Today, March 18^th, Governor Gavin Newsom held another press conference at 5:45 PM providing an update on the state’s response to the COVID-19 pandemic.  In total, he spoke for approximately 20 minutes today and then opened it up for Q&A.  The first question raised was the issue of a statewide “Shelter in Place” order.  In response, Newsom specified that there is not  a statewide directive on this yet but that many counties are instituting or have already instituted such guidelines.   The press conference concluded at approximately 6:12 PM.

More specifically, during the press conference, Newsom provided an overview of the series of executive orders he released last night and throughout the day today.  Those actions are outlined below in the subsequent paragraphs.   Additionally, Newsom said that by this Friday (3/20), the state will be announcing that two large hospitals will be brought online.  The state has also requested federal support, including two mobile field hospitals and asked the Navy to lend the state the USS Mercy to bolster response.  California has also requested the Federal Government more tests to increase capacity and for additional supplies. 

Late last night, March 17^th,  Governor Gavin Newsom signed an executive order to ease restrictions on commercial drivers engaged in support of emergency relief efforts.  The executive order also suspends existing law for employers directly impacted by COVID-19 and directs the Labor and Workforce Development Agency to provide guidance to impacted employees by March 23^rd.  More specifically, the order suspends, as long as specified conditions are meet, certain sections of the Labor Code for an employer that orders a mass layoff, relocation, or termination caused by COVID-19.  The full executive order can be found here.

This morning, March 18^th,  Newsom issued another executive order to waive eligibility re-determinations for 90 days for Californians who participate in: Medi-Cal health coverage; CalFresh food assistance; CalWORKS; Cash Assistance for Immigrants; and In-Home Supportive Services.  The executive order also waives certain provisions of the Bagley-Keene Act.  More specifically, the order states that subject to specified notice and accessibility requirements, a local or state legislative body may hold public meetings via teleconferencing.  The  full executive order can be found here.

This afternoon, Newsom announced the launch of a new COVID-19 public awareness campaign “to provide useful information to Californians and inform them of actions they can take to further prevent the spread of the virus.”  The campaign is anchored by a new, consumer-friendly website, www.covid19.ca.gov.  The press release on this announcement can be found here.

He also issued another executive order to waive, pending federal approval, this year’s statewide testing for students in K-12 schools.  The  full executive order can be found here.

At 4:30 PM, Newsom publicized a series of emergency actions to protect Californians experiencing homelessness from the virus.  As part of that effort, the Governor signed another executive order granting local flexibility on spending and building shelters.  The  full executive order can be found here.

As of 6 p.m. Pacific Daylight Time on March 17^th, the California Department of Public Health announced the most recent statistics on COVID-19.   California now has 598 confirmed cases – a 21 percent increase.  More information can be found here: https://www.cdph.ca.gov/Programs/OPA/Pages/NR20-026.aspx.

Naomi Padron

Legislative Advocate

McHugh Koepke & Associates

1121 L Street, Suite 103

Sacramento, CA 95814

(916) 930-1993

www.mchughgr.com

Thanks,

3/17/20

Governor Gavin Newsom  provided another update on COVID-19 via a press conference at 4:30 PM.  He spoke for about 40 minutes and then opened it up for questions. The press conference concluded at 5:45 PM.  Again, the Governor provided an overview on actions the state has taken in an effort to slow the spread of the virus.  He stressed the fluidity of the situation, that everything is being accessed in real time, and that the state will "reserve the right to go further" in pushing public health directives if needed as he updates efforts on COVID-19.

Newsom announced that he signed the emergency legislation passed yesterday by the Legislature to provide up to $1 billion in funding to help California fight the virus.  At the press conference, he thanked the Legislature for acting so quickly.  

Governor Newsom’s office also put out a release regarding California asking for a federal 1135 waiver to provide care to 13 million Medi-Cal recipients and expand tele-health options.  Here is a link to the federal request:  https://www.dhcs.ca.gov/Documents/COVID-19/CA-1135-Waiver-COVID-19-031620.pdf.

Additionally, Newsom mentioned that the California Department of Motor Vehicles (DMV) asked California law enforcement to exercise discretion for 60 days in their enforcement of driver license and vehicle registration expiration dates beginning March 16, 2020.  More information related to DMV request: https://www.dmv.ca.gov/portal/dmv/detail/pubs/newsrel/2020/2020_12.

