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	<ns0:Description>
		<ns0:Id>20250SB__039594CHP</ns0:Id>
		<ns0:VersionNum>94</ns0:VersionNum>
		<ns0:History>
			<ns0:Action>
				<ns0:ActionText>INTRODUCED</ns0:ActionText>
				<ns0:ActionDate>2025-02-14</ns0:ActionDate>
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				<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
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				<ns0:ActionDate>2025-06-18</ns0:ActionDate>
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				<ns0:ActionDate>2025-06-30</ns0:ActionDate>
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				<ns0:ActionText>PASSED_ASSEMBLY</ns0:ActionText>
				<ns0:ActionDate>2025-08-28</ns0:ActionDate>
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			<ns0:Action>
				<ns0:ActionText>PASSED_SENATE</ns0:ActionText>
				<ns0:ActionDate>2025-09-02</ns0:ActionDate>
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				<ns0:ActionText>ENROLLED</ns0:ActionText>
				<ns0:ActionDate>2025-09-04</ns0:ActionDate>
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				<ns0:ActionText>CHAPTERED</ns0:ActionText>
				<ns0:ActionDate>2025-10-06</ns0:ActionDate>
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				<ns0:ActionText>APPROVED</ns0:ActionText>
				<ns0:ActionDate>2025-10-06</ns0:ActionDate>
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				<ns0:ActionText>FILED</ns0:ActionText>
				<ns0:ActionDate>2025-10-06</ns0:ActionDate>
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		<ns0:LegislativeInfo>
			<ns0:SessionYear>2025</ns0:SessionYear>
			<ns0:SessionNum>0</ns0:SessionNum>
			<ns0:MeasureType>SB</ns0:MeasureType>
			<ns0:MeasureNum>395</ns0:MeasureNum>
			<ns0:MeasureState>CHP</ns0:MeasureState>
			<ns0:ChapterYear>2025</ns0:ChapterYear>
			<ns0:ChapterType>CHP</ns0:ChapterType>
			<ns0:ChapterSessionNum>0</ns0:ChapterSessionNum>
			<ns0:ChapterNum>412</ns0:ChapterNum>
		</ns0:LegislativeInfo>
		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Wiener</ns0:AuthorText>
		<ns0:AuthorText authorType="COAUTHOR_OPPOSITE">(Coauthor: Assembly Member Gipson)</ns0:AuthorText>
		<ns0:Authors>
			<ns0:Legislator>
				<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
				<ns0:House>SENATE</ns0:House>
				<ns0:Name>Wiener</ns0:Name>
			</ns0:Legislator>
			<ns0:Legislator>
				<ns0:Contribution>COAUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Gipson</ns0:Name>
			</ns0:Legislator>
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		<ns0:Title>An act to add Section 23826.22 to the Business and Professions Code, relating to alcoholic beverages. </ns0:Title>
		<ns0:RelatingClause>alcoholic beverages</ns0:RelatingClause>
		<ns0:GeneralSubject>
			<ns0:Subject>Alcoholic beverages: additional licenses: hospitality zone.</ns0:Subject>
		</ns0:GeneralSubject>
		<ns0:DigestText>
			<html:p>Existing law, the Alcoholic Beverage Control Act, administered by the Department of Alcoholic Beverage Control, regulates the sale and distribution of alcoholic beverages and the granting of licenses for the manufacture, distribution, and sale of alcoholic beverages within the state. Existing law limits the amount of on-sale general licenses that may be issued by the department based on the population of the county in which the licensed premises are located. </html:p>
			<html:p> This bill would provide an exception to the limitation described above by authorizing the issuance of up to 20 additional new original on-sale general licenses, as specified, for bona fide public eating places located within a designated hospitality zone in the City and County of San Francisco, as defined. In order to authorize the issuance of additional licenses as described above, the bill
		would require an ordinance adopted by the local governing body of the City and County of San Francisco to designate or modify a hospitality zone to include specified information and findings. The bill would authorize the local governing body, in an ordinance designating or modifying a hospitality zone, to further limit, among other things, the maximum number of additional licenses to be issued within its hospitality zone. The bill would require the local governing body to submit the ordinance to the department upon the adoption of an ordinance to modify or repeal a hospitality zone. The bill would require any ordinance to establish, modify, or repeal a hospitality zone to be effective commencing the following July 1. The bill would require the department to follow specified procedures concerning the issuance of these licenses, and would authorize the department to designate these licenses as on-sale general for special use. The bill would prohibit licenses issued under its provisions from being, among other
		things, transferred from one county to another. If one of those licenses is canceled or revoked, the bill would authorize the department to issue an additional license. The bill would prohibit the department from issuing any license under these provisions after July 1, 2033.</html:p>
			<html:p>This bill would make legislative findings and declarations as to the necessity of a special statute for the City and County of San Francisco.</html:p>
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		<ns0:DigestKey>
			<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
			<ns0:Appropriation>NO</ns0:Appropriation>
			<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
			<ns0:LocalProgram>NO</ns0:LocalProgram>
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			<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
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				<ns0:Urgency>NO</ns0:Urgency>
				<ns0:TaxLevy>NO</ns0:TaxLevy>
				<ns0:Election>NO</ns0:Election>
				<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
				<ns0:BudgetBill>NO</ns0:BudgetBill>
				<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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	</ns0:Description>
	<ns0:Bill id="bill">
		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
		<ns0:BillSection id="id_6B89C961-6F20-4BF9-81A7-F0DE5666B3D5">
			<ns0:Num>SECTION 1.</ns0:Num>
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				Section 23826.22 is added to the 
				<ns0:DocName>Business and Professions Code</ns0:DocName>
				, to read:
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				<ns0:LawSection id="id_A3AAE737-EEC0-4BC9-B074-68FF071A48CA">
					<ns0:Num>23826.22.</ns0:Num>
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						<ns0:Content>
							<html:p>
								(a)
								<html:span class="EnSpace"/>
								For purposes of this section, the following definitions apply: 
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								“Hospitality zone” means an area designated by an ordinance in the City and County of San Francisco on or after January 1, 2026, that contains at least 1,000,000 square feet of retail shopping space open to the public. The City and County of San Francisco shall not designate more than one hospitality zone pursuant to this section. 
