Friday, April 10^th, the Department of Finance (DOF) sent a letter to the Joint Legislative Budget Committee that provides an interim update on how COVID-19 has affected CA's fiscal condition.   The letter noted, “Due to the scope of the COVID-19 pandemic, unemployment could peak at a level higher than the Great Recession.”  A copy of the letter can be found here.   Additional DOF information can be found here: http://dof.ca.gov/budget/COVID-19/

Monday, April 13^th, at noon PDT, Governor Gavin Newsom held his roughly hour-long daily briefing to provide an update on the state’s response to the COVID-19 outbreak.    Today, he began with an African proverb: “If you want to go fast, go alone.  If you want to go far, go together.”  This set the tone for his announcement that California has partnered with Washington and Oregon to develop a shared vision “for reopening their economies and controlling COVID-19 into the future.”   Notably, the agreement does not include any specifics about which parts of the economy can reopen first or when that process will start.  Instead, per the Governor’s office press release, it lays out some common principles.  A copy of the Governor’s press release regarding this announcement can be found here.   Tomorrow, Newsom said he will announce a California-specific plan with additional details.  "We will be driven by facts.  We will be driven by evidence.  We will be driven by science," he stressed.

On a separate note – Newsom said that the coronavirus has underscored systemic disparities, particularly when it comes to the welfare of kids.  "The persistent issue of our children, particularly children in our welfare system, or 'at risk,' remains a vexing challenge," he stated.  To this end, he announced a $42 million effort in "building supports" for about 86,500 'at-risk' kids, 59,000 in foster care.  The state will also give an additional $200 for thousands of families “most at risk” so they can buy food and other necessities.  Kimberley Johnson, Director of Department of Social Services, offered additional details on this effort at the briefing.

Newsom provided the latest COVID-19 hospitalization and intensive care unit (ICU) patient figures.  The number of coronavirus hospitalizations is now 3,015.  The number of coronavirus patients in ICU beds is 1,178, a 2.9 a percent increase from the previous day.   

During the Q&A, Newsom was asked about the state’s budget.  In response, Newsom said that there will be more information later this week on "the economic toll the virus has taken" and what some of the budget shortfalls could look like. 

Following Newsom’s Friday daily briefing,  the Governor’s office issued a press release outlining the steps California is taking to protect the residents and employees of the more than 1,224 skilled nursing facilities and 7,461 residential care facilities across the state.  A copy of the Governor’s press release can be found here. 

Also, on April 10^th, Newsom announced the release of $100 million to support child care services and to support child care providers who are stepping up to serve essential infrastructure workers and vulnerable populations and their children during this critical time.  A copy of the Governor’s Press release can be found here.

Additionally, early this morning, Insurance Commissioner Ricardo Lara ordered insurance companies to return insurance premiums to consumers and businesses and provide much-needed financial relief during the COVID-19 emergency.  The Department of Insurance (DOI) news release states, “The Commissioner's Bulletin covers premiums paid for at least the months of March and April — including the month of May if “shelter in place” restrictions continue — in at least six different insurance lines: private passenger automobile, commercial automobile, workers' compensation, commercial multi-peril, commercial liability, medical malpractice, and any other insurance line where the risk of loss has fallen substantially as a result of the COVID-19 pandemic.”  A copy of the Bulletin can be found here.   A copy of the DOI press release can be found here.

The California Department of Public Health (CDPH) announced the most recent statistics on COVID-19 – there are a total of 21,794 confirmed positive cases and 651 deaths in California.  As of April 11^th, local health departments have reported 2,388 confirmed positive cases in health care workers.  This includes on-the-job exposures, and other exposures, such as travel and close family contact.  More information regarding the most recent COVID-19 statistics can be found here.

The https://www.covid19.ca.gov/ website is being updated continuously.   

Naomi Padron

Legislative Advocate

McHugh Koepke & Associates

1121 L Street, Suite 103

Sacramento, CA 95814

(916) 930-1993

www.mchughgr.com

Friday, April 10^th, at noon PDT, Governor Gavin Newsom held his roughly hour-long daily briefing to provide an update on the state’s response to the COVID-19 outbreak.  Today, Newsom opened by addressing California’s COVID-19 modeling, as well as mobility data that is being collected.  

