Gov. Newsom Signs New Rules for Industrial Companies

Staff Writer
Sept. 27, 2026
1:30 PM PT

Gov. Gavin Newsom signed new legislation on Sunday, introducing stricter regulations for industrial companies in California. This decision follows a significant fire at a cold storage facility in the Boyle Heights neighborhood of Los Angeles in June, which raised concerns among local residents.

The blaze occurred on June 17 at Lineage’s extensive 500,000-square-foot food storage warehouse, producing harmful smoke and attracting rats and flies to the area. The aftermath highlighted gaps in existing industrial safety protocols.

Senate Bill 716, authored by Sen. María Elena Durazo (D-Los Angeles), increases fines for companies that threaten health and safety. The new law allows local agencies to impose fines up to $50,000 per violation. Before this bill, fines were limited to a few hundred or thousand dollars. Exemptions are included for institutional and educational organizations.

Assembly Bill 817, presented by Assemblymember Mark González (D-Los Angeles), requires that cold storage facility owners or operators must establish a contingency fund or have insurance to address emergency needs of locals before obtaining building permits. Although these laws primarily affect local areas for now, their statewide enforcement will commence on July 1, 2028.

Business groups and certain Republican lawmakers expressed concern that the new regulations could increase costs for companies and consumers. However, the measures aim to enhance community safety and emergency response capabilities.

Lineage has not yet commented on the newly passed bills. Nevertheless, Greg Lehmkuhl, president and CEO of Lineage, announced during an earnings call last month that the company had allocated $3.3 million to support the community following the fire.

Gov. Newsom emphasized the importance of the legislation by stating, “The fire illustrated the lasting impact a major facility emergency can have on a community.” He added, “These laws strengthen the tools, resources and accountability needed to protect residents and help communities respond when emergencies happen.”