Assembly Member Haney, joined by Senator Wiener, proposes allowing California bars and restaurants to serve alcohol until 4 a.m. on weekends and select holidays through a new licensing system that would take effect in January 2026. The legislation creates an "additional serving hours license" permitting establishments to extend alcohol service beyond the current 2 a.m. cutoff on Thursdays through Saturdays, as well as certain holidays including New Year's Day and the day before Thanksgiving.

Cities seeking to participate must adopt ordinances establishing designated late-night service areas after analyzing potential impacts on public safety, transportation, and surrounding neighborhoods. The ordinances must demonstrate a minimum 5% increase in local law enforcement budgets to address safety concerns and include plans for expanded transportation services during extended hours. Individual establishments would pay $2,500 to apply for and annually renew the additional hours permit.

The Department of Alcoholic Beverage Control would review applications and conduct investigations, allowing public input through protests and hearings. Participating venues must restrict entry to patrons 21 and older during extended hours and ensure staff complete specialized beverage service training. Cities must submit annual reports to the Legislature detailing crime statistics, arrest data, and other impacts within designated late-night areas. The additional hours permits cannot be transferred between locations and may be suspended or revoked separately from standard alcohol licenses.