Dr. Mark Ghaly, Secretary of Health and Human Services (HSS), provided additional details by using visual slides complete with charts.  See the example included in this email.  His and Newsom’s messaging is clear – the stay-at-home orders and physical distancing efforts are working.  However, both continue to repeat that the positive trends could change if California loses focus.  In terms of when these orders may be lifted, Newsom said, "We have some detailed plans that we are very close to making public.”

Newsom also provided an update on efforts for seniors with a focus on skilled nursing facilities, said that the state is now monitoring 191 of the 1,224 skilled nursing facilities in California due to COVID-19 cases or concerns.  Guidelines on this issue are forthcoming.  Additionally, Newsom announced that the Federal Emergency Management Agency (FEMA) will step in to help provide meals to seniors at home who need help.  "We are able now to partner with restaurants and begin to procure 3 meals a day of nutritious food," he said of the new effort.

Consistent with past briefings, Newsom provided the latest COVID-19 hospitalization and intensive care unit (ICU) patient figures.  The number of coronavirus hospitalizations is now 2,897.  The number of coronavirus patients in ICU beds is 1,145, a 1.1 percent increase from the previous day.   There was a decrease yesterday of 1.9 percent.

During the Q&A, Newsom was asked about plans if a natural disaster happens that requires a power shutoff.  In response, he said,  "We have the best and the brightest at Office of Emergency Services. All of that planning continues. We have National Guard focusing on vegetation management in anticipation of the fire season."  On this question, he continued, "All this work we did on PG&E and the bankruptcy was predicated on a safety-first culture to substantially increase their public safety efforts and do so before June 30^th, if indeed they are going to emerge from bankruptcy.  We're monitoring..."

Yesterday, following Newsom’s daily briefing,  the Governor’s office issued a press release with the details of the state’s new program to provide doctors, nurses and other critical front-line health care workers access to no-cost or low-cost hotel rooms.  The press release mentioned a partnership with United Airlines, which will provide free, round-trip flights for volunteer medical professionals from across California and the country who join the state’s health care workforce.  A copy of the Governor’s press release can be found here.

Also, on April 9^th, Newsom announced that starting this Sunday, California workers who are receiving unemployment benefits will begin receiving an extra $600 on top of their weekly amount, as part of the new Pandemic Additional Compensation (PAC) initiated by the CARES Act. In the last four weeks, California has processed about 2.3 million unemployment insurance claims, which is more than the total number of claims filed in 2019.  A copy of the Governor’s Press release can be found here.

Newsom also signed an executive order (EO) to address upcoming local elections.  Three local special elections that have been scheduled for May and June will be held as all-mail ballot elections. A copy of the Governor’s executive order can be found here and the text of the order can be found here.  A copy of the Governor’s press release can be found here.

Additionally, Insurance Commissioner Ricardo Lara has urged insurance companies to extend auto insurance coverage for drivers who are using their personal vehicles to fulfill deliveries for California’s essential businesses during the COVID-19 pandemic.   Under today’s Notice, insurance companies should not deny a claim under a personal auto policy solely because the driver was providing delivery service on behalf of a California essential business impacted by the COVID-19 pandemic.  The Notice applies to 16 categories of “essential critical infrastructure workers” identified by the U.S. Department of Homeland Security on March 19^th, including those who deliver food, medication, and other essential goods.  A copy of the Notice can be found here.   A copy of the Department of Insurance (DOI) press release can be found here.

