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Newsom OK’s regulations on warehouse-distribution facilities

Newsom OK’s regulations on warehouse-distribution facilities

Gov. Gavin Newsom has signed a bill that puts major restrictions on where logistics projects can be built and how they can operate.

AB 98 requires that new warehouse-distribution facilities be on a major street or road, and that they are built a “safe distance” from schools, hospitals, residential development and other “sensitive” sites.

The law, which is scheduled to go into effect in 2026, also requires developers to build two housing units for every unit destroyed in order to build a logistics operation, and that those developers pay 12 months rent to anyone who loses their home to such construction.

The bill, which drew strong opposition from the state’s business community, was sponsored by Assemblyman Juan Carillon, D-Palmdale, and Eloise Gomez Reyes, D-San Bernardino. Newsom signed the bill Sept. 29.

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