Bill Text: CA SB275 | 2019-2020 | Regular Session | Amended
Bill Title: Health Care and Essential Workers: personal protective equipment.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Passed) 2020-09-29 - Chaptered by Secretary of State. Chapter 301, Statutes of 2020. [SB275 Detail]
Download: California-2019-SB275-Amended.html
Amended
IN
Assembly
August 30, 2020 |
Amended
IN
Assembly
August 25, 2020 |
Amended
IN
Assembly
August 24, 2020 |
Amended
IN
Assembly
July 27, 2020 |
Amended
IN
Assembly
June 17, 2020 |
Amended
IN
Assembly
February 13, 2020 |
Amended
IN
Assembly
January 06, 2020 |
Introduced by Senators Pan and Leyva (Coauthor: Assembly Member Gonzalez) |
February 13, 2019 |
LEGISLATIVE COUNSEL'S DIGEST
Existing law establishes the Made in California Program within the Governor’s Office of Business and Economic Development, to encourage consumer product awareness and to foster purchases of high-quality products made in California. Existing law creates the Made in California Fund within the State Treasury, consisting of donations and other moneys to be used for the purposes of the Made in California Program, as specified.
This bill would require the office, as a part of the Made in California Program, to encourage in-state production of PPE in order to assist the State Department of Public Health and providers in complying with the bill’s requirements. The bill would create the Health
Care Workforce Protection Account within the Made in California Fund, consisting of donations and other moneys, for the exclusive purpose of promoting the production of PPE. The bill would continuously appropriate the donated moneys in the account for the purpose of implementing those provisions, thereby making an appropriation. The bill would require any other funds deposited and maintained in the account to be available for the same purpose, upon appropriation by the Legislature. The bill would declare that its provisions are severable.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Digest Key
Vote: MAJORITY Appropriation:Bill Text
The people of the State of California do enact as follows:
This act shall be known, and may be cited, as the Health Care and Essential Workers Protection Act.
(a)(1)As part of the Made in California Program, the office shall encourage the in-state production of personal protective equipment, (PPE) in order to assist the State Department of Public Health in complying with Section 131021 of the Health and Safety Code and to assist providers in complying with Section 6403.1 of the Labor Code.
(2)For purposes of this section, “personal protective equipment” and “providers” have the same meanings as defined in subdivision (c) of Section 131021 of the Health and Safety Code.
(b)The office may accept monetary donations or other donations from
businesses, nonprofit organizations, or individuals for the purpose of implementing this section. These donations shall be deposited in the account established in subdivision (c).
(c)The Health Care Workforce Protection Account is hereby created within the Made in California Fund established by subdivision (h) of Section 12098.10. Moneys deposited into the account shall be used exclusively for the promotion of in-state production of PPE for the purposes described in this section, Section 131021 of the Health and Safety Code, and Section 6403.1 of the Labor Code. The office shall use funds deposited into the account to provide grants, loans, loan guarantees, and other incentives for projects that increase capacity for the in-state manufacturing of PPE. Notwithstanding Section 13340, funds deposited and maintained in the account that were
donated pursuant to subdivision (b) are continuously appropriated, without regard to fiscal years, to the director for the purposes of implementing this section. Any other funds deposited and maintained in the account shall be available, subject to appropriation by the Legislature, for purposes of implementing this section.
SEC. 3.SECTION 1.
Section 131021 is added to the Health and Safety Code, to read:131021.
(a) The Legislature finds that having access to a statewide stockpile of personal protective equipment in the event of a pandemic or other health emergency is vital to the health and safety of its health care and essential workers, as well as the general population, which both relies on this workforce and is susceptible to disease transmission should members of this workforce needlessly be infected with transmissible disease.(b)The department shall establish a personal protective equipment (PPE) stockpile to ensure an adequate supply of PPE for health care workers and essential workers in the state that is at least sufficient for a 45-day pandemic or other health emergency. PPE in the stockpile shall be new and not previously worn or used.
(c)
(2)
(3)
(4)
(5)
(6)
(e)The department shall consider the recommendations of the Personal Protective Equipment Advisory Committee established pursuant to Section 6403.2 of the Labor Code. Based on the committee’s recommendations as to the types of PPE and
the determination of how to calculate the appropriate amount of PPE for the state stockpile, the department shall procure 20 percent of the full stockpile three years after enactment of the act that adds this section, only if the Office of Emergency Services determines that prices of PPE have returned to a normal level, adjusted for inflation. The department shall procure an additional 20 percent of the full stockpile in each of the subsequent four years, so that the department has procured 100 percent of the stockpile in five years.
(f)At least 25 percent of PPE in the stockpile shall be manufactured in California. Distribution of the 25 percent required to be manufactured in California shall be exclusively made via resale, whether sold during a state of emergency pursuant to paragraph (1) of, or sold in the normal course of
business pursuant to paragraph (2) of, subdivision (g). The Governor shall have the authority to waive this requirement for one year if the Governor determines that the state cannot procure enough PPE to meet the in-state manufacturing requirements. The Governor shall notify the Legislature within 15 days of this determination.
