CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 395Introduced by Senator WienerFebruary 14, 2025 An act to add Section 23826.21 to the Business and Professions Code, relating to alcoholic beverages. LEGISLATIVE COUNSEL'S DIGESTSB 395, as introduced, Wiener. Alcoholic beverages: additional licenses: retail district.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. 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 retail district 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 retail district to include specified information and findings. The bill would authorize the local governing body, in an ordinance designating or modifying a retail district, to further limit, among other things, the maximum number of additional licenses to be issued within its retail district. 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 retail district. The bill would require any ordinance to establish, modify, or repeal a retail district 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. This bill would make legislative findings and declarations as to the necessity of a special statute for the City and County of San Francisco.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 23826.21 is added to the Business and Professions Code, to read:23826.21. (a) For purposes of this section, the following definitions apply: (1) Local governing body means the local governing body of the City and County of San Francisco.(2) Retail district 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 retail district pursuant to this section.(b) (1) 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 retail district.(2) (A) During the first year following the adoption of a valid ordinance to designate a retail district 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. (B) In any subsequent year, the department may issue any licenses that have not been issued, not exceeding five licenses per calendar year.(c) (1) 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 retail district shall include all of the following:(A) Information as may be necessary to identify the boundaries of the retail district. (B) A finding that the designated area meets the definition of retail district established in this section.(C) A finding that the issuance of additional licenses within this district would serve the public convenience or necessity.(2) A local governing body may, in an ordinance designating or modifying a retail district, further limit the maximum number of additional licenses to be issued within its retail district.(3) (A) A local governing body may, in an ordinance designating or modifying a retail district, further limit the areas within the boundaries of the retail district where additional licenses may be issued. (B) Notwithstanding subparagraph (A), an ordinance shall designate a single contiguous area that qualifies as a retail district to meet the requirements of this section.(4) Upon the adoption of an ordinance to modify or repeal a retail district, the local governing body shall submit the ordinance to the department.(d) Any ordinance to establish, modify, or repeal a retail district shall be effective commencing the following July 1.(e) In issuing the licenses provided for in this section, the department shall follow the procedure set forth in Section 23961.(f) A licensee that holds an on-sale general license for a bona fide public eating place that is in a retail district shall not be eligible to apply for a license under this section for the same licensed premises.(g) (1) A license issued pursuant to this section shall not be transferred between counties, nor shall it be transferred to any premises not qualifying under this section.(2) 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.(h) 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.(i) (1) The department may designate licenses issued pursuant to this section as on-sale general for special use. (2) A designation pursuant to this subdivision shall not alter any license privileges or restrictions established pursuant to this section.SEC. 2. 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 Californias 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.
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 395Introduced by Senator WienerFebruary 14, 2025 An act to add Section 23826.21 to the Business and Professions Code, relating to alcoholic beverages. LEGISLATIVE COUNSEL'S DIGESTSB 395, as introduced, Wiener. Alcoholic beverages: additional licenses: retail district.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. 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 retail district 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 retail district to include specified information and findings. The bill would authorize the local governing body, in an ordinance designating or modifying a retail district, to further limit, among other things, the maximum number of additional licenses to be issued within its retail district. 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 retail district. The bill would require any ordinance to establish, modify, or repeal a retail district 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. This bill would make legislative findings and declarations as to the necessity of a special statute for the City and County of San Francisco.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 395
Introduced by Senator WienerFebruary 14, 2025
Introduced by Senator Wiener
February 14, 2025
An act to add Section 23826.21 to the Business and Professions Code, relating to alcoholic beverages.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 395, as introduced, Wiener. Alcoholic beverages: additional licenses: retail district.
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. 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 retail district 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 retail district to include specified information and findings. The bill would authorize the local governing body, in an ordinance designating or modifying a retail district, to further limit, among other things, the maximum number of additional licenses to be issued within its retail district. 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 retail district. The bill would require any ordinance to establish, modify, or repeal a retail district 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. This bill would make legislative findings and declarations as to the necessity of a special statute for the City and County of San Francisco.
