>> this is the regular meeting of the small business commission on november 27, 2017. the meeting is being called to order on 2:02 p.m. members of the public, please take this opportunity to silence your phones and other electronic devices. public comment during the meeting is limited to three minutes perspeaker unless otherwise established by the commission before the meeting. please place speaker cards in

the basket to the right of the lectern. speaker cards will be called in the order in which they were placed in basket. additionally, there is a sign in sheet at the table. sfgovtv could you show our slide. >> the office of small business is the only place to start your new business in san francisco and the best place to get answers to your questions about doing business in san francisco. the office of small business should be your first stop when you have a question about what to do next. you can find us on-line or at city hall -- for now, any way. all of our services are free of charge -- or for the next three years. small business commission is your place to voice your concerns about small bit matters in san francisco. if you need assistance, start here at the office of small business and the small business commission. >> clerk: item 1, call to

order and roll call. [ roll call. ] >> clerk: mr. president, you have quorum. >> all right. item 2, please. >> clerk: public comment. allows members of the public to comment on items in the small business commission's role but not on the agenda. >> do we have anyone that would like to comment on anyone that is not on the agenda today. >> good afternoon. my name is bile pearcl pearce, think your legacy business program is a great idea, and i wonder how you can improve that so you have best marketing ability, better marketing concept, and succeed in the program so that you have the results that you want? so two questions is one, what

are you doing on the website to promote it, and secondly, is there anything that's intermediate that's less than the 30 years which could be leading up to like you're in prep for, so for -- for the legacy, so that's my question. >> great. thank you very much. well, being a ten-year-old business myself, it feels like a legacy already, so we have thought about that question and also, we are doing things on our website to promote -- we have a branding program which is currently underway, so thank you very much. we're on it. all right. any other members of the public would like to comment on anything that's not on our agenda today? all right. seeing none, item 1 is closed. next item, please. >> clerk: we have two applications: cliff's variety and tommaso's italian restaurant. the promoter is richard kurylo,

director, legacy business program. >> good morning, commission members and staff. before you are two applications for your consideration for the businesses to be included on the legacy business registry. i have a powerpoint presentation for you. the applications were reviewed by me for completion and submitted to the planning department staff on october 19th for their review. historic preservation commissioner heard the applications on november 15th, and made positive recommendations to the small business commission. for each applicant, your commission packet contains a staff report, the application, a resolution, case report from department planning staff, and a resolution from the historic preservation commission. there are copies on the table for the public. item 3-a is cliff's variety. the business is a neighborhood hardware and variety store

serving the castro district since 1936. going to wait for the little buzz and continue. founded by gerario debaca, the store sells hardware, home goods, fabrics, toys, cooking supplies, and much more. it is the castro's longest-running retailer and has long been known as the place to go for repairs and knowledgeable advice on economy rating, customing, cooking, suing and entertaining. today's cliff's variety is operated by fourth generation family member terry aston bennett. today it serves thousands of people daily and provides directions to other businesses. second business is tommaso's

italian restaurant that was founded in 1971, but whose roots date back to 1935. the cantolupo family from italy opened a restaurant, lupo's, in 1935 in the city. it's famous for its wood fired oven, which is the oldest on the west coast. in 19 # 1, the business, except for the name was given to its long time chef, tommy tomaso chin. in 1973, the business was sold to the karate family. their traditions and decor remains essentially the same as it did under the previous two owners. the business remains family owned and operated to this day.

