horrifies of alcohol abuse or wla whatever. it is they stay clean and sober when they have a job. this legislation will help them get a job and help them to stay taxpayers. we're grateful your heard us. great any public comment on this item? seeing none, public comment is closed. commissioner sugaya. i'm supportive of the intent of the legislation and it's been thoroughly vetted and the community has been involved and any major concerns are addressed i move we support this amendment >> second. >> i'd like also like to thank

into supervisor cowen and supervisor kim for your outreach. you reached it out to the champ and talked to several of the organizations in the city and it's been over a year. so this is a great example on outreach and coming to a conclusion that everybody agreed on. commission - commissioner white >> sorry. i'd like to second with commissioner president adams said i participate in that outreach with supervisor cowen and supervisor kim you guys did a great job. many my business we work a lot with the reentry programs with the skills >> commissioner ortiz-cartagena. you want to say one thing as

amended in my committee what i have before you in your binder doesn't include the issues in today's amendments so this will be presented inland use. so you want to take a roll call vote >> commissioner president adams. councilmember olson. 1k34g9. commissioner riley. commissioner white. the motion passes 5 votes >> thank you. next item, please. >> that brings us to item 6 for recommendations inform the board of supervisors on board of supervisors file number 131 for the police code for employees even if parking garage and parking lot councilmember price we have supervisor weiner who is here to address the commission on this legislation.

>> welcome supervisor and thank you for coming here. >> thank you, commissioners and today is the box day for me, i stepped out of the land use committee and i'll joined by power one of my legislation aids. thank you, supervisors so far hearing that. the legislation is basic and straightforward and is to help us with the private parking destroy how to operates in san francisco. that this is before information not creating owner reduce things for the parking regular lotteries. this is not to tar the industry

most people comply with the law and are meticulous and provide an important service to san francisco visitors. there are some minority of parking operators who have not also acted responsibly or in the law and that's an ongoing topic for a few decades now. when you have operators that are not complying with the law that puts the good operators another an competitive disengage. a year ago recognizing the parking lot it has a heightened project the board of supervisors passed a legislation to require a police department permit to

better insure the public safety is there. the board recognized the special and unique states of this industry. the legislation that i have proposed and is before you today builds on the recognition and helps the city to perspire itself. we want to have a level playing field with the employers and the employees are being take into account. currently the parking lot operators are required to get an annual permit from the police department. they're required to submit a fair amount of information including prove they've performed background checks on their employees and an existing permanent process so their reported to the police department annually. those operators are reporting on

an annual basis about background and so forth. we're building on new requirements. the legislation i've supported will further require the operators provide some aggregated data on their employees. the legislation will be presented in the aggregate and there's 3 pieces of organization about tenure and demographics and primary residence and it addresses a few issues. in terms of tenure theirs operators where there is significant turnover of employees and that occurs in order to prevent employees from climbing up the wage scale so

you have employees that x when they get too high e high-up on the wage scale they get replaced and that's not okay in terms of insuring we want people to move up and get experience and earn more money. in terms of demographics. there are some concerns just about some of the management abuse of the employees and whether what kind of diversity there is in the workforce in terms of gender and in terms of primary residence to we may not be able to place local hire requirements on the private garbage operates it would be helpful in terms of our

regulation of the industry to know whether the local residents are being hired. this information all of it will help us better understand how those businesses operate and provide additional tools to help us prioritize enforcement. i will say in addition to the ordinance i've asked our budget and legislative he analyst to put together a report going beyond what i'm paroling e proposing around labor rules and enforcement of the minimum wage and collecting the parking fees so we can be fully committee that the rules are being

addressed and in with the san francisco full board of supervisors. i'll ask for your support if you have any questions, i'll be happy to answer them and if i can't mr. powers will >> any commissioner questions. >> commissioner dwight. >> on what basis was the parking sector 1i7b8d out. >> the parking in this industry there are a lot legislation that dealings deals with the industries that we know the parking destroy and most of the operators comply with the law but there's been a certain portion of parking lot operator that have been a fly-by night not complying with the rules and there's a demonstrated history of the minority parking lot

