Money will also be saved if the consolidated agencies are all located in the same building, Rosselló Nevares pointed out. If, for example, 10 agencies are located in one building, then only one rent, one electricity bill and one water bill will be paid, and just one human resources department will serve all 10 government agencies. Rosselló Nevares also is proposing the creation of a federal opportunities center aimed at training government staff and members of the nonprofit sector to seek additional federal funding for the island. So many federal funds are lost because the government agencies don t even try [to apply for them] or know these funds are available, he said. This office would be in charge of finding all federal funds available for each government agency and working to get the funds awarded. He also reiterated his proposal for the creation of participatory public-private partnerships, in which various community sectors, including public employees, could be part of the initiative. As an example, he proposed the New Energy Model aimed at restructuring PREPA. Destination Puerto Rico, a proposal he unveiled a few weeks back in Fajardo at a convention of his supporters, includes initiatives to promote medical tourism and establish a nonprofit to promote the island as a destination to live and do business in, visit and invest in. Rosselló Nevares also said empowering the third, or nonprofit, sector would be necessary to promote economic development, efficiency and effectiveness. Currently, the third sector NPP resident commissioner hopeful Jenniffer González and NPP gubernatorial hopeful Ricardo Rosselló Nevares generates about 150,000 jobs, and [co-ops] are examples of administrative efficiency, he said. Every dollar invested in the third sector equals $7 spent by the government.

5 6 Monday, November 23, 2015 The San Juan Daily Star Suárez Tapped to Head State Dept., Santana Takes Over as Chief of Staff Gov. Alejandro García Padilla has appointed Víctor Suárez, his chief of staff, to run the Puerto Rico State Department, and in Suárez s place, the governor elevated Grace Santana to the position of La Fortaleza Chief of Staff. The governor said on Friday that Santana is a competent and trustworthy government manager who has extensive experience making projects work in a timely and cost-effective fashion, and investors should welcome her presence at La Fortaleza. Santana is the Puerto Rico Financing and Infrastructure Authority (AFI by its Spanish acronym) and the Public Private Alliances Authority Executive Director and will continue her duties in addition to being La Fortaleza chief of staff, the governor said in a brief news release. Meanwhile, the commonwealth s financial team sat down with creditors in New York on Friday, but analysts and economists predicted that the meeting would spur little actual action on debt renegotiation. Less than 15 percent of outstanding Puerto Rico debt is presently governed by the Government Development Bank s (GDB) nondisclosure pact Instead, Puerto Rico appears to be attempting to position itself more strongly ahead of the December 1 hearing before the U.S. Senate Judiciary Committee, using Friday s discussions to demonstrate to the U.S. Congress that the GDB is serious about solving its problems from within, Height Securities Analyst Daniel Hanson told the STAR. Hanson said that in Washington, Republicans are mulling their response to the Puerto Rico crisis, but we expect any assistance from federal lawmakers to come with significant strings attached and on a timeline that fails to meet the most pressing liquidity challenges. Investors should not expect the Commonwealth to show its hand at today s investor meetings, even though the Commonwealth is messaging around a debt exchange offer, Hanson added. The December 1 hearing before the U.S. Senate Judiciary Committee will serve as a focus for the Commonwealth as it seeks to demonstrate to Congressional Republicans that the current administration has taken credible steps to solve the ongoing fiscal crisis. Ex-Doral Bank Official Arrested Amid FBI Probe mirandasanjuanstar@gmail.com A former Doral Bank executive assistant was indicted and arrested on perjury and obstruction of justice charges late last week. Nancy Vélez was the senior assistant to the chief executive officer and board of directors of Doral Bank. According to the indictment, she knowingly made false statements while under oath and testifying before a federal grand