San Francisco Rules Committee Meeting on May 11, 2026: Hospitality Zone, Hate Crime Fund, Reappointment
San Francisco Rules Committee Meeting - May 11, 2026
The Rules Committee, chaired by Supervisor Shamann Walton, met on May 11, 2026, to consider three items: the reappointment of Jeanette Howard to the Treasure Island Development Authority Board, an ordinance to implement a downtown hospitality zone with reduced-cost liquor licenses (SB 395), and an ordinance establishing a Hate Crime Reward Fund. The meeting included public comment, and the committee voted on each item, with the hospitality zone ordinance generating significant discussion due to timing pressures and stakeholder concerns.
Consent Calendar
- Reappointment of Jeanette Howard: The committee unanimously approved a motion to recommend the mayor's reappointment of Jeanette Howard to the Treasure Island Development Authority Board for a term ending February 26, 2029. No public comment was received.
Public Comments & Testimony
- Mercy Rodriguez (CEO, Union Square Alliance): Expressed full support for the hospitality zone ordinance, stating the area could potentially absorb up to 50 new businesses. She argued that the program is essential for downtown revitalization and attracting visitors, noting 12,000 hotel rooms nearby and a need for diverse offerings to show the city's recovery.
- Unnamed downtown operator representative: Opposed the hospitality zone ordinance as introduced, citing insufficient demand. He noted there are 40 full liquor licenses parked at the ABC (turned in by failed operators), with a recent sale at $90,000 (down from the $100–150,000 range mentioned earlier). He argued that new low-cost licenses would undercut struggling existing businesses and requested a continuance for stakeholder input, stating downtown is still 300,000 room nights below 2019 convention levels.
Discussion Items
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Item 2: Ordinance to Create Downtown Hospitality Zone (SB 395 Implementation):
- Presentation by Ben Van Houten (OEWD Director of Nightlife Initiatives): The ordinance would allow up to 20 new non-transferable restaurant liquor licenses at the ABC application fee of ~$20,000, compared to secondary market prices of $100–$150,000. Boundaries include areas around Union Square, Fifth Street, Market Street, and others. A requested amendment would reduce the maximum to 15 licenses (with intent to monitor for two years before possibly issuing the remaining five).
- Committee members expressed frustration: Chair Walton noted that outreach to offices only occurred the week prior, leaving no time to understand unintended consequences. Vice Chair Sherrill and President Mandelman echoed concerns about being "jammed" and the lack of stakeholder engagement. President Mandelman highlighted the July 1 state deadline as a pressure point.
- Deputy City Attorney Brad Rossi clarified uncertainty about the deadline: state law requires the board to adopt an ordinance, but it is unclear whether it must be effective by July 1 or just passed. He requested time to consult with the drafting attorney.
- The committee debated options: duplicating the file to allow full board action (with possibility of continuance) versus continuing the item in committee. Public comment included support from Union Square Alliance and opposition from an existing operator.
- After discussion, the committee voted to accept the amendment (reducing to 15 licenses) and then to send the amended ordinance to the full Board of Supervisors as a committee report without recommendation. They also voted to duplicate the file and continue the duplicated version to the call of the chair, preserving the ability to amend or continue later.
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Item 3: Ordinance to Establish San Francisco Hate Crime Reward Fund:
- Presented by Brian Dahl (Legislative Aide, Supervisor Matt Dorsey): The fund would provide rewards for information leading to hate crime charges, modeled after the existing homicide reward fund. No appropriation is made; the fund relies on donations or board appropriations. Carl Nasita (SFPD Government Affairs) confirmed the fund is a category six fund.
- No public comment was received. The committee unanimously voted to recommend the ordinance to the full board with a positive recommendation.
Key Outcomes
- Item 1: Motion to recommend reappointment of Jeanette Howard passed unanimously (3-0).
- Item 2: Amendment to reduce licenses from 20 to 15 was accepted unanimously. The amended ordinance was sent to the full board without recommendation (unanimous). The file was duplicated and continued to the call of the chair in committee (unanimous), allowing further deliberation before the May 19, 2026 full board meeting.
- Item 3: Ordinance to create Hate Crime Reward Fund was recommended to the full board with a positive recommendation (unanimous).
- Meeting adjourned after completing the agenda.
Note: The committee emphasized concerns about the July 1, 2026 state deadline for the hospitality zone ordinance. If not acted upon in time, the program could be delayed by a year. The committee urged further consultation with stakeholders and the city attorney before final action.
Meeting Transcript
Good morning, everyone, and welcome to the May 11th, 2026 rules committee meeting. I'm your chair of Supervisor Shaman Walton. I'm joined by Vice Chair Steven Cheryl and Supervisor, of course, President Mandelman. Today's clerk is Victor Young, and I want to thank Eugene Labadia for making sure that this meeting is publicized on television at SFGov TV. And Mr. Clerk, do we have any announcements? Yes. Public comment will be taken on each item on this agenda. We are item of interest comes up and public comment is called. Please line up to speak. Alternatively, you may submit public comment in writing in either of the following ways. Email them to myself, the rules committee clerk at VICTOR. Y-O-U-N-G at SFgov.org. If you submit public comment by email, it will be included as part of the file. May also send your written comments via US mail to our office in City Hall 1. Dr. Carlton be good lit place. Room 244, San Francisco, California, 94102. Please make sure to silence all cell phones and electronic devices. Items acted upon today are expected to appear on the board of supervisors' agenda of May 19th, unless otherwise stated. That completes my initial announcement. Thank you so much. Would you please call item number one? Item number one, motion to approving or rejecting the mayor's nomination for the reappointment of Jeanette Howard to the Treasury Island Development Authority Board of Directors for a term ending February 26, 2029. Thank you so much. And I know Jeanette is not here. However, this is an appointment, a reappointment from the mayor's office, and she has had time to connect with colleagues as well as staff. So we will go to public comment on this item if we don't have any objections. Yes, members of the public who wish to speak on this item should line up to speak at this time. Each speaker will be allowed two minutes. Are there any members of the public who will wish to speak on this matter? There are no speakers on this matter. Thank you so much. Public comment is now closed. I'd like to make a motion to move Jeanette Howard forward and remove amend and remove rejecting and replace with approved and move forward to the full board. Yes, uh the motion is to amend to uh make the recommendation to approve and recommend as amended. On that motion, Vice Chair Sherrill. Aye. Aye. Walton aye. That motion passes without objection. Thank you. Motion carries. Mr. Clerk, please call item number two. Yes. Item number two is an ordinance mending the administrative code to create the downtown hospitality zone in the area bounded by Fifth Street from Folsom Street to Market. Cyril Magnon Street from Market Street to Eddie Street, Eddie Street from Cyril Magden Street to Mason Street, Mason Street from Eddy Street to Ellis Street, Ellis Street from Mason Street to Taylor Street, Taylor Street from Ellis Street to Post Street, Post Street from Taylor Street to Mason Street, Mason Street from Post Street to Bush Street, Bush Street from Mason Street to Kearney Street, Kearney Street from Bush Street to Market Street, Mark Street from 3rd Street to 2nd Street, 2nd Street from Market Street to Folsom Street, and Folsom Street from 2nd Street to 5th Street, and affirming the planning department's determination under the California Environmental Quality Act. There is a request that this matter be sent out as a committee report. Thank you so much, Mr.
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