both businesses received a positive recommendation from the historic business commission. after reviewing the applications and the recommendations from the historic recommendation commission, staff finds the businesses have met the criteria for qualifying for listing on the legacy business listing. there are two drafts for consideration of the small business commission. note that a motion in support of the business should be a motion in favor of the resolutions. in the resolutions, please pay close attention to the core physical features or traditions that define the business. once approved by the small business commission, the

the store was created by my great-great grandfather, and for cliff's variety, it's always been about being a part of the community and having what the community needs, so

we're happy to maintain being a hardware store, but that's so much a little about what we are. we're a part of the community, and it's really an honor to be considered for this. thank you. >> thank you very much. >> hello, commissioners, hello, mark. i just want to say thank you so much for the office of small business and the small business commission to just let us doing -- to apply and do this project because it was such an awesome experience for me. you know, i grew up in this restaurant my entire life, but there's so much i learned over the last few months, reading articles and studying, and bringing the application together, so also even though it's good for us, it's also an amazing experience, so thank you. >> excellent. anybody else? now's your chance to be on sfgovtv. this is prime time, man. this is live from san

francisco. all right. well, going, going, gone. any other members of the public like to comment? all right. seeing none, public comment is closed. commissioners in commission commissioners? commissioner adams. >> i want to say one of the first pizzas i got when i moved to san francisco was from tommaso's, and i want to echo mark. your pizza is probably the best in san francisco, bar none, so that's awesome. i want to -- i got to give a huge shout out to terry austin bennett in cliff's variety. you know, today, with the amazons and everything out there, you know, after 80 years in business, this place has managed to change themselves and follow what the public wants. i was in there on friday, and

they had a -- a -- an event where you donate money to harvey milk civil rights academy and get 20% off. i walked in there for one thing and i walked out with, like, ten. but terry and her family are really part of the community, and i'm so proud of terry personally because not only is she a friend, but when she first got into the business, she would never say anything at a merchants' meeting. she was always afraid, and all of a sudden, something in the neighborhood like parking came up, and terry spoke out. and you know, she became so active that she became -- she was president of castro merchants for two years, and under her leadership, you know, really expanded, and that's part of being in the neighborhood, so -- and you don't see many fifth generation businesses around anymore, and this family is able to do it -- i want to give a shout out to

her father, ernie, and her mother, martha, for all they've done for the community. they were personal friends of harvey milk and you know, back in the 70's -- i'm going to give a little bit of history here. when the eureka valley merchants didn't want to deal with the days, you know, cliff's variety joined the castro merchants and harvey milk to found this new business community. and those who joined survived like cliff's, and those who did, did not. so 80 years, legacy in business, i want to publicly thank you, terry, for everything you've done. >> commissioner dooley? >> first, i want to thank the masso's as residents of north beach in helping to keep our history and traditions alive in north beach. it's a battle, but it's always

well worth it, and you guys are right up there as as a matter of fact -- some of the stars of north beach. cliff, what can i say? whenever i need an oddball thing, some feathers for a project, cliff's is always where i go. i always think oh, cliff's will have it, and you always do, so thank you for your real variety and many more years ahead. >> commissioners, any other comments? all right. well, do we have a motion? >> yes. i would motion to add to the legacy business and the resolutions for cliff's variety and tommaso's ristorante italiano. >> second? >> second. >> okay. >> clerk >> clerk:

[ roll call. ] >> clerk: that motion passes unanimously. >> congratulations. >> yeah, congratulations. [ applause ] >> well done. well, we will not be the least bit slighted if you do not want to hang around for the rest of our show today. you know, you've got to go do your thing. small businesses must do the small business thing. >> clerk: item 4, board of supervisors file 171133, business and tax regulations code, minimum filing threshold for gross received tax and payroll expense tax, discussion and possible action item. presenter is amanda fried, policy and legislative manager

at the tockax collector's offi >> hi. this item is just a cleanup item around the gross receipts tax. when the measure went to the voters in 2012, it included a provision that says small businesses who were exempt from the tax, the gross receipts or payroll tax, but still, the just over a certain amount over a certain threshold, so you were small, but almost going to be filing and paying still had to file every year. and if you forgot to file, you would be subject to a penalty. well, we've had the tax for a few years now, and in looking, we've really reassessed the need for this kind of odd provision, and we're coming to the board, asking that the board of supervisors just keep the small business exemption as is, and you only need to file if you exceed the small business exemption threshold, so it really shouldn't affect too many people.

