JEDE COVID-19 Update for May 26, 2020

MAJOR COVID-19 ANNOUNCEMENTS

• Assembly Committee of the Whole:  The California State Assembly convened as a Committee of the Whole to hear testimony from the Director of the Department of Finance and the Legislative Analysts and engage in a discussion on the condition of the 2020-21 state budget.  With an estimated $54 billion shortfall, Members of the Assembly expressed concerns over some proposed reductions and offered alternative budget strategies.

  • To View a Recording of the Committee Hearing:  https://www.assembly.ca.gov/todaysevents

  • Assembly Budget Committee:  https://abgt.assembly.ca.gov/

  • DOF Budget Handout:  https://abgt.assembly.ca.gov/sites/abgt.assembly.ca.gov/files/DOF%202020-21%20May%20Revision%20COTW.pdf

  • LAO Budget Handout:  https://abgt.assembly.ca.gov/sites/abgt.assembly.ca.gov/files/LAOs%20Initial%20Comments%20on%20the%20Governors%20May%20Revision.pdf

• CA Economy Update:  The JEDE Committee, chaired by Assemblymember Sabrina Cervantes, released a May update on the Committee’s Fast Facts on the California Economy.  Among other information, the seasonally adjusted unemployment rate for California in April 2020 (most recent data) was 15.3%, which represents a decrease of 2.3 million jobs from the prior month and approximately 2.8 million unemployed workers statewide.  https://ajed.assembly.ca.gov/sites/ajed.assembly.ca.gov/files/FINAL%20CA%20Economy%20Fast%20Facts%20updated%20May%202020.pdf

• Retail Approved to Re-Open:  The California Department of Public Health today announced the statewide reopening of in-store retail shopping. Modifications are required to keep Californians safe and limit the spread of COVID-19. Subject to approval by county public health departments, all retail stores can reopen for in-store shopping under previously issued guidelines.

  • Retail Guidelines:  https://covid19.ca.gov/pdf/guidance-retail.pdf   

  • Cal/OSHA General Guidelines on Protecting Workers from COVID-19:  https://www.dir.ca.gov/dosh/coronavirus/General-Industry.html  

  • CDC Guidance for Businesses and Employers:  https://www.cdc.gov/coronavirus/2019-ncov/community/guidance-business-response.html?CDC_AA_refVal=https%3A%2F%2Fwww.cdc.gov%2Fcoronavirus%2F2019-ncov%2Fspecific-groups%2Fguidance-business-response.html

• Hair Salons Approved to Re-Open:  The California Department of Public Health announced that counties that have attested to meeting the criteria for accelerated re-opening may re-open hair salons and barbershops with modifications such as mandatory face coverings for both barbers or stylists and clients. State public health leaders noted the announcement is based on the state meeting specific health indicators, including, but not limited to, access to PPE, testing capacity, hospital surge capacity, and hospitalizations.  

  • General Guidance for Re-Opening:  https://www.cdph.ca.gov/Programs/CID/DCDC/Pages/Guidance.aspx

  • New Guidance for Hair Salons and Barbers:  https://covid19.ca.gov/pdf/guidance-hair-salons.pdf

• UC Fall Semester:  University of California President Napolitano announced that every campus will be open and offering instruction,  Lectures will be held in an online format, while small classes and labs will be held in person.  https://www.mercurynews.com/?utm_source=Blueconic&utm_medium=corona&utm_campaign=close

• PPP Data Breach:  Bank of America Corp. (BofA) disclosed a possible data breach on business clients' information for the Paycheck Protection Program.  The breach occurred on April 22, as BofA uploaded PPP applications onto the Small Business Administration's test platform, according to a filing with the California Attorney General's Office.  The application information was not publicly viewed, but was visible to other SBA-authorized lenders and their vendors.  According to BofA, there is no indication that the information was viewed or misused.  https://www.bizjournals.com/charlotte/news/2020/05/26/bank-of-america-discloses-ppp-data-breach.html

ECONOMIC RECOVERY

• Small Business Input Requested:  The Federal Energy Regulatory Commission (FERC) announced a two-day technical conference (July 8 and 9) to allow the public to provide information on energy issues that the country faces as it recovers from the COVID-19 emergency. According to the announcement, FERC seeks information on (1) the energy industry’s ongoing and potential future operational and planning challenges due to COVID-19; (2) the potential impacts of changes in electric demand on operations, planning, and infrastructure development; (3) the potential impacts of changes in natural gas and oil demand on operations, planning, and infrastructure development; and (4) issues related to access to capital, including credit, liquidity, and return on equity issues. The conference will take place from 9 a.m.- 5 p.m. on July 8th and 9th, 2020.

  • Announcement:  https://www.ferc.gov/media/coronavirus/impact-covid-19-notice.pdf?utm_medium=email&utm_source=govdelivery

  • Conference Registration:  https://www.ferc.gov/whats-new/registration/07-07-20-form.asp?utm_medium=email&utm_source=govdelivery

  • Federal Office of Small Business Advocacy Contact:  Prianka Sharma at (202) 205-6938 and prianka.sharma@sba.gov

• West Coast Trade Report:  The Pacific Merchant Shipping Association released its May West Coast Trade Report.  Among other information, inbound container trade through the Ports of Los Angeles and Long Beach were down 8.1% in April, as compared to a year ago.  The number of loaded TEUs discharged at LA were actually up by 2.6%.  However, Long Beach reported a -20.2% over the prior year.  Jock O’Connell provides commentary on the trade, finance, and economic recovery:   https://files.constantcontact.com/3190e792601/288b1b1b-03a5-4b8b-a1fd-b5f6b8682369.pdf

• Update to the CRA:  The Office of the Comptroller of the Currency published a final rule amending Community Reinvestment Act (CRA) regulations. The final rule expands the banking activities that qualify for positive consideration, updates how banks delineate the assessment areas in which they are evaluated, provides additional methods for evaluating CRA performance, and requires timely and transparent reporting.  https://www.novoco.com/sites/default/files/atoms/files/occ_final_cra_rule_announcement_052020.pdf

COVID-19 Program Updates

• Moratorium on Evictions:  The CARES Act imposes a temporary moratorium on evictions, which became effective March 27, 2020, and lasts for 120 days (through July 24, 2020).  The federal Department of Housing and Urban Development has issued Q&As to provide guidance on how the temporary moratorium applies to certain dwelling units assisted by Community Development Block Grant (CDBG) loans, including, Section 108 guaranteed loans, Neighborhood Stabilization Program loans, and CDBG-Disaster Recovery loans.

  • CDBG Program Eviction Moratorium Q&As:  https://www.hud.gov/sites/dfiles/CPD/documents/CDBG_Eviction_Moratorium_QAs_2020_05_18_FINAL.pdf?utm_source=HUD+Exchange+Mailing+List&utm_campaign=8d05937a64-CDBG-Eviction-Moratorium-Q%26A_5%2F22%2F2020&utm_medium=email&utm_term=0_f32b935a5f-8d05937a64-19390889

  • CDBG COVID-19 Resources Page:  https://www.hudexchange.info/programs/cdbg/disease/?utm_source=HUD+Exchange+Mailing+List&utm_campaign=8d05937a64-CDBG-Eviction-Moratorium-Q%26A_5%2F22%2F2020&utm_medium=email&utm_term=0_f32b935a5f-8d05937a64-19390889

• Update Senior Food Program:  The Great Plates Program help seniors and other adults at high risk from COVID-19 to receive three nutritious meals a day, while also supporting local restaurants.