The California Fair Political Practices Commission (FPPC) also issued a press release offering guidance on lobbying filing deadlines in wake of COVID-19.  The release stated, “If circumstances caused by COVID-19 inhibit the filing of a lobbying report or statement, the filer should communicate these issues to the Secretary of State’s Office and document all attempts to file and the issues faced.  While quarterly lobbying reports are filed electronically, the law requires certain other statements be filed on paper with an original signature.  Restrictions imposed to fight the spread of COVID-19 may make the logistics of filing documents on paper with original signatures difficult or even impossible.  To the extent that is the case, people required to file lobbying forms on paper with original signatures are encouraged to make use of digital and electronic options for filing reports to ensure timely filing (e.g. email and fax filing, scanned and/or photocopied signatures, electronic signatures, etc.).  Paper statements with originals would need to be filed when feasible.”  A copy of the FPPC press release can be found here.

The California Department of Public Health (CDPH) announced the most recent statistics on COVID-19 – there are a total of 18,309 confirmed positive cases and 492 deaths in California.  As of April 8^th, local health departments have reported 1,803 confirmed positive cases in health care workers: this includes on-the-job exposures, and other exposures, such as travel and close family contact.  More information regarding the most recent COVID-19 statistics can be found here.

The https://www.covid19.ca.gov/ website is being updated continuously.  

Naomi Padron

Legislative Advocate

McHugh Koepke & Associates

1121 L Street, Suite 103

Sacramento, CA 95814

(916) 930-1993

www.mchughgr.com

Can I Conduct Lien Sales and Charge Late Fees During the Coronavirus Pandemic?

by Daniel Bryant SSA - posted on 4/9/2020 11:33:00 AM 

Moratoriums on Commercial Foreclosure & Eviction and Late Fees

As the coronavirus (Covid 19) spreads throughout the United States, several states and localities have enacted restrictions on foreclosures and evictions. Many of these orders that have been issued to date exclusively cover residential evictions and foreclosures. However, as the situation evolves, more states are expanding those restrictions to cover commercial evictions as well. Some of the commercial eviction or foreclosure moratoriums may prevent operators from conducting self storage liens sales, performing overlocks, or imposing late fees.

Although self storage lien sales are not evictions in the usual sense of that word, the SSA urges all operators to exercise great caution if they operate in an area covered by a moratorium on commercial or non-residential evictions or foreclosures.

First, self storage lien sales are a form of non-judicial foreclosure. Therefore, an order that imposes a foreclosure moratorium may apply to self storage lien sales. Second, the overall intent of many government restrictions at this time is to keep people at home as much as possible. It arguably frustrates the intent of the orders if a landlord creates a situation that forces a tenant to leave home for a non-essential purpose. Third, the orders are often hastily drafted and vague and do not define the term “eviction”, “foreclosure”, or other key terms in the orders. The overall intent, coupled with the vague wording, indicates that the term “eviction” or “foreclosure” is meant to cover any unilateral action by an operator that terminates a rental agreement. This certainly covers lien sales, even if the primary purpose of a lien sale is to recover unpaid rents.

The volume of new orders issued daily makes it difficult to provide a comprehensive list of jurisdictions, especially local governments, that have enacted eviction or foreclosure moratoriums. Additionally, in the interest of space, we did not include local orders that affect only residential evictions or lawsuits filed to evict a tenant.

California

• Governor issued an order, issuing a statewide moratorium on residential evictions. 
• Governor also issued an executive order that authorizes local governments to pause evictions for renters. The protection is in effect through May 31, 2020. Tenants are still obligated to pay rent, and landlords can still recover rent that is due. The order only applies to the imposition of limitations on evictions when the basis for the eviction is nonpayment of rent, or a foreclosure, arising out of a substantial decrease in household or business income (including, but not limited to, a substantial decrease in household income caused by layoffs or a reduction in the number of compensable hours of work, or a substantial decrease in business income caused by a reduction in opening hours or consumer  demand), or substantial out-of-pocket medical expenses; and the decrease in household or business income or the out-of-pocket medical expenses was caused by the COVID-19 pandemic, or by any local, state, or federal government response to COVID-19, and is documented.
• Evictions and foreclosures are suspended only as set forth by local governments. Many localities in California have imposed such restrictions on commercial leases. Additionally, many have restricted the ability to impose any late fees. A complete list of California orders is forthcoming.

