The Weekly Journal - Wednesday, July 14, 2021

Wednesday, July 14-20, 2021 - // no. 116

Questions on Puerto Rico’s Economic Growth P6-7 Tourism Rebound in Full Force P8 Bayer’s Capital Investments in the South P9

Puerto Rico and the Caribbean

www.theweeklyjournal.com

DDEC Supports Acts 20/22 Lawmakers debate the future of two incentive laws

T Rosario Fajardo

is your a/c summer ready? P13

rfajardo@wjournalpr.com

@RosarioWJournal

he Economic Development Department (DDEC by its Spanish acronym) remains solid in its backing of Acts 20/22, two incentive laws that have generated some controversy, in part by claims that they have not generated the expected investments or job creation on the

island.

“Studies have shown that these laws have been positive for the economy of Puerto Rico. They provide

economic activity that we may not otherwise receive. Repealing these laws would give the false impression that Puerto Rico is not open for business,” thus hampering much-needed investment, said Carlos Fontán, the executive director of DDEC’s Office of Business Incentives.

He testified during a Puerto Rico Senate Treasury Committee hearing on the matter earlier this week.

Act 20 provides incentives for exporting services that include a 4 percent fixed taxed rate.

Among the eligible business include research and GO TO PAGE 4

The Weekly Journal > Wednesday, July 14, 2021 > 2

3

/ Wednesday, July 14, 2021

a week in review Multimillion-Dollar Funding Available for SMEs

Moïse Assassination Sparks Unrest, Military Presence Haiti President Jovenel Moïse was assassinated on July 7 in his private residence amid claims of corruption and his administration’s intent to alter the Caribbean country’s constitution. Wary of the civil unrest that ensued and mass migration, the neighboring Dominican Republic stationed over 9,000 soldiers along the border, plus Haiti sealed its exit points, including the international airport. The Haitian community in Puerto Rico told THE WEEKLY JOURNAL that they were dismayed by the events and called for a peaceful and democratic resolution.

Powered BY El Vocero de Puerto Rico, 1064 Ave Ponce de León 2nd floor San Juan, PR Postal Address: PO Box 15074, San Juan, PR 00902

President Salvador Hasbún shasbun@elvocero.com Vp of Marketing and Business Operations Michelle Pérez Miperez@elvocero.com

>Archive

Housing Secretary William Rodríguez invited all small and midsize enterprises (SMEs) to continue applying for financial aid for eligible businesses impacted by hurricanes Irma and Maria, with up to $50,000 available each. The Small Business Financing Program has $225 million available from CDBG-DR funds, of which $24.5 million have been disbursed. The incentive can be used to cover six months of operating capital expenses, including inventory and payrolls. For more information, visit www. ayudaparatunegocio.org.

Puerto Rico Gov’t Allocates $15 Million to Nonprofits The Fiscal Agency and Financial Advisory Authority (AAFAF by its Spanish acronym) reported that $15 million will be disbursed to nonprofits, as part of the Non-Profit Organization Assistance Program to mitigate the economic impact of the COVID-19 pandemic. The program’s funds may be obligated for expenses like rent assistance and income loss compensation to individuals, among others. Interested parties must submit their applications to crfngo@aafaf.prgov.

VP of Accounting Félix A. Rosa frosa@elvocero.com

Human Resources Director Arlene Rolón, PHR arolon@elvocero.com

VP of Editorial Content Juan Miguel Muñiz Guzmán jmuniz@elvocero.com

VP of Production Eligio Dekony edekony@elvocero.com

Traffic Director Ilia M. Pérez Centeno iperez@elvocero.com

Multi-Platform Graphic Director Héctor L. Vázquez hvazquez@elvocero.com

Multi-Plataform Digital Director María Arce marce@elvocero.com

Phone: 787-622-2300, 787-721-2300

Assistant Editor/ Reporter Rosario Fajardo rfajardo@wjournal.com

Customer Service: 787-622-7480

4

/ Wednesday, July 14, 2021

The Senate Treasury Committee, chaired by Popular Democratic Party Sen. Juan Zaragoza, held a public hearing on Monday over Senate Bill 40, which proposes to repeal Acts 20 and 22.

During the hearing, there was a heated debate on the issue between Zaragoza, a former Puerto Rico Treasury secretary, and Fontán. “This Act 22 thing out there is messed up, but messed up to the point that you know that there is a - no longer so prestigious - firm of CPAs, whose founding partners are accused in federal court; one of them accused of a fraud scheme with Acts 20 and 22, which actively promoted these schemes among their clients,” Zaragoza stated.

Warnings of a Legal Limbo

Generous tax incentives and a high-end Caribbean lifestyle lure many Acts 20/22 investors to Puerto Rico. >Archive

CONTINUED FROM PAGE 1 development; advertising and public relations; and economic, environmental, technological, scientific, managerial, marketing, human resources, computer and auditing consulting services. The aim of Act 20 is to develop Puerto Rico as an international export services center and diversify the drivers of economic growth by encouraging local service providers to expand their services to persons outside of Puerto Rico, and attract new businesses to Puerto Rico.

Act 22, meanwhile, provides passive income and capital gains tax exemptions for high-net-worth individuals who relocate to the island. Under the law, capital gains are also exempt from federal taxes. Act 22 seeks to attract new residents to Puerto Rico by providing a total exemption from Puerto Rico income taxes on all passive income realized or accrued after such individuals become bona fide residents of Puerto Rico. “This relocation should result in new local investments in real estate, services, and other consumer products, and in capital injections to the Puerto Rico banking sector, all of which will stimulate the economy of Puerto Rico,” according to DDEC.

