On June 29, 2020, Puerto Rico Governor Wanda Vázquez issued Executive Order No. 2020-048, extending the previously-issued covid-19 lockdown and citizen curfew while authorizing reopening of new business sectors.  Executive Order 2020-48 will be in effect from Wednesday, July 1, 2020 until Wednesday, July 22, 2020, to address COVID-19 pandemic and economic sectors .

 

A summary of EO 2020-048, highlighting in bold the changes from previous executive order, as it relates to commercial and business operations, follows.

Citizens Curfew Modification

The previously established curfew remains in effect from 10:00 pm to 5:00 am.

Safeguards for Citizens Visiting Authorized Businesses

Any person visiting an authorized business establishment under the Order must:

	cover their mouth and nose with a mask;
	maintain 6 feet distance from other people; and
	only 1 person per household may visit establishments, unless assistance is required.

Private commercial establishments must:

	ensure that employees, before beginning their work and periodically, wash their hands with soap and water or use hand sanitizer. Additionally, employees must disinfect their workstations upon arrival and after completing their shifts
	ensure that employees and people who visit their establishments wear protective masks
	provide mechanisms for disinfecting hands
	ensure that people maintain 6 feet of separation
	for supermarkets and pharmacies, offer preferential period of time for senior citizens to visit

 

Citizens Exempted from Curfew

Pursuant to OE-2020-048, the following citizens are exempted from curfew restrictions:

	Citizens providing assistance, care, food, or transportation to seniors, minors, dependents, people with disabilities, or vulnerable population requiring medical or professional attention
	Employees of public or private security agencies or law enforcement (state or federal)
	Health professionals, including mental healthcare personnel, and people who work in hospitals, pharmacies, pharmaceutical companies, bioscience facilities or health centers
	Personnel working in the wholesale of goods and food manufacturing, including those necessary for agricultural activity, from the source up to consumer retail establishments where products are sold to consumers
	Persons working with utilities or critical infrastructure
	Exempt service providers (see Additional Services Authorized below)
	Call centers personnel
	Ports and airports personnel
	Members of the press and the media
	Any citizen who is attending any emergency or health issue

Lockdown for nightclubs and game rooms remains

A 24-hour closure of business operations shall remain in effect for all businesses not otherwise authorized, including: nightclubs, game rooms or any other place or event that encourages the gathering of a group of citizens in the same place.

Businesses Exempted from Lockdown

The following businesses are exempt from the lockdown:

 

1. Food Sector

	Retail sale of food and alcohol. These include prepared food (carry-out and delivery remain the preferred methods) wholesale, supermarkets, fruit and vegetable kiosks and businesses related to the food distribution chain, including animal feed.
	Restaurants.- Restaurants are authorized to open their dining rooms to customers during hours not included in the curfew, as long as their operation remains below 75% of the maximum occupancy capacity. It is recommended that restaurants operate by reservation.
	Businesses that sell alcoholic beverages. Businesses that sell alcoholic beverages are authorized to open during hours not included in the curfew, provided their operation remains 75% of the maximum occupancy capacity.
	Fast Food Restaurants. In the case of fast-food restaurants, they shall make sure that clients waiting in queue keep the required distance of six (6) feet, and that clients and employees use face masks
	Supermarkets. Supermarkets may operate during hours not included in the curfew. However, they must reserve a period at the end of every workday to clean and disinfect areas.

 

2. Health Sector

Includes businesses dedicated to the production, sale or rendering of services related to medicines, medical equipment or supplies, medical care services and related supply chain distribution operations, including:

	Pharmaceutical, medical device and biotechnology operations
	Manufacture of medical supplies
	Manufacture and sale of cleaning products, disinfectants and personal protective equipment necessary to deal with the COVID-19 crisis
	Hospitals, emergency rooms, clinical laboratories
	Medical services clinics and medical centers
	Medicinal cannabis facilities
	Blood banks
	Pharmacies (there are no longer restrictions on products that could be sold on Sundays)
	Health insurance companies
	Elderly-Care centers
	Veterinary clinics (by appointment only)
	Primary and specialist physicians. Although it is encouraged that physicians continue to use the telemedicine method, face-to-face visits will be allowed by appointment only. Ambulatory services and elective surgeries shall be permitted, as long as they are not for aesthetic purposes.
	Dental and optometrist offices (by appointment only)

 

3. Gas stations and their supply chain

	Fuel processing, sale and distribution operations.
	Refined fuel, gasoline, diesel, jetfuel, AV-Gas, propane gas, kerosene, etc.
	Vehicle inspection centers (by appointment only).
	Electronic lottery sales

 

4. Financial Institutions

	Banks, credit unions and other financial institutions
	Pawn shops
	Mortgage banks and other lending entities (only for loan closings, by appointment only)

 

5. Services to Vulnerable Population

Organizations that provide basic needs for economically disadvantage populations, such as homeless shelters, food banks, victim shelters, shelters, and temporary housing.