we found that not many businesses were aware of this requirement. it was a bit confusing, and really only found out about it if for some chance you got in trouble and got penalized for not filing any taxes. so hopefully, it's up for your support and i'll be happy to answer any of your questions. >> commissioners, any questions? >> this is an easy one. i've been with this from the beginning, and i look at this as cleanup legislation. your outreach has been fantastic. you guys have done a great job with your outreach. i'd like to hear what the general public has to say, but... >> thank you, and since she's here, i will thank marianne thompson for all the work that she's done over the years. >> commissioners, any other

comments? >> i'd just like to say thank you for the cleanup. >> i just think it makes a lot of sense. >> all right. >> so it is if you make less than $150,000 you don't have to file, correct? >> well, now, what it's saying if you make -- for 2016, the gross receipts filing threshold was 1,060,000 you don't need to file. >> so the threshold, i wanted you to state it in the record, so the threshold, again is. >> for 2016, so they will be updated for the 2017 filing, but for 2016 it was 1,060,000 for gross receipts, and for payroll, it's 280,000. >> okay. and for real estate, if you are there, also -- no. >> yeah. >> it's based on payroll. >> gross receipts and payroll. >> okay. great. thank you. >> all right. any other questions or comments? all right. we'll open it up to public

comment. do we ahave any members of the public that would like to comment on this item? seeing none, public comments are closed. thanks for coming over. we appreciate it. all right. action? we have a motion. >> i motion that we approve the board of supervisors file 171133, the business and tax regulation code. >> as is? >> as is. >> i second. >> okay. >> clerk: okay. [ roll call. ] >> clerk: that motion passes unanimously. >> thank you, amanda. >> yes, thank you. next item please. >> >> clerk: item number 5,

number 171153, permit licenses and inspection fees for cannabis businesses, discussion and possible action item. >> commissioners, because of the timing of the cannabis legislation moving forward, the board of supervisors, we don't have a presenter for this item, but i'm going to walk you through, and it'll be to your discretion as to whether you want to take action on it, but did think it was important to make you aware. there's an updated legislative review. i've got some questions answered. i want to thank the director of the office tof cannabis, nicol elliott, and israel nieves from the department of public health to answer some of the questions, so again, just as a reminder, our application fees, our fees have to be cost recovery, and since we are establishing a new office of cannabis not really knowing

exactly what's absolutely going to be involved, the best estimate -- guesstimate or estimate of what these application fees and annual fees will be, but it is noted in the legislation that after the first year, the director can adjust those fees, so if again -- they're over -- the fees are too high, they'll be adjusted down. if it's determined that the fees need to be adjusted up, then, the fees can be adjusted up. so on page 3 of the legislative review, just a quick review, so interests there's a one-time nonrefundable application fee for $2,000 with the office of cannabis. the office of cannabis is going to be -- again, a refresher -- going to be the department that

issues the license to operate for this industry, so the -- so it has the -- it does the application fees. it is -- it is the primary entity that does the zoning referral, so getting the land use zoning referral, we'll be working with dph, with fire, police, anything that they require from other agencies, they're the predominant agency to be getting the referrals. if there are amendments that need to be made, adjustments to work out or revisions the business wants to make, then, there's a $110 hourly fee with a minimum of two hours charged. and then, the annual permit fee for the first year is 3,000. and then, for the subsequent years, it's 5,000, unless that get adjusted. the department of public health -- and to be very clear

on this israel asked me to really clarify this is they don't have an application fee. they are doing a plan check fee, so their role with this is to plan check the businesses' operation, primarily where they have oversite and governance as the department of public health, which is why you will see under the category of cannabis retailer, medical cannabis retailer, delivery only retailer, they do not necessarily have to do a plan check for that -- for that category of businesses. but for cultivation facilities, manufacturing facilities, and microbusinesses, those are businesses that they actually do need to provide -- meet with the business and make sure that there are health code