We are beginning to be more rigorous in the evaluation of granting incentives, to ensure that the applications we approve represent the best interests of Puerto Rico.

-Carlos Fontán, the executive director of DDEC’s Office of Business Incentives

Nine years after the approval of the measures that seek to stimulate export services (Act 20) and the arrival of high-net-worth investors in Puerto Rico (Act 22), the Legislature is evaluating their possible repeal or amendment, while the Executive branch continues to defends both law, arguing that they have contributed to the local economy and that eliminating them would spark a “legal limbo.”

But Fontán affirmed that the federal fraud case against CPA Gabriel F. Hernández, a partner of the now-defunct firm BDO Puerto Rico, cannot be generalized, and assured that he knows of other firms and beneficiaries of Act 22 who are responsible and who follow the terms and conditions of the tax exemption law. Fontán also argued that repealing both statutes would create a legal limbo.

“If the laws are repealed, you create a legal limbo for me because, how am I going to proceed to revoke a decree (of tax exemption) when the legal provision to which it refers... belongs to a law that was repealed? That is why incentive laws historically are not repealed,” the DDEC official stated.

In response, New Progressive Party Sen. Migdalia Padilla pointed out that the incentive laws can be amended. “The word repeal is serious. Now, we can give it some claws,” she said.

Speaking to THE WEEKLY JOURNAL, Zaragoza agreed with the possibility of amending Act 22 through the creation of another bill. “Act 22 has its results, but Act 22 has its flaws. But considering the appetite of certain people to come to Puerto Rico, it is necessary to see if the investment requirements can be increased,” he asserted.

The director of DDEC’s Legal Advice Office, Carlos Ríos, said that eliminating both laws would create the false impression that Puerto Rico is not open for business. “It is an economic activity that would hardly occur except for the incentives offered,” he argued.

Latest Study on Acts 20/22

According to the latest study commissioned

by DDEC, between 2012 and 2017, the two incentive laws created an estimated 33,000 new jobs in Puerto Rico, which helped bump Puerto Rico’s employment rate by 3 percent and total production by 2 percent. Without these incentive laws, the island’s Economic Activity Index would reportedly have been 2.64 points lower.

As of 2017, there were 1,332 individuals and their families living in Puerto Rico with Act 22 decrees and another 781 decrees awarded under Act 20. The number of decree holders has continued to increase in recent years, although there was a “pause” in 2020 due to the COVID-19 pandemic. In recent months, though, 579 additional decrees were approved for Act 20 and another 710 for Act 20.

5

/ Wednesday, July 14, 2021

Many Acts 20/22 decree holders live in the Condado area of San Juan, as well as Dorado and Old San Juan. >Archive

overhauling them to maximize their potential,” been improving compliance efforts and to date, has identified 1,086 decree holders who have according to the study. been notified about possible non-compliance Revamping these incentive laws include conditioning participation to on various issues. Specifically, creating at least 10 new jobs over 60 decrees are now in Puerto Rico, establish a under evaluation for a possible minimum capital gains tax of 12 revocation. percent for Act 22 decrees, an “We are beginning to be more DDEC has rigorous in the evaluation of increase property taxes on luxury identified 1,086 granting incentives, to ensure properties, generally defined as decree holders who that the applications we approve those properties that are valued have been notified represent the best interests of within the top 10 percent of the about possible Puerto Rico,” he added. local market. non-compliance Further, the study says to help on various issues. promote economic activity, that Protests Against the Specifically, over Act 22 decrees should not be Incentive Laws 60 decrees are now given to those who do not want As the debate ensued during under evaluation to do business in Puerto Rico, the legislative hearing, protests for a possible have a net worth that is less than were held in front of the revocation. $10 million or those who would Capitol to demand the repeal transfer less than 25 percent of of both laws. Diego Norat, a their capital to the island. spokesperson for the Youth of Many Act 20 decree holders the Puerto Rican Independence live in Dorado, Condado, Old Party, opined that the laws “create a tax apartheid San Juan, and the study indicates that buying in our country,” adding that they also “displace properties, whether as a primary or second our people, impoverish our communities and are residence, should not be counted as part of these detrimental to any full economic development.” individuals’ investment requirements.

Likewise, Joselyn Velázquez, a spokesperson In addition, the study recommends improving of Jornada Se Acabaron Las Promesas (“Time the the supervision of decree holders, which has been Promises Are Over”), said that “the claim is very dragging for several years. For example, every simple - those laws have to be repealed because year, decree holders must file 1040R and 940R tax when a project does not work, well, it has to be forms, as part of updating their financial situations, eliminated, it has to be removed.” including reporting payroll expenses.

-Reporter Yaritza Rivera Clemente contributed to In response, Fontán noted that DDEC has this story.

In fact,

Popular Democratic Party Sen. Juan Zaragoza, who is also a former Puerto Rico Treasury secretary >Carlos Rivera Giusti

The study was conducted by Econometrika Corp., which is headed by economist José Caraballo Cueto, who is also a professor at the University of Puerto Rico’s Cayey Campus.

