(FOX40.COM) —A new bill at the State Capitol could give cities like Sacramento the option to extend last call to 4 a.m. in certain areas.

Right now, California has a statewide mandate prohibiting any venue from selling alcohol after 2 a.m. Cities do not have the authority to extend last call for special events or select days.

Assembly Bill 342, introduced by Assemblyman Matt Haney (D-San Francisco), would change that. The proposal would allow but not require local governments to create designated “Hospitality Zones,” often in downtown areas, where specific businesses could serve alcohol until 4 a.m. on Fridays, Saturdays and state holidays.

Local leaders would decide whether to create a zone, where it would be located and which businesses would qualify.

“If this were to pass, all it would allow for is a place like San Francisco or Sacramento, the city council here and the mayor to decide they want to do it, define the zone where it could even happen and themselves define the businesses who are going to get it. Nobody is going to get it automatically,” Haney said.

Under the bill, cities would be required to consider public safety resources, access to transportation, nearby hotels and arenas, walkability, and the cultural, historic and economic appropriateness of the zone before approving extended hours.

Haney says the goal is to help revitalize struggling downtown cores.

“If we can do this in a way where we’re intentional, the right zone, where it should be, the set of businesses that have these special permits, it can have ripple effects that help our businesses that are open during the day, our restaurants, our cafes and can be a part of a larger revitalization of a downtown,” he said.

The proposal has seen bipartisan backing at the Capitol.

“We actually had a lot of support from both Democrats and Republicans. In the past, the CHP has been opposed to this bill. They are neutral on the bill. They’re fine with the bill,” Haney said.

The bill is now in the Senate Governmental Organization Committee, where lawmakers will decide whether it moves forward.

Copyright 2026 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

For the latest news, weather, sports, and streaming video, head to FOX40 News.