potential moving of the funds to a new name defined that would allow the comptroller to reserve ed released it, what it prevented the courts from being able to access that money? >> of a never accessed it directly. >-- they never accessed it directly. supervisor kim: but they would still be able to request it be released, correct? >> correct. >> on page five of our report, and $750,000 general fund appropriation for this reserve account as previously appropriated by the board of supervisors in the general city responsibility budget includes $500,000 from a carry forward appropriations.

that was not expended in 10-11. we stated on page 6 that sense it has been previously appropriated, and general fund revenues, the board of supervisors and determine the guidelines on how funds should be expanded. supervisor chu: with regard to the actual findings, and those are laid out. and whether there is additional documentation provided basically

requiring the special services, requiring the comptroller to conduct an annual reconciliation. are these similar standards or items considered when they take a look at these circumstances in the past? >> there hasn't been a formal annual reconciliation. basically, that as part of the year-end closing process. supervisor chu: for the first two items, i understand -- >> the comptroller's office have whas waited for the court's determination. supervisor kim: are these criteria similar to what the

court considers anything about whether or not to request release? >> if i understand the question, what is the documentation required for a special circumstances case. and the public defender very eloquently stated earlier that there are factual findings in court that necessary for it to be deemed a special circumstances case. it would be documentation from the court session that would be brought to the office where it can be basically proven that it is a special circumstances case. supervisor kim: similar, but a different entity looking at it. supervisor campos: let me be clear that the guidelines reflected for the past 20 years,

it is consistent with what has been done. it is a question of technically, procedurally, how is it done? supervisor chu: if there are no further questions, why don't we open the item of for public comment. are there members of the public that wish to speak? supervisor campos: this should be interesting. >> ♪ please release the money let it go ♪ ♪ won't you release some let em go ♪ ♪ so release them and let them live again ♪ ♪ please release the money

let it go in the budget, that's where it belongs let it go let them live again ♪ supervisor chu: thank you. are there other members of the public that wish to speak on item number five? this item is before us. supervisor mirkarimi: motion to accept recommendation. supervisor chu: and we have the second. i will be supporting it as well. i think it makes sense, having these circumstances and requirements and does make sense. i wonder how we will deal with this on an ongoing basis. we will do that without objection.

item 6, please. >> amending tax regulation code, the administration cut, fire code, health code, and police cut to establish a the date for the annual renewal of certain business licenses. and required departments to post a current business license fees on their web sites. supervisor chu: we have mr. cato from the tax collector's office. >> good morning, supervisors.

i have a presentation today to give you an update on the overall business consolidation and give you a context that will be affecting the debates and clarify the penalty structure for some of the licenses in this city. overall, we are doing consolidation of those collected by the tax collector's office. there are regulatory departments throughout the city as far as department of public health that will issue permits the allow the business or the individual to conduct a business to do some sort of activity or of an item in the city. the license is the annual renewal of the permit and paying

those fees. it is based on information gathered from the regulatory departments. we administer some of the annual license renewals, a number are to individuals rather than businesses. we have four different headlines throughout the year for businesses and individuals. so we have four different male cycles where we might start in the february for the march headline, send out a letter for june, and november for december. of the fees are held up in november and february. hong -- most of these are mailed out in the november and february. we want one bill per business owner, no matter how many

locations they have. we have this legislative change, there will continue to be legislative changes. we have a licensing application in the tax collector's office. will be linking the licenses and permits. those businesses that have multiple locations at a multiple licenses to have them on one bill that goes to the business address. we will be doing consolidated mailing for accounts on march 31 of next year. this will streamline famous for businesses, everything will go to one mailing address. there'll be 1 billion -- only one billing period a year.