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.
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 retail district 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 retail district to include specified information and findings. The bill would authorize the local governing body, in an ordinance designating or modifying a retail district, to further limit, among other things, the maximum number of additional licenses to be issued within its retail district. 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 retail district. The bill would require any ordinance to establish, modify, or repeal a retail district 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.
This bill would make legislative findings and declarations as to the necessity of a special statute for the City and County of San Francisco.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 23826.21 is added to the Business and Professions Code, to read:23826.21. (a) For purposes of this section, the following definitions apply: (1) Local governing body means the local governing body of the City and County of San Francisco.(2) Retail district 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 retail district pursuant to this section.(b) (1) 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 retail district.(2) (A) During the first year following the adoption of a valid ordinance to designate a retail district 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. (B) In any subsequent year, the department may issue any licenses that have not been issued, not exceeding five licenses per calendar year.(c) (1) 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 retail district shall include all of the following:(A) Information as may be necessary to identify the boundaries of the retail district. (B) A finding that the designated area meets the definition of retail district established in this section.(C) A finding that the issuance of additional licenses within this district would serve the public convenience or necessity.(2) A local governing body may, in an ordinance designating or modifying a retail district, further limit the maximum number of additional licenses to be issued within its retail district.(3) (A) A local governing body may, in an ordinance designating or modifying a retail district, further limit the areas within the boundaries of the retail district where additional licenses may be issued. (B) Notwithstanding subparagraph (A), an ordinance shall designate a single contiguous area that qualifies as a retail district to meet the requirements of this section.(4) Upon the adoption of an ordinance to modify or repeal a retail district, the local governing body shall submit the ordinance to the department.(d) Any ordinance to establish, modify, or repeal a retail district shall be effective commencing the following July 1.(e) In issuing the licenses provided for in this section, the department shall follow the procedure set forth in Section 23961.(f) A licensee that holds an on-sale general license for a bona fide public eating place that is in a retail district shall not be eligible to apply for a license under this section for the same licensed premises.(g) (1) A license issued pursuant to this section shall not be transferred between counties, nor shall it be transferred to any premises not qualifying under this section.(2) 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.(h) 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.(i) (1) The department may designate licenses issued pursuant to this section as on-sale general for special use. (2) A designation pursuant to this subdivision shall not alter any license privileges or restrictions established pursuant to this section.SEC. 2. 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 Californias 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.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 23826.21 is added to the Business and Professions Code, to read:23826.21. (a) For purposes of this section, the following definitions apply: (1) Local governing body means the local governing body of the City and County of San Francisco.(2) Retail district 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 retail district pursuant to this section.(b) (1) 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 retail district.(2) (A) During the first year following the adoption of a valid ordinance to designate a retail district 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. (B) In any subsequent year, the department may issue any licenses that have not been issued, not exceeding five licenses per calendar year.(c) (1) 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 retail district shall include all of the following:(A) Information as may be necessary to identify the boundaries of the retail district. (B) A finding that the designated area meets the definition of retail district established in this section.(C) A finding that the issuance of additional licenses within this district would serve the public convenience or necessity.(2) A local governing body may, in an ordinance designating or modifying a retail district, further limit the maximum number of additional licenses to be issued within its retail district.(3) (A) A local governing body may, in an ordinance designating or modifying a retail district, further limit the areas within the boundaries of the retail district where additional licenses may be issued. (B) Notwithstanding subparagraph (A), an ordinance shall designate a single contiguous area that qualifies as a retail district to meet the requirements of this section.(4) Upon the adoption of an ordinance to modify or repeal a retail district, the local governing body shall submit the ordinance to the department.(d) Any ordinance to establish, modify, or repeal a retail district shall be effective commencing the following July 1.(e) In issuing the licenses provided for in this section, the department shall follow the procedure set forth in Section 23961.(f) A licensee that holds an on-sale general license for a bona fide public eating place that is in a retail district shall not be eligible to apply for a license under this section for the same licensed premises.(g) (1) A license issued pursuant to this section shall not be transferred between counties, nor shall it be transferred to any premises not qualifying under this section.(2) 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.(h) 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.(i) (1) The department may designate licenses issued pursuant to this section as on-sale general for special use. (2) A designation pursuant to this subdivision shall not alter any license privileges or restrictions established pursuant to this section.
SECTION 1. Section 23826.21 is added to the Business and Professions Code, to read:
### SECTION 1.
23826.21. (a) For purposes of this section, the following definitions apply: (1) Local governing body means the local governing body of the City and County of San Francisco.(2) Retail district 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 retail district pursuant to this section.(b) (1) 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 retail district.(2) (A) During the first year following the adoption of a valid ordinance to designate a retail district 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. (B) In any subsequent year, the department may issue any licenses that have not been issued, not exceeding five licenses per calendar year.(c) (1) 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 retail district shall include all of the following:(A) Information as may be necessary to identify the boundaries of the retail district. (B) A finding that the designated area meets the definition of retail district established in this section.(C) A finding that the issuance of additional licenses within this district would serve the public convenience or necessity.(2) A local governing body may, in an ordinance designating or modifying a retail district, further limit the maximum number of additional licenses to be issued within its retail district.(3) (A) A local governing body may, in an ordinance designating or modifying a retail district, further limit the areas within the boundaries of the retail district where additional licenses may be issued. (B) Notwithstanding subparagraph (A), an ordinance shall designate a single contiguous area that qualifies as a retail district to meet the requirements of this section.(4) Upon the adoption of an ordinance to modify or repeal a retail district, the local governing body shall submit the ordinance to the department.(d) Any ordinance to establish, modify, or repeal a retail district shall be effective commencing the following July 1.(e) In issuing the licenses provided for in this section, the department shall follow the procedure set forth in Section 23961.(f) A licensee that holds an on-sale general license for a bona fide public eating place that is in a retail district shall not be eligible to apply for a license under this section for the same licensed premises.(g) (1) A license issued pursuant to this section shall not be transferred between counties, nor shall it be transferred to any premises not qualifying under this section.(2) 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.(h) 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.(i) (1) The department may designate licenses issued pursuant to this section as on-sale general for special use. (2) A designation pursuant to this subdivision shall not alter any license privileges or restrictions established pursuant to this section.
23826.21. (a) For purposes of this section, the following definitions apply: (1) Local governing body means the local governing body of the City and County of San Francisco.(2) Retail district 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 retail district pursuant to this section.(b) (1) 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 retail district.(2) (A) During the first year following the adoption of a valid ordinance to designate a retail district 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. (B) In any subsequent year, the department may issue any licenses that have not been issued, not exceeding five licenses per calendar year.(c) (1) 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 retail district shall include all of the following:(A) Information as may be necessary to identify the boundaries of the retail district. (B) A finding that the designated area meets the definition of retail district established in this section.(C) A finding that the issuance of additional licenses within this district would serve the public convenience or necessity.(2) A local governing body may, in an ordinance designating or modifying a retail district, further limit the maximum number of additional licenses to be issued within its retail district.(3) (A) A local governing body may, in an ordinance designating or modifying a retail district, further limit the areas within the boundaries of the retail district where additional licenses may be issued. (B) Notwithstanding subparagraph (A), an ordinance shall designate a single contiguous area that qualifies as a retail district to meet the requirements of this section.(4) Upon the adoption of an ordinance to modify or repeal a retail district, the local governing body shall submit the ordinance to the department.(d) Any ordinance to establish, modify, or repeal a retail district shall be effective commencing the following July 1.(e) In issuing the licenses provided for in this section, the department shall follow the procedure set forth in Section 23961.(f) A licensee that holds an on-sale general license for a bona fide public eating place that is in a retail district shall not be eligible to apply for a license under this section for the same licensed premises.(g) (1) A license issued pursuant to this section shall not be transferred between counties, nor shall it be transferred to any premises not qualifying under this section.(2) 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.(h) 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.(i) (1) The department may designate licenses issued pursuant to this section as on-sale general for special use. (2) A designation pursuant to this subdivision shall not alter any license privileges or restrictions established pursuant to this section.
23826.21. (a) For purposes of this section, the following definitions apply: (1) Local governing body means the local governing body of the City and County of San Francisco.(2) Retail district 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 retail district pursuant to this section.(b) (1) 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 retail district.(2) (A) During the first year following the adoption of a valid ordinance to designate a retail district 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. (B) In any subsequent year, the department may issue any licenses that have not been issued, not exceeding five licenses per calendar year.(c) (1) 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 retail district shall include all of the following:(A) Information as may be necessary to identify the boundaries of the retail district. (B) A finding that the designated area meets the definition of retail district established in this section.(C) A finding that the issuance of additional licenses within this district would serve the public convenience or necessity.(2) A local governing body may, in an ordinance designating or modifying a retail district, further limit the maximum number of additional licenses to be issued within its retail district.(3) (A) A local governing body may, in an ordinance designating or modifying a retail district, further limit the areas within the boundaries of the retail district where additional licenses may be issued. (B) Notwithstanding subparagraph (A), an ordinance shall designate a single contiguous area that qualifies as a retail district to meet the requirements of this section.(4) Upon the adoption of an ordinance to modify or repeal a retail district, the local governing body shall submit the ordinance to the department.(d) Any ordinance to establish, modify, or repeal a retail district shall be effective commencing the following July 1.(e) In issuing the licenses provided for in this section, the department shall follow the procedure set forth in Section 23961.(f) A licensee that holds an on-sale general license for a bona fide public eating place that is in a retail district shall not be eligible to apply for a license under this section for the same licensed premises.(g) (1) A license issued pursuant to this section shall not be transferred between counties, nor shall it be transferred to any premises not qualifying under this section.(2) 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.(h) 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.(i) (1) The department may designate licenses issued pursuant to this section as on-sale general for special use. (2) A designation pursuant to this subdivision shall not alter any license privileges or restrictions established pursuant to this section.
23826.21. (a) For purposes of this section, the following definitions apply:
(1) Local governing body means the local governing body of the City and County of San Francisco.
(2) Retail district 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 retail district pursuant to this section.
(b) (1) 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 retail district.
(2) (A) During the first year following the adoption of a valid ordinance to designate a retail district 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.
(B) In any subsequent year, the department may issue any licenses that have not been issued, not exceeding five licenses per calendar year.
(c) (1) 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 retail district shall include all of the following:
(A) Information as may be necessary to identify the boundaries of the retail district.
(B) A finding that the designated area meets the definition of retail district established in this section.
(C) A finding that the issuance of additional licenses within this district would serve the public convenience or necessity.
(2) A local governing body may, in an ordinance designating or modifying a retail district, further limit the maximum number of additional licenses to be issued within its retail district.
(3) (A) A local governing body may, in an ordinance designating or modifying a retail district, further limit the areas within the boundaries of the retail district where additional licenses may be issued.
(B) Notwithstanding subparagraph (A), an ordinance shall designate a single contiguous area that qualifies as a retail district to meet the requirements of this section.
(4) Upon the adoption of an ordinance to modify or repeal a retail district, the local governing body shall submit the ordinance to the department.
(d) Any ordinance to establish, modify, or repeal a retail district shall be effective commencing the following July 1.
(e) In issuing the licenses provided for in this section, the department shall follow the procedure set forth in Section 23961.
(f) A licensee that holds an on-sale general license for a bona fide public eating place that is in a retail district shall not be eligible to apply for a license under this section for the same licensed premises.
(g) (1) A license issued pursuant to this section shall not be transferred between counties, nor shall it be transferred to any premises not qualifying under this section.
(2) 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.
(h) 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.
(i) (1) The department may designate licenses issued pursuant to this section as on-sale general for special use.
(2) A designation pursuant to this subdivision shall not alter any license privileges or restrictions established pursuant to this section.
SEC. 2. 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 Californias 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.
SEC. 2. 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 Californias 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.
SEC. 2. 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 Californias 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.
### SEC. 2.