“We do not recommend the repeal of Acts 20, 22 and 273 [on tax incentives for international banking activities]. Rather, we recommend

6

/ Wednesday, July 14, 2021

The Puerto Rico government’s most recent audited financial statement corresponds to fiscal year 2017. >Archive

Puerto Rico’s Ability to Foster Sustained Economic Growth ‘Uncertain’

GAO shares findings in latest report on the island’s debt

I

Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

n its most recent report, the U.S. Government Accountability Office (GAO) outlined the public debt outlook for the U.S. territories, including Puerto Rico, six years after the central government said the debt was “not payable” and five years after the creation of the Financial Oversight and Management Board (FOMB) under

the federal PROMESA law.

With regard to Puerto Rico, the GAO underscored that the island has been in default since Aug. 2015, and debt restructuring agreements were finalized without audited financial statements. It was not until 2018 when the government achieved its first debt restructuring agreement through the Title VI restructuring process established by PROMESA. Since then, Puerto Rico has entered other restructuring agreements, the most noteworthy of which include those for the P.R. Aqueduct and Sewer Authority, the Sales Tax Financing Corp., and the P.R. Electric Power Authority.

However, the GAO noted that the government

of Puerto Rico has failed to provide the audited financial information corresponding to fiscal years (FYs) 2018 and 2019.

“As we have reported previously, the timely release of audited financial information has been a long-standing challenge for Puerto Rico.

Generally, municipal issuers are required to submit audited financial statements nine months after the end of the fiscal year. Currently, Puerto Rico’s fiscal year 2018 and fiscal year 2019 audited financial statements are outstanding, and all of the debt restructuring agreements were made absent timely audited financial statements,” the report states, adding that “audited financial statements provide useful and necessary insight

7

/ Wednesday, July 14, 2021 into government operations and are critical to maintaining accountability.”

Therefore, the most recent data is from FY 2017. When comparing data from FYs 2016 and 2017, the GAO found that the total revenue remained constant between both fiscal years, at roughly $30 billion. “In FY 2017, $21.2 billion in total revenue was generated by the primary government and $8.6 billion was generated by component units. Puerto Rico’s general revenue was $12.3 billion in FY 2016 and increased to $12.5 billion in FY 2017, an overall increase of 2 percent. In FY 2017, program revenue comprised 58 percent of total revenue,” the federal entity disclosed.

Puerto Rico’s total expenses in FY 2016 were $34.9 billion, and $33 billion in the following fiscal year, which represents a decline of 6 percent in government spending. Of the total expenses reported for FY 2017, $21.6 billion were incurred by the central government and $11.3 billion by the government’s multiple component units.

“Puerto Rico’s longstanding deficits persisted in 2017, as expenses exceeded revenue by about $3.1 billion,” the agency observed, adding that Puerto Rico had a deficit of $5 billion in FY 2016.

As such, federal funding may have a stimulative effect on the economy [of Puerto Rico] that can generate economic growth, which increases tax revenue and the ability to repay debt.

-GAO report

Moving Forward

The GAO affirmed that there are two significant factors that will determine Puerto Rico’s future capacity to repay its restructured debt - the outcome of the ongoing debt restructuring process, and Puerto Rico’s ability to generate sustained economic growth. Moreover, the disbursement of federal funds will also impact the island’s economic outlook.

“Puerto Rico’s future ability to repay its restructured debt will ultimately depend on the outcome of all outstanding debt restructuring agreements, including pending agreements, and on the terms of repayment established with creditors, including interest rates and debt repayment schedules,” the report details.

Alas, the GAO said that the effect of the COVID-19 pandemic on Puerto Rico’s ability to foster sustained economic growth is uncertain.

The FOMB’s Fiscal Plan for the Puerto Rico government, certified in April 2021, contemplates an estimated $43.5 billion in federal coronavirusrelated funding, in addition to the expected $84 billion in disaster relief funding, mainly from Hurricane Maria in 2017.

The plan outlines that, based on how these funds are spent, they “will impact the economy in various ways, such as building the capital stock of the territory through constructing and

repairing buildings or utilities, directly affecting the economy through spurring consumption of goods and services, or funding programs and services. As such, federal funding may have a stimulative effect on the economy that can generate economic growth, which increases tax revenue and the ability to repay debt.”

helping stabilize the island’s economy through tourism.

AAFAF Reacts

Omar J. Marrero Díaz, executive director of the Fiscal Agency and Financial Advisory Authority (AAFAF by Spanish acronym), addressed a letter to Gene Dodaro, the Comptroller General of Challenges Ahead the United States, in regard to the report. In the But there are still roadblocks missive, Marrero highlighted ahead. One of these is the the successful restructurings migration pattern of Puerto of several agencies and the Ricans moving to the U.S. administration’s efforts to boost mainland. In fact, the Oversight public transparency, although he The FOMB’s Board’s Fiscal Plan estimates acknowledged the delay of the Fiscal Plan for that by 2026, there will be 10 government’s audited financial the Puerto Rico percent fewer people living on statements. government, the island than there were in However, he differed from certified in April FY 2019, and by FY 2051 that GAO’s assessment on the 2021, contemplates decline is expected to grow to 33 factors that would sway the an estimated $43.5 percent. “Outmigration results in government’s ability to repay the billion in federal a diminished workforce and tax debt. “The Government objects coronavirus-related base, which strains a territory’s to GAO’s statement related to funding, in addition economy and finances,” the GAO the disbursement of federal to the expected $84 noted. funding as a factor influencing billion in disaster In addition, the local Puerto Rico’s ability to repay its relief funding, mainly government’s three main public debt. Federal funding received from Hurricane Maria pension systems are “nearly

