A federal appeals court granted San Francisco a new hearing Monday in its defense of a first-in-the-nation law that would require health warnings in display ads posted in the city for sodas and other sugary drinks.

The warnings, which would take up at least 20 percent of the advertisement space, would say that drinking such beverages “contributes to obesity, diabetes and tooth decay.”

Passed unanimously by the Board of Supervisors in 2015, it was scheduled to take effect in July 2016 but was put on hold by federal courts, then barred last September by a panel of the Ninth U.S. Circuit Court of Appeals, in a suit by the beverage industry. The panel said the warnings were one-sided, implying that soda was more dangerous than other high-calorie products, and would violate advertisers’ freedom of speech.

But on Monday, the full appeals court said a majority of its judges had voted to grant the city’s request for a new hearing before an 11-judge panel. The hearing has not yet been scheduled.

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The ordinance is part of an effort by local governments in the Bay Area to discourage soda consumption. In 2014, Berkeley voters approved a penny-per-ounce tax on sugared drinks, the first such measure in the nation, and voters in San Francisco, Oakland and Albany followed suit in November 2016.

The advertising ordinance said the warning language would specify that it came from the city, not the advertiser. U.S. District Judge Edward Chen of San Francisco ruled in 2016 that the warning was “factual and accurate” but agreed to delay enforcement while the industry appealed.

In September’s ruling, the three-judge panel said advertisers have a free-speech right to refuse to convey warnings about their products unless the warnings are clearly factual. San Francisco’s language singles out sugary drinks and misleadingly suggests that they pose health hazards regardless of the user’s overall diet or lifestyle, the panel said.

Judge Sandra Ikuta, writing for the panel, noted that the U.S. Food and Drug Administration has found that added sugars “can be part of a healthy diet when not consumed in excess amounts.” She said San Francisco was not merely advising the public against “overconsumption” of sugared beverages or saying they “may contribute” to certain illnesses, but instead was issuing an unqualified and thus inaccurate warning.

Ikuta also said the 20 percent ad space allotted to the warning would leave advertisers “little room to communicate their intended message.”

The American Beverage Association, which is leading the legal challenge, said Monday that the panel “correctly decided, based on settled First Amendment law, that the San Francisco ordinance likely violated the rights of the industry. We are confident that upon review the full Ninth Circuit will agree with that decision.”

City Attorney Dennis Herrera said the ordinance was on “solid legal ground” and was “an important step forward for consumer protection.” State Sen. Scott Wiener, D-San Francisco, who sponsored the ordinance as a city supervisor, said he was encouraged by the court’s decision to grant a new hearing.

“These drinks are driving up the rates of diabetes and other diseases,” he said in a statement. “Just as we require health warnings on tobacco ads, we should also have health warnings on soda ads.”

Bob Egelko is a San Francisco Chronicle staff writer. Email: begelko@sfchronicle.com Twitter: @BobEgelko