Assembly committee advances bill to let cities create hospitality zones with 4 a.m. last call in limited areas

Assemblymember Matt Haney’s bill to allow cities to create local “hospitality zones” and extend last-call alcohol service to 4 a.m. on limited nights advanced out of the Assembly Governmental Organizations Committee after proponents and opponents debated economic benefits and public‑safety risks.

Haney said AB 342 “is a bipartisan, pro‑business, pro‑local‑control bill that allows local governments to create hospitality zones, areas of cities often in downtowns where there is a focus on supporting businesses and attracting visitors, residents, and tourists.” He noted the measure was amended to include a five‑year sunset, a study of impacts and a delayed implementation schedule and said he appreciated those changes.

The bill would authorize local governments to permit specified venues in designated hospitality zones to extend their last‑call time to 4 a.m. only on Fridays, Saturdays and official state holidays. Supporters said the tool would help downtowns and tourism‑dependent communities recover from pandemic losses and better compete for major events.

“California’s tourism industry drives $150 billion in travel‑related spending,” AJ Aceto of the California Hotel & Lodging Association told the committee. “The establishment of a well‑managed hospitality or entertainment zone can be an influential factor” for visitors choosing a destination.

Chris McCauley of the Los Angeles Area Chamber of Commerce said the measure could help downtown Los Angeles “realize the full potential of our urban core” as the region readies for major events over the next three years.

Opponents warned the bill risks undoing a long‑standing statewide norm of a 2 a.m. last call and could increase alcohol‑related harms. Raul Verdugo of Alcohol Justice said the state’s uniform 2 a.m. last call “has served California for 90 years mitigating devastating alcohol‑related harms” and urged a no vote, arguing AB 342 lacks sufficient safety protocols such as demarcated event areas, mandatory DUI checkpoints or sobering centers.

Fred Jones of the California Council on Alcohol Problems said extending last call into morning commute hours could increase danger for people who work weekends and highlighted a pending state pilot on a single venue that he said should be analyzed before statewide expansion.

Committee chair indicated support for the amended bill while stressing the need for safeguards. The chair said the committee had worked to place “strict oversight, measures, enhanced law‑enforcement input” and community feedback mechanisms into the measure and noted the implementation date was set for June 1, 2026, contingent on regulations being in place.

The committee recorded a motion to pass AB 342 as amended to the Committee on Appropriations. The motion carried; the measure was advanced out of the Governmental Organizations Committee for further consideration, with dissent from members who raised public‑safety concerns.

The debate combined economic‑development arguments from hotel, restaurant and nightlife representatives with public‑health and safety objections from advocacy groups and some local elected officials. The author and multiple local business groups pledged to work with stakeholders on implementation details and the mandated study.