Despite complaints from business owners and residents, the Financial Oversight and Management Board (FOMB) determined that it will not evaluate the economic impact of San Juan's Código de Orden Público.
The fiscal body declined to intervene because the ordinance falls outside its jurisdiction, according to a letter addressed to Diana Font, president of the Asociación de Comerciantes del Viejo San Juan, and Rafael Isaac Fernán, president of the Asociación de Comerciantes de la Calle Loíza.
"The Oversight Board thanks you for your letter and your interest in Puerto Rico's economic recovery. However, as explained below, the Oversight Board will not take action with respect to the Código, as it is a municipal regulation outside the scope of the Oversight Board's process review standard," read the letter issued on Jan. 18, signed by FOMB senior adviser Jaime A. El Kouri.
The letter responds to an Oct. 8, 2023, request in which the business owners expressed concerns about the impact of the Código and asked the body to "intervene to prevent its implementation."
Although certain provisions of Section 204 of PROMESA require the Board's intervention, those articles do not apply to municipal regulations, "in part, because municipalities are not currently required to prepare fiscal plans," according to the letter.
The FOMB did, however, assure at the end of its statement that it will monitor the matter and take action if it determines that the Código obstructs or defeats the purposes of PROMESA.
Warnings about the economic impact of the Código
Since 2022, business owners in the capital city have warned of the potential economic impact the ordinance could have. Even so, San Juan's Código de Orden Público took effect on Nov. 9 of last year.
Two months into its implementation, multiple bars and restaurants claimed this month to have lost 50% or more in sales, according to El Nuevo Día.
On the question of jobs, both business owners and a group of candidates for the House of Representatives from the Partido Popular Democrático (PPD) claimed that the ordinance is having an outsized effect on the local workforce. For servers and bartenders who are not laid off, it could affect the amount of tips they collect.
For his part, San Juan Mayor Miguel Romero has defended the implementation of the Código and supported its success with reduced crime rates, despite a wave of robberies targeting tourists that occurred last week.
Data from the San Juan Municipal Police show that, from Nov. 9 through Dec. 31, there were 7 fewer murders and 69 fewer crimes than during the same period in 2022.
What does San Juan's Código de Orden Público stipulate?
The ordinance provides that alcohol sales at establishments are permitted only until 1:00 a.m. Sunday through Thursday, and until 2:00 a.m. on Fridays and Saturdays. However, in weeks with a Monday holiday, alcohol may be sold on Sundays until 2:00 a.m.
The only exemptions, according to the Código, are hotels in San Juan, an exclusion that was sharply criticized as "preferential treatment."
In October 2023, the Asociación de Empresarios Calle Loíza attempted to halt the ordinance by filing a claim, but the suit did not proceed following a ruling by federal Judge Silvia Carreño Coll.
Starting Feb. 7, 2024, the Comité Evaluador del Código de Orden Público del Municipio de San Juan will be required to evaluate the results of the ordinance's implementation.
This content was translated with the assistance of Artificial Intelligence (AI).
