Alcoholic beverages: hours of sale: hospitality zones.

Assembly Member Haney's proposal to extend alcohol service hours in designated hospitality zones would allow certain California bars and restaurants to serve alcohol until 4 a.m. on weekends and state holidays, creating a pilot program that expires in 2031.

The legislation establishes two types of extended-hours zones: permanent Hospitality Zones in areas with concentrated business activity and tourism, and temporary Special Event Hospitality Zones lasting up to one month. Local governments must adopt ordinances designating these zones after conducting public safety and transportation assessments. The zones require enhanced late-night policing plans and cannot exceed one license per 6,000 residents.

On-sale licensees in approved zones may apply for additional serving hours permits beginning June 1, 2026, paying a $2,500 application and annual fee. The Department of Alcoholic Beverage Control will review applications and may deny permits that would unreasonably disturb nearby residents. Licensees must restrict entry to patrons 21 and older during extended hours and complete responsible beverage training.

The bill mandates oversight through annual local impact reports and a 2029 California Highway Patrol assessment examining effects on drunk driving and traffic collisions. Law enforcement agencies and residents within 500 feet of applicant businesses may protest permit applications, triggering department hearings on potential interference with neighborhood quality of life.