(1)PPE that qualifies as being “substantially made” in California pursuant to Section 12098.10 of the Government Code presumptively counts towards the 25-percent threshold.
(2)PPE manufactured outside of California presumptively counts towards the 25-percent threshold if the following qualifications are met:
(A)The company manufacturing the product has manufacturing facilities in the
state.
(B)The company is party to a community benefits agreement related to the in-state manufacturing facilities.
(C)The in-state manufacturing facilities provide services related to the PPE, including, but not limited to, packaging or distribution.
(g)The department shall distribute PPE from the stockpile only under either of the following two circumstances:
(1)If the Governor declares a state of emergency, or a local emergency is declared, for which PPE will be required.
(2)To sell PPE from the stockpile, provided that the department acquires new PPE to offset any shortage resulting from the
sale.
(h)The department shall establish guidelines regarding distribution of PPE from the stockpile, including, but not limited to, the timing and amount of PPE distribution and identifying geographic areas in critical need of PPE, as well as the terms of sale should the department determine sale is appropriate. The guidelines shall provide, at a minimum, that in the event there is insufficient PPE to meet needs, the department may consider prioritizing distribution for providers and employers of essential workers that meet any of the following qualifications:
(1)
(2)
(3)
(4)
(i) Before January 1, 2024, the department shall provide the Department of Finance with an estimate of the cost to fully stock the stockpile and to maintain the stockpile for the subsequent five years. The department shall update these estimates on an annual basis.
SEC. 4.SEC. 2.
Section 6403.1 is added to the Labor Code, to read:6403.1.
(a) The Legislature hereby finds that having access to a health care employer-level inventory of personal protective equipment in the event of a pandemic or other health emergency is vital to the health and safety of its health care workforce, as well as the general population, who both rely on the state’s health care workforce for care and are susceptible to disease transmission should members of the health care workforce needlessly be infected with transmissible disease.(3)“Safety net provider” means a health care employer, as described in paragraph (2), that is a licensed clinic, as described in subdivision (a)
of Section 1204 of the Health and Safety Code, an intermittent clinic exempt from licensure under subdivision (h) of, or a tribal clinic exempt from licensure under subdivision (c) of, Section 1206 of the Health and Safety Code, or an outpatient setting conducted, maintained, or operated by a federally recognized Indian tribe, tribal organization, or urban Indian organization, as defined in Section 1603 of Title 25 of the United States Code, or a rural health clinic, as defined in Section 1395x(aa)(2) of, or a federally qualified health center, as defined in Section 1395x(aa)(4) of, Title 42 of the United States Code.
(4)
(2)A safety net provider that violates the requirement to maintain an inventory of unexpired personal protective equipment as specified in this section shall be assessed a civil penalty per violation, in an amount to be determined by the department, not to exceed a total of two thousand five hundred dollars ($2,500) per calendar year.
(d)(1)On or before January 15, 2021, the department, after consultation with the Office of Emergency Services, shall evaluate and make a determination as to whether there is a significant supply limitation of PPE facing purchasers in California. If the department determines there is not a significant supply limitation, commencing 60 days after this determination, only those health care employers licensed under subdivisions (a), (b), and (c) of Section 1250 of the Health and Safety Code shall maintain an inventory equal to a minimum of six months of daily consumption. For purposes of
this subdivision, daily consumption shall be based on the highest seven-day consecutive daily average consumption of PPE in 2019. If the department determines that there is a significant supply limitation, the department shall revisit this determination every 30 days until there is a determination that there is no longer a significant supply limitation, after which employers described in subdivisions (a), (b), and (c) of Section 1250 of the Health and Safety Code shall have 60 days to maintain an inventory equal to a minimum of six months of daily consumption.
(2)The department may determine that a supply limitation only exists for one or more types of PPE, in which case a health care employer shall be required to maintain an inventory only for the types of PPE for which the department has determined there is not a supply limitation.
(3)In evaluating whether a significant supply chain limitation exists, the department shall take into account whether health care employers have made requests through their medical health operational area coordinators to obtain PPE.
(4)If the department determines there is a significant supply limitation, the department shall make findings with applicable evidence that supply chain limitations exist regarding a particular type of PPE. The findings shall be made in writing, submitted to the Legislature and relevant health care employers and relevant health care unions, and posted on the department’s internet website.
(5)For the purposes of paragraph (1), health employers licensed under subdivision (c) of Section 1250 of the Health and Safety Code shall only be required to have a 30-day supply of gloves until regulations are adopted pursuant to subdivision (k).
(e)(1)Commencing January 1, 2022, or 60 days after regulations are adopted pursuant to subdivision (k), health care employers, except as provided in subdivision (f), shall have an inventory at least sufficient for 30 days of surge consumption, as determined by
those regulations.
(2)
(f)
A safety net provider shall do either of the following, starting six months after regulations established in subdivision (k) are adopted if there is no supply chain limitation on any type of PPE as described in subdivision (i), or January 1, 2023, whichever is later:
(1)Have an inventory at least sufficient for 30 days of surge consumption, as determined by the regulations adopted pursuant to subdivision (k).