by Puerto Rico is strictly used for in 2017. insolvent,” while its units reported the intended purposes and is a combined net pension liability never considered as a source of of roughly $56 billion as of the repayment for public debt,” he end of FY 2017, which was 81 argued. percent of the Gross National He added that “several federal Product (GNP) that year. actions are central to addressing Puerto Rico’s Meanwhile, the GAO noted that tourism — economic and fiscal viability.” Specifically, Marrero which typically made up 8 percent of underscored congressional and Executive actions Puerto Rico’s economy prior needed to address critical challenges, among to the pandemic— was which he pointed to matching Medicaid funding severely affected by the received on the island to that of a state, as well coronavirus, contributing as providing “full extension” of the Child Tax to losses in government Credit and the Earned Income Tax Credit to revenue. For instance, Puerto Rico families. This, he said, “could there were 402,960 make a very big difference in improving the air arrivals in Puerto conditions for economic growth to take place Rico in Aug. 2019 in the territory.” versus 141,413 in Marrero, who was appointed by a proAug. 2020. To tackle statehood administration, also called to this, Discover Puerto resolve the island’s “undemocratic and unequal” Rico —the island’s territorial status. “The question of Puerto Rico’s destination marketing ultimate political status and relationship with the organization (DMO)— Federal Government is inherently linked to the shared last week island’s prospects for economic growth, and details of its new therefore its capacity to repay its debts. By strategic business allowing Congress and the federal marketing plan Executive Branch to treat Puerto for 2021 Rico differently and in and ways that discriminate 2022. In against the island it, the and its residents, the DMO current territorial set a status inherently limits goal economic growth,” he of asserted.

In fact,

AAFAF Executive Director Omar Marrero listed federal actions needed to address critical challenges that Puerto Rico continues to face. >Brandon Cruz González

8

>Josian E. Bruno Gómez

/ Wednesday, July 14, 2021

Record Tourism Numbers for Puerto Rico

Key metrics show occupancy, revenue currently outpacing 2019

T Rosario Fajardo

rfajardo@wjournalpr.com

@RosarioWJournal

he “Great Recovery” of travel and tourism in Puerto Rico is moving forward at an impressive pace, as shown by Discover Puerto Rico’s latest data, released during the July Industry Update. Visitor numbers continue to grow, occupancy has reached unprecedented peaks, and revenue from visitor spending and taxes are at an all-time high.

Room nights sold have surpassed 2019, the island’s best year to date, for eight consecutive weeks, while meetings and convention leads have outpaced 2019 for eight of the last 10 weeks.

“Despite facing many challenges stemming from the pandemic, the tourism community in Puerto Rico is once again showing the world its strength and resiliency,” said Brad Dean, CEO of Discover Puerto Rico.

The last eight weeks have shown that Puerto Rico’s tourism recovery is exceeding that of other U.S. states and territories. For instance, hotel occupancy rates are 15 percent higher than 2019, while the rest of the United States is showing hotel occupancy to be 7.5 percent below where it was two years ago.

Interestingly, the high hotel demand has not

the San Juan metro area, has continued to report been fueled by low rates. Rates are 37 percent strong visitor numbers for the island’s main higher than they were during the comparable airport. When compared to the pandemic levels period in 2019 and the Puerto Rico Tourism of June 2020, passenger traffic has increased in Company reported that taxes collected in May Puerto Rico by a dramatic 372 percent. In June were 53 percent higher than two years ago. While 2020, during the height of the pandemic, only final numbers for June have not yet been released, tax collections for the month are expected to be 70 214,009 passenger arrivals were recorded at SJU. However, this number jumped percent higher than in 2019. to 1,009,754 last month, the Puerto Rico is also company reported. outperforming other Caribbean Independent research reveals destinations, both in terms that these results have been of resilience during 2020 and fueled in large part by the in terms of post-pandemic In June marketing strategies and tactics recovery. Adam Sacks, president 2020, during implemented by Discover Puerto of Tourism Economics, shared the height of the Rico, the island’s destination during the Industry Update pandemic, only marketing organization. that the Caribbean as a region 214,009 passenger According to tracking technology experienced at 68 percent decline arrivals were provided by Adara, consumers in visitor numbers during 2020, recorded at SJU. exposed to Discover Puerto while Puerto Rico’s was at 47 However, this Rico’s ads are not only more percent. In 2021, even by the number jumped to most conservative estimates, likely to arrive on the island, but 1,009,754 last month. also pay daily rates 34 percent Puerto Rico will bounce back to higher than the average and stay 2019 figures, whereas the rest 12 percent longer than other of the region will only see a 39 visitors. percent recovery.

While the increase demand is expected to This trend should continue into 2022, when continue throughout the summer, future booking Puerto Rico is expected to surpass by at least 3 projections show a decline come October. This percent 2019’s numbers, in contrast the rest of slowdown in bookings is consistent with “shoulder the Caribbean, which is expected to be 38 percent season” and further explained by a return to below the number of visitors it had two years ago. normalcy in traveler behavior and the lifting of “If I could grade them, I would say Puerto Rico has restrictions for international travel, according the a Ph.D. in recovery,” said Sacks.

DMO. In tourism parlance, shoulder season is the Grupo Aeroportuario del Sureste, whose travel period between peak and off-peak seasons.