regulations that are setup when they're setting up their business, building out their business. their health code regulations, and so that is why there is a plan check permit of $3,700. and then, underneath it, based upon the size of the business is then the inspection fee, which is for each year, an annual inspection fee, based upon the size of the business. and then, another fee is being established for consumption, so should cannabis retailers want to add skemgconsumption, it's for prepackaged cannabis products where there's no food preparation happening. and $1,000 for limited preparation of cannabis products. so i did just a quick sort of analysis, so it does not

necessarily include all -- all permit requirements that a business may need, but for a small, nonvolatile adult use manufacturer, thinking of our edible and topical businesses, with gross receipts up to $100,000 because the state -- the state charges their annual licenses and application fees based upon revenue generated. this business would be looking at $12,435 for some of their base application and license fees and permit fees. so just to give you an idea. let's see...and then, also, in

the provision of the various codes, file number 171042, which is creating the permitting structure with the office of cannabis, there is a require -- there is a stipulation that allows the director of cannabis to be able to apply a fee waiver or reduction. and while there aren't specific criteria set out in the ordinance, the director will be establishing, just like we did through our rules and regs through the legacy business programs, what criteria would qualify for that consideration, and i think we can anticipate that the equity program is one of those particular entities that might qualify. so -- but those rules and regs

are tistill to be established. so that's just my quick overview. >> i just have a question. you mentioned at the beginning that these were just recovery fees. >> mm-hmm. >> so i'm just curious on, you know, what kind of fee and why you would be paying $12,000? i mean, what are these fees being paid for -- i mean, what are they being used for? >> so an application fee is the processing of the application, so it's the review, the processing, ensuring all the documentation, whatever requirements the city's requiring, so the processing of an application to apply for the ability to do business under that particular license and

permit. so it's the application to do that and to then receive the certificate of operation. in addition to paying the application fee, then, once that's awarded, then, the business has to pay the annual license fee, as well, to operate. >> and does that go for actions or... >> that will go for -- well, for the office of cannabis, the -- the annual license fee, it can -- it can go for inspections, but there -- but the inspections from that department are going to be taking a look at the good neighbor policy. there'll be some other criteria. for the office -- for department of public health, so their plan check fee, what the department has said is that it's up to 300 -- $3,700.

if for some reason doing the plan check review does not take that amount of time, then, they'll prorate that plan check fee or reimburse them for the amount that's not used. they just may not anticipate, especially when you're talking -- when you're dealing with -- let's use restaurants as an example, where you might have to have multiple meetings to be able to dale with build-out design, consultation, so some businesses may require more involvement and some businesses less, but it may not necessarily be known, so they set an established fee, and then, that amount of fee is not utilized in -- in doing the plan check, then, they're reimbursed for the difference. >> so these are just estimates of the fees. >> i would say the department of public health probably has a pretty good sense of what their fees are. in this example, so their

annual inspection fee for a small manufacturer, cannabis or not is the same as a noncannabis business, so that fee mirrors what regular manufacturers have to pay that they need to inspect for their inspection fee. for the -- for the license to operate -- for the license to operate under the office of cannabis, these -- working with the controller's office, this was the fee that they determined is likely required. >> so will there be efforts to look at this in the future to see whether or not we're actually recovering -- >> yes, and the controller's office does that, and it's -- and the fees have to be cost

recovery, so if -- in the event that the department is taking in too much money -- so the fees are bringing in more money than what the expenditures are, then, it will be adjusted. >> thank you. >> any other questions, commissioners? have any members of the public that would like to comment on this item? seeing none, public comment is closed. so do we have any action? >> if you would like to take an action on it, you're certainly welcome. you don't have to -- you don't have to. or if there's any suggestions that you might want to recommend to the board of supervisors, but being that the legislative sponsors is not here to be able to answer all your questions... >> yeah, my only observation is it's an expensive business to get into. >> yeah. >> all right. well, if no one has -- if no one wants to propose any action, then, i think thanks