CSSA has received numerous calls from both owner/operators and tenants concerning the legality and ethical treatment of delinquency issues (late/delinquent payments, liens, etc.) during the Covid-19 pandemic. With suspension of foreclosures and evictions, rent & payment suspensions/delays, and other ordinances/programs to assist individuals during this unprecedented time, self storage operators might want to consider temporarily modifying their normal operating procedures.

Carlos Kaslow, CA attorney and author of California (and many other states) lien laws made the following suggestion:

"The city of Ontario recently put a hold on using the lien remedy and operators should know this and comply.  It might be helpful if owners put more time discussing delinquency problems with their customers.  There are a number of ways the parties can resolve a payment problem and the lien remedy is the most drastic. If a customer will be hopelessly behind on the rent in 2 or 3 months it might be in everyone's interest to make a deal.  For example, the tenant moves out and the owner waives rent.  If done early the cost to the owner is relatively low.  A tenant who is already behind two or three months may want to abandon property if the owner agrees to waive the outstanding rent. Now is a good time for owners be to looking for solutions other than the lien remedy, even in cities that have not taken Ontario's approach."    

Thursday, April 9^th, at noon PDT, Governor Gavin Newsom held his roughly hour-long daily briefing to provide an update on the state’s response to the COVID-19 outbreak.  Today, Newsom kicked off his remarks by thanking health care workers who are on the frontlines.   "We need to talk more about care for our caregivers," he said.   Newsom said this is a workforce that "is deeply stressed out, deeply stretched" amid the coronavirus pandemic.   

Newsom announced, starting April 10^th,  California will provide frontline health care workers with hotel rooms at no-or low-cost and free flights for California’s Health Corps.

Frontline health care workers who are exposed to or test positive for COVID-19 can find accommodations through the new CalTravelStore website.  Thus far, it has been reported that 150+ hotels in the state have agreed to participate.  More information can be found here.

Additionally, 86,000+ people have applied for the new Health Corps.  United Airlines, Southwest, Alaska, and Delta have committed to offering free travel for these workers to get to California.  "It's an open-ended commitment until this crisis passes," Newsom said.

More on the Health Corps –  Newsom stated 350 health care workers who have applied through the Health Corps are getting letters today offering them employment through the state at medical facilities set up to accommodate the surge in COVID-19 patients.

Consistent with past briefings, Newsom provided the latest COVID-19 hospitalization and intensive care unit (ICU) patient figures.  The number of coronavirus hospitalizations is now 2,825, a 4.1 percent increase from the previous day.  The number of coronavirus patients in ICU beds is 1,132, 1.9 percent DROP.  The 1.9 percent is "not a trend, it's not a headline," but nonetheless, "it's encouraging," Newsom said.

Newsom also addressed the fishing season.  He said the fishing season has NOT been canceled – it’s been delayed, not canceled.

During the Q&A, Newsom was asked about schools.  It was noted by one of the reporters that many households are still lacking computers and the internet to access distance-learning opportunities.  In response, Newsom said the Department of Education (CDE) is exploring options for summer school or repeating grades for students who lost out on learning.  In the meantime, schools are working to help families facing barriers to learning at home.

On California’s COVID-19 modeling— Newsom said the state’s models have improved due to the stay-at-home order.  He acknowledged that the state’s models are different than others, including academic models, but he stands by the projections that the peak will be in later and not within the next week.

On testing— the backlog is at 13,900 tests.   Still "too high," Newsom said.  But it is a much smaller sum than the nearly 60,000 test backlog of just a couple of weeks ago.  California Health and Human Services (HHS) Secretary Mark Ghaly said the state is looking forward to serological testing but has to do so in a methodical way.

The California Department of Public Health (CDPH) announced the most recent statistics on COVID-19 – there are a total of 15,957 confirmed positive cases and 442 deaths in California.  Starting April 8^th, racial demographics of COVID-19 cases and deaths, along with expanded data on infection rates of healthcare workers, will be available.  More information regarding the most recent COVID-19 statistics can be found here.

The https://www.covid19.ca.gov/ website is being updated continuously.  