Aerostar Airport Holdings company manages the Luis Muñoz Marín International Airport (SJU) in

In fact,

9

/ Wednesday, July 14, 2021

Bayer Supporting Southern Economy Through Capital Investments Helps local farmers with educational material

B Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

ayer Crop Science Puerto Rico reaffirmed its commitment to supporting the local economy in the southern region, which has been devastated by natural disasters and the pandemic in recent years, and helping local farmers by sharing information on new technologies and methodologies to boost their crops.

Initially stationed in Isabela since 1983, the company - then Monsanto - consolidated its operations in Juana Díaz in 2016. Between 2016 and 2018, Monsanto was acquired by Bayer, and Bayer Crop Science Puerto Rico became formalized in 2019. Over the past decade, Bayer has invested $35 million in its local facility.

According to Miguel Pereira, the Puerto Rico Government Affairs lead at Bayer, their annual payroll ranges between $12 million and $14 million for more than 400 employees, while local purchases oscillate between $10 million and $12 million each year. “We are talking about a significant impact in terms of employment and local purchases in the southern region of Puerto Rico,” he said.

Moreover, Bayer continues to strengthen its plant breeding activities in Puerto Rico through investments in field operations, new breeding technologies and expanded facilities. In the last two fiscal years, these investments totaled $1 million, part of which is related to the expansion project of a smart greenhouse at the Juana Díaz site.

Pereira also informed that Bayer has partnered with the Puerto Rico Farmers Association to offer monthly educational courses, called “Farmer’s Hour,” where the company’s own agronomists and scientists provide conferences on modern agricultural practices. “We enter this other dimension of corporate social responsibility, which is how we help the agricultural sector in Puerto Rico -especially small farmers - to learn the most advanced in terms of the use of technology in agriculture,” he told THE WEEKLY JOURNAL. In the context of the COVID-19 pandemic, during the summer months of June and July 2020, Bayer employees delivered 600 boxes of produce to residents in neighboring communities of Juana Díaz and Santa Isabel. The company procured

Pheromone trap in a cotton field at the Juana Díaz Bayer site >Courtesy

15,000 pounds of products from southern Puerto Rican farmers to prepare the packages. These contained Puerto Rican agricultural products such as melons, peppers, onions, bananas, plantains, mangos, squash, pineapples and papayas.

“We are strongly impacting the economy and the quality of life of the southern region of the country,” Pereira said.

Effective Crop Control

The company’s latest efforts includes sharing its success with multiple pest control methods in the hopes for both commercial farmers and home gardeners to adopt all or some of these practices and boost their production.

Carlos Ruiz, an agronomist and manager of Integrated Pest Management at Bayer in Puerto Rico, explained that integrated pest management is a strategy that combines different control methods. There is a varied range of pest control methods, such as physical, cultural, biological and chemical controls. Also, an integrated plan consists of prevention, monitoring and intervention.

Ruiz observed that in the U.S. mainland and Puerto Rico, up to 30 percent of crops are destroyed by insects annually. By implementing biological methods like products whose active ingredients are bacteria, fungi, viruses or

nematodes, the company had a 95 percent efficacy against those pests.

Meanwhile, up to 45 percent of crops are affected by weeds. To tackle this, Bayer uses agricultural implements such as a logger and field cultivator to control their spread. In the process, the company registered a reduction of up to 60 percent in herbicide applications in one acre of land. This also helps minimize the amounts of active ingredients in these products that go directly to the soil by up to 60 percent.

Furthermore, using data collection and analysis programs in pest monitoring has allowed Bayer to reduce the use of paper by 100 percent and has enabled the company to establish action plans and decisions to control pests more quickly. Some tech integration mechanisms employed include GPS to guide sprinklers and seeders, reducing excess water use in the process, and computer-calculated mix and dosage recipes, among others.

Looking ahead, Bayer will use drones to be more precise when monitoring and applying controls. If implemented islandwide, a technology-driven plan like this, Ruiz said, will greatly benefit crops and bolster Puerto Rico’s agricultural production.

“It is always important to mention that this strategy always seeks to be sustainable and safe for the environment and for the health of employees,” Ruiz stated.

10

/ Wednesday, July 14, 2021

The company produces multimedia campaigns for its clients.

eContent TV Sets its Gaze on Puerto Rico

Will produce campaigns with local talent and export to different markets

F

Giovanna Garofalo

ggarofalo@wjournalpr.com

@giopgarofalo

élix M. Méndez, president and executive producer at eContent TV, informed that his award-winning multimedia production company is expanding its operations to Puerto Rico.

In an interview with THE WEEKLY JOURNAL, Méndez explained that the company is based in New York City, with more offices in London, Mexico and Madrid. A Puerto Rican himself, Méndez highlighted the island’s creative talent, for which he decided to return to his roots and has already begun interviewing local professionals. “The time has come for me to bring this to Puerto Rico because I see that there is a lot of talent in Puerto Rico and I would like to serve the even firmer base in Puerto Rico so that we can launch to all the places we want to go from there,” he affirmed.

The company has not disclosed how much it will invest in its expansion to Puerto Rico, or how many new jobs will be created. Méndez is currently in the process of interviewing prospective staff.

“With each passing day, everything that is digital is becoming the most important thing for people to reach their brands’ potential. The idea we are developing is to optimize Puerto Rico’s talent with aims of generating bilateral value for our clients and the community. The idea is to find new talent in Puerto Rico and launch all that content [to our different markets],” he stated. Although his current

Félix Méndez, president and executive producer of eContent TV, is a Puerto Rican. >Courtesy

clients are based in the U.S. mainland, he seeks to attract new clients and partnerships in the local market.

