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AB-3307 California Manufacturing Emergency Preparedness Act of 2020.(2019-2020)

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Date Published: 07/23/2020 09:00 PM
AB3307:v96#DOCUMENT

Amended  IN  Senate  July 23, 2020
Amended  IN  Assembly  May 19, 2020
Amended  IN  Assembly  May 04, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 3307


Introduced by Assembly Members Eduardo Garcia and Cervantes
(Coauthors: Assembly Members Cunningham, Boerner Horvath, Chau, Chen, Quirk-Silva, Ramos, and Luz Rivas)

February 21, 2020


An act to amend Section 63050 of, to add Section 8684.3 to, and to add and repeal Article 5.5 (commencing with Section 63047.5) of Chapter 2 of Division 1 of Title 6.7 of, the Government Code, relating to economic development, and making an appropriation therefor. therefor, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


AB 3307, as amended, Eduardo Garcia. California Manufacturing Emergency Preparedness Act of 2020.
The Bergeson-Peace Infrastructure and Economic Development Bank Act establishes the California Infrastructure and Economic Development Bank (I-Bank). Among other things, the act authorizes I-Bank to make loans, issue bonds, and provide financial assistance to economic development or public development facilities.
Under existing law, the Disaster Assistance Fund is continuously appropriated, without regard to fiscal year, for purposes of the California Disaster Assistance Act. That act provides that when funds are available for purposes of the act, the Governor may allocate the funds, in connection with relief provided, in affected areas during the period of federal disaster relief, to the Small Business Expansion Fund for use by the California Infrastructure and Economic Development Bank (I-Bank), to provide guarantees for low-interest interim loans to be made by lending institutions for the purpose of providing interim financing to enable small businesses that have suffered actual physical damage or significant economic losses, as a result of the disaster or state of emergency for which funding is made available.
This bill would enact the California Manufacturing Emergency Preparedness Act of 2020, which would authorize I-Bank to establish the California Manufacturing Disaster Loan and Loan Guarantee Program for the purpose of attracting, retaining, retooling, establishing, and expanding manufacturing facilities, and logistics capacity in the state, and would require I-Bank to establish guidelines for the implementation and oversight of the program. The bill would prohibit I-Bank from commencing the program until it adopts a resolution finding that there is sufficient funding in the account to cover the costs of implementing the program. program and that the I-Bank has sufficient direction from the Director of the Office of Emergency Services, as provided. The bill would require I-Bank to provide for the development and administration of the program, as specified, and would require program applicants to demonstrate satisfaction of specified requirements. The bill would also require each applicant to pay a nonrefundable application fee, as provided.
The bill would create the Manufacturing Program Account within the California Infrastructure and Economic Development Bank Fund. The bill would authorize the Governor to allocate disaster relief funds, including funds in the Disaster Assistance Fund, to the Manufacturing Program Account for use by I-Bank, to cover the costs of administering the program and to provide direct loans or guarantees, or both, made by lending institutions institutions, and to forgive those loans in appropriate circumstances, for the purpose of providing financing to enable manufacturers the manufacturing and logistics sectors to support the emergency needs of Californians. The bill would provide that the moneys in the account be made available to I-Bank, upon a transfer of funds by the Director of Finance pursuant to an allocation by the Governor under the California Disaster Assistance Act, for specified purposes. The bill would authorize moneys in the account to be allocated to a lending institution or financial company that will act as trustee of the funds, with the approval of the Department of Finance. The bill would authorize I-Bank to create subaccounts in the account for specified purposes.
Because this bill would expand the purposes for which a continuously appropriated fund is expended and would deposit moneys and fees into a new, continuously appropriated account, the bill would make an appropriation.

The bill would require the commission, beginning October 1, 2021, and in any year funds are transferred into the Manufacturing Program Account, to post on its internet website or provide to the Legislature, as specified, a report on the program’s activities and impact on the manufacturing industry, and on the state’s economy generally.