jury, U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez said when announcing the indictment and arrest. The indictment includes three perjury charges and two obstruction of justice charges. When she offered her testimony before the grand jury, Vélez recanted her involvement in a merchant s contract with Doral Bank, its terms and payment schedule, and the participants involved in a scheme to defraud. However, s, telephone records and other evidence tell another story. This evidence showed that Vélez had not only had knowledge, but also played an active role and participated in those dealings. Rather than provide complete and truthful testimony before the grand jury, Vélez endeavored to corruptly influence, obstruct and impede the federal investigation, Rodríguez said. It is alleged that the defendant concealed information regarding an investigation about bank fraud, embezzlement, wire fraud, and money laundering, by making false statements under oath during grand jury proceedings, Rodríguez said. Lying to the grand jury, concealing information, and obstructing a federal investigation undermine the public s trust in the criminal justice system and will not be tolerated. The case is being investigated by the FBI s San Juan Division and is being prosecuted by Assistant U.S. Attorneys Luke Cass, Héctor Ramírez Carbó and George Massucco. The indictment comes almost a year after the FBI raided Doral Bank s headquarters. The institution has since been taken over by another bank. Puerto Rico Senate Honors Fashion Designer Harry Robles By The STAR Staff The Senate of the Commonwealth of Puerto Rico recently recognized the 30-year career of Puerto Rican fashion designer Harry Robles. Filed by Hon. Antonio Fas Alzamora, Resolution 1240 highlights the humble beginnings, career and achievements of Robles, the youngest of a generation of legendary Puerto Rican designers. Perseverance and effort have a reward, and today this San Juan-born designer has an important place at the top of the fashion industry in Puerto Rico and abroad, reads the document, approved in late October. Harry Robles is a Puerto Rican who trusted his talent and his island, and triumphed. I thank the Honorable Senator Fas Alzamora and the entire legislative body for this resolution, which is much more than a recognition. This is another reason I have to keep me grounded, committed to my craft and working hard, Robles said. It has not been easy, but discipline and dedication kept me going and made me who I am today. I would like young people who may lack the resources or connections to make it big in any industry, to see my career path as a real example that confirms that if you stay focused, on track, and work hard without becoming discouraged, you can achieve anything you want.

6 The San Juan Daily Star Monday, November 23,

7 8 Monday, November 23, 2015 The San Juan Daily Star Senate GOP Leaders Drafting PR Debt Plan to Counter White House By EVA LLORENS VELEZ Top Senate Republicans who head committees with jurisdiction over Puerto Rico are working on legislation to help Puerto Rico deal with its $70 billion of debt, countering a plan by the Obama administration, according to Bloomberg. The Obama administration recently asked Congress to help the island restructure its financial liabilities in a fair and orderly manner under the supervision of a federal bankruptcy court; enact strong fiscal oversight as a condition of the broader restructuring to help strengthen Puerto Rico s fiscal governance and establish sufficient safeguards to ensure Puerto Rico adheres to its plan and fully implements its proposed reforms; provide a long-term solution to Puerto Rico s historically inadequate Medicaid treatment by increasing access to coverage, raising the standard of care and preventing Medicaid s unstable financing from worsening Puerto Rico s fiscal crisis; and reward work and support growth by providing Puerto Rico access to proven measures such as an Earned Income Tax Credit (EITC) that would create incentives for work and increase participation in the formal economy. Congress could also consider providing Puerto Rico with an expanded Child Tax Credit (CTC). However, the legislation proposed by GOP leaders appears to be leaning toward imposing a federal control board. The proposed bill will be finished soon, Robert Dillon, spokesman for the Senate Energy and Natural Resources Committee, told Bloomberg. Senate Finance Committee Chairman Orrin Hatch said in an interview