SACRAMENTO — The state Legislature on Monday passed a pair of bills to address industrial accidents in the wake of a massive blaze at a cold storage facility in Los Angeles’ Boyle Heights neighborhood.
Assembly Bill 817 by Assemblymember Mark González (D-Los Angeles) would prohibit the approval of a building permit for a cold storage facility unless the owner or operator of the facility establishes and maintains a contingency fund.
González sought the creation of the fund for air purifiers, masks and other health essentials for neighbors in the wake of an accident.
The bill would apply to Boyle Heights in the short term and would go into effect statewide July 1, 2028.
The bill also would ensure that anyone who sues over the fire doesn’t have to pay state taxes on any settlement.
A June 17 fire at cold storage operator Lineage’s 500,000-square-foot food warehouse left the community with noxious smoke and an influx of rats and flies attracted to rotting meat.
Senate Bill 716 by Sen. María Elena Durazo (D-Los Angeles), also passed Monday, would raise the amount of fines that can be levied by local agencies against companies who pose a threat to health and safety. Under the legislation, companies could 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 fines are too small to matter,” said Durazo, describing the “massive fly and rat infestation” and “stench of rotting food” at the Lineage site.
The law would apply only to Los Angeles County and expand statewide starting July 1, 2028. It includes several exemptions for business categories, including institutional and educational.
Scores of business groups, including those representing agriculture, opposed the bills.
Some Republican legislators expressed sympathy for the Boyle Heights community, but questioned the financial ramifications for businesses.
“One terrible incident should not automatically translate into a new statewide financial burden on every similarly situated facility,” said state Sen. Suzette Martinez Valladares (R-Acton) during a Monday discussion of Assembly Bill 817. “Especially when those costs can ultimately ripple through our food supply chain and contribute to higher costs for families.”
The bills now head to Gov. Gavin Newsom for consideration.