The bill would require I-Bank to annually report, commencing with January 1, 2022, to the Governor and the Legislature on program activity, as specified, in any fiscal year that the program receives funding or has active loans.
The bill would further provide that the above described provisions will be implemented only to the extent that sufficient moneys are available to I-Bank to implement the California Manufacturing Disaster Loan and Loan Guarantee Program. The bill would permit these provisions to be used to respond to, and recover from, the conditions arising from the state of emergency declared by the Governor on March 4, 2020, related to the COVID-19 virus. The bill would provide that its provisions only remain in effect until January 1, 2026, and as of that date are repealed. prohibit I-Bank from entering into loans or loan guarantees pursuant to the bill’s provisions on or after January 1, 2026.
This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 8684.3 is added to the Government Code, immediately following Section 8684.2, to read:

8684.3.
 (a) (1) It is the intent of the Legislature to provide the Governor with appropriate emergency powers to address the manufacturing production and distribution needs of the state to protect the health and safety of Californians.
(2) It is the intent of the Legislature that the Governor utilize the authority provided by this section to provide direct loans and loan guarantees to address guarantees, and to forgive those loans in appropriate circumstances, for purposes of addressing the financial requirements of businesses when retooling, repurposing, and expanding production and distribution of distributing products necessary to prevent business insolvencies, the loss of employment in areas affected by these disasters, and shortages of essential goods.
(b) In addition to the allocations authorized in Section 8683, the Governor may allocate funds made available for the purposes of this chapter, in connection with relief provided, for the benefit of affected areas and in affected areas during the period of federal disaster relief, to the Manufacturing Program Account established pursuant to Section 63047.54 for use by the California Infrastructure and Economic Development Bank pursuant to Article 5.5 (commencing with Section 63047.5) of Chapter 2 of Division 1 of Title 6.7. Funds allocated to the Manufacturing Program Account pursuant to this section shall be used to cover costs related to the administration of Article 5.5 (commencing with Section 63047.5) of Chapter 2 of Division 1 of Title 6.7 and to provide direct loans or guarantees, or both, made by lending institutions institutions, and to forgive those loans in appropriate circumstances, for the purpose of providing financing to enable manufacturers the manufacturing and logistics sectors to support the emergency needs of Californians.

SEC. 2.Section 63050 of the Government Code is amended to read:
63050.

(a)There is hereby created in the State Treasury the California Infrastructure and Economic Development Bank Fund for the purpose of implementing the objectives and provisions of this division. Within the fund there shall also be established a Sponsor Revenue Bond Account, a Participating Party Revenue Bond Account, a State Infrastructure Revolving Account, a Manufacturing Program Account, and additional accounts and subaccounts that the bank may establish from time to time.

(b)Notwithstanding Section 13340 and except as provided in subdivision (c), all moneys in the infrastructure bank fund are continuously appropriated without regard to fiscal years for the support of the bank and shall be available for expenditure for the purposes stated in this division.

(c)Moneys in the infrastructure bank fund shall be available for expenditure for general administration only upon appropriation by the Legislature. This subdivision shall not limit the authority of the bank to expend funds directly related to the servicing of approved debt. Moneys in the fund shall be available for the purpose of general administration of the authority only upon appropriation by the Legislature, but not more than 5 percent of any bond proceeds administered by the authority may be expended to cover the costs of issuance, as that terminology is defined under Section 147 (G) of the Internal Revenue Code.

(d)Notwithstanding any other provision of this division, not more than 15 percent of the financing annually approved by the executive director that utilizes state funds from the infrastructure bank fund may be expended upon educational facilities, environmental mitigation measures, and parks and recreational facilities.

(e)The executive director may transfer funds between the infrastructure bank fund and the guarantee trust fund when appropriate to accomplish the financing objectives of this division.

SEC. 3.SEC. 2.

 Article 5.5 (commencing with Section 63047.5) is added to Chapter 2 of Division 1 of Title 6.7 of the Government Code, to read:
Article  5.5. California Manufacturing Emergency Preparedness Act of 2020.

63047.5.
 This article shall be known, and may be cited, as the California Manufacturing Emergency Preparedness Act of 2020.

