City moves to repeal outdated alcohol regulations to aid businesses

In a recent government meeting, officials discussed an ordinance aimed at repealing Chapter 26 of the administrative code, which regulates deemed approved off-sale alcohol use, commonly referred to as DAO nuisance regulations. Lorenzo Rosas, representing Supervisor Stephanie, presented the ordinance, emphasizing its potential benefits for small businesses selling alcohol across the city.

Originally enacted in 2006 to mitigate public nuisances associated with off-site alcohol sales, the DAO regulations have been deemed duplicative and burdensome. The ordinance seeks to eliminate these regulations, which require business owners to pay an annual fee—$310 last year—tied to inflation, to cover the costs of administering the DAO program. The economic mitigation working group, established in 2020, found that businesses selling off-site liquor have maintained high compliance rates and that the fees were often applied unequally.

Rosas highlighted that the repeal aligns with recommendations from the small business commission and the working group, which called for the elimination of the DAO ordinance due to its redundancy with existing state laws. The San Francisco Police Department and the Department of Public Health have expressed support for the repeal, acknowledging that enforcement of similar state laws would continue without the need for the local ordinance.

The proposed repeal is seen as a significant step in supporting small businesses, particularly in the wake of the economic challenges posed by the pandemic. By removing these regulations, businesses could save hundreds of dollars annually, fostering a more favorable environment for local entrepreneurs. The ordinance has garnered support from various associations, including the Neighborhood Business Alliance and the Independent Grocers Association, indicating a broad consensus on the need for regulatory reform in this area.