Nearly 99 percent of schools have closed, though the Governor has not issued a state mandate to do so.   In terms of schools, Newsom said it is more than likely many will remain closed until summer.

Newsom has also placed the National Guard personnel on alert to support COVID-19 community readiness.  See here: https://twitter.com/CalGuard/status/1240072892848549888.

The California Department of Public Health released the most recent statistics on COVID-19.  California now has 472 confirmed cases – 17 percent increase from yesterday.  Here is the link to the most recent figures: https://www.cdph.ca.gov/Programs/OPA/Pages/NR20-025.aspx.

Also here is a link to CDPH available Guidance Documents: https://www.cdph.ca.gov/Programs/CID/DCDC/Pages/Guidance.aspx.

Thanks,

Naomi Padron

Legislative Advocate

McHugh Koepke & Associates

1121 L Street, Suite 103

Sacramento, CA 95814

(916) 930-1993

www.mchughgr.com

3/17/20

California’s Labor Commissioner has issued FAQs on California’s paid sick leave law. Here is the link:  https://www.dir.ca.gov/dlse/2019-Novel-Coronavirus.htm.

EDD’s website also has some COVID-19 related employment information related to filing umemployment.  Here is the link: https://edd.ca.gov/about_edd/coronavirus-2019.htm.

I am sure you have seen the recent news about Governors across the country declaring states of emergency. We prepared a brief memo here, which includes a link to the state-by-state pricing restrictions that apply during a state of emergency.

Many of us are familiar with the term “price gouging.” You may have seen the news article about the brothers who stored 18,000 bottles of hand sanitizer in a storage unit! However, it is important to keep in mind that many of the state pricing restrictions apply even if the business did not intend to “gouge” the consumer. As an example in our industry, these pricing restrictions may apply even to standard rate increases.

We are monitoring state and federal legislative activity and will keep you apprised of any developments that may affect the self storage industry.

Joe Doherty

SVP, Chief Legal & Legislative Officer

Self Storage Association

1901 N. Beauregard Street, Suite 106

Alexandria, VA 22311

(703) 575-8000 x.123

jdoherty@selfstorage.org

3/16/20

Governor Gavin Newsom  provided an updated on COVID-19.  He said that 392 individuals have tested positive in CA, which is 57 more than yesterday – 15 percent increase.  

Newsom also provided an update on actions the state has taken in an effort to slow the spread of the virus.   He said that the state will now direct restaurants to close, which goes beyond his request yesterday for social distancing.  He further noted it aligns with local efforts in LA and the Bay Area.   Additionally, Newsom cautioned that there should be no large gatherings in the state.

Earlier today at around 2:34 PM, Newsom sent the following letter to the California Legislature asking for emergency legislative action to fight COVID-19.  The text of the letter can be found here: https://www.gov.ca.gov/wp-content/uploads/2020/03/3.16.20-File-Notice-Letter.pdf. 

In response, the Senate and Assembly passed a relief package that could ultimately reach $1 billion.  More specifically:

• -      SB 89/AB 89 – Amends the 2019-20 budget to provide emergency appropriations related to COVID 19 Pandemic and the Camp Fire. Provides $500 million and authority for total expenditures of up to $1 million to the State to address various aspects of the COVID-19 crisis. 
• -      SB 117/AB 117 – Makes changes to education programs adopted as part of the Budget Act of 2019 in response to COVID-19.

Tonight, at 6:50 PM, following yesterday’s announcement that older adults and those at higher risk for serious illness from COVID-19 should isolate, Newsom issued an executive order “to protect the health and safety of Californians most vulnerable to COVID-19 residing at health care, residential and non-residential facilities licensed by the state.”  The order directs state health and social services agencies to redirect resources and staff to the facilities, focusing on providing technical assistance and supporting compliance with core health and safety requirements for caregivers and the cared for.  The full order can be found here: https://www.gov.ca.gov/wp-content/uploads/2020/03/3.15.2020-COVID-19-Facilities.pdf.

Newsom also issued an executive order that authorizes local governments to halt evictions for renters and homeowners, slows foreclosures, and protects against utility shutoffs for Californians affected by COVID-19.  The full order can be found here: https://www.gov.ca.gov/wp-content/uploads/2020/03/3.16.20-Executive-Order.pdf.

