Gov. Gavin Newsom on Sunday signed bills that create new rules for the state’s industrial companies following a massive fire at a cold storage facility in Los Angeles’ Boyle Heights neighborhood in June.
Business groups and some Republican lawmakers opposed the bills, arguing that it could drive up prices for companies and, ultimately, consumers.
A June 17 fire at cold storage operator Lineage’s 500,000-square-foot food warehouse left neighbors dealing with noxious smoke and an influx of rats and flies.
Senate Bill 716 by Sen. María Elena Durazo (D-Los Angeles) raises the amount of fines local agencies can levy against companies that pose a threat to health and safety. Operators could now face fines of up to $50,000 per violation.
Durazo said current rules limit the fines to just a few hundred or thousand dollars.
The law includes several exemptions, including for institutional and educational firms.
Another bill, Assembly Bill 817 by Assemblymember Mark González (D-Los Angeles), prohibits the approval of a building permit for a cold storage facility unless the owner or operator of the facility creates a contingency fund, or has insurance, that can be used for emergency needs for locals.
Both laws apply locally in the short term, but don’t go into effect statewide until July 1, 2028.
Lineage hasn’t responded to requests for comment about the bills.
Greg Lehmkuhl, president and chief executive of Lineage, said in an earnings call last month that the company has committed $3.3 million to the community in the aftermath of the fire.
Newsom, in a statement Sunday, said that the fire showed “the lasting impact a major facility emergency can have on a community.”
“These laws strengthen the tools, resources and accountability needed to protect residents and help communities respond when emergencies happen,” Newsom said.
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