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Newsom signs cold-storage legislation - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Newsom signs cold-storage legislation by Claire Wilkinson California Gov. Gavin Newsom Risk Management Sep 29, 2026 California Gov. Gavin Newsom on Sunday signed legislation that prohibits approval of building permits for certain cold-storage facilities unless they establish a contingency fund of up to $20 million, which can include a surety bond or insurance policy, to cover the emergency needs of affected communities following a qualifying emergency. The new law, AB 817, follows a June 17 fire at a nearly 500,000-square-foot cold-storage facility, operated by Lineage, in the Boyle Heights neighborhood of Los Angeles that burned for eight days, prompting significant cleanup and public health challenges. Damage from the fire prevented the warehouse from resuming operations, leaving 85 million pounds of refrigerated or frozen food, including raw meat, to rot, according to the legislation. Gov. Newsom declared a state of emergency for Los Angeles County on June 21 as the community responded to the incident and its aftermath. Under AB 817, the contingency fund, which can be a dedicated account, surety bond or insurance policy, can be used for food and housing assistance, air quality monitoring, vector control and health care following a qualifying emergency. The fund can be used when the U.S. president, governor or an authorized local government declares an emergency and the facility is the subject or cause of a related health advisory or has an unresolved violation that caused the emergency or health advisory. The law applies to cold-storage facilities of at least 20,000 square feet with at least 20,000 square feet of space refrigerated to 45 degrees Fahrenheit or below that participate in California’s accidental release prevention program. The law takes effect Jan. 1, 2027, and initially applies to qualifying facilities within the Boyle Heights Community Plan area but will expand to areas beyond Boyle Heights from July 1, 2028. SB 716, also signed by Gov. Newsom on Sunday, increases potential fines for violations of local ordinances involving nonresidential structures of at least 20,000 square feet when the violations pose a threat to health or safety. Fines can reach up to $50,000 per violation if a violation results in a governor-declared state of emergency or federal disaster declaration. The law takes effect Jan. 1, 2027, and the enhanced penalties initially apply in Los Angeles County, expanding to other qualifying areas of the state from July 1, 2028. 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