Gov. Gavin Newsom recently signed AB 817 and SB 716 into law, establishing new requirements for certain cold storage facilities and increasing penalties for specified local ordinance violations. These bills were gutted and amended in the last few days of the legislative session in response to the Boyle Heights cold storage facility fire in Los Angeles. These laws carry implications for businesses across the fresh produce supply chain. Below is an overview of the key provisions and what Western Growers members should know.
AB 817 (Gonzalez), Ch. 493 requires certain cold storage facilities to establish a contingency fund of up to $20 million as a condition of building permit approval, to help cover community impacts from emergencies. Western Growers initially opposed the bill because of the costs and uncertainty for facilities looking to build or expand. On August 27, we removed our opposition after amendments narrowed its near-term reach and delayed statewide application until January 2028. We are now working with Assemblymember Gonzalez on amendments for a cleanup bill next year to address our remaining concerns.
SB 716 (Durazo), Ch. 494 allows higher fines for local health and safety ordinance violations at large nonresidential facilities, with enhanced penalties of up to $50,000 per violation in certain circumstances. We remained opposed because its reach extends well beyond cold storage and adds substantial penalty exposure for growers and other businesses already subject to extensive regulation. The bill failed in the Assembly Local Government on August 27 but was later pulled from committee and passed by the Legislature on August 31. We will also work on addressing amendments to this bill.
If you have any further questions, please reach out to Gail Delihant at [email protected].