Press Release

Senator Wiener, Mayor Lurie Bills to Tackle Dangerous Fencing of Illegal Goods on San Francisco Streets & Boost Downtown Nightlife Head to the Governor’s Desk

SAN FRANCISCO – Today, the California Legislature passed two San Francisco public safety and revitalization bills, Senate Bills 276 and 395, authored by Senator Scott Wiener (D-San Francisco) and sponsored by Mayor Daniel Lurie. SB 276, the SAFE Streets Act (San Francisco Allows Fencing Enforcement on our Streets), allows San Francisco to combat illegal fencing — the sale of stolen goods — through targeted interventions from law enforcement, while SB 395 helps revitalize downtown San Francisco by spurring the creation of new restaurants. 

SB 276 passed the Assembly 65-2 and the Senate 38-0, and SB 395 passed the Assembly 74-0 and the Senate 39-0. Both bills now head to the Governor, who must sign or veto them in the coming weeks.

“San Francisco has made great progress toward recovering from the pandemic, but a few challenges remain,” said Senator Wiener. “By holding perpetrators accountable while uplifting our fantastic community of street vendors, SB 276 takes a bold step to resolve a stubborn issue that has plagued San Francisco streets in recent years. SB 395 will help small businesses get low cost liquor licenses to boost our recovery around Union Square. I am incredibly proud to have worked with grassroots leaders like the Mission Street Vendors Association and CLECHA in crafting this legislation, and I’m grateful for Mayor Lurie’s steadfast partnership and relentless focus on San Francisco’s recovery. I look forward to a decision from Governor Newsom on this vital legislation to ensure San Francisco shines brighter than ever in the years to come.”

“San Francisco’s recovery depends on safe and clean streets, vibrant small businesses, and a downtown with energy and life where people want to be,” said Mayor Lurie. “These bills will bring new businesses and people downtown and help us keep streets safe and clean in every neighborhood. Thank you to Senator Wiener, our state partners, and the community groups who worked with us to advance these critical pieces of legislation. I look forward to Governor Newsom signing them into law.” 

SB 276

Authored by Senator Wiener and sponsored by Mayor Lurie, the SAFE Streets Act protects legitimate street vendors — who enrich San Francisco neighborhoods — while allowing law enforcement to issue infractions, and a misdemeanor after multiple violations, against those who sell commonly stolen goods without a permit or proof of purchase. The bill does not apply to prepared foods.

Under the SAFE Streets Act, San Francisco can require vendors to obtain a permit to sell merchandise frequently obtained through retail theft, as determined by the Board of Supervisors. The bill then provides that selling such merchandise without a permit, or alternatively proof of purchase, is punishable with an infraction. On the third offense, the violation is punishable with an infraction or a misdemeanor and up to six months in county jail. 

The new criminal offenses in the bill do not apply to the vast majority of street vendors, including those who are:
 

  • Selling any goods with a permit
  • Selling goods on the list, with a permit or with proof of purchase
  • Selling prepared food, with or without a permit

Mayor Lurie’s first state legislative proposal, the SAFE Streets Act represents a continued focus on public safety and street conditions. His Fentanyl State of Emergency Ordinance is advancing in partnership with the Board of Supervisors, passing the Budget and Finance Committee unanimously last week.

In 2023, the city issued a temporary moratorium on street vending in the Mission after escalating disorder connected to illegal fencing created an environment that was increasingly unsafe for residents, small businesses, licensed vendors, and the city Department of Public Works inspectors leading enforcement in the neighborhood.

Too often, large fencing operations and the danger that accompanies them force legitimate vendors out of communities. The displacement and risks to public safety resulting from the current situation have caused many vendors to call for a limited role for law enforcement in enforcing street vending rules. Leading community groups, including MEDA, CLECHA, and the Mission Street Vendors Association are supporting The SAFE Streets Act.

The SAFE Streets Act has been crafted to avoid immigration consequences.

SB 395

In recent years, San Francisco has pursued a number of creative solutions to help fill vacant office and retail spaces. One of the goals of those initiatives has been to attract a more diverse industry base to help transform downtown, which overwhelmingly consist of office space, into a leading arts, culture, and nightlife destination. Providing new entertainment experiences through a hospitality zone will support this goal and allow downtown to recover faster. Existing law limits the number of on-sale general licenses for restaurants and bars to one license for each 2,000 residents per county. As of 2024, half of California’s 58 counties had reached the maximum number of on-sale general liquor licenses allowed under state law. San Francisco reached that limit nearly 80 years ago, and state law has effectively capped the number of new licenses ever since.

Once a county has reached that limit, new restaurants and bars must buy liquor licenses on the secondary market. Licenses bought on the secondary market can reach prices of $200,000 or more, placing a serious financial burden on new businesses. High license prices are an especially significant barrier for operators without substantial financial backing and those seeking to open businesses in spaces that require substantial tenant improvements.

In 2016, the Legislature passed SB 1285 (Leno, Chapter 790, Statutes of 2016), which created a new type of neighborhood-restricted liquor license (Type 87) for San Francisco's outer neighborhoods. The Type 87 license provides entrepreneurs in these neighborhoods access to new affordable licenses. In 2017 and 2024, the Legislature passed bills to increase the total number of Type 87 licenses based on the success of this program in enhancing neighborhood vitality.

Authored by Senator Wiener and sponsored by Mayor Lurie, Senate Bill 395 would authorize the City and County of San Francisco to designate a retail district, defined as an area that contains at least 1,000,000 square feet of retail shopping space. The Department of Alcoholic Beverage Control (ABC) would then be authorized to issue up to 20 new on-sale general liquor licenses within the retail district at a license fee of $20,000, boosting the recovery of San Francisco’s downtown and allowing small businesses to access more affordable licenses.

 

###