Alcoholic beverages: additional licenses: hospitality zone.

Senator Wiener's proposal to create a designated hospitality zone in San Francisco would authorize up to 20 new on-sale general liquor licenses for restaurants, addressing the city's decades-old cap on full liquor licenses. The legislation enables San Francisco to designate one hospitality zone containing at least 1 million square feet of retail space, where these additional licenses would be available.

The Department of Alcoholic Beverage Control would issue the licenses in phases, with up to 10 licenses available in the first year following the zone's designation and up to five licenses annually thereafter. To establish a hospitality zone, San Francisco must adopt an ordinance defining its boundaries and demonstrating that additional licenses would serve public convenience. The local government retains authority to further restrict both the number of licenses and eligible areas within the zone.

The bill includes provisions to prevent license speculation and maintain geographic distribution. Licenses cannot be transferred between counties or outside the hospitality zone, nor can they be sold for more than their original purchase price. Current on-sale general license holders within the zone cannot obtain additional licenses for their existing locations. If a license is canceled or revoked, the Department may issue a replacement to maintain the intended number of establishments within the zone.