Originally called eContenido, the company initially produced brand commercials for television outlets. Four years ago - now with a new name - eContent TV shifted its focus to become a multimedia enterprise that develops and produces campaigns for its clients across a variety of platforms, including social media. “We have had a complete 180° from television on the air to launching digital content, while also creating all the content. In addition to that, we do all the analytics, all the reports of all these types of campaigns that we are producing,” Méndez explained. The team of experts analyzes each individual campaign’s performance and adapts according to its

engagement and community reach.

Throughout the coronavirus (COVID-19) pandemic, eContent TV developed different campaigns for one of its clients, the MontefioreEinstein Hospital in New York, revolving around protecting the community against the virus and adopting healthier lifestyles. As the vaccination rollout ensues, the company shifted its message to educate the population on the merits of inoculation.

About a month ago, eContent TV launched its new Diversity Division, focused on guiding enterprises of all sizes on how to incorporate inclusive practices and ensure a welcoming and diverse workplace for people of all backgrounds.

“We still have to decide what the approach to this would be in Puerto Rico, but that is a new achievement that we have made in the past month already - to have a diversity division, because here in the United States, there needs to be equity in all the positions that exist and for all the groups to have participation,” the executive said.

Award-Winning Content

During the 27th edition of the Communications Awards, awarded by the Academy of Visual and Interactive Arts, the company’s subsidiary, eContent Digital, obtained the highest Gold Communicator Award of Excellence in recognition of content and marketing work, as well as the social commitment prioritized in the development of the community campaign “Our Goal: Your Health,” of the Montefiore-Einstein Hospital.

Recently, Méndez also found out that he and his team of young professionals - Yamila Constantino Méndez, Jeffy Carrillo and Loreen Babcock - were also nominated for the Emmys under the Public Service Announcement (Campaign) category for their work in the “¡Somos Lo Que Comemos! (We Are What We Eat!)” campaign.

11

< The Weekly Journal > Wednesday, July 14, 2021

12

/ Wednesday, July 14, 2021

Gavin D. Madakumbura University of California, Los Angeles

T

Global Evidence Links Rise in Extreme Precipitation to Human-Driven Climate Change

he big idea Human activities, such as burning fossil fuels for transportation and electricity, have worsened the intensity of extreme rainfall and snowfall over land in recent decades, not just in a few areas but on a global scale, new research shows.

Past studies were able to attribute individual extreme events and long-term changes in some regions to climate change, but global assessments have been more difficult. We used a new technique to analyze precipitation records from around the world and found conclusive evidence of human influence on extreme precipitation in every one.

Scientists have been warning that rising global temperatures will lead to more extreme precipitation in the future, mainly because warm air “holds” more water vapor in the atmosphere, fueling storms.

With Earth already about 1 degree Celsius (1.8 F) warmer since the start of the industrial era, we wanted to find out if that change had already started.

Past attempts to detect the human influence in historical precipitation records typically required long time series with many consecutive years of data. But precipitation is difficult to monitor over long periods from land or space, so those records are rare.

We found another way.

We used artificial neural networks, a type of machine learning, to find patterns of extreme precipitation in weather records. Once those neural networks understood what to look for, we could analyze shorter and more disparate observational records.

The result is multiple lines of evidence that human activity has intensified extreme precipitation during recent decades. Even when the data sets were widely different, we were able to see the human influence.

The findings were published

July 6, 2021, in the journal Nature Communications.

Why it matters Understanding how humans influence extreme precipitation is important for interpreting climate events today and for preparing cities and protective infrastructure for the changing world ahead.

In recent years, devastating flooding has made headlines after extraordinary rainfall that historically would have been extremely rare.

The 2017 hurricane season in Texas, Florida and Puerto Rico and the extreme monsoon rains over India and Bangladesh in 2017 are two examples. Our results indicate that, as a general rule, precipitation has become more extreme around the world in recent decades.

Perhaps more importantly, our results indicate that further warming of the planet through the 21st century is likely to continue to intensify the most extreme precipitation events. Climate models project such an intensification will happen this century, and they suggest that a similar but less-rapid intensification occurred in the 20th Century, based on how much the planet has already warmed. Our results validate that finding.

In recent years, devastating flooding has made headlines after extraordinary rainfall that historically would have been extremely rare. The 2017 hurricane season in Texas, Florida and Puerto Rico and the extreme monsoon rains over India and Bangladesh in 2017 are two examples.

With greenhouse gas levels in the atmosphere still increasing, the planet is projected to continue warming through the 21st century.

How much it warms will depend on choices made today about fossil fuel use and other major contributors to climate change. That 1 degree of warming could be 4 degrees by the end of the century if emissions continue at a high rate.

What’s next While we clearly identified the influence of humans on extreme precipitation in the past, we haven’t yet isolated how much each type of human activity has contributed.

Greenhouse gas emissions, aerosols and changes in land use can all have an influence. We plan to modify our machine learning method in the future to home in on those sources.

The machine learning method we used is also currently learning from data alone. We can take this up a notch by bringing climate physics into the algorithm. By doing that, the machine would learn the physical processes that lead to intensifying extreme precipitation. Other climate variables could be included, such as winds, clouds and radiation, helping to answer not just whether extreme precipitation is intensifying, but why.

This article is republished from The Conversation under a Creative Commons license.

