Bill > SB395

This bill creates a special provision for the City and County of San Francisco to issue up to 20 additional on-sale general alcoholic beverage licenses for restaurants and bars within a newly defined "hospitality zone." The hospitality zone must be a contiguous area containing at least 1,000,000 square feet of retail shopping space, and San Francisco can only designate one such zone. The California Department of Alcoholic Beverage Control (ABC) may issue these licenses incrementally, with up to 10 licenses available in the first year after the zone is established and no more than 5 licenses per subsequent year. The local governing body must pass an ordinance defining the zone's boundaries and demonstrating how it meets the zone's requirements. These special licenses come with significant restrictions: they cannot be transferred between counties or to locations outside the hospitality zone, cannot be sold for more than the original fee, and are not transferable to different owners except under specific circumstances. The bill acknowledges San Francisco's unique situation, noting that population-based limits have effectively prevented new full liquor licenses from being issued in the city for 80 years. The legislation is designed to provide flexibility for restaurants and bars in a specific urban area by allowing a limited number of additional alcoholic beverage licenses.

Budget and Finance, Government Affairs

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB395