Skip to content
Help support CapRadio’s local public service mission 
and enrich the lives in your community.
Support local nonprofit public media.
Donate Now

View thank you gift options

CapRadio

CapRadio

listen live donate
listen live donate
listen live
donate
  • News
    • News

    • State Government
    • Environment
    • Health Care
    • Race and Equity
    • Business
    • Arts and Lifestyle
    • Food and Sustainability
    • PolitiFact California
    News
    • News

    • State Government
    • Environment
    • Health Care
    • Race and Equity
    • Business
    • Arts and Lifestyle
    • Food and Sustainability
    • PolitiFact California
  • Music
    • Music

    • Classical
    • Jazz
    • Eclectic

    • Daily Playlist
    Music
    • Music

    • Classical
    • Jazz
    • Eclectic

    • Daily Playlist
  • Podcasts & Shows
  • Schedules
  • Events
  • Support
    • Support
    • Ways to support
    • Evergreen Donation
    • One-Time Donation
    • Corporate Sponsorship
    • Vehicle Donation
    • Stock Giving
    • Legacy Giving
    • Endowment Support
    • Members
    • Member Benefits
    • Member FAQ
    • Member Newsletter

    • Fund drives
    • Drawing Winners
    • Thank You Gifts
    Support
    • Support
    • Ways to support
    • Evergreen Donation
    • One-Time Donation
    • Corporate Sponsorship
    • Vehicle Donation
    • Stock Giving
    • Legacy Giving
    • Endowment Support
    • Members
    • Member Benefits
    • Member FAQ
    • Member Newsletter

    • Fund drives
    • Drawing Winners
    • Thank You Gifts
  • About
  • Close Menu
 We Get Support From:
Become a Supporter 
 We Get Support From:
Become a Supporter 

$250 Million Refund To California After BYD Subsidiary Fails To Meet Key Face Mask Requirement

  •  Scott Rodd 
  •  Nicole Nixon 
Wednesday, May 6, 2020 | Sacramento, CA
AP Photo/Jeff Chiu

A pedestrian wearing a mask walks in front of a billboard displaying California flags in San Francisco, Thursday, April 30, 2020, during the coronavirus outbreak.

AP Photo/Jeff Chiu

A subsidiary of Chinese manufacturer BYD failed to deliver N95 masks to California with the necessary certification, as required under the $1 billion deal for protective equipment. 

As a result, the company must refund California nearly a quarter billion dollars, half the down payment for the deal that was cut in early April. 

The details of the agreement (see below) were made public Wednesday night by the Governor’s Office of Emergency Services. 

Gov. Gavin Newsom’s administration had refused to release the contract to lawmakers and the public and denied multiple records requests from CapRadio for the agreement.

The contract required BYD subsidiary Global Health Product Solutions LLC to obtain National Institute for Occupational Safety and Health certification for the masks by April 30. In an amendment to the agreement, which was finalized Wednesday, it pushes that date to May 31. It also requires the company to return $247,500,000 to the state for not meeting the original deadline. 

Global Health Product Solutions must wire the money in the next two days, according to the contract.

“The state will not pay for any of these until they are certified by NIOSH,” said Brian Ferguson, Deputy Director for Crisis Communication & Public Affairs at CalOES. The N95 masks are still in China, but should arrive “within a handful of days” of certification. 

So far, the state has received more than 10 million paper surgical masks. More than 9 million have already been distributed to counties, Ferguson said. 

It also shows the state paid $3.30 per N95 mask and $.55 per paper surgical mask. 

Lawmakers have been critical of Newsom’s handling of the deal, claiming the process has lacked transparency. Many lawmakers first heard about the deal when Newsom announced it on MSNBC’s The Rachel Maddow Show. 

A letter from Democratic state Sen. Holly Mitchell, chairperson of the Joint Legislative Budget Committee, to the administration underscored lawmakers’ desire for more information. During Senate and Assembly hearings in recent weeks, lawmakers pressed for more details with little success.

Newsom has defended the deal, but until now refused to release the contract.

Earlier Wednesday, he said the shipments had begun to arrive “consistently.” 

“We want to be as transparent as possible,” he said, but at the same time “deliver on what’s so foundational, so important, that literally can impact the lives of thousands of people.” 

Document: BYD Contract

This story will be updated.


Follow us for more stories like this

CapRadio provides a trusted source of news because of you.  As a nonprofit organization, donations from people like you sustain the journalism that allows us to discover stories that are important to our audience. If you believe in what we do and support our mission, please donate today.

Donate Today  

Scott Rodd

Former State Government Reporter

Scott Rodd previously covered government and legal affairs for the Sacramento Business Journal. Prior to the Business Journal, Scott worked as a freelance reporter in Los Angeles and Washington, D.C.  Read Full Bio 

Andrew Nixon / CapRadio

Nicole Nixon

Politics Reporter

Nicole covers politics and government for CapRadio. Before moving to California, she won several awards, including a regional Edward R. Murrow Award, for her political reporting in her hometown of Salt Lake City.  Read Full Bio 

 @_Nixo Email Nicole Nixon

Sign up for ReCap and never miss the top stories

Delivered to your inbox every Friday.

 

Check out a sample ReCap newsletter.

Thanks for subscribing!

Thank you for signing up for the ReCap newsletter! We'll send you an email each Friday with the top stories from CapRadio.

Browse all newsletters

More Stories

AP Photo/Gregory Bull

California could be the first state in the country to ban some much debated food additives

March 17, 2023

AP Photo/Jae C. Hong, File

California’s Covid misinformation law is entangled in lawsuits, conflicting rulings

March 19, 2023

Andrew Nixon / CapRadio

Stevante Clark discusses how his family will remember Stephon Clark on the fifth anniversary of his death

March 17, 2023

Most Viewed

California could be the first state in the country to ban some much debated food additives

California coronavirus updates: Medicaid enrollees may start getting removed from program as pandemic-era rules expire

Sacramento guaranteed income program opens applications for second round of participants

Wildfire victims left ‘in the dark’ after U.S. Forest Service briefs Congress about the Caldor Fire

10 new California laws that go into effect in 2023

We Get Support From:
Become a Supporter

Most Viewed

California could be the first state in the country to ban some much debated food additives

California coronavirus updates: Medicaid enrollees may start getting removed from program as pandemic-era rules expire

Sacramento guaranteed income program opens applications for second round of participants

Wildfire victims left ‘in the dark’ after U.S. Forest Service briefs Congress about the Caldor Fire

10 new California laws that go into effect in 2023

Back to Top

  • CapRadio

    7055 Folsom Boulevard
    Sacramento, CA 95826-2625

    •  
      (916) 278-8900
    •  
      (877) 480-5900
    •  Contact / Feedback
    •  Submit a Tip / Story Idea
  • About

    • Mission / Vision / Core Values
    • Stations & Coverage Map
    • Careers & Internships
    • Staff Directory
    • Board of Directors
    • Press
  • Listening Options

    • Mobile Apps
    • Smart Speakers
    • Podcasts & Shows
    • On-Air Schedules
    • Daily Playlist
    • Signal Status
  • Connect

    •  Facebook
    •  Twitter
    •  Instagram
    •  YouTube
  • Donate

  • Listen Live

  • Newsletters

CapRadio stations are licensed to California State University, Sacramento. © 2023, Capital Public Radio. All Rights Reserved. Privacy Policy | Website Feedback FCC Public Files: KXJZ KKTO KUOP KQNC KXPR KXSR KXJS. For assistance accessing our public files, please call 916-278-8900 or email us.