(2)Demonstrate to the department that it has entered into a standing contract with a third-party entity that manufactures, maintains, or distributes PPE that ensures timely access to an inventory at least sufficient for 30 days of consumption, as determined by the regulations adopted pursuant to subdivision (k).
(g)On or before January 15, 2021, a health care employer licensed under subdivisions (a), (b), and (c) of Section 1250 of the Health and Safety Code shall report to the department under penalty of perjury its highest seven-day consecutive daily average consumption of PPE during the 2019 calendar year.
(h)
(i)
(j)(1)
(2)Each day that a health care employer fails to comply with paragraph (1) shall constitute an independent violation of this section.
(3)Notwithstanding paragraph (2) and existing law, a safety net provider who violates paragraph (1) shall be assessed a civil penalty per violation, in an amount to be determined by the department, not to exceed a total of two thousand five hundred dollars ($2,500) per calendar year.
(k)
(2)The department, by regulation and in consultation with the State Department of Public Health and the Personal Protective Equipment Advisory Committee, shall set forth requirements for calculating capacity levels for safety net
providers’ inventory as required by subdivision (f), including, but not limited to, the types and amount of PPE to be maintained by the health care employer that is a safety net provider, based on anonymized facility information regarding the type and size of each health care employer and its workforce.
(l)A health care employer shall provide an inventory of its PPE to the Division of Occupational Safety and Health upon request. An employer who violates this requirement shall be assessed a civil penalty of up to twenty-five thousand dollars ($25,000) for each violation. This subdivision does not apply to health care employers that are safety net providers or to a health care employer that provides services in a facility or other setting controlled or owned by another health care employer that is obligated to maintain a PPE inventory and report that inventory pursuant to this subdivision for all its owned or controlled facilities and settings.
(a)The Personal Protective Equipment Advisory Committee is hereby established. The Secretary of Labor or their designee shall appoint the membership of the advisory committee. The advisory committee shall consist of 18 or more individuals who have experience in health care, public health, workers’ rights, or emergency preparedness and shall consist of the following:
(1)One representative of an association representing multiple types of hospitals and health systems.
(2)One representative of an association representing skilled nursing facilities.
(3)Two representatives of an association representing primary care clinics, with one of those members representing clinics specializing in family planning that are safety net providers.
(4)One representative of a statewide association representing
physicians from multiple specialties and modes of practice.
(5)Three representatives of labor organizations that represent health care workers.
(6)Three representatives of labor organizations that represent essential workers, as defined by paragraph (2) of subdivision (c) of Section 131021 of the Health and Safety Code, with one of the members from a labor union representing agricultural workers.
(7)One representative of an association representing home health agencies.
(8)One consumer representative.
(9)One representative from the Department of Industrial Relations.
(10)One representative from the State Department of Public Health.
(11)One representative from the Office of Emergency Services.
(12)One representative from an association representing counties.
(13)One public member with expertise in emergency preparedness and employee health and safety.
(14)One representative from the Department of General Services.
(15)One representative from an association representing ambulatory surgery centers.
(b)The Personal Protective Equipment Advisory Committee shall make recommendations to the department and the State Department of Public Health necessary for the department to provide the report required pursuant to subdivision (c).
(c)On or before May 30, 2021, the department shall submit a report to the Legislature based on the recommendations of the Personal Protective Equipment Advisory Committee. The report shall include recommendations on implementation of the various requirements of the committee and shall include, but not be limited to, recommendations relating to both of the following:
(1)The type and amount of PPE needed by health care employer type, during a public health emergency, to ensure compliance to public health and safety standards.
(2)The type and amount of PPE required for the state stockpile created pursuant to Section 131021 of the Health and Safety Code.
(3)Guidance on best practices for how health care employers may make fit testing available for their workforce to be properly fitted for PPE.
(4)Actions that the state can take to encourage a resilient supply chain and to incentivize in-state production of PPE. The committee shall create an additional working group, made up of interested members of the committee and subject matter experts in supply chain and
distribution management or other areas of expertise, to provide guidance on actions the state can take to create a state-run group purchasing organization by 2023.
(5)Guidance on best practices for provider inventory storage.
(6)Strategies to increase transparency for both the state stockpile and health care employers’ inventory.
(7)With regard to health care employers, other than health facilities described in Chapter 2 (commencing with Section 1250) of Division 2 of the Health and Safety Code, the report in this subdivision shall take into consideration the following factors:
(A)Patient volume during a
pandemic emergency.
(B)The ability of an employer to utilize telemedicine to minimize in-person contact.
(C)The intent of the Legislature that the inventory required for these employers be composed primarily of PPE that the employer would utilize in the normal course of business.
(d)On or before January 1, 2031, the department and the State Department of Public Health shall submit a report to the Legislature on the effectiveness of the health care employer inventory requirement and make recommendations, if any, that will improve health care worker safety and health care employer preparedness during a pandemic or other health emergency. The report shall also review the effectiveness of the state stockpile.
(1)A report to be submitted pursuant to subdivision (c) or (d)
shall be submitted in compliance with Section 9795 of the Government Code.
(2)Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2035.
SEC. 6.SEC. 3.
The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.