operators ignoring city rules. in terms of the most significant issue is for the employees to not go up on the wage scale. we've not heard about other industries >> that's around employment practices. >> although those practices can spill over into - this is about parking lot operators that are meeting the need of san francisco we require they have a permit and they're much more regulated than other businesses in the city. when we do the legislation if you recall to simplify the

parking tax for the small apartment owners when we learned about or the amount of regulations around the parking tax and revenue deprives this industry has to go through it k30ird and there's a reason it's a unique industry. this will allow a small amount of the information above and beyond they're already reporting. it doesn't create any new overall requirements just more information in addition to what they're already giving us on a annual basis commissioner dooley >> how much time will this ad to the recordkeeping. >> i don't think it will adventure. in terms of tenure, you know, anyone who has a payroll system

you can easily run reports on terminate shuns so that's not difficult at all. demographics the same thing and primary residents it's the zip code i hope they have that for each and every employee. so i don't see this is as or in reduce >> commissioner riley. >> we heard this at the committee meeting we asked how side this information about gender and zip code what are you going to do with that information? >> it's information that will be reported and will be public. again, it's all aggregated.

people can do with it what they will and that - that's what it will do so it's not any kind of magic information. it will be in the aggregate not transcribed to my individual. are they hiring san franciscans. we can't mandate it it will allow us to know is this particular operator having an average tenure of 10 months as opposed to the other 6 years. that will be useful information for us to know about those operators >> commissioner white. >> so this is only related to private parking garages.

>> right. >> are the public parking garages doing this. >> the mta has contracted with anyone who operates animate mat garage. i don't know that they have - titus it's a case by case business we've been in touch with the mta they don't need legislation to do this. the mta has informed us their fine with those requirements so withhold for them to do it for their operates. the other thing inform keep in mind you have a public agency and employees who's job is to monitor those contracts and operators. private operators you don't have that same level of day to day

scrutiny. commissioner dwight >> has there been any objections. >> we've provided information to one of the jar parking lot and offered to meet with them. they ended up not following up with us. i interpreted that as perhaps you know it's not a big deal. i offered to meet with them and he suspect they would have been here today. they economy about it we e-mailed them >> commissioner white. >> what are the pregnancy of the private parking lots we're talking about in the city. >> i don't know what the percentage is. the private parking lots run the

impact bit there are some small ones and there are the larger ones i don't know wasn't the breakdown is >> andrea the vast majorities of parking lot operations are private. i don't know the exact number there are a number of you can count on your hands >> okay. so with the competition we're talking about is it private versus private majority >> yeah. >> okay. >> i think this is the case. in the public endangers those are lower parking rates. you know, as soon as you drive into the public square there's a less of an issue because of the

price dlaefrl >> any other commissioner comments. okay. any members of the public who want to make xhmgz >> mr. president, i have one speaker card from the local 665. >> welcome. >> good afternoon, commissioners. march i'm the executive officer of temperatures in san francisco. we have 15 members that are in the parking industry. some numbers i've aware of and representing our numbers there's 15 hundred members working in downtown san francisco in large office building like class a and b and hotels and the sfmta garages. those parking garages are about

5 hundred or so people working in the industry including a number who won't be in a labor managerial positions but a small percentage of workers that are known as the underground economy that are not being paid with all the restrictions that are required of an employer playing by the rules. it's unfortunate and frustrating. we've been to law enforcement agencies both to the federal and local agency and gotten little relief. there are 15 hundred workers that are working for cash. it's our belief that by putting more keys in the police code

there will be a today is initiative. the exploitation of folks don't notice this. but we have evidence of workers who don't even have california driver's license that are moving cars on san francisco streets. their undocumented. indeed i would say we're looking at the legislation as it pertains to gender and zip code there's a phenomenal i not for screen 4 negligent employers will only hire people of one negligent group so they're in the underground economy.

