On July 13, 2020, Governor Newsom issued a new order closing down certain indoor and outdoor activities as part of an effort to slow the growth in new COVID-19 infections across the state. So far the order does NOT impact retail operations, including car dealerships. Therefore, as the writing of this alert, car dealerships across the state should continue to operate in compliance with state and local reopening protocols. Dealerships should prepare, nonetheless, to further adapt their operations, as additional orders may be issued on a state-wide or local basis. Dealers should also be prepared for stepped-up enforcement of the current rules. Any dealer that has not complied with local and state reopening guidelines should do so now, in anticipating of a likely increase in enforcement.
Newsom’s order requires that indoor operations across the state close in these sectors:
- Dine-in restaurants
- Wineries and tasting rooms
- Movie theaters
- Family entertainment centers (for example: bowling alleys, miniature golf, batting cages and arcades)
- Zoos and museums
Additionally, bars, brewpubs, breweries, and pubs must close all operations both indoor and outdoor statewide. Newsom’s order also requires additional closing of indoor operations by county. Counties that have remained on the County Monitoring List for 3 consecutive days will be required to shut down the following industries or activities unless they can be modified to operate outside or by pick-up.
- Fitness centers
- Worship services
- Offices for non-essential sectors
- Personal care services, like nail salons, body waxing and tattoo parlors
- Hair salons and barbershops
On July 13, the following counties were recognized as being on the Monitoring List for 3 consecutive days and therefore subject to the indoor-operations shutdown order:
- Contra Costa
- Los Angeles
- San Benito
- San Bernardino
- San Diego
- San Joaquin
- Santa Barbara
Notably, this list includes all major counties in Southern California, but not all counties in the Bay Area. Dealerships located in counties on this list should pay particular attention for additional county or city orders. All dealerships across the state should be sure they are compliant with state and local reopening protocols and prepared to explain their prevention methods to local health authorities. Scali Rasmussen’s attorneys have been advising dealers on local and state laws as well as risk mitigation since the start of the Coronavirus crisis. Contact us today to discuss how you can protect your investment and mitigate your risk during this troubling time.