Assembly Bill 3206 would make Intuit Dome, the new $2 billion arena that opened this month, the only late-night bar in the state serving alcohol past 2 a.m.
The bill proposes that VIP suite holders gain access to the extended bar service, excluding regular venue attendees.
The current law prohibits serving alcohol between 2 a.m. and 6 a.m. Bartenders and consumers who do so could be charged with a misdemeanor.
State Sen. Scott Wiener said the bill takes a new approach to balancing public health and safety.
"The bill includes a number of safeguards including limiting the size of the venue, limiting the number of customers allowed in the venue," Weiner said. "Limiting the days that the venue can offer after-hours alcohol sales, and requiring local approval to mitigate potential public health and safety concerns."
Those in opposition argue that it's not only an unfair abuse of financial power, but it's also a public safety concern.
"If they think that opening venues and having drinking till 4 o'clock in the morning is good for just exclusive groups, then it should be for everyone and my contingent is, it's not good for anyone," said state Sen. Kelly Seyarto.
Organizations like Alcohol Justice are calling on Gov. Gavin Newsom to veto the bill.
"Even one bar or restaurant that will stay open until 4 a.m. will greatly increase the likelihood of drunk driving, alcohol-related violence, all kinds of alcohol-related harm," said Michael Scippa, director of public affairs.
The bill, passed this week by the state Senate, is producing mixed reactions on both sides of the table.
"I think it might be kind of unfair," said Anthony Woods, an Inglewood resident. "I mean, I don't see what's the point of having that for the suites. I mean if everything is closing at 2 a.m., why shouldn't they follow that kind of rule?"
Newsom has until the end of September to make a decision.