Puerto Rican Statehood St. John Preparatory School - Danvers, Massachusetts - December 2018

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Puerto Rican Statehood St. John Preparatory School - Danvers, Massachusetts - December 2018

Letter From the Chair Dear Delegates, My name is William Boemer and I am a sophomore at St. John's Prep, and the Model UN Under Secretary for External Affairs. Although this is only my second year in high school Model UN, I have participated in MUN for five years: in both of my middle schools and here at St. John s. I have attended numerous conferences at different high schools and colleges across the region and some of my best memories are from the Boston College High and Sandwich High School conferences. Other than Model UN, I am swimmer on the Prep s swim team, a writer for the student newspaper, bass guitarist and have worked on a myriad of political campaigns. When researching topics for this committee I took a particular interest in territorial issues across the world, and the most interesting to me is the debate on the political and identity crisis in Puerto Rico. As with all conferences collaboration is key, and I look forward to watching you all working with your fellow representatives to contribute perspectives towards a solution. Keep in mind that 6 of you will be representing the Puerto Rican delegation and although you do not have voting powers, your contribution to the committee is still extremely critical as you will be representing the commonwealth of Puerto Rico and their desire for statehood. I look forward to meeting you all on December 8th, and if you have any questions or just want to introduce yourself please feel free to reach out to me at wboemer21@stjohnsprep.org. Best wishes, William Boemer SJP 21 SJPMUN XIII Under Secretary for External Affairs

Committee Description After the passing of the 2018 Puerto Rican Admissions Act, Resident Commissioner Jennifer González, the representative to the US Congress, and leaders from the Commonwealth of Puerto Rico began the process of making Puerto Rico the 51st state. As part of this statehood legislation, a Congressional Task Force on Equality for American Citizens of Puerto Rico is to be created in order to examine the proposal for statehood. This Ad Hoc committee will be comprised of members from the House of Representatives as well as representatives from the Commonwealth of Puerto Rico. The representatives from Puerto Rico are a delegation sent to Washington to present their case for statehood. This House committee will consider their proposal while working towards a comprehensive resolution that works to benefit both the mainland US and the Commonwealth of Puerto Rico. The Puerto Rican Representatives do not have voting power, but do have the power to introduce directives and collaborate with their peers. Only members of the House of Representatives have the power to vote on directives proposed by other members of the committee. However, members of the Puerto Rican delegation may still sign directives as signatories and sponsors. Instead of passing one resolution, delegates will present and vote on a series of directives. As topics come up in discussion, delegates will pass derivatives that are recommendations for laws and policies that will be brought to the entire HoR. Directives are smaller resolutions designed to address a single topic, which in this case would be the topics outlined in the questions to consider. The directives will be voted on by a simple majority and will later be combined and revised into a final resolution that will take the form of an a reform package that recommends either enabling act or amendments to the territorial status. In addition, the final

resolution will also addresses the questions to consider, by proposing economic and political changes that benefit the people of Puerto Rico. The reform package will be voted on by all members of with voting power, but the voices of the Puerto Rican delegates should be considered during the revising process.

Statement of the Problem This committee will address the creation of an enabling act, or amendment to the territorial status. An enabling act is an act passed by Congress that admits a new state into the union. This task force has the power to make a recommendation to the entire house on whether or not to pass an enabling act or pass amendments to Puerto Rico s commonwealth statutes. Puerto Rico s current political status is an unincorporated commonwealth territory of the United States, which means they are somewhere between a state and an independent nation. Due to the statehood bill that was filed, the task force must make recommendations to change Puerto Rico s political status by either amending the current territorial status to better suit their needs, or to accept their proposal and admit Puerto Rico as a state. As part of changing Puerto Rico s political status three topics need to be addressed: the status of existing laws that only apply to Puerto Rico; economic support for debt relief, hurricane recovery, and for their transition to statehood; and, reorganization of federal and state institutions on the island. In addition, the committee must examine the effects on the United States should Puerto Rico become a state or have their political status amended. This discussion will allow the committee to decide which solution is most beneficial to Puerto Rico and the United States, while taking into account the other possibility of amending Puerto Rico s commonwealth status by making recommendations on changes that better suit their needs. The first topics the task force is concerned with changing of laws that apply specifically to Puerto Rico. In order for Puerto Rico to become a state or have its territorial status amended, certain previously passed legislation that apply differently to Puerto Rico than other US States would have to removed or amended. This would include laws such as the Jones Act and other measures that affect Puerto Rico but not other states. The committee should regard

economic support for the transition as equally important: including hurricane and infrastructure recovery, temporary and permanent debt relief policies, and measures to support citizens and organizations on the island in need of financial support. These financial policies could also be implemented if the task force moves in a direction of amending the territorial status. Finally, this task force must assist Puerto Rico in organizing the federal and state government on the island, establishing congressional districts, and setting up future federal elections. This will also include giving Puerto Rican citizens voting rights and more representation regardless of statehood or amendments to territorial status.