for the information. move onto the next item. >> oh, do we need to call for public comment? did we call for public comment? >> i did. >> oh, you did? okay. >> all right. next item. >> clerk: okay. item 6, presentation on the 2017 shop and dine in the 49/shop small program discussion item. presenter is marianne thompson, office of economic and workforce development. >> sfgovtv, can you pull up the powerpoint? good afternoon, commissioners. for the record, my name is maryanne ma 150ud uko thompson,

and i'm with the office of workforce and development, and today's your update on where we are with shop and dine in the 49. some of you were at our press kickoff last week at the museum of ice cream, and we thank you very much. for those of you that are interest, you can see that full press eval on sfgovtv. they've put that full tape up. this year, as in previous years, we did four videotapes or four videos for our website and also to support various merchant corridors. we did treasure island, chinatown, chinatown, we did north beach in language, so it's all in italian. we did a compilation video, and this year's compilation really highlighted the things that immigrant families bring to our community.

i'd like to point out that this year, we were the recipients of an emmy, a real emmy, and it's downstairs at sfgovtv, and it rests with some amazing people that worked on that. actually, the whole series of videos were worked on by jack chin and jen lowe, and it is our second video that we've won for shop and dine in the 49. the year previous was for a compilation video. again, very, very well received, and it does tell the story of the value and importance of small businesses and in buying local. so this year, in partnership with small business saturday and the council of district merchants, we had the most successful sidewalk sale ever. we had over 11 corridors

participate. i'd like to point out that chinatown participated for the very first year ever, and i think that they should be the example of how to do a sidewalk sale, complete with dragons and firecrackers. also, we did a pop up sale in may, and we had a whole host of public makers. at the phenomenally well attended, and thanks to support from square and mayor leie, we will be hosting another one on wednesday, december 6th, and i would love if all the commissioners could come and join us. it's a great opportunity to meet all the small businesses, all the young entrepreneurs, all the young individuals who really have a passion for starting and growing their businesses here in san francisco. we expanded a lot of our

partnerships to include the fillmore merchants, shop out, eat-drink sf, lgbt pride month, chinese new year, this year, we produced a red envelope for chinese new year, incredibly well received, and we will be doing that again this year. so as you can see, this is -- really, this is just, like, a snapshot of who we partnered with and what we did. we worked really hard to work with the corridors to highlight them on our website for shop and dine in the 49. so what will you see this year? as you know, we always partner with smart shop saturday, and wip, which is women in power, partnering with american express. we have the maps of san francisco, the 500 interior bus cards, which always works to our favor because they stay up for a long time, and people

genuinely love them. we did tote bags for shop small saturday, and the mayor psa aired on i heart radio, which kind of the broader radio stations for a lot of the local stations and it's very, very well received. we also had -- and this is an actual photo of the cable car, a wrapped cable car that is traveling up and down palo street. we worked with the noe merchants association, and they really, really worked with us to carve out an image very specific to noe. they're very passionate about their square, the center of their corridor, and so this is

the neovalley pocket square. and then, we also partnered with chinatown, and this is dim s sumdynasty, and it appears on the cover of the map this year, which we also produced 12,000 the cover of the map this year, which we also produced 12,000 of. for those of you who got up really early on saturday, this is what we did. we gave away bags and participated in the winter walk at union square, where we also gave away bags and had a beautiful pop up there, and so just a little bit about the bags. every year, shop small does a -- lots of different artists, and people actually collect those bags, and they actually come and look for us, looking for this year's bag, so we had a number of people at the fairy building, and a number of people come to ask us what's

