frame. does that make sense? then, it does require that the amount collected for the surcharge, if it is no kid -- noted as health care expenditures, those are spent on health care expenditures. so if more money is collected than is expanded, the business will be required to expand that difference on health care costs. one other provision that the mayor, 90 days after separation, the employer is required to provide written notification of the balance. no later than three days after the employee separated.

the other component is that 15 days after -- where is this? 15 days after an employer has made, put funds into account, the employee needs to be notified of those funds being put into the account. so it is 15 days. those are some of the primary elements. a couple of things for a little bit of cleanup in review of this, i have this in the front of your section of the binder. i checked with our city attorney. under section -- under section

14, line at 6, to change the ordinance required to notify employees of their unchains benefits from three days to 10 business days. this would allow if there are any holidays because most employers have a third-party administrator, the time to get that information and be able to give it to the employee. especially if somebody it separates with short notice. also on section 14, enforcement requires that the health care expenditure on behalf of the employee is done -- excuse me -- the intent is to change from five days to five business days.

i am not reading it very well. number 2 and number 3 is to add five business days. last is, that if an employer and poses a surcharge on customers to cover part of the cost of the health care requirement under this chapter, the employer should provide on an annual basis the amount collected during. this is what i checked with the city attorney that during the 12th month a time, it is matching up that businesses have to report on a 12 month basis. making sure that the itemized amount, they are reporting on the same amount in relationship to the recording period. so does not 24 months for the

surcharge and 12 months for the report they have to provide. does that make sense? those are amendments that the commission can approve and then we can see if we can get those amended into the legislation. are there any questions? commissioner dooley: no, i had a comment. i was going to say that this has been a tough call for the small- business community. it is asking a lot. it still comes down to having to punish most of the good people and did the if you evildoers have brought this on everyone. i would like to acknowledge

that this current incarnation is less punitive than the one we heard before. at this point, we have to move on and see how this one works. i want to make the comment that this is going to cause some hardships for some businesses. we should not underestimate that when we are moving forward. commissioner adams: i want to echo commissioner dooley's statement. i agree with you. that being said, i would like to acknowledge the small business office regina for all of your work and support and letting small businesses be heard at these meetings.

there have been a lot of them. i want to acknowledge on behalf of myself and the rest of the commissioners the job you have done, not only from us. i hear from people all over this town, the work you have done. we feel like we have somebody in our corner. thank you. i want to reiterate what commissioner to be said. you are right on. commissioner clyde: i would like by starting to thank supervisor cohen. and also supervisor compost -- campos for bringing the problem forward. it is a problem that needs to be

addressed. from different perspectives, people have their ways of addressing the problem. i have to recognize supervisor cohen with working with a contentious issue. that being said, i support the recommendations from the director because they come from a lot of thoughtfulness and giving clarity. i, i don't see -- for the businesses that are applying in the spirit of the law and correctly, that this will not be a hardship for them. that i know. for businesses that are applying it as well as they can, some of

these requirements will be difficult. i do not think it is impossible. i do not see any way not to support, going forward, i think it is the best we can do. when we say hardship, it will be a hardship for businesses. it will actually be a hardship for employees who may not be employed and to tell them that san francisco made a change in the law that took their jobs away. i think that is the most difficult thing for me as a sam franciscan. i hope it is not going to be that onerous but i know that when we talk about a hardship for business, it does not stop with the small business owner. the hardest thing is going to be

for the employees who may not have a job. that is my trepidation. the lower income business people, the lower income businesses. that being said, i will support this. and the support to the work of supervisor cohen and president chiu. president o'brien: do you know what the legislation has, i am trying to remember, which would not be the first time. did we have anything to monitor the impact? i seem to recall there was something to do reporting to see how this affects things. >> correct. i brushed over what was new but

in terms of the amendments, supervisor david chiu did have in his legislation for businesses to report on their expenditures. so, so that is still there. businesses will still be required in the amount of what they are making. the defined the details of what they will need to report on is still yet to, but the idea is to stay with your hra account, what are reimbursable expenses under your plan so that we can monitor and track that. we want to reiterate to the fact that the employee notification, the time of the employment and on a regular basis as also

codified in the legislation. i want to thank the mayor as well because he brought forward his legislation and he convened many meetings to bring the stakeholders together. i think with the mayor and supervisor chiu and others, this is what has been developed. we will continue to thank supervisor campos for bringing the issue. this point has not indicated whether he will support the legislation. >> i want to acknowledge labor standards and their work drafting the noticing. i think it is important that we have this language from labor

