BILL ANALYSIS                                                                                                                                                                                                    



                                                                    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