BILL ANALYSIS Ó
AB 2739
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Date of Hearing: April 20, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2739 (Chiu) - As Introduced February 19, 2016
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Urgency: Yes State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill deletes the requirement that a special on-sale general
license for a for-profit theater in San Francisco cannot be
issued until any existing license is canceled.
AB 2739
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FISCAL EFFECT:
Negligible state costs.
COMMENTS:
1)Background and purpose. AB 525 (Ting), Chapter 235 in 2013,
created a new special on-sale general license for for-profit
theaters, configured with theatrical seating of at least 1,000
seats and primarily devoted to live theatrical performances,
located within San Francisco. Before the passage of AB 525,
patrons of a for-profit theater located in San Francisco were
prevented from approaching service bars to purchase alcoholic
and nonalcoholic beverages and then carrying those drinks
elsewhere in the lobby or to their seats.
AB 525 includes provisions to ensure appropriate controls
relating to licensing. One such provision requires the
for-profit theater to cancel their existing license to secure
the new license. This prevents any theater receiving this new
special on-sale general license from selling its existing
license on the open market. According to the author of AB
2739, this provision also has the unintended effect of
preventing a new eligible theater owner from obtaining this
special on-sale general license in the event of a change in
ownership. The Curran Theatre, which opened in February 1922,
closed on January 1, 2015 for renovations and is set to reopen
in January 2017. Prior to its closure, the Curran Theatre was
operated by a licensee who will no longer have ownership
interest in the theater when it reopens, and under existing
law, that license will need to be cancelled by the previous
owner. AB 2739 removes the requirement that the existing
license must be canceled so as to allow the new owner to apply
AB 2739
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for this special on-sale general license.
Analysis Prepared by:Luke Reidenbach / APPR. / (916)
319-2081