Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application for, and the issuance and suspension of, alcoholic beverage licenses. Existing law requires moneys collected as fees pursuant to the act to be deposited in the Alcohol Beverage Control Fund, with those moneys generally allocated to the Department of Alcoholic Beverage Control upon appropriation by the Legislature. Existing law makes it a misdemeanor for any on- or off-sale licensee, or agent or employee of the licensee, to sell, give, or deliver to any person any alcoholic beverage between the hours of 2 a.m. and 6 a.m. of the same day, and for any person who knowingly purchases any alcoholic beverages between those hours.
This bill, beginning January 1, 2026, would allow an on-sale licensee, or their agent or employee, to sell or give alcoholic beverages until 4 a.m. on Fridays, Saturdays, or state holidays within a hospitality zone, defined to include a Hospitality Zone and a Special Event Hospitality Zone established pursuant to the bill's provisions, as specified. The bill, beginning January 1, 2026, would authorize the department to issue an additional serving hours license that authorizes an on-sale licensee, or their agent or employee, to sell or give alcoholic beverages within the timeframes described above in a hospitality zone, as specified. The bill would authorize an additional service hours license to be used by a licensed premises in a Hospitality Zone if a local governing body, as defined, of the city or county, as applicable, in which the licensed premises is located adopts a resolution that meets certain requirements, as specified, and submits the resolution to the department.
The bill would authorize an additional service hours license to also be used by a licensed premises in a Special Event Hospitality Zone if a local governing body of the city or county, as applicable, in which the licensed premises is located adopts a resolution that meets certain requirements and submits the resolution to the department. The bill would require the resolution to identify a Special Event Hospitality Zone in which an on-sale licensed premises would be eligible for an additional serving hours license, as specified, or to authorize at least one local department or other local entity to identify Special Event Hospitality Zones in which an on-sale licensed premises would be eligible for an additional serving hours license. The bill would require the local governing body, or the local department or other local entity authorized by the local governing body, to identify a Special Event Hospitality Zone in which an on-sale licensed premises would be eligible for an additional serving hours license subject to certain requirements, including that the local governing body, or the local department or other local entity authorized by the local governing body, draws or otherwise identifies on a map of the local area the boundary of each Special Event Hospitality Zone as specified, and identifies the duration in which each Special Event Hospitality Zone is operative, as specified.
This bill would require an applicant for an additional hours license to pay a $2,500 fee at the time of application and specify that the fee for an original and annual additional hours license is $2,500, and would require these fees to be deposited into the Alcohol Beverage Control Fund. The bill would prohibit an on-sale licensee from exercising off-sale privileges during the additional serving hours permitted pursuant to an additional serving hours license and specify that an additional serving hours license is not transferrable between on-sale licensed premises. The bill would authorize a local governing body to charge an additional serving hours licensee a fee to fund local law enforcement.
This bill would require the department, upon receipt of an application by an on-sale licensee for an additional serving hours license, to make a thorough investigation. The bill would require the applicant to notify law enforcement and residents, who may then file with the department protests and requests for a hearing, as specified. The bill would make it a misdemeanor for any person under 21 years of age to enter and remain in licensed premises during the additional service hours period without lawful business therein punishable by a fine of not less than $200. By creating a new crime, the bill would impose a state-mandated local program. The bill would require the department to adopt rules and regulations to enforce these provisions. The bill would require a city or county, as applicable, that by resolution identifies, or authorizes a local department or other local entity to identify, a hospitality zone to provide the Legislature an annual report on its impact, as specified.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Statutes affected:
AB 342: 25631 BPC
01/28/25 - Introduced: 25631 BPC
03/28/25 - Amended Assembly: 25631 BPC