Governor Gavin Newsom signed two bills establishing new contingency-fund requirements and stronger local enforcement tools for large facilities, responding to the June 2026 fire at a cold storage warehouse in Boyle Heights.
Senate Bill 716 by Senator María Elena Durazo (D-Los Angeles) and Assembly Bill 817 by Assemblymember Mark González (D-Los Angeles), both California Latino Legislative Caucus priorities, address lessons learned from the fire and its prolonged aftermath, the Governor's Office said.
"Boyle Heights showed us 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.
The June 17 fire at a nearly 500,000-square-foot cold storage facility burned for eight days and was followed by significant cleanup and public health challenges. The Governor proclaimed a state of emergency as the community responded.
SB 716 increases fines for violations of local ordinances involving specified nonresidential structures of 20,000 square feet or more when violations threaten health and safety, including for repeat violations within a defined period. For violations resulting in a Governor-declared state of emergency or federal disaster declaration, fines may reach up to $50,000 per violation in qualifying circumstances. The enhanced penalties initially apply in Los Angeles County, expanding to qualifying areas statewide beginning July 1, 2028.
"Families in Boyle Heights and East LA were exposed to toxic smoke and lived with the stench of millions of pounds of rotting food for months," Durazo said. "Today, Governor Newsom sent a clear message: corporations that put our communities at risk will finally face consequences that reflect the harm they cause."
AB 817 establishes new contingency-fund requirements for specified community needs for certain large cold storage facilities. Until July 1, 2028, it applies within the Boyle Heights Community Plan boundaries in Los Angeles; after that, it applies statewide.
"When disaster strikes, people should never have to fight just to be heard—their government should already be standing beside them," González said. "These measures give us a plan, resources, accountability, and the tools to act when our communities need their government most."
Los Angeles Mayor Karen Bass said the legislation ensures cold storage companies take responsibility for their operations' impacts and lets cities and counties impose higher fines when health and safety are threatened. County Board Chair and First District Supervisor Hilda L. Solis thanked Newsom and the legislature for giving local jurisdictions more tools to keep communities whole.