and when these businesses changed their information with our office, it will update the information for the licenses and will be able to pull the information for the regulatory department. just to give you an idea of the process that we have had, this is what we consider the sow process for a sound policy. there have been working on this since may of 2010 with the mayor's office. we have been working with all the departments and all of the elements from the finance teams, policy teams, the budget, inspection, and compliance team. this has yielded improvements because we have been able to talk amongst different departments about what their

processes are, and we improved the billing plant accounts collections. we have four different presentations in the meetings with them. i met with the golden gate restaurant association and of the members of our office have been meeting with the council district and merchants. we have been out there in the community to let them know about this change. this has really been working with a number of departments. just to give you an idea of what is happening right now, which have won business entity that owns three gas stations as an example. they have different licenses

that happen to fall at four different times of the year. this one of version of its 12 different bills throughout the year so that they can get compliant, like having a station be able to dispense motor fuel, having a fax machine and in being able to sell tobacco products. what we envision with this implementation is that it will all be under one of ownership, it will have three locations. there will be a first bill set out for march 31, and will have a pro rated bills throughout the rest of the year to bring them kind to a march 31, 2013 billings cycle. anticipate businesses will

appreciate being able to have a year-long to know in these hills are coming, to plan for the, they can plan financially for the overall bill in 2013. just to give you another idea of what that looks like, how the cycle comes together, we will have a full rollout of this in 2013. will continue to build up of the license application with the tax collector's office. we will continue to receive the information from the community about how this consolidated billing is helping them. it will also go to the regulatory departments and ask them how this is going for their own inspections. for both of removing those licenses or permits that might

not really make sense anymore in the city. there will be opportunities for other licenses onto consolidated bills. to this is the first legislative step, but is definitely in the midst of the process, had to be coming back to you in the future to make sure we can bring everything ought to the same items and i have to take any questions. supervisor mirkarimchu: i thinks absolutely the right step forward. i think the consolidation will be helpful for many businesses that are faced with many things that come their way whether it is managing their business or paying bills. anything we can do to help simplify the process is a good thing. supervisor kim: thank you. ditto as well.

it is a relief to read about this because it is a complaint i heard a lot from business owners, multiple bills that multiple times of the year and getting lost in the different deadlines. one question i thought about during the presentation, the one previous advantage was the you could break out the payments of a certain level to the city. was the concern that came out all having to pay one lump-sum once a year? >> it did not, as far as the outbreak for the merchant associations. it was an issue that was brought up initially what we have the early conversations with the small business commission, and one of the concerns was that if you break things up in different billing cycle, you're creating

quarterly permits. we're back in the realm of having four cycles and four deliquency cyclees. s. we're more than willing to do and build out the opportunity for businesses to potentially prepay their licenses much as they do their business tax. but that means that they have a big hit. they're given license to operate or conduct business for a year, the villain of this on an annual basis seems appropriate, and if we were to have additional cycles, it would mean additional regulatory cycles. if a business were not to make one of their quarterly payments, we would need to send

out an inspector and that would increase costs for everyone. supervisor kim: police see a decrease in administrative costs? -- police see a decrease in administrative costs? >> i think what we will see -- and do you think we will see a decrease in administrative costs? >> because the candy dispenser wasn't a core business and they have the lessons there, how they will have an incentive to get it taken care of because it will be all on one bill. what they the should mention that is happening is that we have already backed over all the businesses and we are going to be sending out a letter to them prior to the billing cycle to said, this is what we know about you, and if this is incorrect,

let us know. the way we will continue to bill you. supervisor kim: do we already have one address for owners of multiple businesses, or will they have to input that? >> we have that with the business registration certificate. each license is by location and that is where the bill gets mail. you may have a business registration location for some of the smaller businesses, but they have multiple locations throughout the city. and the right person is getting it rather than a manager at one of the gas stations. >> is there a look of the future to do this on line? >> it will facilitate the process right now by going to

individual locations. supervisor kim: i know with my own bills, if i have a more convenient address to get my car insurance bill, it is better for me did get it at my office, i can change in online. an online system will be helpful in the future. >> license consolidation will be able to be paid on life and we will be rolling out fairly quickly the ability to have businesses changed their addresses had to closures of light as well. one thing that is interesting about the registration is the licenses are done by location. they're sort of a larger entity, and many businesses have the 77 locations. it has been incredibly advantageous for us because it

allows the ability to capture the information we have about businesses. they are much more akin to updating their permit information. it is fortifying the business tax in the business registration of affirmation. supervisor chu: thank yokim: thr the presentation. supervisor mirkarimi: i think this is a smart move, long overdue. the asseessor's office has been challenged and addresses have been provided by p.o. box. is there a way, especially those that might be absentee that on businesses from afar but are managed locally? i am curious if there is any data on the reality?