 

6. Textile Industry

Businesses that manufacture uniforms, clothing or components for the Department of Defense may operate as long as they comply with OSHA protocols for COVID. Any textile business that manufactures personal protective equipment may operate as long as they comply with OSHA protocols.

 

7. Laundries and laundromats

May operate during hours not included in the curfew, as long as they coordinate to attend clients in an orderly manner without opening the facility to the general public.

 

8. Ornamental agriculture

May operate during hours not included in the curfew as long as they coordinate to attend clients in an orderly manner without opening the facility to the general public.

 

9. National Security

Manufacturing, sale and services related to Aerospace Industry and any federal agency, including the US Department of Defense

 

10. Car wash businesses

May operate during hours not included in the curfew.

 

11. Barbershops, beauty salons and spas

May operate during hours not included in the curfew, by appointment only.

 

12. Retail stores

Retail businesses will be authorized to open to the public during the hours that fall outside of the mandated curfew, following all precautionary measures of facemask wearing and social distancing. Additionally, they shall ensure their operation remains below 75% of the maximum occupancy capacity.

 

13. Open-air shopping centers and enclosed malls

	May operate during hours not included in the curfew, provided they establish precautionary measures to prevent contagion.
	Open-air shopping centers’ operations shall remain below 75% of their maximum occupancy capacity, whereas enclosed malls shall limit their occupancy to one person per every seventy-five square feet.

 

14. Wholesale stores, car dealers and travel agencies

May operate during hours not included in the curfew, by appointment only, provided they ensure their operations do not exceed 75% of the maximum occupancy capacity.

 

15. Movie theaters

May operate during hours not included in the curfew, provided tickets are sold online.

 

16. Museums

May operate during hours not included in the curfew, by appointment only, provided they ensure their operations do not exceed 75% of the maximum occupancy capacity and that tickets are sold online.

 

17. Gyms

May operate during hours not included in the curfew, provided they establish precautionary measures to prevent contagion and their operations do not exceed 75% of the maximum occupancy capacity.

 

18. Daycares

May operate during hours not included in the curfew, provided they establish precautionary measures to prevent contagion.

 

19. Film Industry

May operate during hours not included in the curfew, provided they establish precautionary measures to prevent contagion.

 

Additional Authorized Services

The following services, provided they operate in compliance with proper safety controls against COVID-19, are allowed to operate during hours not included in the curfew:

(a)	Plumbers, electricians, exterminators, repair or replacement of household appliances, elevators, access controls, pools, and landscape. These service providers must wear facemask and gloves.
(b)	Roadside assistance and locksmith services.
(c)	Package delivery and shipping companies.
(d)	Funeral home operations, provided they do not exceed the fifty percent (50%) of their maximum occupancy capacity.
(e)	Critical telecommunications infrastructure work will be permitted only for installations, repairs, maintenance and rehabilitation of plants, including: o   Infrastructure related to PREPA, PRASA, telecommunications, roads, waste management, ports, and airports. o   Repair, delivery, replacement of equipment, land, cellular, internet, cable TV or antennas by appointment in strategic points. Only to existing customers. o   Sale, installation, repair and maintenance of energy generation systems based on renewable or alternative energy systems. o   Repair and maintenance of streets, roads and highways. o   Sale, installation and maintenance of infrastructure and equipment necessary to prepare for the hurricane season.
(f)	Waste management (public or private), recycling, cleaning and maintenance services.
(g)	Services related to any federal agency.
(h)	Export of non-essential goods as long as it is part of existing inventory.
(i)	Moving services.
(j)	Services to ports and airports.
(k)	Electronic transaction processing services.
(l)	Online sales, for which it will be allowed to operate warehouses but only to dispatch orders by curbside pickup or delivery.
(m)	Supply and distribution for exempted businesses, as long as precautionary measures are taken to mitigate contagion.
(n)	Logistics and transportation: customs brokers, consolidation services for sea or land cargo, storage and distribution services for third parties and the distribution of detergents, disinfectants and hygiene and cleaning products.
(o)	Armory services for the security sector.
(p)	Air conditioner repair and maintenance services.
(q)	Transportation services limited to taxi and public chauffeurs who wish to deliver merchandise.
(r)	Data and call centers.
(s)	Notary services for all kinds of transactions required in the ordinary course of business.
(t)	Legal, accounting and other similar professional services, in compliance with social distancing protocols.
(u)	University educational services with the corresponding safety protocols to prevent contagion.
(v)	Private schools are allowed to open in order to prepare their facilities for the next semester. Each school must develop a safety protocol to prevent contagion.
(w)	Real estate agents and brokers, as long as they are limited to unoccupied properties.