Naomi Padron

Legislative Advocate

McHugh Koepke & Associates

1121 L Street, Suite 103

Sacramento, CA 95814

(916) 930-1993

www.mchughgr.com

NEW DEVELOPMENT:

Important new development in the City of Ontario, California.  Ontario passes eviction moratorium which expressly refers to storage unit auctions. CLICK HERE for a copy of the ordinance press release can be accessed Here.  The formal order will be made available to Members upon CSSA’s receipt of same.

_________

On April 6 the Judicial Council approved a temporary emergency rule suspending evictions and foreclosures: CLICK HERE  

Does this suspension extend to self storage?

CSSA Legislative & Legal Chair Peter Watson:

"This is the court system’s way of not allowing a landlord or lender to pursue a judgment for possession or a judgment to foreclose via an unlawful detainer action or judicial foreclosure action, respectively (note the public health exception).  Some counties (e.g., LA) and cities (e.g., LA) have issued commercial eviction moratoria, but many have not.  With this court rule in place, in effect, no commercial landlord can obtain an eviction judgment.  In other words, the court system, in effect, is playing the role of executor and/or legislator.

What does this mean for self storage in California?  Unlawful detainer actions will need to wait or those of us with commercial tenants at our facilities.  This does not affect our self storage lien process (non-judicial).

Let me make it clear that this is the court’s response to the coronavirus epidemic, which in effect creates logistical roadblocks for landlord’s (and lenders) that may otherwise be legally authorized to proceed with a unlawful detainer Action (or judicial foreclosure)."

Joe Doherty, SSA Legal Council agrees with Peter's assessment.

Receive Tax Credits with Proper FFCRA Documentation Employers are trying to figure out how to comply with new emergency leave laws right away. The emergency paid sick leave (EPSL) and emergency family medical leave (EFLMLA), under the Families First Coronavirus Response Act (FFCRA) both went into effect on April 1, 2020. Read more >> Saving Jobs Through a Work Share Plan The entire world is vigilant as COVID-19 enters the workforce, and many businesses will be forced to make difficult decisions to reduce their workforce. California has offered employers experiencing a temporary slowdown the opportunity to enroll in a Work Share Program, potentially saving many jobs. Read more >> MORE COVID-19 FACT SHEETS AND FAQS >> Information is changing rapidly and we are doing our best to keep all information up-to-date as quickly as possible. Please also check state and federal government websites for the most recent information. STAY INFORMED REGISTER FOR OUR FREE WEBINAR Updates & Practical Solutions for the Families First Coronavirus Response Act (FFCRA) April 14 11:30 am - 1 pm Signed into law March 18, the FFCRA introduced new leave laws that California employers need to know how to implement immediately. The Emergency Paid Sick Leave Act and the Emergency Family and Medical Leave Expansion Act became effective on April 1. We heard your feedback! This presentation will be 90 minutes to dive even deeper into these new laws.

Wednesday, April 7^th, at noon PDT, Governor Gavin Newsom held his hour-long daily briefing to provide an update on the state’s response to the COVID-19 outbreak.  Today, Newsom kicked off his remarks by thanking the National Guard for transporting California’s 500 loaned ventilators to states in need, including Delaware, Maryland, New York, New Jersey, Nevada, Illinois, and DC.

Newsom also offered details on the announcement he made last night regarding inked deals that will provide 200 million medical masks a month for the state.  “We've been competing against other states, against other nations, against our own federal government for PPE — coveralls, masks, shields, N95 masks — and we're not waiting around any longer,’’ Newsom told MSNBC host Rachel Maddow on Tuesday night.   According to the Department of Finance (DOF) letter sent to lawmakers, the state plans to spend $1.4 billion in state funds on all types of personal protective equipment (PPE), with the masks as a key part of that.  Cal OES Director, Mark Ghilarducci, also spoke about this effort at the briefing.  Ghilarducci said these masks are coming from a variety of sources, including nonprofits (Direct Relief, Americares, California Endowment) and large vendors like McKesson and the company BYD USA.  In addition to purchasing new masks, Ghilarducci says California is also working on a plan to sterilize up to 80,000 used masks per day.

