PA – “Non-Life Sustaining” Business Closure of Physical Locations Questions and Waiver Process – Required Shut Downs

As you are likely aware, on Thursday, March 19th, by Executive Order, the Wolf Administration ordered the physical location shut down of all “non-life sustaining” businesses in order to attempt to slow the spread of COVID-19.

A list of what qualifies as “non-life sustaining” was published on line and is attached for your review. Some businesses like grocery stores, pharmacies, hospitals, e.g., are very logical, others are a bit more surprising (e.g., beer and liquor sales).

Per Governor Wolf’s and the Department of Health’s orders, businesses that were non-life sustaining were ordered to close their physical locations on March 19, at 8:00 PM.

As of last evening, March 20th, these orders are still effective, however, the enforcement timing will change and become effective on Monday, March 23, at 8:00 AM.

If you are not sure if your business falls within a GREEN area (one that is permitted and life sustaining) or a RED area (one that is not deemed to be life sustaining and therefore must close your physical location) per the Commonwealth’s chart, there is a process to inquire, ask questions, and ask for a waiver.

Questions and Waiver Requests:

Those businesses requesting clarification on whether they are defined as life-sustaining should check the list, https://www.scribd.com/document/452553026/UPDATED-Industry-Operation-Guidance-March-20-2020 and can email the Department of Community and Economic Development (DCED) customer service resource account at ra-dcedcs@pa.gov, or call 1-877-PA-HEALTH and select option 1 to reach DCED staff.

Please note that the list has been modified since its original posting on Thursday and some additional notes have been added (including some construction related notes).

For businesses that determine from the list that they are non-life sustaining, but would like to seek a waiver, there is an online waiver application.

When a business completes a waiver form, a team of professionals at DCED will review each request and respond based on the guiding principle of balancing public safety while ensuring the continued delivery of critical infrastructure services and functions. Those requesting a waiver will be notified via email if their operations may re-open.

NOTE – Per updates issued last night, businesses applying for a waiver are REQUIRED to remain closed until a decision is made about their application. This is NEW.

Also, please be aware that DCED offers working capital loans that could be of assistance to businesses impacted by COVID-19. Resources and information will be posted to http://dced.pa.gov/resources as they become available.

In addition, Governor Wolf announced the availability of low-interest loans for small businesses and eligible non-profits in all 67 counties in Pennsylvania through the U.S. Small Business Administration (SBA).

Attaching the updated list of life-sustaining and non-life sustaining businesses as of 5:45 pm on 3-21-20 – NOTE that this list has been modified 2x since original date of publication on Thursday so please make sure you are looking at the most up to date list –  https://www.pa.gov/guides/responding-to-covid-19/#ForBusinesses

To list is attached and available here: https://www.scribd.com/document/452553026/UPDATED-5-45pm-March-21-2020-Industry-Operation-Guidance

We will continue to track local and national information and report as new news becomes available through our COVID taskforce. If you care to look directly, go to www.governor.pa.gov and www.doh.pa.gov.

If you have any questions or concerns, please do not hesitate to contact us via email and we will call you back to discuss your concerns.  We can be reached at any of the following email addresses and will direct your inquiry to the appropriate person within our COVID Taskforce – bamolotsky@duanemorris.com; slcaffrey@duanemorris.com; jsegal@duanemorris.com or dcanderson@duanemorris.com.

Be safe.

NJ COVID-19 – NJEDA Launching a Jobs and Hiring Portal for Employers needing Employees

Governor Phil Murphy and the New Jersey Economic Development Authority (NJEDA) will be launching a COVID-19 Jobs and Hiring Portal to help employers who have critical hiring needs amid the COVID-19 pandemic.

However, the first step is to gather details on employers’ immediate hiring needs.

NJEDA now has a live intake tool for employers with urgent COVID 19-related hiring needs to complete ASAP. Employers can access this tool in two ways:

  1. Through an online portal available at https://jobs.covid19.nj.gov/intake
  2. As an Excel spreadsheet that can be downloaded at https://jobs.covid19.nj.gov/intakeexcel and then emailed to covid19jobs@njeda.com.

Please note: if an employer is hiring for more than five positions or hiring for a specific position at more than five locations, it is recommend they complete the intake process using the Excel form.

