On October 7th, Mayor Daniel Lurie of San Francisco released a press statement celebrating the signing into law of SB 395 by Governor Gavin Newsom. This new law allows the city and county of San Francisco to issue up to 20 new liquor licenses in the city center.
This groundbreaking legislation, which has ended restrictions in place for nearly eighty years, paves the way for more restaurants and entertainment venues to establish themselves in the city center, revitalizing the area.
Proposed by State Senator Scott Wiener, with the endorsement of Mayor Lurie, Governor Newsom signed the bill into law on the 6th of October. According to the press release from the Mayor’s office, this new law will serve as a vital tool in rejuvenating the city center, boosting the economy and nightlife, attracting residents and visitors, and making the downtown area a vibrant community to live in.
Mayor Lurie stated, “The revival of San Francisco is impossible without a vibrant city center: a place for people to live, work, play, and learn. This new law will not only bring more foot traffic, energy, and vitality to the city center but also create more growth opportunities for small businesses.”
State Senator Scott Wiener believes that San Francisco is already seeing signs of recovery post-COVID-19, and this new law will further propel this progress.
He remarked, “Small businesses are the lifeblood of economic recovery. The SB 395 bill will enable more new businesses to acquire liquor licenses at a lower cost, driving prosperity in areas like Union Square and Yerba Buena.”
For the past eighty years, existing state laws have limited the number of liquor licenses San Francisco could issue. As of 2024, half of California’s 58 counties had reached their license limit, with San Francisco County hitting its limit back in the 1940s.
When a county reaches its limit on liquor licenses, new restaurants and entertainment venues are forced to purchase licenses from the secondary market, with each license costing over $200,000, posing a significant burden for new entrepreneurs.
In 2016, the state government passed the SB 1285 bill, introducing a new type of liquor license – the Neighborhood-restricted Liquor License – expanding license issuance in the outer areas of San Francisco. However, the downtown area was still constrained by regulations and unable to benefit from this policy.
The SB 395 bill now allows San Francisco County to issue affordable liquor licenses within designated Hospitality Zones in the city center, creating new opportunities for the nightlife industry.
Marisa Rodriguez, CEO of the Union Square Alliance, expressed delight at the state government’s efforts to boost San Francisco’s nightlife, creating more thriving opportunities for both new and established businesses.
Rodriguez further stated that this year is exceptional for San Francisco’s downtown, and the new legislation is a wise move to keep Union Square vibrant and attractive, offering a better experience for residents and visitors.
Anne Taupier, Executive Director of the Office of Economic and Workforce Development for the city of San Francisco, remarked, “As office vacancies decrease, new housing is being constructed, and entertainment zones bring foot traffic to the streets, this bill will further strengthen the downtown area’s economic resilience.”
Mayor Lurie also signed the “Heart of the City” executive order last month, accelerating the revitalization of the city center through public safety, urban cleanliness, and business support measures, thus driving San Francisco’s economic revival.