The Governor has also said that the U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to California small businesses suffering substantial economic injury as a result of the Coronavirus.  More information can be found here: http://www.oesnews.com/sba-offers-disaster-assistance-to-california-small-businesses-economically-impacted-by-the-coronavirus-covid-19/.

As for the Legislative Session, a little after 8:30 PM,  the Senate and the Assembly both voted that the Legislature shall be in joint recess from March 20, 2020, until April 13, 2020. 

The Legislature may extend the joint recess by joint proclamation of the President pro Tempore of the Senate and the Speaker of the Assembly.  The resolution also specified that the Legislature may recall itself from the joint recess by joint proclamation of the President pro Tempore of the Senate and the Speaker of the Assembly.  The full text of the ACR 189 can be found here: http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200ACR189.

Naomi Padron

Legislative Advocate

McHugh Koepke & Associates

1121 L Street, Suite 103

Sacramento, CA 95814

(916) 930-1993

www.mchughgr.com

3/13/20

from SSA website: https://www.selfstorage.org/About-SSA/SSA-News/ArticleID/206/Coronavirus-Price-Restrictions 

Coronavirus & Price Restrictions

As SSA members are aware, the coronavirus unfortunately has spread domestically to several states, and the number of new cases of coronavirus continues to grow. As the situation worsens, many states responsively have declared a state of emergency. So far, the Governors of California, Utah, Florida, Kentucky, Oregon, Indiana, Colorado, Iowa, Illinois, Massachusetts, North Carolina, Michigan, Arizona, Connecticut, Louisiana, Virginia, New Jersey, Washington, New York, and Maryland have all declared states of emergency.

Once a state of emergency is declared, many states have price restrictions, commonly referred to as price gouging laws, that take effect. Although these laws differ, they generally put a cap on raising prices for certain goods and services above a certain percentage from the amount charged immediately preceding the declaration, subject to certain narrow exceptions. Some of these laws are clearly applicable to self storage, some clearly are not, and others are uncertain in scope.

Importantly, many of these laws create so-called strict liability offenses. In other words, it only must be proven that the unlawful rate increase occurred, without a valid exemption provided by the law, not that an operator had a specific intent to violate the law or “gouge” the tenant.

Although no SSA member would intentionally raise their rental rates dramatically during a declared state of emergency, the laws may affect an operator’s ability to implement even standard rate increases. For example, in California, an operator may not charge a rental price greater than 10 percent more than the amount charged immediately preceding the declaration, subject to certain narrow exceptions. If a California operator charged $100 for a unit immediately preceding the declaration and raised the rent to more than $110 during the state of emergency, the operator may be in violation of the law.

During a state of emergency, members should consult with their legal counsel regarding the application of their state’s pricing laws before changing rental rates for both current and prospective tenants. Given how dynamic the current situation is, members should also frequently monitor announcements and statements from state and local officials that could extend, modify, or revise their state of emergency as the coronavirus situation changes.

For a general 50-state overview of price gouging laws, click here.

Mike Blackett - SSA 

Dear CSSA Members: There has been much discussion surrounding California’s so-called “price gouging” laws with the growing concerns surrounding the coronavirus (COVID-19).  The CSSA has been monitoring the current situation and wants to take a moment to provide its Members with information and resources to assist in assessing your compliance obligations moving forward.  As you may have heard, California’s Governor Newsom has declared a statewide “State of Emergency” effective as of March 4, 2019.  A copy of the California State of Emergency proclamation can be accessed by following this link.  In addition, the California Attorney General’s Office issued a price gouging warning statement, which can be accessed here.  Please also be aware that there are non-COVID 19 states of emergency (e.g., wildfires) in effect in various counties throughout California; a list of counties affected by “states of emergency” is published by California’s Office of Emergency Services and can be accessed via this website.* Currently, California’s price gouging laws are codified in Section 396 of the California Penal Code, and non-compliance carries both criminal and civil penalties.  Be aware - California’s price gouging laws apply to the self storage business and thus, compliance is required.  The CSSA urges its Members to seek legal guidance from a licensed California attorney to ensure compliance during these difficult times.  *The CSSA makes no representation as to the completeness or accuracy of the information shown on the California Office of Emergency Services website.  Please be sure to contact your local city or county emergency authority or sheriff’s office to obtain additional information regarding local declarations of emergencies.  Please also remember that expiration dates for any state of emergency (whether statewide or local) can be extended under the law, so it is incumbent upon all business owners to remain diligent with checking for status updates as expiration deadlines approach.*