CA AB342

Creates "additional serving hours licenses" allowing on-sale alcohol establishments to serve until 4 a.m. (instead of 2 a.m.) on Fridays, Saturdays, and state holidays within designated hospitality zones, beginning June 1, 2026

Requires local governing bodies to adopt ordinances establishing hospitality zones after local law enforcement presents a late night policing plan analyzing public safety impacts, staffing needs, and crime statistics

Caps the number of additional serving hours licenses at one per 6,000 residents in each city or county, with a $2,500 application fee and $2,500 annual license fee (adjusted for inflation)

Makes it a misdemeanor for anyone under 21 to enter licensed premises during extended hours without lawful business, punishable by a minimum $200 fine, and prohibits off-premises alcohol consumption between 2 a.m. and 4 a.m.

Requires annual reports from participating cities/counties on crime impacts and a California Highway Patrol report by January 1, 2029 on regional effects; the program sunsets January 1, 2031