last week that they will probably impose something like a fiscal control board. The Obama administration has said it won t pass a federal bailout. Dillon did not specify whether the plan will be announced before Dec. 1, when Moody s Investors Service expects Puerto Rico to default on a portion of a $354 million payment due that day. The island has already defaulted on bonds from its Public Sen. Charles Grassley Finance Corp. even though the government does not consider the lack of payment a default because it is a moral obligation that depends on legislative appropriations. Sen. Charles Grassley, the Iowa Republican who is key to advancing Puerto Rico legislation, said in September that the island needs a federal control board to implement necessary reforms but that his Dec. 1 hearing seeks to learn more about the root cause of the fiscal crisis, Bloomberg said. Pierluisi Presses US Attorney General, Other Top Officials on Efforts Against Violent Crime in PR mirandasanjuanstar@gmail.com Puerto Rico Resident Commissioner Pedro Pierluisi continued efforts last week to reduce drug-related violence in Puerto Rico. At a House Judiciary Committee hearing held late in the week, Pierluisi questioned U.S. Attorney General Loretta Lynch about the U.S. Department of Justice s efforts in Puerto Rico to prevent and prosecute violent crime. That afternoon, the resident commissioner met in his office with the Drug Enforcement Administration (DEA) Acting Administrator Chuck Rosenberg, to discuss the DEA s initiatives to combat drug trafficking and associated violence in the U.S. territory, which is a major transshipment point for drug traffickers seeking to transport narcotics from South America to the mainland U.S. During his tenure in Congress, Pierluisi has personally met with or questioned Attorney General Lynch; her predecessor, Attorney General Eric Holder; U.S. Homeland Security Secretary Jeh Johnson; his predecessor, Janet Napolitano; and top officials at the DEA, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement, the U.S. Coast Guard, and the Deputy Assistant Secretary of Defense for Counter-narcotics and Global Threats. The meetings and rounds of questioning are part of Pierluisi s strategy to urge federal law enforcement agencies to increase the level of personnel and resources they devote to Puerto Rico in order to combat violent crime. As Pierluisi observed to Attorney General Lynch, these enhanced federal efforts are the primary reason why the homicide rate in Puerto Rico has significantly decreased each year since 2011, and why the number of murders in 2015 to date (as of Friday) is on track to be approximately half of the number from just four years ago, when there were 1,136 homicides on the island. That is a remarkable statistic we should be proud of. But we are fighting a determined enemy and the gains we have achieved can be easily reversed unless our efforts are sustained and strengthened, Pierluisi told Lynch. And the fact is, despite recent improvements, Puerto Rico still has a homicide rate far higher than any state. At the hearing, the resident commissioner asked the Attorney General to provide him with information about whether there are enough federal prosecutors assigned to Puerto Rico, urged her to consider including Puerto Rico as a city in a DOJ program -- called the Violence Reduction Network -- that is designed to reduce violence in certain U.S. cities with high crime rates, and sought information about DOJ s efforts to prevent guns from being transported unlawfully from Florida and other states to Puerto Rico for use in criminal activity. Later, at his meeting with the DEA administrator, Pierluisi discussed the agency s ongoing operations in Puerto Rico, staffing levels, cooperation with other agencies, and the DEA s role in executing the Caribbean Border Counter-narcotics Strategy, which was prepared by the White House in January as a result of a federal law secured by Pierluisi and New York Congressman José Serrano. The DEA administrator noted that the agency was extremely focused on public safety in Puerto Rico, pointing out that several of its newly minted agents are headed to the island. At every available opportunity, I meet with senior federal law enforcement officials in both Washington, D.C. and Puerto Rico, the resident commissioner said. In order to build upon our remarkable progress in reducing the homicide rate on the island and protecting our communities, we cannot relax or relent.