Hurricane Maria caused widespread flooding across Puerto Rico in Sept. 2017. >Josian E. Bruno Gómez

13

/ Wednesday, July 14, 2021

Is Your A/C Summer-Ready?

Things to Check Before the First Heat Wave

S

Home Sweet Home

oaking in the summer sun is part of the fun of the season. But if you don’t have a cool home to retreat to, that heat can start to feel overbearing. Before the dog days of summer arrive, make sure your A/C can handle any heat wave this season with these tips, plus guidance on how to know when to call in the pros.

Before beginning preparation steps for either an air conditioner or swamp cooler, make sure the unit is turned off and disconnected from power.

Prepping Your Air Conditioner 1. Clean the filters Remove the filter from the unit and vacuum away dust and buildup. If there’s more buildup than your vacuum can handle, you can wash the filter in the sink or with a hose. If the filters are very dirty, or it’s been longer than three months, you’ll need to replace them.

2. Clean condensate lines The condensate lines draw water from the evaporator coils and run it into the drain pan. You can make sure these lines are clog-free using a vacuum to suck out any debris and then pour a mixture of vinegar and water through the lines.

3. Check coolant lines Examine the lines that carry the refrigerant to ensure there aren’t any signs of leaks. If you do see signs of leaking, you may want to call an HVAC professional to repair the unit.

4. Remove debris from around condenser unit Sweep away any leaves and debris from around the condenser unit and vacuum or hose debris from the walls of the unit itself. This allows your A/C to efficiently release the heat that it draws out of your home.

5. Check the ductwork Ducts don’t often need cleaning, but it’s important to take care of the situation quickly when they do. If you see pet hair emerging from your ducts or notice a foul smell coming from any of them, it’s time to call in an HVAC professional.

6. Clean supply and return vents Ensure your A/C can efficiently pump cold air into your home and pull hot air out by cleaning the supply and return vents inside the house.

7. Test the unit Do a test run of the unit on a warm day to

>fstop123 via gettyimages.com

determine if air is blowing from all of the vents and the house is cooling adequately.

If after that first-day test run, your A/C is not adequately cooling your home, or it’s turning off when it shouldn’t or making loud noises, it’s time to call in the pros. Keep in mind that an A/C unit lifespan is only around ten years. After this age, you may want to consider replacing the unit.

You’ll almost certainly see some savings on your electricity bill with a more efficient model, and you’ll stay cooler through the hot days of summer.

A broken or under-functioning air conditioner can make summer miserable. Make sure yours is ready to help you beat the heat of the season!

14

/ Wednesday, July 14, 2021

“¡Pleibol!” Slides Into Smithsonian Summer 2021

Exhibition explores Latino impact on baseball

T

The Weekly Journal Staff

his summer, the crack of the bat and the roar of the crowd will echo throughout neighborhood fields and Major League Stadiums. “¡Pleibol! In the Barrios and the Big Leagues/En los barrios y las grandes ligas,” a bilingual exhibition, has opened at the Smithsonian’s National Museum of American History.

A high school letterman jacket, a handmade ball from Cuba and recreation-league jerseys are exhibited alongside Roberto Clemente’s Pittsburgh Pirates batting helmet, Anthony Rendon’s childhood jersey and an autographed ball from the goldwinning 2004 U.S. Olympics women’s softball team to highlight the breadth of experience and talent Latinas/os have brought to America’s pastime.

The museum’s Albert M. Small Documents Gallery captures the excitement of the sport with larger-than-life heroes, inspirational quotes, graphics, photographs, more than 60 artifacts and fan memorabilia. A six-minute video produced with La Vida Baseball runs on a loop, capturing baseball’s energy and excitement while providing a glimpse into the lives of Latino and Latin American players and their communities. “¡Pleibol!” shows the passion and dedication of Latino communities and how their incredible talent has transformed American culture and society through the lens of baseball, the national pastime. “‘¡Pleibol!’ presents Major League stories, but it is first and foremost rooted in communities and the reality of who was allowed to play ball and where,” said Margaret Salazar-Porzio, curator in the museum’s Division of Cultural and Community Life. “The story we tell shows how Latinas and Latinos have used baseball to chase their dreams, challenge prejudice and build communities.”

Throughout the 20th century in the United States and Latin America, baseball provided Latinas/ os opportunities for recreation, a means to make ends meet, a socially acceptable space to find community and a field for workers in agriculture and industry to organize for rights and justice.

As of 2020, Latino players accounted for about 30% of the Major League roster and Latinas/os are making inroads as broadcasters, scouts, managers and even owners of Major League Baseball teams. “¡Pleibol!” focuses on how Latina/o pioneers changed the game nationally in the Major Leagues and locally in their communities. Their artifacts

Puerto Rican MLB star Yadier Molina has played in the island’s Winter League. >Josian E. Bruno Gómez, archive

will be displayed alongside artwork, scrapbooks, homemade baseball equipment and communityleague jerseys that demonstrate the importance of baseball in the everyday lives of Latino families.

Many of these artifacts are new to the museum’s collections and have never been on display.

The Smithsonian Institution Traveling Exhibition Services is traveling a version of “¡Pleibol!” to 15 cities through 2025. It is currently on view at El Pueblo History Museum in Colorado through Aug. 1. The traveling exhibition encourages host organizations to highlight local stories through the inclusion of objects from their collections and communities. The Smithsonian also has released a set of interactive 3D models featuring artifacts from the museum’s collections with accompanying bilingual tours, augmented-reality functionality for smartphones and other capabilities, and a bilingual Learning Lab collection provides online resources for K–12 students with stories, photos, objects and engaging activities.