 

Outdoor Recreational and Sports activities

Practice of most sports will be allowed during hours not included in the curfew, in compliance with the guidelines established by the Department of Sports and Recreation.  The use of public beaches, natural reserves, pools and golf courses will also be authorized, in compliance with social distancing protocols.

Entertainment

The use of open spaces for the presentation of Drive-In events is authorized. Venues for events and concerts are allowed to open, provided they comply with CDC standards and protocols.

Horse Racing Industry

Horse Races will be authorized. Racetrack premises will be allowed to open to the public, as long as its operation remains below 75%  of its maximum occupancy capacity.

Tourism

Adventure attractions are allowed to remain open. In addition, casinos and common areas in hotels may be opened as long as they do not exceed the 75% of their maximum occupancy capacity.

Construction and Manufacturing Sectors Authorization

Construction and manufacture sectors remain authorized, as long as strict safety protocols are implemented to mitigate contact and protect the health of all workers against COVID- 19, in compliance with CDC guidelines, the Federal Department of Labor and OSHA.  It will be required that construction and manufacture workers are provided with a training on the new safety protocols to prevent contagion in work areas. In addition, construction is authorized in nonexempt businesses and locations, as long as it is to prevent contact of COVID-19 by the time they begin operations. The supply of materials for the construction sector is also authorized, including the distribution of cement and related products.

Contagion Risk Management Protocols in the Workplace

Each employer in the exempt sectors must prepare a Contagion Risk Management Protocol based on OSHA and CDC guidelines. The Protocol shall be submitted to the Department of Labor and Human Resources prior to begin operations.

Employers must limit the number of employees in common areas during work hours.  This includes managerial, administrative and support personnel.  No employer may reinitiate work without providing safety gear to their employees.  Safety protocols based on those issued by OSHA must be in place.

Employers may not fire, discipline or discriminate against an employee for availing themselves of the rights afforded by labor laws, such as using licenses, filing complaints or testifying against the employer.

Guidelines and Process to Authorized Additional Activities

EO 2020-048 empowers the heads of agencies of the Government of Puerto Rico to:

	Issue additional guidelines to further regulate the relevant provisions under EO 2020-048, with the approval of the Governor.
	Identify any additional services or activities not expressly covered under EO 2020-048 as an exception, that may be deemed essential services or that address an emergency, for approval by the Governor’s Chief of Staff, who will have discretion to authorize such activity or service under EO 2020-048.

 

Rules for Shareholder Meetings of Corporations

Corporations may notify a change of time or location of shareholder meetings via email, press release, radio, newspaper, and/or phone. In the case of public corporations, by filing a notification with the SEC and issuing a press release, including posting a notice on their website.

Penalties for Non-compliance

Non-compliance with the provisions of EO 2020-048 by any person and/or company will be subject to the following penalties: (a) imprisonment that will not exceed six (6) months, or (b) a fine that will not exceed five thousand ($5,000) dollars, or (c) both penalties at the discretion of the court. In addition, the Department of Consumer Affairs (“DACO”, by its Spanish acronym) has issued orders to freeze prices concerning several products of basic need. Failure to comply with such order shall be subject to additional sanctions and fines upon those entities and/or persons who violate those businesses selling those products.

For any questions or inquiries regarding this topic do not hesitate to contact us at info@oneillborges.com or your prime contact attorney at O’Neill & Borges LLC. Please refer to www.oneillborges.com.