Business and Professions Code section 23826.22
(a)
For purposes of this section, the following definitions apply:(1)
“Hospitality zone” means an area designated by an ordinance in the City and County of San Francisco on or after January 1, 2026, that contains at least 1,000,000 square feet of retail shopping space open to the public. The City and County of San Francisco shall not designate more than one hospitality zone pursuant to this section.(2)
“Local governing body” means the local governing body of the City and County of San Francisco.(b)
(1)Notwithstanding any other provision of this chapter, the department, subject to subdivision (c), may issue up to 20 additional new original on-sale general licenses for bona fide public eating places located within a designated hospitality zone.(2)
(A)During the first year following the adoption of a valid ordinance to designate a hospitality zone and the submission of that ordinance to the department by the local governing body, the department may issue up to 10 of the 20 licenses during the same calendar year.(B)
In any subsequent year, the department may issue any licenses that have not been issued, not exceeding five licenses per calendar year.(c)
(1)In order to authorize the issuance of additional licenses pursuant to this section, an ordinance adopted by a local governing body to designate or modify a hospitality zone shall include all of the following:(A)
Information as may be necessary to identify the boundaries of the hospitality zone.(B)
A finding that the designated area meets the definition of hospitality zone established in this section.(C)
A finding that the issuance of additional licenses within this hospitality zone would serve the public convenience or necessity.(2)
A local governing body may, in an ordinance designating or modifying a hospitality zone, further limit the maximum number of additional licenses to be issued within its hospitality zone.(3)
(A)A local governing body may, in an ordinance designating or modifying a hospitality zone, further limit the areas within the boundaries of the hospitality zone where additional licenses may be issued.(B)
Notwithstanding subparagraph (A), an ordinance shall designate a single contiguous area that qualifies as a hospitality zone to meet the requirements of this section.(4)
Upon the adoption of an ordinance to modify or repeal a hospitality zone, the local governing body shall submit the ordinance to the department.(d)
Any ordinance to establish, modify, or repeal a hospitality zone shall be effective commencing the following July 1.(e)
In issuing the licenses provided for in this section, the department shall follow the procedure set forth in Section 23961.(f)
A licensee that holds an on-sale general license for a bona fide public eating place that is in a hospitality zone shall not be eligible to apply for a license under this section for the same licensed premises.(g)
(1)A license issued pursuant to this section shall not be transferred between counties, nor shall it be transferred to any location outside of the hospitality zone or otherwise not qualifying under this section.(2)
A license issued pursuant to this section shall not be transferred to any person, partnership, limited partnership, limited liability company, or corporation. This provision shall not apply to licenses transferred under Section 24071, 24071.1, or 24071.2.(3)
A license issued pursuant to this section shall not be sold or transferred for a price greater than the original fee paid by the seller or transferor.(h)
Following the cancellation or revocation of a license issued under this section, the department shall issue one additional license pursuant to the procedures set forth in Section 23961 and this section.(i)
(1)The department may designate licenses issued pursuant to this section as on-sale general for special use.(2)
A designation pursuant to this subdivision shall not alter any license privileges or restrictions established pursuant to this section.(j)
The department shall not issue any license under this section after July 1, 2033.
Source:
Section 23826.22, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC§ionNum=23826.22. (updated Jan. 1, 2026; accessed Dec. 15, 2025).