standards for the what we give our employees as they -- when they leave. i would like that to be not just left up. i think for the business, we should have a template that this is your notice just like cobra language is codified, state language is codified, i would like the city's separation language also clarified so we have no confusion. >> it should be uniform. >> absolutely. >> may i ask -- perhaps what we want is guidelines. we do have the waiver form that is very -- you know, that waiver form is -- it is a little

confusing. so i don't -- could we suggest they work with your office? >> i think maybe that would be the suggestion to ask them to work with language. or set out their recommended guidelines of what needs to be in it but to really -- i just want to caution because i think that the waiver form is somewhat confusing and so -- -- >> thank you. >> i think everybody has mentioned everything that has been said. this has pretty much come to a hard line in the sand. the sideline pretty much i think going to be defined tomorrow. i think this has a good chance of passing tomorrow from what i hear.

it is more productive to just move on and everybody swallows a better pill because they all didn't get exactly what they want. at least we can move forward. so i would support what we're doing here at this stage and see what happens tomorrow. >> i would like to make a motion that we -- >> there is no public comment. public comment is closed. >> i would like to make a motion that we support the health care security ordinance with the recommended amendments from the office of small businesses. >> do we have a second? >> i second. >> ok. commissioners. just to clarify the recommendation about the -- to provide language for the separation of employment is that to be included in a motion or is that just direction to staff? >> i think that is just direction to staff. >> ok. thank you, commissioners. the motion by commissioner

dooley is to recommend approval of the ordinance and amend sections 14.1 b to read 10 business days and section 1.4 e five business days and 5.3 to list a 12-month reporting period. who seconded that motion? >> me. >> president, would you like a role call? >> yes, please, for the record. >> commissioners, adams? >> aye. >> clyde. >> aye. >> dooley. >> aye. riley. >> aye. >> it passes 5-0. >> thank you. next item, please. >> commissioners, item 11, directors report. an update on the report of small business. update on departmentment

programs and make announcements regarding small business activities. special item. >> commissioners, i will submit to you in writing mostly the directors report, just a couple of things to just note. one, i did want to say, i also wanted to thank you for your leadership and guidance. that helped staff greatly when we, you know, get direction as well from you. so the one thing i did want to address in my directors report in regards to health care ordinance and will i think this is probably a -- whether this falls under policy or under outreach and economic. but with the affordable care act going into implementation, those phases, there is going to be

reporting of amounts that businesses are going to have to do. for small businesses, i don't think that kicks in until -- you know, after 2014, but it is going to have -- they are going to have to report on their w-2's the amount of expenditure they pay for an employee's health care. and i participated in the webinar to be able to start getting a better grasp as to what the affordable act will mean the small businesses. i think this commission, it would be great to have this commission take some leadership and conduct some special hearings to start getting information about what the affordable health care act is going to require and how that interfaces with the health care security ordinance so that we're working -- so by 2014 if there are any changes that need to be

made on an administrative function in terms of reporting that we simplify as much as we possibly can so this i think for 2012, this will be a significant project for the commission. so just wanted to bring that to your attention. and then lastly, just wanted to note that we have -- we're winding down on the presentations to the small business community around america's cup and to have -- did approximately 30 presentations in october. so there are still a few more to do but just wanted to let you know that we have been trying to do as much outreach and you received the presentation so -- but if there is any questions in, you know, from businesses that you talked to, i know that we still need to reach out to

the businesses and the designed area and -- but this is for how business can engage in business. that's pretty well winded down and so -- we'll be discussing the next phase will be really working with our neighborhood commercial corridors and how we work to market and promote them. so i'll conclude and submit the rest in writing to you. >> thank you. no further comment in this. next item, please prsm >> commissioners, the next item, i apologize from including it from the previous month. i believe i do have to call it and then we can move on. that was discussion of possible action to approve the office of small business 2011-2012 budget. that was approved by you last month. >> ok. next item. >> commissioners. item 13.