this year's bag, and it was really lovely, and thanks to our mayor. city hall was lit up in blue and white for shop small saturday. next on the list of course again is our pop up on december 6th, and i really encourage everyone to come and shop because they are some of the most amazing people. and this year, we partnered with square, who curated 22 of the merchants, and then, we also partnered with the board of supervisors, and we asked each member of the board of supervisors to select two to three local makers in their district. so what you're going to see, we're now up to 50 makers because a lot of people couldn't decide, and we just don't want to say no to anybody, so we have 50 makers this year, and it's very diverse, we have everyone from

evonne's sweets, and we have mark dwight's rickshaw, and we actually got asked if they were coming back for the december pop up, and so we have a great selection of small businesses and really, people who are excited to be here at san francisco city hall. that is my update for this year -- oh, one last thing -- couple of things. so what you'll cecuming up this year: four new videos, a focus on ocean avenue, union street, and a compilation video, and i want to give a shout out to jason lawlick, office of small business who always manages to write us in the correct district, and the council district merchants, again, sfgovtv who has brought a certain life and passion to buy local. oftentimes, you will note when

a legacy business is nominated, sfgovtv will go out and film a little clip about that legacy business, and sometimes, when we do a clip in a corridor, they'll do a deeper dive into it. and so those videos often air, so right now, you're on tv life, but post you, they'll air the videos, and they're really big supporters of buy local, and a lot of this, they do at their own expense. so i want to give a huge shout out to you, commissioners, and mayor lee, who every year says, how will you do this better, how will you reach more merchants, and we certainly do that. any questions. >> no, thank you. it was great to see all the activity and appreciate all your hard work in promoting it, and i'm looking forward to being here next week, manning my booth. >> thank you. >> i was going to say, it's

really grown in the last -- how many years have we been doing this now? >> four. >> four. it's really grown, and it's taking on its own life, which is really good. >> yes, and you know, also, commissioner adams reminds me of this. you know, one of the things with this particular buy local is the mayor frequently, once a month at least gets out into a merchant corridor to support shop and dine in the 49. and this evening, he'll actually be in the castro doing a merchant walk with supervisor sheehy, and it's really reminding people to get out, shop local, to enjoy your local shop. oddly enough, going to cliff's variety this evening, as well, so we have a lot of great supporters who keep reinforcing the message that it's important to buy local. >> i have a question about this wonderful city hall pop up shop event. >> yes. >> first of all, you said

there's a -- kind of a limit as to how many you can accommodate. is that 50, you said? >> yeah, we're squeezing them in. >> so you have more than 50 demands, i assume? >> we did. so in may, when we partnered with sf made, which was really to test the water to see how this would go, sf made sent out an e-mail to their participants and their members, and we really thought we would be lucky if we got 25 small businesses, small merchants. we got 79 who responded, and some of them weren't appropriate for city hall because they had big wares, and they had big items, and they would not have fit well at city hall, but we did try our best to accommodate as many of those makers as we could, and so we had 45 total inside city hall. and then, we partnered with the arts commission, and we invited

their street artists who -- the arts commission does a great job of screening them to make sure that they are local sf made registered in san francisco businesses, and so outside, we had an additional 40 vendors. >> so you're going to have 45 inside and possibly 40 outside? >> yes, but in december, we're only -- we're going to stick to the 50 inside, and we're going to squeeze everyone in. >> excellent. i just want to clarify this point: and if you are -- in order to be -- to be part of those lucky 50, do you have to pay a fee? >> no. >> okay. it's free -- >> thank you for asking me that question. we do feel that this is our opportunity to give back to our local makers. the mayor and todd russo, the director of the office of economic and workforce development. it has to be free. this is the one opportunity to