History of the Problem On June 11, 2017, a fifth statehood referendum was held across the island of Puerto Rico to choose statehood, independence, or amendments to the current territorial status. Those citizens who voted chose statehood by 97.18% with 1.50% favoring independence and 1.32% favoring commonwealth status. However, only 23% of the population turned out to vote due to a boycott led by the pro-commonwealth PPD party. In June 2018, Puerto Rican Representative Jenniffer González filed a bipartisan bill sponsored by 34 other representatives that would pave the way for Puerto Rico to become a state by 2021. González s bill would change the longstanding political status of Puerto Rico as an unincorporated territory of the United States. To understand some of the nuances of Puerto Rico s bid for statehood, examine the arguments used by Hawaii such as those in this article. Beginning in 1898 at the end of the Spanish American War, the Treaty of Paris ceded Puerto Rico and other lands from Spain to the United States. From that time until 1900, Puerto Rico was ruled by a military government of the United States until the Foraker Act was passed in 1900. This act made sure all laws that apply to the United States also apply to Puerto Rico and grant the island US support and protection. The act also gave American citizenship to Puerto Rican citizens and appointed a civilian government which included a governor and a thirty-five person legislature. The legislative assembly on the island includes a House and Senate which, until 2016, controlled much of the affairs on the island. In 1920, Puerto Rico was hit with the Jones Act by the United States, in order to protect US ports from foreign intrusion. This made it more difficult to trade with the island and caused the prices on imports and exports to grow. This act dramatically changed Puerto Rico s

economy, as it discouraged trade with the US and made it extremely difficult to transport goods between Puerto Rico and the United States. Twenty years later, in 1940, the US began a series of economic measures known as Operation Bootstrap. Operation bootstrap was designed to boost industry, job markets and economic success in Puerto Rico. The operation involved the US mandating lower tax and labor costs in Puerto Rico, giving access to contiguous US markets without import duties, and the ability to transfer profits from the island to the mainland without federal tax. Operation Bootstrap was originally celebrated as a great success, but when unemployment and labor costs grew on the island, the success of the act was dramatically hampered. Despite some negative results, Puerto Rico still remains one of the US s largest trading partners, as it receives 86% of Puerto Rico s exports, and the US provides 69% of Puerto Rican imports. In 1996 the favorable tax codes on the island were phased out in favor of harsher codes, different from US tax codes on US states. These favorable tax codes had subsidized the Puerto Rican economy for years. As a result of withdrawing this support, Puerto Rican authorities tried to make up for the shortfall by issuing bonds to foreign companies. Due to this, the debt of the island soared to a national record 74 billion. Puerto Rico is not protected by Chapter 9 of the U.S. Bankruptcy Code, therefore the territory cannot file for bankruptcy. As the debt worsened, Congress passed the Puerto Rico Oversight Management and Economic Stability Act, or PROMESA. The act was designed to provide a federally appointed board to offer solutions to the debt crisis however, This severely in only limited the powers of the government on the island in order to resolve the growing debt crisis. The bill was criticized, as it did not allow Puerto Rico to declare bankruptcy, apply for statehood, or work towards a better solution.

Despite the tenuous relations between the US and Puerto Rico, relations with the mainland still remain strong. Recently, increasing economic disparity in Puerto Rico and their believed second class status eventually lead to a series of referendum votes held on the island. The first of 5 referendums were held in 1967 to determine the political status of the island. In 1967 the majority 60.4% voted for commonwealth status with 39.0% choosing statehood. Commonwealth status, is a cross between statehood and independence. It means that some basic rights and laws apply to Puerto Rican citizens, while also allowing the government to run the affairs of the island. In 1993 and 1998 the numbers in favor of commonwealth status began to decline sharply with 48.0% and 0.0% respectfully. In 1998 50.0% of voters selected none of the above due to the option being favored by supporters of the commonwealth movement. In 2012 an overwhelming 61.2% voted in favor of statehood and in 2017 the numbers swelled again to 97.18% favoring statehood. Despite these increasingly large numbers in favor of statehood, the only truly accurate numbers are from 1993 and 2012 as they both represent years were boycotting did not affect the outcome. A year prior the the 5th referendum Puerto Rico was devastated by hurricane Maria and this brought the calls for statehood back into the mainstream light. President Trump made the decision to temporarily repeal the Jones act in order to bring aid and relief to the island, but the lack of an organized federal response drew arguments for statehood. A 2017 poll showed a majority of hurricane survivors favored statehood. The widespread devastation on the island drove resident commissioner Jennifer Gonzales to call the matter of statehood a civil rights issue and proposed the bipartisan Puerto Rico admissions act of 2018. She argued that the citizens of Puerto Rico had been treated as second class citizens for far to long and that the time, almost a year after the hurricane, had made the need far more dire. This

bill calls on Congress to assemble a task force on Puerto Rican statehood and to examine the causes need to pass an enabling act. As of right now the bill has not been voted on, but should it be passed, the task force assembled in this committee would begin the measures of bringing Puerto Rico into the United States.