legislative policy committee report. >> i was not aable to attend though i would like to defer to commissioner o'brien for any comments he might want to make. >> i'm not going going to make any comments. i'll refer to next month. >> next item. >> commissioners, item 12. committee report. >> we have nothing to report. >> item 15. outreach committee report. >> we did not meet. thank you. >> commissioners, 16. president's report. >> nothing to report this month. >> commissioners, 17, vice president's report. >> i would just like to report i did attend the council of district merchants dinner october 28 along with commissioner dooley. director -- and that's the san francisco merchant district's dinner where we honored captain

greg corales of mission station who does an amazing number of things for small businesses in that area. i forget the firefighter's name that we honored that night too. >> a wonderful woman. >> yeah, she was a breast cancer survivor and she assists fire fighters with cancer. if san francisco we have high clusters. i thought that was pretty moving. so that's it, other than visiting neighborhood merchants association. >> thank you. next item. >> commissioners, 18, commissioner reports. >> my report is brief as commissioner adams says i attended the merchant district's dinner and i have been working with american express directly in regards to small business

saturday and trying kind of tweak a few things to make it work for san francisco because it is kind of a boilerplate so then i've been able to make some recommend dages that will work better for our san francisco businesses and help with the rollout for that so i'm still continuing working as kind of a liaison with them so if anybody has any comments they want to incorporate, please let me know because i speak to them every single day. >> well, i want to thank you for that because i'm noticing a lot more people are participating this year than last year. so i would like to thank you for that. i've noticed a lot of people have that small business saturday sticker now on their businesses. >> we're going to have little cards that are going to be push -- passed out in the next few

days to let the shoppers know advance that there is something special going on. >> yeah, my merchants didn't know what was going onened that year, because they did that presentation, everybody wants to get involved. >> so we're going to be rolling out to posters. the small cards that they can take with them. to remind them. so when they are making a sale, they can say hey, be sure to come back on saturday. you get a $25 off your purchase on american express that day. we want to get as much information out there as possible so it is widely utilized. >> great. >> if i may call the item for commissioner reports. >> you called it. >> ok. i just want to highlight one meeting, the america's cup presentation to the

manufactures. i attended that meeting. it was really informative and it was great to see so many manufacturers excited about america's cup doing business with america's cup and during america's cup using it as, you know, an impetus for their businesses and i would like to for the public, just note that america -- s.f. maid now has a pop-up store in the banana republic flagship ship which i think is a real win for them. what great thing for a national retailer, banana republic, which started here, the gap, to feature san francisco-made products in their flagship store. it is going to be ongoing. >> it is through the season. the holiday season. it was great to go and meet the different owners of of the small businesses. i spoke to the -- coffee and

chocolateiers. it was nice to see the businesses supporting each other. that's all i would like to highlight but thank you. >> i just want to comment one more thing too. we have been having meetings concerning small business week. 2012. and right now, we are doing outreach to raise funds for this. so if anybody is interested in helping out -- we're going to have flavors again. we're trying expand it to a breakfast this year and all-day workshops. once get a lot of this stuff finalized, i will be bringing it back in front of this commission. >> any other commissioner reports? seeing none, next item. >> commissioners item 19. general public comment. seeing none. next item. >> commissioners 20. new business.

>> commissioner clyde? commissioner clyde: this week, sfgovernmenttv, pg & e and the new power program. the rates for the renewable energy s.f. program, the renewable energy, apparently the rates for residential will go up between $7 and $14 a month. it was very interesting to me as a san francisco resident some of the assumptions that were made in the presentation, one is well, $7 isn't that much. a couple of lattes. $14 a month for a larger place isn't so much. what struck me is the cost to businesses of electric rates. what will they jump when san francisco is all thely enrolled

in -- automatically enrolled in the green energy program and that's, you know, the gist of it is everyone in san francisco will be enrolled in this program at once. and yes, it is the right thing to do for the environment, to use as much renewable energy as we can, but i think when we look forward, we should have a presentation on what impact this will have to our business community. and analysis to have rates for pg & e. these ongoing to costs and their increases are extremely significant to our small business community. thanks. >> was that community choicing a -- choice aggregation? >> yes. community choice aggregation. >> it was not at lafco.

it was -- i'll go back. but the presentation that i audited was on community choice aggregation that everyone, all the residents will be enrolled in it and it will increase the average residential cost from $7 to $14 and up. depending on the size of your house. now, this asks, you know, this starts -- >> pardon me, commissioner. can i pause for one moment, for meeting, the recording. >> is it rolling? >> it is rolling. >> ok. just quickly, could you -- we did have something in the news letter, we have been contacted by pg & e.

they are working with sf environments through outreach because of this automatic enrollment. will you just take a look at the news letter and make sure that is what you talking about. they did approach us and i did make a note to them that did want to have a presentation to the commission at one of our upcoming meetings. so and then we can ask about the -- you know, the -- their plans for outreach. s.f. environment has an ongoing plan for doing outreach. >> thank you. >> next item. >> commissioners, item 21. adjournment. is there a motion to adjourn? >> motion to adjourn. >> commissioners, the meeting is adjourned at 8:5 2:00 p.m.