On April 12, 2020, Puerto Rico Governor Wanda Vázquez-Garced issued Executive Order No. 2020-033 (“EO 2020-033”), extending the previously mandated lockdown and citizen curfew under Executive Order 2020-029, to now be effective from Monday, April 13, 2020 until Sunday, May 3, 2020, to address the COVID-19 pandemic. EO 2020-033 modified certain rules for the lockdown and operation of businesses.

Below is a summary of the most relevant provisions of EO 2020-033 as it relates to commercial and industrial operations.

Citizens Curfew Extension

The citizens stay-at-home curfew (24/7) is extended until May 3, 2020. Any citizen not otherwise exempt from EO 2020-033, may only leave their residence between 5:00 a.m. and 9:00 p.m., exclusively under the following circumstances:

(a) attend medical appointments, hospital visits, laboratories, medical service centers

(b) acquire food, pharmaceutical products and essential goods;

(c) exempt businesses to do urgent or necessary errands;

(d) receive exempt services specified in this Order; and

(e) provide exempt services specified in this order.

The use of motor vehicles in public roadways is no longer restricted to vehicles with license plates ending with odd or even numbers. Tolls will continue to be charged, but there will be no penalties for using a toll road without a balance in the account.

Government personnel will remain operating and providing all essential services without affecting their safety and health by allowing remote work access to its employees.

Transition Rules

Given the lockdown extension and need to allow businesses to prepare payroll and workers to prepare for remote working, the following exemptions to the citizens curfew have been issued:

• Payroll.- On Tuesday, March 14, between 5:00 a.m.  and 2:00 p.m., up to 5 employees per employer will be allowed to visit the workplace to process payroll for the period ending April 2020.
• Remote Working Materials.- On Thursday, April 16, between 5:00 a.m. and 2:00 p.m., workers may visit their workplace in an orderly manner to pick-up materials and equipment needed for remote working.

New Safeguards for Citizens Visiting Exempt Businesses

Any person visiting an exempt 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 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.
• Businesses must, as possible, give preference to people who work in hospitals, laboratories, or in law enforcement.

Citizens Exempted from Curfew

Pursuant to OE-2020-033, the following citizens are exempted from lockdown restrictions:

• Citizens who provide assistance, care, food, or transportation to seniors, minors, dependents, people with disabilities, or vulnerable people who require medical or professional attention, as long as precautions are taken.
• Employees of public or private security agencies or law enforcement (state or federal);
• Health professionals, including mental healthcare personnel, who work in hospitals, pharmacies, pharmaceutical companies, bioscience facilities or health centers;
• Employees or suppliers of wholesale distribution chain businesses and the manufacture of goods and food, including those dedicated to agricultural activities and fruit and vegetable kiosks that were established before March 15, 2020;
• Persons working with utilities or critical infrastructure;
• Exempt service providers (see Additional Services Exempted below).
• Persons working in call centers;
• Persons working for ports and airports;
• Members of the press and media, and
• Any citizen who is attending any emergency or health issue.

Citizens are required to provide evidence of employment with an exempted service or business. It is also recommendable that employees of exempted businesses carry a letter from the employer certifying exempted activity.

Total Business Lockdown

A twenty-four (24) hour closure of business operations shall remain in effect to all businesses not otherwise exempted, including: cinemas, discotheques, concert halls, theaters, game rooms, casinos, amusement parks, gyms, bars, 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, exclusively through carry-out or delivery. These include prepared food, wholesale, supermarkets, fruit and vegetable kiosks and related food distribution chains, including animal feed.

• Supermarkets may remain open from Monday to Saturday from 5:00 a.m. until 8:00 p.m. (delivery services may continue until 10:00 p.m.
• Grocery stores, supermarkets or businesses that have supermarkets will remain CLOSED to the public on Sundays, may use Sundays to clean, disinfect areas and restock inventories.

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.

• Hospitals, emergency rooms, clinical laboratories
• Pharmaceutical, medical device and biotechnology operations
• Manufacture of medical supplies
• Medical services clinics and medical centers
• Medicinal cannabis facilities
• (Only allowed to sell medicine and personal hygiene products on Sundays).
• Medical insurance plans
• Medical and dental offices (only to attend emergencies; elective surgeries are suspended)

3. Fuel Sector

• Gas stations and distribution supply chain operations. (On Sundays, Gas Stations may only sell fuel or medicine.)
• Fuel processing, sale and distribution operations
• Refined fuel, gasoline, diesel, jetfuel, AV-Gas, propane gas, kerosene, etc.

4. Financial Institutions

• Banks, credit unions and other financial institutions for deposits, withdrawals and payments.
• Pawn shops (Note: only to provide the service for receipt of goods as a pawn and payment of debts).

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. Auto Repair and Parts

Vehicle repair businesses, including technicians, tire workers and parts distributors may operate to attend emergencies on WEDNESDAYS and THURSDAYS, only between 9:00 am and 5:00 pm exclusively by appointment and attending one person at a time.

7. Hardware Stores

Hardware stores or services may operate on FRIDAYS and SATURDAYS between 9:00 am to 5:00 pm, only by appointment and by coordinating the sale and delivery of merchandise, without opening the facility to the general public. The business shall also attend to one person at a time. Emergency orders may be dispatched between Monday and Thursday if made by  a government  entity or exempt  business.

8. 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.

Additional Services Exempted

The following services are allowed as exceptions to address emergency situations without opening commercial establishments, ordered through telephone or internet contacts, for purposes of dealing with health, hygiene or security needs and in compliance with proper controls and protection against COVID-19:

(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 are limited to the embalming, cremation and burial of the corpse.

(e)        Critical telecommunications infrastructure work will be permitted only for installations, repairs, maintenance and rehabilitation of plants, including:

(i)         Infrastructure related to PREPA, PRASA, telecommunications, roads, waste management, ports, and airports.

(ii)        Repair, delivery, replacement of equipment, land, cellular, internet, cable TV or antennas by appointment in strategic points. Only to existing customers.

(f)        Waste management (public or private), recycling services, and 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.

New Rules for Shareholder Meetings of Corporations

Corporations may notify a change of time or location of shareholder meetings via e-mail, 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 in their website.

Construction Sector Authorization for Essential Services

The construction sector is authorized to continue to operate only if deemed essential under the COVID-19 emergency as long as it offers critical services of maintenance or repairs related to hospitals, water, electricity and communication services and in compliance with CDC guidelines, the Federal Department of Labor and OSHA.

Guidelines and Process to Exempt Additional Activities from Lockdown

EO 2020-033 empowers the heads of agencies of the Government of Puerto Rico to:

1. Issue additional guidelines to further regulate the relevant provisions under EO 2020-033, with the approval of the Governor. (It is expected that the Department of Economic Development and Commerce (“DDEC”) will issue soon, new guidelines, further to its Circular Letters No. 2020-02 and 2020-05, clarifying business operation exemptions under EO 2020-033.)
2. Identify any additional services or activities not expressly covered under EO 2020-033 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 2020-033.

 Penalties for Non-compliance:

Non-compliance with the provisions of EO 2020-033 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.