63047.51.
 The Legislature finds and declares all of the following:
(a) California is one of the largest and most diverse economies in the world, with a state gross domestic product of $3.1 trillion in 2019. Based on figures from the Department of Finance, if California were an independent nation it would rank as the fifth largest economy in the world.
(b) Historically, the state’s significance in the global marketplace has resulted from a variety of factors, including, but not limited to:
(1) Its strategic west coast location that provides direct access to the growing markets in Asia
(2) Its economically diverse regional economies and its large, ethnically diverse population, representing both a ready workforce and significant consumer base.
(3) Its access to a wide variety of venture and other private capital.
(4) Its broad base of small- and medium-sized businesses that support the global manufacturing supply chain.
(5) Its culture of innovation and entrepreneurship, particularly in the area of high technology.
(c) Historically, economic growth in California has outpaced the economic growth rate of the nation as a whole, and the state has led the nation in export-related jobs, business startups, and innovation. California leads the nation in the number of manufacturers.
(d) California’s manufacturing sector, however, faces many challenges in maintaining global and domestic disaster preparedness, accessing a qualified workforce, and updating equipment and processes to meet greenhouse gas emission reduction goals. domestic production needs during and following a declared state of emergency.
(e) A robust manufacturing sector offers many benefits to the state, including high-wage jobs, a basis for international trade, and one of the highest multiplier effects on other industries and businesses. It has been estimated that for every job created in manufacturing, 2.5 jobs are supported in other industry sectors. For instance, in the electronic computer manufacturing industry, that multiplier effect is 16 to 1.
(f) As California faces the coronavirus emergency, its ability to protect the health and safety of its people has been impeded by the lack of access to certain essential manufactured products, including, but not limited to, personal protection equipment and ventilators. The current lack of domestic production and the need to pivot existing manufacturers to new and expanded lines of production requires the state to develop finance programs in advance of disasters so they can be activated once a state of emergency is declared.
(g) It is therefore the intent of the Legislature to strengthen the manufacturing capacity of California through the enactment and implementation of the California Manufacturing Emergency Preparedness Act of 2020, to provide the framework and focus to retool and expand California’s manufacturing facilities, support a vibrant logistics network, and retain and create more quality jobs.
(h) Loan forgiveness provided through this article produces two statewide benefits to the public by, first, supporting the state’s manufacturing capacity to produce essential and scarce goods and, second, by supporting struggling businesses and their employees in the manufacturing sector that, in turn, support the state’s emergency response and recovery efforts.
(i) It is therefore also the intent of the Legislature that the bank have the authority to forgive any loan provided through this article if forgiveness of the loan furthers the purposes of the program.

63047.52.
 Unless the context requires otherwise, for the purposes of this article, the following terms shall have the following meanings:
(a) “Administration expenses” means the reasonable and necessary expenses incurred by the bank in the administration of this article, including, without limitation, the fees and costs of paying agents, trustees, attorneys, consultants, and others.
(b) “Applicant” means a company, or a participating financial institution on behalf of a company, that applies to the bank for a loan, a loan guarantee, loan forgiveness for a loan issued pursuant to this article, or a line of credit to finance a project undertaken or proposed to be undertaken pursuant to this article. “Applicant” may be comprised of more than a single entity.
(c) “Bank” means the California Economic Development and Infrastructure Bank established pursuant to Chapter 1 (commencing with Section 63000).
(d) “Company” means a person, partnership, corporation, whether for profit or not, limited liability company, trust, or other private enterprise of whatever legal form, for which a project is undertaken or proposed to be undertaken pursuant to this article. “Company” may include more than a single enterprise.
(e) “Financial company” means banking organizations, including national banks and trust companies, savings and loan associations, certified community development financial institutions, microbusiness lenders, state insurance companies, mutual insurance companies, and other public and private banking, lending, retirement, and insurance organizations.
(f) “Financial development corporation” means any nonprofit California small business financial development corporation created pursuant to Chapter 1 (commencing with Section 14000) of Part 5 of Division 3 of Title 1 of the Corporations Code, or pursuant to Chapter 1 (commencing with Section 32000) of Division 15.5 of the Financial Code.
(g) “Financial institution” means regulated banking organizations, including national banks and trust companies authorized to conduct business in California and state-chartered commercial banks, trust companies, credit unions, and savings and loan associations.

(e)

(h) “Loan” means a loan, a portion of a loan, a loan guarantee, or a line of credit or portion of a line of credit made or extended by the bank, or by a participating financial institution on behalf of the bank, or by a participating financial institution pursuant to the bank’s program, to a company for a project or for a portion of a project encompassing one or more of the activities or uses set forth in this article.
(i) “Logistics” means a business that can assist in the collection and distribution of a product, as classified as transportation and warehousing under the 2017 North American Industry Codes 48 and 49.
(j) “Manufacturer” means a business that is capable of manufacturing a product, as classified as manufacturing under the 2017 North American Industry Codes 31 to 33, inclusive.