More on PPE – Newsom noted masks are needed by health care professionals, but also grocery store workers and others who must interact with others as part of their jobs.  He also reiterated California will share PPE resources if it has excess.  Newsom says California's efforts to buy PPE on its own are not an implicit criticism of the federal government.  “On that point, quite the contrary," he stated. "We've been working extraordinarily well with our federal partners."

Consistent with past briefings, Newsom provided the latest COVID-19 hospitalization and intensive care unit (ICU) patient figures.  The number of coronavirus hospitalizations is now 2,714, a 3.9 percent increase from the previous day.  The number of coronavirus patients in ICU beds is 1,154, a 4.2 percent increase. 

Newsom also said the state is starting to disaggregate data by race but has only processed about 37 percent of cases so far.  The data is limited to the sample size, Newsom acknowledged, but currently, California is not seeing the racial disparities seen in other parts of the country.

On unemployment insurance (UI) – Newsom said 2.4 million Californians have applied for benefits since March 12^th.

During the Q&A, Newsom was asked about an updated timeframe for when the stay-at-home orders will be lifted.  In response, he declined to provide a definitive date saying it is still too early to determine.  “It depends on you, it depends on 40 million others in the state of California and their commitment to follow through on stay at home orders..."

Yesterday, April 7^th,  Newsom issued an Executive Order (EO) to help the state procure necessary medical supplies to fight COVID-19 by suspending sales tax on public health supplies sold to or purchased by the state.  A copy of the EO can be found here and the text of the order can be found here.  A copy of the Governor’s press release can be found here.

Additionally – late Tuesday— Newsom also issued an EO that provides additional support for older adults and vulnerable young children.  A copy of the Governor’s executive order can be found here and the text of the order can be found here.  A copy of the Governor’s press release can be found here.

As of April 6^th, California Department of Public Health (CDPH) announced the most recent statistics on COVID-19 – there are a total of 15,865 confirmed positive cases and 374 deaths in California.  Also, as of April 6^th,  local health departments have reported 269 confirmed positive cases in health care workers.  Approximately 157,800 tests had been conducted in California. At least 143,172 results have been received and another 14,600 are pending.  More information regarding the most recent COVID-19 statistics can be found here.

The https://www.covid19.ca.gov/ website is being updated continuously.  

Naomi Padron

Legislative Advocate

McHugh Koepke & Associates

1121 L Street, Suite 103

Sacramento, CA 95814

(916) 930-1993

www.mchughgr.com

From CA Chamber of Commerce: 

Since 1890, we at CalChamber have seen crises come and go. We have seen uncertain times, and have been resilient along with our member businesses, our families and our community. We take seriously our shared commitment to helping all California businesses survive and thrive.

That's why I'm proud to provide this timely podcast update to help you keep your doors open and your employees working. In under 15 minutes, you can learn about the federal loans now offered through the Coronavirus Aid, Relief, and Economic Security (CARES) Act:

• How to cover the costs of your employee payroll and health insurance premiums over the next eight weeks - and how to start the process
• How loan funds allocated to keep your employees working, can be completely forgiven after this crisis is over
• Who is eligible and exactly how to apply 

You'll also learn other important tidbits, such as: The SBA definition of a "small business" is fewer than 500 employees (which covers more than 75% of CalChamber members).

There is also help for our friends in the restaurant and hotel industries who have been hit especially hard during this crisis. For example, tips are considered wages that can be covered, and multiple locations can be counted as individual businesses when it comes to the 500-employee rule.

To learn more, click here for the podcast page featuring CalChamber CEO Allan Zaremberg, along with his guests Virginia Valera and Joseph P. McClure from Golden Pacific Bank. You don't need an app since the podcast opens right into a browser, plus there's a written summary accompanying it.

As a not-for-profit for 130 years, CalChamber's sole mission is to assist businesses just like yours. Together, as we look toward the future, we will get through this! 

Sincerely,

Dan Newman

Member Relations Manager
1 (800) 649-4921 Ext. 575

To help you better understand how to maintain a clean environment for your home and office: