California 2025-2026 Regular Session

California Senate Bill SB395 Compare Versions

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1-Amended IN Senate March 28, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 395Introduced by Senator WienerFebruary 14, 2025An act to add Section 23826.21 to the Business and Professions Code, relating to alcoholic beverages. LEGISLATIVE COUNSEL'S DIGESTSB 395, as amended, Wiener. Alcoholic beverages: additional licenses: retail district. hospitality zone.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 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 retail district hospitality zone to include specified information and findings. The bill would authorize the local governing body, in an ordinance designating or modifying a retail district, hospitality zone, to further limit, among other things, the maximum number of additional licenses to be issued within its retail district. 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 retail district. hospitality zone. The bill would require any ordinance to establish, modify, or repeal a retail district 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. 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) 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. (1)(2) 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. hospitality zone.(2) (A) During the first year following the adoption of a valid ordinance to designate a retail district 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. (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 hospitality zone shall include all of the following:(A) Information as may be necessary to identify the boundaries of the retail district. hospitality zone.(B) A finding that the designated area meets the definition of retail district hospitality zone established in this section.(C) A finding that the issuance of additional licenses within this district hospitality zone would serve the public convenience or necessity.(2) A local governing body may, in an ordinance designating or modifying a retail district, hospitality zone, further limit the maximum number of additional licenses to be issued within its retail district. hospitality zone.(3) (A) A local governing body may, in an ordinance designating or modifying a retail district, hospitality zone, further limit the areas within the boundaries of the retail district hospitality zone where additional licenses may be issued. (B) Notwithstanding subparagraph (A), an ordinance shall designate a single contiguous area that qualifies as a retail district hospitality zone to meet the requirements of this section.(4) Upon the adoption of an ordinance to modify or repeal a retail district, hospitality zone, the local governing body shall submit the ordinance to the department.(d) Any ordinance to establish, modify, or repeal a retail district hospitality zone 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 hospitality zone 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 location outside of the hospitality zone or otherwise 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.(3) 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.(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.
1+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.
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3- Amended IN Senate March 28, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 395Introduced by Senator WienerFebruary 14, 2025An act to add Section 23826.21 to the Business and Professions Code, relating to alcoholic beverages. LEGISLATIVE COUNSEL'S DIGESTSB 395, as amended, Wiener. Alcoholic beverages: additional licenses: retail district. hospitality zone.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 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 retail district hospitality zone to include specified information and findings. The bill would authorize the local governing body, in an ordinance designating or modifying a retail district, hospitality zone, to further limit, among other things, the maximum number of additional licenses to be issued within its retail district. 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 retail district. hospitality zone. The bill would require any ordinance to establish, modify, or repeal a retail district 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. 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
3+ 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
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5- Amended IN Senate March 28, 2025
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7-Amended IN Senate March 28, 2025
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99 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
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1313 No. 395
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1515 Introduced by Senator WienerFebruary 14, 2025
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1717 Introduced by Senator Wiener
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2020 An act to add Section 23826.21 to the Business and Professions Code, relating to alcoholic beverages.
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2222 LEGISLATIVE COUNSEL'S DIGEST
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26-SB 395, as amended, Wiener. Alcoholic beverages: additional licenses: retail district. hospitality zone.
26+SB 395, as introduced, Wiener. Alcoholic beverages: additional licenses: retail district.
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28-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 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 retail district hospitality zone to include specified information and findings. The bill would authorize the local governing body, in an ordinance designating or modifying a retail district, hospitality zone, to further limit, among other things, the maximum number of additional licenses to be issued within its retail district. 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 retail district. hospitality zone. The bill would require any ordinance to establish, modify, or repeal a retail district 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. This bill would make legislative findings and declarations as to the necessity of a special statute for the City and County of San Francisco.
28+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.
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3030 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.
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32- 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 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 retail district hospitality zone to include specified information and findings. The bill would authorize the local governing body, in an ordinance designating or modifying a retail district, hospitality zone, to further limit, among other things, the maximum number of additional licenses to be issued within its retail district. 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 retail district. hospitality zone. The bill would require any ordinance to establish, modify, or repeal a retail district 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.
32+ 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.
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3434 This bill would make legislative findings and declarations as to the necessity of a special statute for the City and County of San Francisco.
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3636 ## Digest Key
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3838 ## Bill Text
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40-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) 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. (1)(2) 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. hospitality zone.(2) (A) During the first year following the adoption of a valid ordinance to designate a retail district 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. (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 hospitality zone shall include all of the following:(A) Information as may be necessary to identify the boundaries of the retail district. hospitality zone.(B) A finding that the designated area meets the definition of retail district hospitality zone established in this section.(C) A finding that the issuance of additional licenses within this district hospitality zone would serve the public convenience or necessity.(2) A local governing body may, in an ordinance designating or modifying a retail district, hospitality zone, further limit the maximum number of additional licenses to be issued within its retail district. hospitality zone.(3) (A) A local governing body may, in an ordinance designating or modifying a retail district, hospitality zone, further limit the areas within the boundaries of the retail district hospitality zone where additional licenses may be issued. (B) Notwithstanding subparagraph (A), an ordinance shall designate a single contiguous area that qualifies as a retail district hospitality zone to meet the requirements of this section.(4) Upon the adoption of an ordinance to modify or repeal a retail district, hospitality zone, the local governing body shall submit the ordinance to the department.(d) Any ordinance to establish, modify, or repeal a retail district hospitality zone 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 hospitality zone 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 location outside of the hospitality zone or otherwise 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.(3) 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.(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.
40+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.
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4242 The people of the State of California do enact as follows:
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4444 ## The people of the State of California do enact as follows:
4545
46-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) 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. (1)(2) 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. hospitality zone.(2) (A) During the first year following the adoption of a valid ordinance to designate a retail district 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. (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 hospitality zone shall include all of the following:(A) Information as may be necessary to identify the boundaries of the retail district. hospitality zone.(B) A finding that the designated area meets the definition of retail district hospitality zone established in this section.(C) A finding that the issuance of additional licenses within this district hospitality zone would serve the public convenience or necessity.(2) A local governing body may, in an ordinance designating or modifying a retail district, hospitality zone, further limit the maximum number of additional licenses to be issued within its retail district. hospitality zone.(3) (A) A local governing body may, in an ordinance designating or modifying a retail district, hospitality zone, further limit the areas within the boundaries of the retail district hospitality zone where additional licenses may be issued. (B) Notwithstanding subparagraph (A), an ordinance shall designate a single contiguous area that qualifies as a retail district hospitality zone to meet the requirements of this section.(4) Upon the adoption of an ordinance to modify or repeal a retail district, hospitality zone, the local governing body shall submit the ordinance to the department.(d) Any ordinance to establish, modify, or repeal a retail district hospitality zone 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 hospitality zone 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 location outside of the hospitality zone or otherwise 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.(3) 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.(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.
46+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.
4747
4848 SECTION 1. Section 23826.21 is added to the Business and Professions Code, to read:
4949
5050 ### SECTION 1.
5151
52-23826.21. (a) For purposes of this section, the following definitions apply: (1) 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. (1)(2) 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. hospitality zone.(2) (A) During the first year following the adoption of a valid ordinance to designate a retail district 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. (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 hospitality zone shall include all of the following:(A) Information as may be necessary to identify the boundaries of the retail district. hospitality zone.(B) A finding that the designated area meets the definition of retail district hospitality zone established in this section.(C) A finding that the issuance of additional licenses within this district hospitality zone would serve the public convenience or necessity.(2) A local governing body may, in an ordinance designating or modifying a retail district, hospitality zone, further limit the maximum number of additional licenses to be issued within its retail district. hospitality zone.(3) (A) A local governing body may, in an ordinance designating or modifying a retail district, hospitality zone, further limit the areas within the boundaries of the retail district hospitality zone where additional licenses may be issued. (B) Notwithstanding subparagraph (A), an ordinance shall designate a single contiguous area that qualifies as a retail district hospitality zone to meet the requirements of this section.(4) Upon the adoption of an ordinance to modify or repeal a retail district, hospitality zone, the local governing body shall submit the ordinance to the department.(d) Any ordinance to establish, modify, or repeal a retail district hospitality zone 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 hospitality zone 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 location outside of the hospitality zone or otherwise 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.(3) 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.(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.
52+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.
5353
54-23826.21. (a) For purposes of this section, the following definitions apply: (1) 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. (1)(2) 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. hospitality zone.(2) (A) During the first year following the adoption of a valid ordinance to designate a retail district 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. (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 hospitality zone shall include all of the following:(A) Information as may be necessary to identify the boundaries of the retail district. hospitality zone.(B) A finding that the designated area meets the definition of retail district hospitality zone established in this section.(C) A finding that the issuance of additional licenses within this district hospitality zone would serve the public convenience or necessity.(2) A local governing body may, in an ordinance designating or modifying a retail district, hospitality zone, further limit the maximum number of additional licenses to be issued within its retail district. hospitality zone.(3) (A) A local governing body may, in an ordinance designating or modifying a retail district, hospitality zone, further limit the areas within the boundaries of the retail district hospitality zone where additional licenses may be issued. (B) Notwithstanding subparagraph (A), an ordinance shall designate a single contiguous area that qualifies as a retail district hospitality zone to meet the requirements of this section.(4) Upon the adoption of an ordinance to modify or repeal a retail district, hospitality zone, the local governing body shall submit the ordinance to the department.(d) Any ordinance to establish, modify, or repeal a retail district hospitality zone 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 hospitality zone 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 location outside of the hospitality zone or otherwise 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.(3) 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.(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.
54+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.
5555
56-23826.21. (a) For purposes of this section, the following definitions apply: (1) 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. (1)(2) 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. hospitality zone.(2) (A) During the first year following the adoption of a valid ordinance to designate a retail district 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. (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 hospitality zone shall include all of the following:(A) Information as may be necessary to identify the boundaries of the retail district. hospitality zone.(B) A finding that the designated area meets the definition of retail district hospitality zone established in this section.(C) A finding that the issuance of additional licenses within this district hospitality zone would serve the public convenience or necessity.(2) A local governing body may, in an ordinance designating or modifying a retail district, hospitality zone, further limit the maximum number of additional licenses to be issued within its retail district. hospitality zone.(3) (A) A local governing body may, in an ordinance designating or modifying a retail district, hospitality zone, further limit the areas within the boundaries of the retail district hospitality zone where additional licenses may be issued. (B) Notwithstanding subparagraph (A), an ordinance shall designate a single contiguous area that qualifies as a retail district hospitality zone to meet the requirements of this section.(4) Upon the adoption of an ordinance to modify or repeal a retail district, hospitality zone, the local governing body shall submit the ordinance to the department.(d) Any ordinance to establish, modify, or repeal a retail district hospitality zone 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 hospitality zone 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 location outside of the hospitality zone or otherwise 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.(3) 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.(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.
56+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.
5757
5858
5959
6060 23826.21. (a) For purposes of this section, the following definitions apply:
6161
62-(1) 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.
63-
64-(1)
65-
66-
67-
68-(2) Local governing body means the local governing body of the City and County of San Francisco.
62+(1) Local governing body means the local governing body of the City and County of San Francisco.
6963
7064 (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.
7165
66+(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.
7267
73-
74-(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. hospitality zone.
75-
76-(2) (A) During the first year following the adoption of a valid ordinance to designate a retail district 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.
68+(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.
7769
7870 (B) In any subsequent year, the department may issue any licenses that have not been issued, not exceeding five licenses per calendar year.
7971
80-(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 hospitality zone shall include all of the following:
72+(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:
8173
82-(A) Information as may be necessary to identify the boundaries of the retail district. hospitality zone.
74+(A) Information as may be necessary to identify the boundaries of the retail district.
8375
84-(B) A finding that the designated area meets the definition of retail district hospitality zone established in this section.
76+(B) A finding that the designated area meets the definition of retail district established in this section.
8577
86-(C) A finding that the issuance of additional licenses within this district hospitality zone would serve the public convenience or necessity.
78+(C) A finding that the issuance of additional licenses within this district would serve the public convenience or necessity.
8779
88-(2) A local governing body may, in an ordinance designating or modifying a retail district, hospitality zone, further limit the maximum number of additional licenses to be issued within its retail district. hospitality zone.
80+(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.
8981
90-(3) (A) A local governing body may, in an ordinance designating or modifying a retail district, hospitality zone, further limit the areas within the boundaries of the retail district hospitality zone where additional licenses may be issued.
82+(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.
9183
92-(B) Notwithstanding subparagraph (A), an ordinance shall designate a single contiguous area that qualifies as a retail district hospitality zone to meet the requirements of this section.
84+(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.
9385
94-(4) Upon the adoption of an ordinance to modify or repeal a retail district, hospitality zone, the local governing body shall submit the ordinance to the department.
86+(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.
9587
96-(d) Any ordinance to establish, modify, or repeal a retail district hospitality zone shall be effective commencing the following July 1.
88+(d) Any ordinance to establish, modify, or repeal a retail district shall be effective commencing the following July 1.
9789
9890 (e) In issuing the licenses provided for in this section, the department shall follow the procedure set forth in Section 23961.
9991
100-(f) A licensee that holds an on-sale general license for a bona fide public eating place that is in a retail district hospitality zone shall not be eligible to apply for a license under this section for the same licensed premises.
92+(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.
10193
102-(g) (1) A license issued pursuant to this section shall not be transferred between counties, nor shall it be transferred to any premises location outside of the hospitality zone or otherwise not qualifying under this section.
94+(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.
10395
10496 (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.
105-
106-(3) 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.
10797
10898 (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.
10999
110100 (i) (1) The department may designate licenses issued pursuant to this section as on-sale general for special use.
111101
112102 (2) A designation pursuant to this subdivision shall not alter any license privileges or restrictions established pursuant to this section.
113103
114104 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.
115105
116106 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.
117107
118108 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.
119109
120110 ### SEC. 2.