(f)

(k) “Manufacturing Program Account” means the account established pursuant to Section 63047.54 within the California Infrastructure and Economic Development Bank Fund for moneys which are available for direct loans and loan guarantees under this article.
(l) “Participating party” means any person, company, corporation, association, state, or municipal governmental entity, partnership, firm, or other entity or group of entities, whether organized for profit or not for profit, engaged in business or operations within the state and that applies for financing from the bank in conjunction with a sponsor for the purpose of implementing a project pursuant to this article.

63047.53.
 (a) (1) The bank may establish the California Manufacturing Disaster Loan and Loan Guarantee Program pursuant to this article for the purpose of attracting, retaining, retooling, establishing, and expanding manufacturing and logistic capacity in the state.
(2) The bank may provide, under the program established pursuant to paragraph (1), loans or loan guarantees, or both, from funds allocated to the Manufacturing Program Account pursuant to Section 8684.3 to businesses in the manufacturing sector and logistics sectors to support state emergency response and recovery efforts. Loans provided pursuant to this paragraph shall be provided only to a business that is located in an area affected by a state of emergency that is in the state and meets any either of the following conditions: requirements:
(A) The business is located in an area affected by a state of emergency that is in the state and that meets any of the following conditions:
(i) The President of the United States declares a state of emergency or disaster for the area.
(ii) The United States Small Business Administration designates the area as a disaster area or declares a disaster in the area.
(iii) The United States Secretary of Agriculture designates the area as a disaster area or declares a disaster in the area.
(iv) The Governor declares a state of emergency for the area.
(B) The business is located in the state and produces or distributes a product, or a component or resource necessary for the production of the product, that fulfills a need of the residents or businesses in an area affected by a state of emergency that is in the state and that meets any of the following conditions:

(A)

(i) The President of the United States declares a state of emergency or disaster for the area.

(B)

(ii) The United States Small Business Administration designates the area as a disaster area or declares a disaster in the area.

(C)

(iii) The United States Secretary of Agriculture designates the area as a disaster area or declares a disaster in the area.

(D)

(iv) The Governor declares a state of emergency for the area.
(3) The bank may also forgive, under the program established pursuant to paragraph (1), loans provided pursuant to this article, upon making a finding that forgiveness of the loan would further the purposes of this program. The bank may adopt, pursuant to paragraph (4), additional directives and requirements to qualify for loan forgiveness.

(3)

(4) The bank shall adopt directives and requirements for the implementation of this program consistent with this article. The bank shall not commence operation of the program before adopting a resolution finding that there both of the following conditions are met:
(A) There is sufficient money in the Manufacturing Program Account, established pursuant to Section 63047.54, to cover the costs of implementing the program, including, but not limited to, appropriate oversight costs.
(B) The bank has sufficient direction from the Director of the Office of Emergency Services to set program parameters that address the specific needs of the disaster, including, but not limited to, whether the loans are to be secured, unsecured, priority, or subordinated debt.
(b) The bank shall design the California Manufacturing Disaster Loan and Loan Guarantee Program to meet all of the following objectives:
(1) Protect and enhance the state’s long-term manufacturing capacity.
(2) Create Maintain jobs through the support of retooling, repurposing, establishing, and expanding manufacturing facilities during and immediately following a declaration of a state of emergency.
(3) Support quality manufacturing jobs that provide high wages, including benefits.
(4) Allow manufacturers to access funds under terms and conditions that would not otherwise be available in the private market.
(5) Strengthen the supply chain of small businesses that support this state’s manufacturing preparedness.
(6) Assist manufacturers in cost effectively responding to the manufacturing needs of California during a state of emergency.
(c) Among other requirements, the loan, loan guarantee, and line of credit provided pursuant to this article shall be subject to all of the following provisions:
(1) Applicants shall demonstrate confirm they are in compliance with applicable federal, state, and local laws and regulations. regulations at the time of applying for financial assistance.
(2) Applicants shall commit, as a condition of participating in the program, that all outstanding loans shall be paid in full six months before the relocation of a facility outside of California. If the loan or loan guarantee included a subsidized amount, that amount shall also be repaid subject to a sliding scale adopted by the bank.
(3)  Applicants shall demonstrate where the facility or facilities where the moneys will be expended are located and where the direct benefits of the assistance will be realized in the state.