8 The San Juan Daily Star Monday, November 23,

9 10 Monday, November 23, 2015 The San Juan Daily Star Pierluisi Lauds Passage of Defense Authorization Act and Provisions for PR Puerto Rico Resident Commissioner Pedro Pierluisi welcomed the passage by the U.S. House of Representatives and the U.S. Senate of the Fiscal Year 2016 National Defense Authorization Act (NDAA), which was announced late last week. The NDAA includes important provisions for Puerto Rico, which is home to many men and women who serve on active duty in the reserves and in the Puerto Rico National Guard. Pedro Pierluisi More specifically, the bill authorizes an appropriation of $10.2 million to construct a new main gate at Ft. Buchanan to improve security and reduce traffic, reforms the military retirement system to benefit the 83 percent of service members in the nation who serve for fewer than 20 years, and makes changes to the Small Business Administration s HUB Zone program that could benefit small businesses located within the boundaries of the former naval station at Roosevelt Roads or within 30 miles of the former base. The bill has now been sent to President Obama for his signature. Ft. Buchanan is Puerto Rico s largest military installation, spanning nearly 750 acres between the municipalities of Bayamón and Guaynabo. It is home to the U.S. Army Reserve s 1st Mission Support Command, which has deployed more than 4,000 soldiers since September The U.S. Army Reserve has a total of 18 facilities (including Ft. Buchanan), more than 5,000 soldiers, and more than 180 civilians in Puerto Rico. In 2014, the U.S. Army Reserve injected nearly $200 million into the Puerto Rico economy. Ft. Buchanan is also home to numerous Puerto Rico National Guard facilities, including the new headquarters building. Other tenants at the installation include the U.S. Navy and the U.S. Marine Corps. The installation also houses an elementary, middle and high school; a health clinic, a commissary, and a Warrior Transition Unit that provides personalized support to wounded or ill service members. The current main gate at Ft. Buchanan, which was built in 1987, is deficient in numerous respects, failing to meet Department of Defense standards and creating security concerns. Construction of a new access control point with this $10.2 million in federal funding is estimated to begin in April 2016 and to be completed in April The two-year project will include the construction of barriers, vehicle presence detectors, traffic signals and guard booths, and will entail the demolition of several unnecessary buildings. I am proud to support this project, which will help ensure the safety of uniformed and civilian personnel working at Ft. Buchanan as well as the children who attend the on-base school. The project will also greatly improve overall traffic flow in and out of the busy military post, Pierluisi said. I want to thank my colleagues in Congress for agreeing to authorize funding for this project on an expedited schedule, since originally the project was not supposed to begin this fiscal year. The 2016 NDAA would also provide an important benefit for service members who do not make the military their career and who leave before having served for 20 years. New service members joining on or after January 2018 would be Roosevelt Roads provided a government-matching Thrift Savings Plan (TSP) retirement benefit at 3 percent of their pay, with a 1 percent government match. Under the provision, the government match could go as high as 5 percent, if the service member contributed that amount. At present, members of the military can contribute to a TSP, but are not enrolled automatically and do not receive a matching contribution from the government. The new benefit will provide a retirement annuity equal to 40 percent basic pay at 20 years of service and would authorize continuation pay at 12 years of service as a retention incentive. This benefit would also be available to uniformed members who began their service before 2018 if they voluntarily choose to opt in to the new plan. Finally, the 2016 NDAA makes important improvements to the HUB Zone program under which small businesses can compete for federal contracts. The final bill includes a provision that would expand the HUB Zone program definition of a military base closure area to make it easier for small businesses located in or near such areas, like the former naval station at Roosevelt Roads, to meet the HUB Zone program s requirement that at least 35 percent of its employees reside in that area. I am a strong supporter of the HUB Zone program because it means that small businesses located in the most economically challenged areas of our island can register with the U.S. Small Business Administration to compete with preference for federal contracts, Pierluisi said. Previously, the law required at least 35 percent of employees to reside within the actual boundaries of a closed military base in order for the small business to become HUB Zone eligible. The final bill expands the boundaries for the residence requirement to include all census tracts that border the former military base property, which means that the Roosevelt Roads HUB Zone area will now be expanded to encompass significant portions at the municipality of Ceiba. The bill also extends the HUB Zone eligibility time period for the former Roosevelt Roads HUB Zone area, which was officially designated this past May, from five years to eight years. The area will now be a HUB Zone through at least 2023, as opposed to 2020, giving small businesses that would locate there or that have at least 35 percent of employees residing there a competitive advantage in securing federal contracts. I supported these NDAA provisions because they increase the chances that some of our small businesses in Puerto Rico may be able to become HUB Zone-certified and grow their business with federal dollars, Pierluisi said.