SB 1274 Puts Santa Fe Springs’ Industrial Economy on the State’s Map

New state law recognizes the unique needs of California’s industrial cities and strengthens the foundation for future advocacy
Santa Fe Springs has long been an economic engine for the Southeast Los Angeles County region. Now, a new California law formally recognizes what local businesses, workers and community leaders have known for years: Santa Fe Springs is an industrial city with an economic footprint that extends well beyond its residential population.
Governor Gavin Newsom signed Senate Bill 1274 (SB 1274), authored by Senator Bob Archuleta, establishing a definition of “industrial city” in state law. The legislation was developed in response to the unique circumstances of California communities where the daytime population and economic activity are significantly larger than the residential population.
Why This Matters to Santa Fe Springs Businesses
Santa Fe Springs is different from many communities in California.
The City is home to approximately 3,100 businesses, while manufacturing accounts for approximately 63 percent of the City's total acreage. Its industrial base supports thousands of jobs and contributes to the broader regional economy through manufacturing, distribution, logistics, energy, construction and other business activities.
That means the City's infrastructure serves far more than its residential population.
Every day, employees commute into Santa Fe Springs. Commercial vehicles travel its streets. Goods move through local industrial facilities. Customers, vendors and service providers enter the community to conduct business.
The economic activity generated in Santa Fe Springs is regional—but much of the infrastructure supporting that activity is local.
For businesses, this distinction matters.
Recognition Creates a Stronger Advocacy Platform
SB 1274 does not provide Santa Fe Springs with an automatic funding allocation, change local zoning or create a new exemption from existing regulations. Rather, it establishes an official state definition that can be used when state programs, policies and funding formulas expressly incorporate the term “industrial city.”
That distinction is important.
The legislation gives Santa Fe Springs and other industrial communities a clearer framework for communicating their infrastructure and economic needs to state policymakers.
Senator Archuleta described the bill as a way to recognize cities where industrial land uses and large numbers of workers create a daytime population greater than the residential population. He noted that industrial cities have formed a coalition to advocate for their unique needs. “SB 1274 does not modify existing transportation funding formulas, nor does it change any eligibility requirements, priorities, or allocations associated with current funding programs,” said Senator Archuleta. “It does not alter zoning laws, land-use authority, or advocate for or against any future development projects. The intent of this bill is solely to recognize the unique characteristics of California’s industrial cities and provide a framework that allows these communities to more effectively advocate for transportation and infrastructure funding that reflects their real-world needs.”
 
For Santa Fe Springs, that recognition can become another tool in ongoing advocacy related to transportation, infrastructure, economic development and goods movement.
What Businesses Should Watch Going Forward
The real impact of SB 1274 will depend, in part, on how California develops future programs and funding formulas that reference the new industrial-city designation.
This creates an important opportunity for Santa Fe Springs to continue making the business case for investment in the infrastructure that supports its economic activity.
Future advocacy can focus on questions such as:

• How should transportation investments account for communities with large daytime workforces?
• How can infrastructure funding better reflect the demands created by industrial and commercial activity?
• How can California maintain and strengthen communities that provide jobs, goods, services and tax-generating economic activity?
• How should state economic-development policies recognize cities where industrial uses occupy a significant portion of the community?
• How can state policies support economic growth while recognizing the infrastructure needs of established industrial communities?

These are not simply City Hall issues. They are business issues.
Reliable roads, efficient transportation systems, adequate utilities and well-maintained infrastructure are essential to companies that employ local workers, move products and serve customers throughout the region.
A Voice for Santa Fe Springs Businesses
The Santa Fe Springs Chamber of Commerce believes that a strong business community requires a strong local voice.
As the state continues to develop policies affecting California businesses, it is important that policymakers understand the differences between communities—and that one-size-fits-all approaches do not always reflect local economic realities.
SB 1274 provides Santa Fe Springs with another way to communicate those realities.
The legislation recognizes that a city can have a relatively small residential population while supporting a substantially larger workforce and a significant industrial economy. For Santa Fe Springs, that is not simply a definition in state law—it is a description of how our community functions every day.
Our businesses help power the regional economy. Our workers help keep that economy moving. And the infrastructure that supports them deserves to be part of the conversation when California makes decisions about its future.
SB 1274 gives Santa Fe Springs another seat at that table.
The Chamber will continue to advocate for policies that recognize the needs of Santa Fe Springs businesses, support economic development and strengthen the infrastructure necessary for our business community to succeed.
 
 
Photo: City of Industry City Manager Josh Nelson and Assistant City Manager Sam Pedroza; City of Vernon City Manager Brian Saeki and Rene Bobadilla, City Manager of Santa Fe Springs joined Senator Bob Archuleta in Sacramento to advocate for this important measure.