(4)Applicants shall demonstrate that wages the applicant pays its employees in the state shall, on average, be equal to or more than the average monthly wage rate for similar workers in the same industry subsector.

(5)

(4) Upon the request of the bank, each applicant shall agree to report to the bank in the year the funding was provided, and the following years, on total capital investments made by the company, years until the loan is repaid, the total employment at the project facility, and the wage levels by type of work. at all its locations in California. The applicant shall also estimate the number of jobs created or retained through the provision of this state assistance, as well as provide other appropriate performance data, as determined by the bank.
(d) (1) To cover the costs of administering the program, each applicant shall pay a nonrefundable application fee, including a proportional share of the costs of developing the program, reviewing applications, and monitoring and overseeing the program. Fee moneys shall be deposited directly into the Manufacturing Program Account, established pursuant to Section 63047.54, for the purpose of ensuring that funds are available to the state for the sole purpose of administration of the program.
(2) Moneys allocated pursuant to Section 8684.3 and transferred pursuant to subdivision (b) of Section 63047.53 for purposes of administering this article may also be used to cover the costs of developing the program, reviewing applications, and monitoring and overseeing the program. If such moneys are used to cover these costs, the nonrefundable application fee shall be reduced accordingly.
(e) (1) The California Manufacturing Disaster Loan and Loan Guarantee Program may be administered directly by the bank, or in conjunction with financial companies or financial institutions, in direct or indirect participation with special purpose entities established for manufacturing finance, or under contract with financial development corporations.
(2) Notwithstanding any other law, the bank may implement, in whole or in part, the California Manufacturing Disaster Loan and Loan Guarantee Program with the administrative support of the California Small Business Finance Center, established pursuant to Section 63088.5.

63047.54.
 (a) (1) There The Manufacturing Program Account is hereby created within the California Infrastructure and Economic Development Bank Fund an account called the Manufacturing Program Account. Fund. Upon a transfer of funds pursuant to subdivision (b), moneys in the account shall be expended for direct loans and to pay defaulted loan guarantees issued pursuant to this article, administrative costs of the bank, including administrative costs incurred by the California Small Business Finance Center pursuant to subdivision (e) of Section 63047.53, and those costs necessary to protect a real property interest in a defaulted loan or guarantee. No moneys other than those moneys in the account may be used for direct loans and to pay defaulted loan guarantees issued pursuant to this article.
(2) The bank may create a subaccount in the Manufacturing Program Account for moneys relating to providing direct loans and covering costs to protect a real property interest in a defaulted loan. The bank may also create a subaccount in the Manufacturing Program Account to pay defaulted loan guarantees and costs to protect a real property interest in a defaulted loan guarantee. The bank may also create, if the bank deems it is necessary, a subaccount in the Manufacturing Program Account for purposes of implementing this article, other than for providing direct loans, covering costs to protect a real property interest in a defaulted loan, paying defaulted loan guarantees, and covering costs to protect a real property interest in a defaulted loan guarantee.
(b) The Director of Finance, with the approval of the Governor, shall transfer moneys allocated into funds pursuant to Section 8684.3 to the Manufacturing Program Account and the appropriate subaccounts described in paragraph (2) of subdivision (a) in an amount necessary for direct loans and to pay defaulted loan guarantees pursuant to Section 8684.3 and this article, to pay the administrative costs of the bank, and to pay for costs necessary to protect a real property interest in a defaulted loan or guarantee.
(c) All moneys received from the federal government, foundations, and other public or private funding sources for the purpose of implementing the California Manufacturing Disaster Loan and Loan Guarantee Program shall be deposited in the Manufacturing Program Account. All loan repayments, interest, and royalties shall be deposited back into the Manufacturing Program Account.
(d) The bank shall not commence implementation of the program before adopting a resolution finding that there is sufficient money in the account to cover the costs of implementing the program, including, but not limited to, appropriate oversight costs.
(e) Upon the transfer of funds pursuant to subdivision (b), all or a portion of the funds in the account may be allocated by the bank, with the approval of the Department of Finance, to a lending institution or financial company that will act as trustee of the funds.