we're hoping this legislation that supervisor weiner is sponsoring will put an end to something that is unfair to the vast majority of parking operators playing by the rules >> thank you very much any other members of the public who want to make comment. seeing none, public comment is closed. commissioner dwight >> so for the operator that are let's call them instruck up lose what prevents them from lying on it does not. how do you go about enforcing this some that number that didn't raise a red flag >> any regulatory regime that i can list a hundred of them in san francisco including taxes people can also try to cheated and provide inaccurate

information we have the power to audit. you know, that's a possibility as well. i know that the treasure tax collector over the years has done with starting with susan to really try to rein in the parking lot operators and audit them. but absolutely people can be dishonest and violate the law and we deal with them this is additional information to use in their audit >> that's true in addition to the information. >> any other commissioner comments. do we have a motion? >> i don't see any fundamental reason to not approve the legislation as drafted i'll move we approve it. second >> and i appreciate what the

gentleman from the taerments said. commissioner president adams. commissioner riley >> commissioner riley. commissioner white. the motion passes unanimously with 5 votes >> thank you, supervisor. >> next item is item 7 prelims of the gross receipts tax and we have a staff presentation from the tax collector. >> a change is coming. >> the first slide.

>> thank you. good afternoon. i'm greg i'm with the office of the treasurer and tax collector. i'm spearheading there around outreach and i want to acknowledge a few of my colleagues. what we're doing to get the word out into the business community. many of you have attend my presentations i've been giving on the topic this may not be new information but certainly those who are watching this hearing and certainly it will be helpful information. so first of all, 3 thing that i really want you to know headed out of this.

first of all, business registration fees are changing in 2014. this may every business is going to see a registration fee in almost every case will be higher. that is the big thing to take away every business in san francisco will be paying at least more for their business registration fees. number 2 many businesses will continue to have a small business exemption for the small receipts tax. a number of businesses that that this commission oversees and is responsible for will continue to have their exemption for the payroll expense tax and i and third our office will be providing forms and instructions

throughout this year to help businesses plan for the change for businesses in san francisco. so how do we get here? i were all very well involved in the process in 2012 and i'm sure the processes the decade before that the board and mayor have been grandpa living with this. the mayor and the board working with the business community came up with a business tax change that was in place before the voters in november 2012 that passed with 70 percent vote for the change. the final step is for the office of the tax collector to implement what the voters 0

approved. and it's important we only implement with the voters approve there might not be gaps in the law or a fair reading of the law has multiple interpretations we can use our regulatory authority & but if there's something about the law that there's a feeling amongst the constituents and a taxpayers that maybe something needs to change or they don't like the category that's up to the board and voters to decide what the changes of that nature into the law so really we're the implementers in thoik. the distinction of gross receipts it's quite lengthy but the folks should start with

looking at what they consider to the dproes income for their federal tax councilmember price pr and then from there businesses that have different ways of doing business and fail into those different categories they can diva i cannot from the gross none baits that's a good place to start and you can get into deeper when you look at the credits. so first of all, those receipts that are included from gross receipts are your federal state and local takes. this has the specific language and also gifts, grants and loans

are not in gross receipts as well investment and financial instruments as their defined. also amaze from a entity that is related to a taxpayer when you're doing your state taxed the untar i'm going to talk about that later about those types of entities but the receipts between the past entities between they're owners are included in the tax. also 50 percent of receipt from rent control unit are included that from gross receipt as well as receipts from property sales that were subject to the transfer tax that's where the taxpayers has sold the property. there's also two major credits against tax liability.

the first is a constitutional credit which is if you pay a tax on the same engross receipts the same tax everywhere you can take that as a credit the reason i say it's still there's no such tax everywhere else in the state or in the country that you know of but if a taxpayer were able to prove there was another at the time of the accident they paid they can take that as a credit. also we're calling the payroll inclusive taxes are liquor biotechnology and enterprise zone that existed under the payroll expense tax so they continue to operate in a similar way in the engross tax realm.

finally, this is taking the content of the central market street area that was approved a couple years ago and making sure that concept persists. but what we shed i want to make sure everyone is aware of if there's not a specific exemption or exclusion the taxpayer should smoum that's included in the receipt 0 if the taxpayer wishes to include it. there are certainly exempt entities small businesses with a less than a million dollars in engross receipts are exempted and this is similar to the small business tax under a certain ng