The companion book “¡Pleibol! In the Barrios and the Big League /En los barrios y las grandes ligas,” by Margaret Salazar-Porzio and Adrian Burgos Jr., with Robin Morey, was published last year. To celebrate the opening, the museum is planning a series of programs, beginning with a live-streamed virtual opening July 9, a July 26 “Cooking Up History” virtual event featuring favorite stadium foods, a series of digital videos, a Hispanic Heritage month event and a Sept. 17 hashtag party, #NuestroBaseball, through which participants can share baseball stories, photos and artifacts. Program information will be updated and available through the exhibition website.

Baseball legend Roberto Clemente plays at Forbes Field, Pittsburgh, Penn., around 1967. >Courtesy of The Clemente Museum

“¡Pleibol!” is made possible through collaborations with more than 30 partners in 14 states, Washington, D.C., and Puerto Rico to help bring visibility to Latino community histories through baseball. In a series of collecting and preservation events over five years, Smithsonian curators traveled the country and collaborated with local partners to document and preserve baseball stories at the heart of Latino communities.

The museum, located in Washington, D.C., recently reopened. Admission is free, but reserved time-entry passes are required. To make reservations, visit si.edu/visit. For more information go to: https://americanhistory.si.edu.

15

/ Wednesday, July 14, 2021

Nyjah Huston, of the United States, competes in a Street Skateboarding World Championships final, a qualifying event for the Tokyo Olympic Games, in Rome, on June 6, 2021. >AP/Alessandra Tarantino

Skateboarding and the Olympics Set to wow in Olympic debut

C

The Associated Press

HELLES, France — For skateboarding, a sport where the No. 1 rule is that there are no rules, the straight jacket of the Olympic Games, with its dense thickets of tradition and regulation, may not be a natural or

immediate fit.

So at the Tokyo Games, freewheelin’ skaters and Olympic officials are going to learn a lot about each other. Could be quite a ride. Both have plenty to gain from making a splash with their brandnew partnership. Skating is one of four debut Olympic sports, along with karate, surfing and sport climbing.

The spectacle of skaters turning their boards into flying machines, soaring over obstacles, will deliver a rejuvenating injection of youthful energy to the dowdy sporting extravaganza. The youngest, Japan’s Kokona Hiraki and Britain’s Sky Brown, are just 12.

With its street fashions and “all-are-welcome” inclusive culture of all genders, ages and abilities having four-wheeled fun together, skating officials anticipate that the sport will help snag future generations of Olympic fans and viewers that the International Olympic Committee needs to keep making mega-bucks from the Games.

Freedom or Fame

For skaters, the powerful Olympic spotlight means global visibility and with that, possibly better prospects of earning a living from riding and sponsorships. Skaters also hope the Olympic seal

The 40 men and 40 women will be chasing of approval will generate more funding for skate medals in two events — park, where they skate in parks and bowls to train, land and invent their a bowl, and street, where they navigate stairs, rails, tricks. curbs and other urban furniture.

Some skaters fret that Olympic codification will The street competitions are in the first week, on come at a cost for the freedom, spontaneity and July 25 and 26. The park events round out week soul of their sport born on the streets. They argue two, on Aug. 4 and 5. that skating is a whole lifestyle, and worry it will Because skateboarding is so be crimped and compromised fluid and inventive, with hundreds by being co-opted. There of tricks, variants and possibilities were similar misgivings within to choose from, judging is less snowboarding — before it went codified and more subjective than on to become one of the most other sports. Judges will scrutinize riotous and popular shows at the Skating is the difficulty and execution of Winter Olympics, and three gold one of four debut tricks and runs, how skaters use medals turned Shaun White into Olympic sports, and navigate obstacles, and will a household name. along with karate, be looking to reward originality surfing and sport and variety.

See that fakey Five-O? climbing.

As happened to White with his With high-adrenaline gold medals in the half-pipe at the acrobatics akin to those seen Turin (2006), Vancouver (2010) on Olympic snow — so much so and Pyeongchang (2018) winter that White toyed with the idea games, the Tokyo Olympics could be a first step of trying to also qualify in skating for Tokyo — toward global fame for a skateboarder. skateboarding promises to wow and hook both existing and untapped Olympic audiences.

With no-fear stunts and polished messaging “The people who watch us in Tokyo are going that age is irrelevant, Brown is already a very to say to themselves, ‘This is pretty,’” predicts visible 12-year-old, with a rich portfolio of Madeleine Larcheron, a 15-year-old who’ll compete sponsors and array of social media accounts. The for France.

British phenom is back from a terrifying fall last “I’m often asked, ‘What’s the scariest trick?’ There year - video of which was posted — of course — on isn’t one. In skating, everything is scary,” she said. an Instagram account managed by her parents.

“You go upside down, you speed along, there is She’ll compete in the park event. always a slice of danger.”

At the other end of the unusually broad age spectrum at the inaugural Olympic skateboarding competition will be Dallas Oberholtzer. The The Competition 46-year-old hails from South Africa, where he For its Olympic debut, skateboarding has a works on efforts to introduce young South Africans custom-built park on the shores of Tokyo Bay to to the sport. play with.

In fact,

Constant updates online 24/7.

TheWeeklyJournal.com

Visit us for updated content on our 24/7 platform.

WeeklyJournal

The