>> for the licenses, the license itself, they will have to be a review of that. for the businesses, this will help us because for the business certificate that they have to maintain through the city, there might be a site in the city that is one location, but if they are a large corporation, we might be sending something back to the york. -- new york. supervisor mirkarimi: that is where the risk is where they are less responsive, going to p.o. boxes instead of specific addresses. that has been the charge for the city to collect in a more compliant away. >> if they are more than 30 days delinquent, by operation of

law, there permit expires. supervisor mirkarimi: i think i agree with the notion of on line, whatever we can do to make it more accessible and customer friendly, a wholeheartedly support that. supervisor chu: i understand there is no budget report, if there are no questions, what the three open items up for public comment? >> i am the director of the office of small business, a lot to commend the texas treasurer's office in afor working on this project. the commission supports this piece of legislation, and what we are doing. for many of the reasons that have already been stated, this is a direction that we want to

go in. i want to us express the appreciation for the outreach they are doing to the business community to educate in form and help them transition into the what annual billing cycle. and also responding to our requests for those businesses that might have difficulty paying the one-time fee, providing a mechanism for the pre-payment and moving into a facilitated communication with being able to pay on live in being able to communicate more with the city government through the electronic mecca as a. this year to make sure that we state that we really support this and this is one of the key objectives of streamlining the processes for small businesses. supervisor chu: other members of

the public that wish to speak? public comment is closed. this item i think has unanimous support from the board. i do want to take the treasurer who was not here today, but who had great leadership with helping to pull this all together. a lot to thank them for that, and thinking to the office of small business for being here. colleagues, given the presentation and public comment being held at the close, can we take this without objection is of the item for with recommendation? a queue. >> ordinance amid the deep tax regulation code by adding a section906.5 g 906.5 to establia payroll tax exclusion for those with a felony conviction.

supervisor chu: would like to say a few words? supervisor mirkarimi: think you for waiting for this item to come up, thank you for your patience. a lot to recognize and the juvenile probation chief, and the number of others from the department of the share of a adult probation reentry. and from the small business commission. this piece of legislation is crime prevention and public safety oriented. it is named to reducing the repeat offender rate which is in the range of 65%-70% for more than a decade. consistent studies have shown that recidivism rates for x offenders who have paid employment in the first six months of their release, half of those did not find employment.

we're expecting to receive six of and 50 additional tax offenders into the probation program and the jails this year 2011-2012. the recidivism rate for this group is nearly at 78%. ever since copays $47,500 a year for prisoner and county jails. this legislation will give a $10,000 tax break per offender based on a formula to the city's payroll tax which is equivalent of 1.5%. the city collects $390 million in payroll taxes every year. cities like philadelphia have had some success in the past year with the $10,000 tax credit

already. there are not many businesses that are clamoring to take advantage of this because the city of philadelphia has seen that it has to do better marketing to a list of the private sector. but they are pleased with the results they have achieved so far. the ex-offender tax rate -- that this legislation does not provide a budget for that. we tried not to delve into city funding for this legislation. we are proud of the smallness commission gave unanimous support, and the san francisco chamber has also given its gesture of approval. there are a number of people in the advocate community dealing with sex offenders that are here that do the day-to-day job of trying to tackle the need for us to address in a very vigorous

way, the growing recidivism rates in california and san francisco. the legislation has also been adopted in its own form. illinois, maryland, iowa. i also have to mention for the critics, i'm not sure what side of the political structure -- the specter of the bis said, but it was held up by president george a blush. i would very much like to call up of a number of people both from city agencies and departments to speak to this. in the reason why that we have brought this legislation forward is that we have also picked it on a two-year sunset cycle. we want to be able to measure something that has never been in law before.

it gives the city and county of san francisco the ability to refine if if necessary, and study what hasn't been able to be studied already. considering the city and county jail population is one of the few where we experience under crowding, we will be tested with the consistent confrontation and the test of realignment. considering the shape that the state of california is in with the state budget situation, will be looking at how to manage a population that will grow in the jail system and in our version programs and reentry programs that eventually leave those programs that are responsible, helping them find access to and love