Information can be found at the NJEDA website and the jobs.covid19.nj.gov sites.  Be safe and check it out if needed.

Corona Impact – Governor Wolf mandates the closure of physical sites for all but life-sustaining business – TONIGHT – 3-19 – 8PM

Per the Philadelphia Business Journal, Gov. Tom Wolf on Thursday afternoon ordered “all non-life-sustaining businesses” in Pennsylvania to close their physical locations beginning at 8 p.m. Thursday for an undetermined amount of time.

He also said enforcement for non-compliant businesses would begin at 12:01 a.m. Saturday.

“To protect the health and safety of all Pennsylvanians, we need to take more aggressive mitigation actions,” Wolf said. “This virus is an invisible danger that could be present everywhere. We need to act with the strength we use against any other severe threat. And we need to act now before the illness spreads more widely.”

Notwithstanding that the City of Philadelphia had its own version of business closure mandates from earlier this week, the Governor’s pronouncement applies to the entire Commonwealth – WOW!

Difficult times call for difficult decisions.

“Non-life sustaining” is defined by a chart published by the Administration that you can find online at https://www.governor.pa.gov/wp-content/uploads/2020/03/20200319-Life-Sustaining-Business.pdf

Be safe.

TRIA (Terrorism Risk Insurance Act) is reauthorized for 7 years – through 12-31-2027

On December 20, 2019, President Trump signed a spending bill that includes a 7-year extension of the Terrorism Risk Insurance Act (TRIA).

TRIA was originally passed in November 2002 as a response to the insurance industry’s inability to cover the scale of losses associated with the September 11 attacks. On a prospective basis, acts of terrorism continue to present numerous challenges in modeling risk due to the infrequency, unpredictability, and of the magnitude of potential attacks. According to CRE Financial, Federal participation in supporting private insurance provides the support and certainty of coverage for policyholders and avoids the potential disruption that a lapse in coverage would create.

The bill essentially left the TRIA program structure unchanged, as significant reforms occurred in the last reauthorization effort. TRIA is now reauthorized through December 2027.

From the Land of OZ – Final OZ Regulations Issued by the IRS/Treasury

On December 19, 2019, the U.S. Treasury Department and the IRS issued final regulations implementing the Opportunity Zones tax incentive. According to the IRS press release, the final rules seek to provide clarity for Opportunity Funds and their eligible subsidiaries in determining qualification and levels of new investment in Opportunity Zones. They also provide guidance regarding the types of gains that qualify for Opportunity Zone investments, as well as gains that may be excluded from tax after a 10-year holding period.

Read more on our new Opportunity Zones blog.

 

From the Land of OZ: New CRA Regulations proposed – including credit for providing “financing for or supports for a QOF”

The Office of the Comptroller of the Currency (OCC) along with the Federal Deposit Insurance Corporation (FDIC) released proposed regulations on December 13, 2019 which would institute significant changes to the implementation of the Community Reinvestment Act (CRA) if implemented.

Read more on our new Opportunity Zones blog.

From the Land of OZ: Rapid increase in funds invested in Opportunity Zone Funds

Despite the laments that I have heard of late at various conferences and read in various articles, Opportunity Zones are, in our little slice of the world, very busy, very active and, per both Novogradac and Bisnow, OZ Funds who are focused on raising third party equity have seen a marked increase in funds under management in the last few months and have raised approximately $4.5B to date. While this is indeed less than the $6T of unrealized capital gains estimated to be available to invest, it is still a very sizable sum of money.

Read more in our new Opportunity Zones blog.

Mayor Signs Energy Efficiency Tune Up Bill making it the Law in Philadelphia

Beginning in 2021, many commercial property owners in Philadelphia will be required to conduct energy efficiency tune-ups in their buildings. The new legislation requires owners of all nonresidential buildings of 50,000 square feet or larger to either conduct a “tune-up” to bring existing building energy systems up to a state of good repair or submit a certification of high energy performance to the city’s Office of Sustainability. The Bill which was signed into law yesterday by Mayor Kenney is intended to help cut citywide carbon emissions.

Stay tuned for a Client Alert from David B. Amerikaner and me on this topic if of interest, which will be published later tonight. Best regards. -Brad A. Molotsky

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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