highlight them, to highlight their talents, and to give them something for free, so it is free to participate. >> -- but you do have to be local to san francisco, and we do screen you to make sure you are a local maker. >> absolutely, and you do have deadlines to receive that application. it's on your side. >> so -- because this was a partnership with square and with the board of supervisors, we did not have an application process, we allowed each member of the board of supervisors to select the makers in their district and to ask them to participate. in the future, we could do that. we could do an application process. >> thank you. >> thank you. >> great idea. >> thank you. >> marianne, last year, i did the merchant walk with you and the mayor. are we going to do another one in chinatown? >> we are going to do another one in chinatown. we just have to determine a good date, yes. so commissioner riley came with us to chinatown in december,

when we did a great -- and again, this speaks to the mayor doing these merchant walks almost every month for shop and dine. it was fun. i think we ate more than we were supposed to, but we will be hosting another one shortly in chinatown. >> will you let me know? >> yes. somup coming -- we just did one in noe. some upcoming ones -- castro, we'll be returning to knowy park later this month. some members love the shop and dine, so they'll ask if they can do a shop and dine with the merchant branding. >> thank you. >> thank you very much. >> thank you. >> all right. do we have any members of the public that would like to comment on this item? seeing none, public comment is closed. commissioners, any closing

comments? >> no. this is a great program, and we're looking forward to mayor's walk tonight in the castro. i know we're going to cliff's, but his other favorite place, which is hot cookie. i know i'm going to get in trouble for saying that, but that is his favorite spot. >> all right. all righty. onto the next item. thank you, marianne. >> thank you. >> clerk: all right. item 7, update on board of supervisors item 171042, various codes, regulation of cannabis businesses, ordinance amending the administrative business and tax regulations health and police codes to comprehensively regulate commercial activities relating to the cultivation manufacture distribution testing sale and delivery of medicinal and adult use cannabis. discussion and possible action

item. >> let's call 7 and 8 together. >> clerk: and 8, update on 171041, planning code, cannabis regulation, ordinance amending the planning code to regulate cannabis land uses, including among other things, adult use, cannabis retail, medical cannabis dispensaries, manufacture of cannabis product, cannabis cultivation and cannabis testing. discussion and possible action item. >> commissioners, so i want to provide you an update on where things are with both pieces of legislation. so last week -- week before last at the board of supervisors on 11/14, was -- these two pieces of legislation were scheduled for its first hearing. it needed to have its first hearing at that meeting, and

tomorrow, a second meeting to allow enough time for the 30 days after the mayor signs legislation for -- for this to sit for 30 days -- well, not sit for 30 days, but 30 days before licenses can be issued and businesses could operate. so by january 1. so the board of supervisors chose not to -- there was a lot of questions, there were still amendments, so the board of supervisors chose to extend their action to their meeting tomorrow, so as a result of this, it does mean that, again, if they do take action on their first reading tomorrow -- excuse me -- second reading on december 5th, and if the mayor

signs the next day into law, then, conceivably by january 6th, we could possibly see the first adult use businesses be operational. again, the longer if that goes -- the board of supervisors do not take their first action tomorrow, then, it'll just push out the date of which businesses can be able to engage in the adult use -- in the adult use businesses. now, for the medical dispensaries and that whole setup, article 33 is still in place, so those businesses can still operate under their article 33 permit, but it is operating under the medical cannabis regulations that we currently have.

so some notables for the item number 171042, the various c e codes for regulating cannabis businesses, so the director of the office of cannabis is to adopt regulations for storefront only to maintain a significant volume of medical cannabis and products to meet the needs of patients. so this is ensuring that, you know, that retailers do have -- are making sure that they are creating enough space for medical. again, san francisco, we are only doing an m license or an a and m license, so there's no option of doing just adult use only. supervisor fewer introduced an amendment, so most of the

khanna busine cannabis products sold in the retail retail are going to be in the packaged form, so there was discussion with patients such as chinese herbs, going into a chinese herb store being able to touch, test, smell, so supervisor fewer introduced an amendment to allow cannabis patients to be able to engage with their medicine in a nonprepackaged form. and then, the local hire was amended to allow existing businesses to -- amended -- well, amended the existing 50% -- to require the 50% local hire requirements, and for new businesses, they'll have the 50% local hire requirements. and then, for the land use, i think the most notable item is

