The restraunteer turned politician vetoed a measure that would have charged booze wholesalers and distributors a new alcohol fee.
Supervisor John Avalos says the measure might be taken to voters to override Mayor Gavin Newsom's veto Tuesday, hours after the Board of Supervisors' approval.
The fee would amount to a few cents per standard serving of beer, wine or hard liquor.
Avalos says the law will help the City pay for treatment and prevention of alcohol abuse.
Business groups say the fee will raise costs for businesses and consumers alike as they continue to grapple with the impact of the recession.
Newsom says the law also might illegally tread on California's right to set alcohol regulations statewide.