Governor Arnold Schwarzenegger was elected on a platform of challenging the status quo to reinvigorate our economy and return California to its position as a national fiscal leader. The governor has committed to bringing increased tourism and business to our state. San Francisco can help him meet this challenge if we allow our city's unique cultural events, entertainment venues, and first-class restaurants to compete with New York City and other great cities in the nation and world.

San Franciscans who travel to other major cities are familiar with the after-hours policies of places like Sydney, Tokyo, New York City, Las Vegas, London, Miami, New Orleans, and Chicago, where restaurants and nightclubs hold last call for alcohol at 3 to 4 a.m. or even later. It might be surprising to some that Washington, D.C., Columbus, Honolulu, Indianapolis, San Antonio, Jacksonville, Atlantic City, Houston, Juneau, Memphis, Atlanta, Nashville, Fort Worth, Cleveland, and Portland, Ore., also have more progressive policies than San Francisco, each holding last call after 2 a.m.

San Francisco should have a chance to compete with these cities and hold last call at a comparable time, such as 3 a.m. to 4 a.m.

It is important to note that states with last-call hours later than 2 a.m. have fewer driving deaths related to alcohol than states requiring last call at 2 a.m. or earlier, according to data from the U.S. National Traffic Safety Administration. States with late-night transit availability, such as New York and New Jersey, also have significantly better safety statistics than the national average. By holding last call later, San Francisco nightclub patrons could have new opportunities to use public transit like other in states, since BART service ends at midnight but begins most days of the week at 4 a.m.

If last-call laws are to be changed to allow a later time, they will apply only to restaurants, bars, and nightclubs that have special after-hours permits and are located in areas already zoned for late-night operation. Neighborhood markets and liquor stores will not be affected. Every venue that currently closes at 2 a.m. will be required to close at the same time, unless it's in an area zoned for after-hours operation and has obtained a special after-hours permit. These policies will stimulate the revitalization of city entertainment while maintaining protections for our neighborhoods.

San Francisco has a rich history of evening entertainment, including poetry readings, multicultural theater, dance, rock, jazz, electronic music, and alternative art that are celebrated year-round and are recognized globally. This exciting culture does not end at 2 a.m.

Now is an important time to visibly support this culture, especially since San Francisco tourism has taken a big hit in recent years. In 2002, visitors spent nearly 10 percent less than in 2001, city hotels were 35 percent vacant, major nightclubs shut down, and 7 percent of San Francisco restaurants had already closed since 9/11. This shows that we should not take our entertainment and tourism industries for granted.

We can significantly revitalize our economy by supporting evening entertainment. Eighty-four percent of California travel involves local residents taking short trips in the state. If the state allows a later last-call time for San Francisco, the city can draw more Bay Area and in-state visitors to restaurants, bars, theaters, dance clubs, street fairs, conventions, and cultural events on a regular basis, helping to expand its success as the top visitor destination in the state. Hotels, taxis, and all of San Francisco's service industries would gain from greater regional interest in nighttime entertainment, and international visitors would be drawn to a city with a vibrant nightlife that competes with New York, Sydney, and other great cities.

San Francisco is a world-class city. Let's allow it to compete on a level playing field with the other great tourist destinations of the United States.

State assemblymember Mark Leno represents San Francisco. Sup. Aaron Peskin represents District Three.