that we are back to the 600-foot radius from schools. >> yeah. >> and then, from that, will be a 600-foot from the parcel, so -- and then, we will measure 600 feet from that entity. i've put the entire language here in the -- in the summary. i'm not sure if you have it. if you don't, here's a cheat sheet. so it's 600 feet from the parcel containing cannabis retail use, shall not be located within a 600-foot radius from the parcel without a permit from the office of cannabis. so it's still somewhat

restricted, but at least we are down back to the original 600-foot radius. and then, there was discussion in regards to consumption, so i reported last time that there will be the increased availability for retailers to have consumption. now, how this will absolutely unfold because a lot of retailers may not necessarily have the space to be able to add a consumption room, but there is -- there is the opportunity to be able to do onsite consumption, and onsite consumption does include smoking. originally, it was going to be the office of cannabis be able to make the determination as to how they were going to do that, but it was changed back to the department of health. so couple -- i think going back

to the planning code, the one thing -- because supervisor cohen allowed for colocation for small retailers to be together, so in a situation where there is colocation for small retailers, that 600-foot parcel consideration does not apply. >> what about manufacturers? we talked about the ability to colocate manufacturing? >> that is still to be -- i think the state has in its emergency -- emergency regulations -- how it's read, waiting for dph's determination. it looks like that may be doable, but that is still to be determined. >> okay. but it's on the list of things -- >> yes. >> of outstanding items? >> of outstanding items, and i think the board of supervisors, department of public health,

and our office of cannabis are very aware of the need to create some need and ability to be able to do that. >> okay. >> what is the current restriction for smoke shops? are they limited to 1,000 feet from schools? >> it's 600 feet right now. >> the school and shop -- >> well, they're retailers. >> you mean, existing -- retailers of smoke -- of tobacco and vaping, right? >> right. >> what's the restriction there, today? >> if i remember correctly, it was 1,000 foot. >> that was for the medical cannabis dispensaries, was 1,000 feet. so that was for medical cannabis dispensaries, and when this legislation was proposed, it was 600 feet. it got amended to 1,000 feet, and now it's back to -- >> the question relates to just

kind of comparing the treatment of cannabis businesses having noncannabis smoking business. there is a comparison for noncannabis businesses, tobacco retailers and raping. >> well, tobaccoaping. >> welvaping. >> well, tobacco, it's 500 feet from a school. >> okay. i, for one, am disappointed and frankly dismayed to see the local hire provision is still in the proposed legislation. one, i just think that it is completely impractical in today's affordablity environment to be forcing this singular business segment, and a start-up one at that, to be hiring locally, when so few

people can afford to live in this city, and ever fewer people can afford to live in this city. i also believe, i think, based on a survey conducted several years ago that city hall doesn't meet that requirement -- or doesn't meet that threshold today. in this building, we can't hire 50% local residents, so what does it say about our government that they want to regulate a new industry in that way? i also did a little research, so i went on-line and googled the legal challenges to local hire ordinances and turns out there's quite a bit of information out there, and i have a nice little document -- research document that was done about the enforceablity of local hires and the legal challenges to them, and i think i will ask the office of small business to inquire with the city attorney before this thing even gets out of the block for at least an initial look at the legality of such a -- such

legislation.

>> without any further discussii have a research document that wn forward on to the city attorneye there is quite a bit of researcn this already. do the commissioners have any other comments on this? >> i would like to echo the conf our president regarding the thr. i find that first of all, it's o impose such a requirement on one industry compared to the other . it's a non-starter for a lot of businesses. it is -- it's going to be immeny difficult to monitor this requit for small business employees. a lot of employees change, movee their address, move out of of ty and that is an immensely diffict challenge for businesses to