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								“Local governing body” means the local governing body of the City and County of San Francisco.
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								Notwithstanding any other provision of this chapter, the department, subject to subdivision (c), may issue up to 20 additional new original on-sale general licenses for bona fide public eating places located within a designated hospitality zone.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								(A)
								<html:span class="EnSpace"/>
								During the first year following the adoption of a valid ordinance to designate a hospitality zone and the submission of that ordinance to the department by the local governing body, the department may issue up to 10 of the 20 licenses during the same calendar year. 
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								In any subsequent year, the department may issue any licenses that have not been issued, not exceeding five licenses per calendar year.
							</html:p>
							<html:p>
								(c)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								In order to authorize the issuance of additional licenses pursuant to
				  this section, an ordinance adopted by a local governing body to designate or modify a hospitality zone shall include all of the following:
							</html:p>
							<html:p>
								(A)
								<html:span class="EnSpace"/>
								Information as may be necessary to identify the boundaries of the hospitality zone.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								A finding that the designated area meets the definition of hospitality zone established in this section.
							</html:p>
							<html:p>
								(C)
								<html:span class="EnSpace"/>
								A finding that the issuance of additional licenses within this hospitality zone would serve the public convenience or necessity.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								A local governing body may, in an ordinance designating or modifying a hospitality zone, further limit the maximum number of additional licenses to be issued within its hospitality zone.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								(A)
								<html:span class="EnSpace"/>
								A local
				  governing body may, in an ordinance designating or modifying a hospitality zone, further limit the areas within the boundaries of the hospitality zone where additional licenses may be issued. 
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								Notwithstanding subparagraph (A), an ordinance shall designate a single contiguous area that qualifies as a hospitality zone to meet the requirements of this section.
							</html:p>
							<html:p>
								(4)
								<html:span class="EnSpace"/>
								Upon the adoption of an ordinance to modify or repeal a hospitality zone, the local governing body shall submit the ordinance to the department.
							</html:p>
							<html:p>
								(d)
								<html:span class="EnSpace"/>
								Any ordinance to establish, modify, or repeal a hospitality zone shall be effective commencing the following July 1.
							</html:p>
							<html:p>
								(e)
								<html:span class="EnSpace"/>
								In issuing the licenses provided for in this section, the department shall follow the procedure set forth in Section 23961.
				  
							</html:p>
							<html:p>
								(f)
								<html:span class="EnSpace"/>
								A licensee that holds an on-sale general license for a bona fide public eating place that is in a hospitality zone shall not be eligible to apply for a license under this section for the same licensed premises.
							</html:p>
							<html:p>
								(g)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								A license issued pursuant to this section shall not be transferred between counties, nor shall it be transferred to any location outside of the
				  hospitality zone or otherwise not qualifying under this section.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								A license issued pursuant to this section shall not be transferred to any person, partnership, limited partnership, limited liability company, or corporation. This provision shall not apply to licenses transferred under Section 24071, 24071.1, or 24071.2.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								A license issued pursuant to this section shall not be sold or transferred for a price greater than the original fee paid by the seller or transferor.
							</html:p>
							<html:p>
								(h)
								<html:span class="EnSpace"/>
								Following the cancellation or revocation of a license issued under this section, the department shall issue one additional license pursuant to the procedures set forth in Section 23961 and this section.
							</html:p>
							<html:p>
								(i)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								The department may designate licenses issued pursuant to this section as on-sale general for special use. 
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								A designation pursuant to this subdivision shall not alter any license privileges or restrictions established pursuant to this section.
							</html:p>
							<html:p>
								(j)
								<html:span class="EnSpace"/>
								The department shall not issue any license under this section after July 1, 2033.
							</html:p>
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		</ns0:BillSection>
		<ns0:BillSection id="id_F95759BC-B527-49E1-BE70-FFECFC3E6E2F">
			<ns0:Num>SEC. 2.</ns0:Num>
			<ns0:Content>
				<html:p>The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique needs of San Francisco in that California’s population-based limits on the number of full liquor licenses available in each county have effectively capped the number of full licenses for restaurants and bars in San Francisco for 80 years.</html:p>
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