Alcoholic beverages: hours of sale: hospitality zones.

Assembly Member Haney's proposal to extend alcohol service hours in designated hospitality zones would create a framework for cities and counties to allow alcohol sales until 4 a.m. on Fridays, Saturdays, and state holidays, beginning January 1, 2026. The legislation establishes a new licensing system administered by the Department of Alcoholic Beverage Control (ABC) for businesses seeking to operate during these extended hours.

Local governments would need to formally designate hospitality zones - areas with concentrated business activity that serve as tourism attractions - through resolutions that assess public safety, transportation availability, and community impact. These zones can be permanent or temporary "Special Event" zones lasting up to one month. The designation process requires consideration of cultural and economic factors, walkability, proximity to hotels and venues, and consultation with law enforcement on safety plans.

On-sale licensees within approved zones could apply for additional serving hours permits by paying a $2,500 application fee and annual renewal fee. The permits would require all staff serving alcohol during extended hours to complete responsible beverage training. Off-sale privileges would not be permitted during the extended hours, and the additional hours permits cannot transfer between premises. The legislation restricts entry to patrons 21 and older during extended service hours, with violations constituting misdemeanors subject to minimum $200 fines.

Cities and counties implementing extended hours must submit annual reports to the Legislature analyzing impacts on crime rates, including DUI arrests and domestic violence incidents, along with data on permit applications and conditions placed on licenses. Local governments may charge additional fees to fund increased law enforcement presence during extended service hours. The ABC Department must conduct thorough investigations of permit applications and has authority to deny permits that would unreasonably interfere with nearby residents. The department will develop specific rules and regulations to enforce the program's requirements.