California Governor signs new industrial safety laws

Governor Gavin Newsom has signed two new bills aimed at tightening safety regulations for industrial companies in California. The legislation follows a massive fire at a 500,000-square-foot Lineage cold storage warehouse in Los Angeles’ Boyle Heights neighborhood in June.

Senate Bill 716 increases the fines local agencies can levy against companies that pose threats to health and safety, allowing for penalties of up to $50,000 per violation. Assembly Bill 817 prohibits the approval of building permits for new cold storage facilities unless the operator establishes a contingency fund or maintains insurance to cover emergency needs for local communities.

While the laws apply locally in the short term, they are not scheduled to take effect statewide until July 1, 2028. Business groups and some Republican lawmakers have expressed opposition, suggesting the new rules could increase costs for companies and consumers.