63047.55.

(a)Beginning October 1, 2021, and in any year funds are transferred into the Manufacturing Program Account, the bank shall post on its internet website or provide the Legislature with a report, whichever is more cost effective, on the program’s activities during the prior fiscal year and impact on the manufacturing industry and on the state’s economy, in general.

63047.55.
 (a) Notwithstanding Section 10231.5, the bank shall annually report, by January 1, commencing on January 1, 2022, to the Governor and the Legislature, pursuant to Section 9795, on program activity in any fiscal year that the California Manufacturing Disaster Loan and Loan Guarantee Program receives funding or has active loans.
(b) At a minimum, the information provided pursuant to subdivision (a) shall include all of the following:
(1) The total amount of moneys in the Manufacturing Program Account, at the beginning of the fiscal year and at the end of the fiscal year.
(2) The number of projects funded and the number of manufacturers and other businesses assisted.
(3) The number of jobs created and the number of jobs retained through program assistance in each of the fiscal years.

(4)The amount of investments made by the manufacturer in the prior year to their assistance and next two years.

(5)The amount of federal, state, and local taxes paid by the companies in aggregate.

(6)

(4) Information on publicly held companies shall also be reported separately. separately from other companies.
(5) Information on the size of each business assisted based on number of employees. The information required by this paragraph shall be categorized as follows:
(A) Less than 49 employees.
(B) 50 to 99 employees.
(C) 100 to 499 employees.
(D) 500 or more employees.
(c) The bank may include the information required by this section in any annual report of the bank, including but not limited to, the annual report required by Section 63089.98, in lieu of submitting a separate report for purposes of complying with this section.

63047.56.
 (a) This article shall be implemented only to the extent that sufficient moneys are available to the bank to administer the California Manufacturing Disaster Loan and Loan Guarantee Program.

(b)This article shall remain in effect only until January 1, 2026, and as of that date is repealed.

(b) This article may be used to meet California’s manufacturing and logistics needs in response to the March 4, 2020, proclamation of a state of emergency in response to the COVID-19 virus.
(c) The bank shall not enter into any loan or loan guarantee pursuant to this article on or after January 1, 2026.

SEC. 3.

 Section 63050 of the Government Code is amended to read:

63050.
 (a) There is hereby created in the State Treasury the California Infrastructure and Economic Development Bank Fund for the purpose of implementing the objectives and provisions of this division. Within the fund there shall also be established a Sponsor Revenue Bond Account, a Participating Party Revenue Bond Account, a State Infrastructure Revolving Account, a Manufacturing Program Account, and additional accounts and subaccounts that the bank may establish from time to time.
(b) Notwithstanding Section 13340 and except as provided in subdivision (c), all moneys in the infrastructure bank fund are continuously appropriated without regard to fiscal years for the support of the bank and shall be available for expenditure for the purposes stated in this division.
(c) Moneys in the infrastructure bank fund shall be available for expenditure for general administration only upon appropriation by the Legislature. This subdivision shall not limit the authority of the bank to expend funds directly related to the servicing of approved debt. Moneys in the fund shall be available for the purpose of general administration of the authority only upon appropriation by the Legislature, but not more than 5 percent of any bond proceeds administered by the authority may be expended to cover the costs of issuance, as that terminology is defined under Section 147 (G) of the Internal Revenue Code.
(d) Notwithstanding any other provision of this division, not more than 15 percent of the financing annually approved by the executive director that utilizes state funds from the infrastructure bank fund may be expended upon educational facilities, environmental mitigation measures, and parks and recreational facilities.
(e) The executive director may transfer funds between the infrastructure bank fund and the guarantee trust fund when appropriate to accomplish the financing objectives of this division.

SEC. 4.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to immediately address the health and safety needs of persons at risk of being infected by the COVID-19 virus due to the lack of personal protective equipment, medical equipment, and materials and devices that will limit the spread of the virus, and due to the unreliability of existing suppliers in meeting these manufacturing and logistics needs, it is necessary that this act go into immediate effect.