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Subcommittee advances SB 395 to allow up to 20 temporary hospitality‑zone liquor licenses in downtown San Francisco
Summary
The committee voted to send SB 395 to Appropriations. Sponsor testimony said the measure would allow a limited number of nontransferable on‑sale liquor licenses inside a designated hospitality zone to spur downtown economic recovery; proponents said licenses are restricted to bona fide eateries and include a sunset provision.
Senator Wiener told the committee SB 395 creates a targeted, temporary tool for downtown San Francisco recovery by authorizing up to 20 additional nontransferable full liquor licenses to be issued within a designated hospitality zone.
“SB 395 will allow the city and county of San Francisco to designate a hospitality zone in which 20 additional liquor licenses for restaurants will be authorized in order to provide a bit of a shot in the arm to the area,” Senator Wiener said. Witnesses from the San Francisco Office of Economic and Workforce Development and the Union Square Alliance said the Union Square–Yerba Buena area has suffered pandemic‑era vacancies and that new restaurant licenses could help reactivate storefronts and boost foot traffic.
Selena San of the San Francisco Office of Economic and Workforce Development said the licenses would be issued by the California Department of Alcoholic Beverage Control (ABC) at ABC’s application fee, would be nontransferable, and could be issued over three years. “These licenses will help fill vacant storefronts, support new restauranteurs, and bring renewed energy, culture and economic activity to our city's core,” she said.
Marissa Rodriguez, CEO of the Union Square Alliance, said amendments added a seven‑year sunset to offer certainty and to protect the secondary market. She urged passage as a measured, time‑limited tool to attract new eateries and nightlife.
The committee had no witnesses on record in opposition during the hearing. Committee members asked clarifying questions about whether the licenses stayed with the business (witnesses said they would) and whether the San Francisco Police Department had weighed in (witnesses said any local input would be considered at the Board of Supervisors stage).
The clerk read an initial roll showing 16 “aye” votes during the committee’s vote to send SB 395 to Appropriations; the chair left the roll open for other members to add their votes.
Clarifying details: the program limits licenses to bona fide eateries inside a designated hospitality zone, the licenses are nontransferable and issued at ABC’s application fee, up to 20 may be issued over a three‑year period, and a seven‑year sunset provision was added by amendment. The bill proceeds to the Appropriations Committee.
