CaliforniaCities must require community funds for cold storage permits
Cold storage facilities in Boyle Heights need a community support fund before receiving a building permit, and some taxpayers may exclude related fire settlements from income starting in 2027.
What it does
Cities and counties must require covered cold storage facilities to maintain a contingency fund before approving a building permit. The rule applies in Boyle Heights until July 1, 2028, then statewide.
A qualifying emergency and related health alert, advisory, or unresolved inspection violation must occur before the fund can be used. It must support affected communities with food, housing, air monitoring, pest control, and related health care.
People and businesses with qualifying expenses from the 2026 Boyle Heights fire may exclude related settlement payments from state taxable income for tax years 2027 through 2031.
Argument forPeople and businesses with qualifying losses may keep more of a fire settlement because the state would leave it out of taxable income for a limited time.
Argument againstFacility owners or operators may face the cost of maintaining a fund worth up to $20 million, even though they can use it only when strict emergency and health or inspection conditions are met.
More detail
Cities and counties must require a contingency fund before approving a building permit for a covered cold storage facility. Until July 1, 2028, the rule covers facilities in the Boyle Heights Community Plan area that have at least 20,000 square feet of refrigerated space at 45 degrees Fahrenheit or below and take part in a specified accident prevention program. Starting July 1, 2028, it covers facilities meeting the same size and program rules without the Boyle Heights location limit. The fund may be a dedicated account, a bond, or an insurance policy, and its total value cannot exceed $20 million. The owner may require a lessee or operator to establish and maintain the fund. A city or county may ask the owner for proof that it exists or is maintained. The Boyle Heights location limit applies until July 1, 2028. The statewide version becomes operative on that date.
The contingency fund must support affected communities during a qualifying emergency. The support is for communities affected by an emergency connected to the covered cold storage facility. The President, Governor, or an authorized local body must declare an emergency directing an agency to protect residents or property. Also, an agency must issue a related health alert or advisory, or issue an inspection report with an unresolved violation or citation that caused the emergency or alert. Support must include food, housing, air quality monitoring, pest control, and health care for related health effects. The Boyle Heights version remains in effect only until July 1, 2028; the statewide version becomes operative on that date.
The state excludes qualifying settlement payments from taxable income. The exclusion covers qualifying taxpayers who received settlement payments for the fire; residents qualify under the personal income tax provision, while the corporation tax provision covers property owners and businesses. The settlement must relate to the fire that began June 17, 2026, at a Lineage cold storage facility in Los Angeles and was declared a state emergency on June 21, 2026. For personal income tax, the taxpayer must have owned property, lived, or had a business in Los Angeles County during the fire and paid or incurred expenses. For corporation tax, the taxpayer must have owned property or had a business in the county during the fire and paid or incurred expenses. The exclusion applies to tax years beginning on or after January 1, 2027, and before January 1, 2032. It expires January 1, 2033.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 27Chaptered by Secretary of State - Chapter 493, Statutes of 2026.Latest
- Sep 27Approved by the Governor Gavin Newsom.Became Law
- Sep 14Enrolled and presented to the Governor at 1:30 p.m.To Governor
- Sep 1
- Vote recorded AB 817 GONZÁLEZ, M. Concurrence in Senate Amendments. Result: pass.Lower
- Aug 31Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 55. Noes 19. Page 7062.).Major
- Vote recorded 3rd Reading AB817 Mark González et al. By Durazo. Result: pass.Upper
- Aug 31Assembly Rule 63 suspended. (Page 7062.)
- Aug 31In Assembly. Concurrence in Senate amendments pending.
- Aug 31Read third time. Passed. Ordered to the Assembly. (Ayes 30. Noes 9.).Passed Senate
- Aug 28Read second time. Ordered to third reading.Minor
- Aug 27Read second time and amended. Ordered returned to second reading.Major
- Vote recorded Do pass. Result: pass.Upper
- Aug 27From committee: Do pass. (Ayes 4. Noes 2.) (August 27).Minor
- Aug 25From committee: Do pass and re-refer to Com. on APPR. (Ayes 3. Noes 1.) (August 25). Re-referred to Com. on APPR.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Aug 24From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 4. Noes 2.) (August 24). Re-referred to Com. on REV. & TAX.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Revenue and Taxation]. Result: pass.Upper
- Aug 20Joint Rules 61 and 62(a) suspended. (Page 5585.)
- Aug 20Re-referred to Coms. on L. GOV. and REV. & TAX.Minor
- Aug 19Re-referred to Com. on RLS.Minor
- Aug 19Withdrawn from committee.Major
- Aug 19From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on PUB. S.Major
- Jun 18In committee: Set, first hearing. Hearing canceled at the request of author.
- Jun 15Re-referred to Com. on PUB. S.Minor
- Jun 12Re-referred to Com. on RLS.Minor
- Jun 12Withdrawn from committee.Major
- Jun 11From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on G.O.Major
- 2025
- May 21Referred to Com. on G.O.Minor
- May 8In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 817 Nguyen Consent Calendar Second Day. Result: pass.Lower
- May 8Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 0. Page 1486.)Passed Assembly
- May 1Read second time. Ordered to Consent Calendar.Minor
- Apr 30From committee: Do pass. To Consent Calendar. (Ayes 14. Noes 0.) (April 30).Minor
- Vote recorded Do pass. To Consent Calendar. Result: pass.Lower
- Apr 3From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 21. Noes 0.) (April 2). Re-referred to Com. on APPR.Minor
- Apr 2
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar. Result: pass.Lower
- Mar 3Referred to Com. on G.O.Minor
- Feb 20From printer. May be heard in committee March 22.
- Feb 19Read first time. To print.Introduced
Public SafetyTaxes & BudgetEmergency Management