SB 716 (Durazo) was amended today by the author, but the amendments do not address our concerns in a meaningful way that would remove our opposition. The latest amendments address only two of our concerns. They now require the violation to pose a health and safety threat (this is extremely broad and not defined) before the enhanced fine structure applies, and they add language directing the 10x emergency penalty to the tenant/operator when the underlying condition is within their control rather than the property owner. Importantly, however, that owner/operator protection appears to apply only to the 10x multiplier and not the underlying enhanced fines.
Several of our largest concerns remain. The bill still applies to every nonresidential structure over 20,000 square feet rather than being narrowly targeted to specific facilities, and it retains the five-year lookback, there is still no aggregate cap on penalties, no protection when a property owner is legally unable to access or remediate the property, and no clear protection against overlapping enforcement.
The bill is set to be heard tomorrow morning in Asm Local Government committee at 9am. I will be providing first chair primary opposition testimony and the California Hotel & Lodging Association will be 2nd chair. Right now there are a lot of members of the committee that still have significant concerns with the proposal despite the recent amendments. It would not hurt if any of you have connections with the following members to shoot them a note urging them that the AB 817 Gonzalez proposal is the better approach and that SB 716 is too broad. I’ve attached out letter and talking points on the bill.
Targets: Assemblymember’s James Ramos, Lori Wilson, Blanca Pacheco, Rodesia Ransom, and Catherine Stefani.
On AB 817, Asm. Gonzalez has committed to making all of the following amendments to AB 817 (Attached are the amendments).
- Clarify that the cold storage facilities the bill applies to must have at least 20k sq. ft. of refrigerated space.
- Add an insurance policy as another option for the contingency fund.
- From Jan. 1, 2027-July 1, 2028 the contingency fund provisions would only apply to cold storage within Boyle Heights.
- Beginning July 1, 2028 the contingency fund provisions would apply statewide.
According to the authors office, the amendments will allow for addressing the Lineage Facility in Boyle Heights while affirming the Member’s commitment to tackling this issue next year. Were we successful at narrowing the bill to the area impacted by the Boly Heights area, ensuring the tenant/operator of a cold storage facility is responsible/via pass troughs. Right now we are evaluating our position and would like your feedback.