Questions to Consider 1) Should this task force consider recommending statehood and passing and enabling act, or recommend amendments to the current territorial status? 2) What are the causes for the Puerto Rican debt? Where does the direct and indirect responsibility lie? Are there alternatives to Chapter 9 bankruptcy protection for dealing with Puerto Rican debt? 3) What are the net benefits/disadvantages to the US of taxes on Puerto Rico? Should the tax code for Puerto Rico be revised to be consistent with other US states? 4) How will statehood or territorial status change fiscal and economic status of US business practices in Puerto Rico? 5) How can, and should, the Jones Act and PROMESA, the Puerto Rico Oversight, Management, and Economic Stability Act, be amended? The Jones Act states that foreign vessels cannot enter Puerto Rican ports without paying high dues, which are often passed onto the customers and businesses. PROMESA gives a lot of control over Puerto Rican fiscal policy to the federal government. 6) How could the job creation and economic incentive policies outlined in operation bootstrap be used to support Puerto Rico s economy today?

Bloc positions Conservative states: Most conservative states would want an improved trade and economic deal with the new state of Puerto Rico. They mostly support statehood, but do not want the burden of the debt and economic crisis to fall on the United States. They want to continue relations while overseeing affairs of the island once they are a state in order to get them on their feet. Conservatives also support a business initiative to bring industry and jobs back to the island, and do not feel that increased government spending is a solution to the debt and Economic problems. Lastly, conservatives strongly opposed the 2016 PROMESA bill as they thought it did not offer solutions while it stripped economic power away from the Puerto Rican government. Liberal States: Liberals want to see the removal of harsh trade and tax deals and want Puerto Rico to be able to exercise control over their own affairs. They support statehood and the rights it entails to Puerto Rican citizens as a question of civil rights. They support debt relief and the repeal of laws that negatively impact Puerto Rico s economy, while still however supporting PROMESA as they felt a board could offer insights and solutions to the crisis. Puerto Rico: Puerto Rico is looking for the power to exercise sovereignty over their own affairs in their push for statehood. They feel that they should be entitled to all the rights and benefits of other US citizens, and as such should have rights like voting in federal elections. They also are looking for support from the ongoing economic and debt crisis, and feel statehood is a viable solution to the problem. They feel that increased government funding and changing of laws is needed in order to pay of the debt and deal with the economic crisis.

Works Consulted PROMESA. Wikipedia, Wikimedia Foundation, 4 Nov. 2018, en.m.wikipedia.org/ wiki/promesa. Denis, Nelson A. The Jones Act: The Law Strangling Puerto Rico. The New York Times, The New York Times, 26 Sept. 2017, www.nytimes.com/2017/09/25/opinion/hurricane-puerto-rico-jones-act.html. Here's Why Puerto Rico Is Part of the U.S. - Sort Of History. YouTube, YouTube, 11 Apr. 2018, m.youtube.com/watch?v=bx_o1pwhdla. Floor Statement on The Puerto Rico Admission Act of 2018 (HR 6246). Congresswoman Jenniffer González-Colón, 11 July 2018, gonzalez-colon.house.gov/media/press-releases/floor-statement-puerto-rico-admission-ac t-2018-hr-6246. González, Jenniffer. Jenniffer González-Colón Files Admission Act to Make Puerto Rico a State. Congresswoman Jenniffer González-Colón, 29 June 2018, gonzalez-colon.house.gov/media/press-releases/jenniffer-gonz-lez-col-n-files-admissionact-make-puerto-rico-state. Campbell, Alexia Fernández. Puerto Rico's Push for Statehood, Explained. Vox.com, Vox Media, 24 Sept. 2018, www.vox.com/policy-and-politics/2018/1/11/15782544/puerto-rico-pushes-for-statehood -explained. Editor, Crystal Lombardo - Chief. 17 Big Pros and Cons of Puerto Rico Becoming a

State. Green Garage, 14 Jan. 2017, greengarageblog.org/17-big-pros-and-cons-of-puerto-rico-becoming-a-state. Toro, Juan Ruiz. Puerto Rico s Operation Bootstrap. Modern Latin America, library.brown.edu/create/modernlatinamerica/chapters/chapter-12-strategies-for-economi c-developmen/puerto-ricos-operation-bootstrap/..