of an indoctrination program, a new one, an orientation, why we exists. everyone knows why the planning commission is here, everyone knows why the ethics commission is here, but not everyone knows why the small business commission is here, so that could be something we could look into. >> through the vice president, so i -- in reading this, and this has also been an issue with the round table, as well, or something that was discussed and -- it's -- it's under, i think, item number nine in the first section, insufficient resources for technology needs for small businesses to develop efficient interactions with city agencies. so this could be a commitment that this office can commit to or say that it will take a specific action on and what the

time frame period is, but we have had some discussion around working with the tax and treasurer's office to identify alternate e-mails. so -- and this could be something that we work out with the tax and treasurer's office when a business registers so when that business registers, both the office of small business could send an introductory e-mail because i think a lot of times with the permitting and opening issues is there are many businesses that we still get engaged with but sort of down the road and say i wish i knew about you, so there's still an ample opportunity for our office to improve and increase its outreach to the business -- to newly opening businesses to make sure that they understand and nknow what resources are here for them. so this could be one thing, a

recommendation that we could make to the mayor. and then, of course, is the mayor knows about it and is supportive of it, then, we will get that much more support in making that happen. i also -- there's been -- there was lots of discussion around streamlining permitting and the engagement in the permitting process and communication, and so i don't think many businesses know about 49 vanness, which is going to be the new facility and offices for d.b.i., d.p.w., d.p.h. will have some resources there, the planning department. so many of those agencies are going to be in one building, and on the second floor is going to be a -- one floor for

all permitting for those agencies. so we're also going to -- the police department is going to be there, the office of small business is going to have a small seat -- excuse me, a small space there. d.p.h. is going to be there, the entertainment commission. so all the regulatory -- key regulatory agencies -- and fire is going to be there. so that's going to have a streamlining component. but what this also brought to mind is we're starting to discuss the technology that's going to be developed and established with 49 vanness is a need to ensure that it's integrated with the on-line business portal. you will be receiving, at the end of the year -- this has been delayed because the assistance that the portal team provided to the office of cannabis, but more applications going on-line, being able to submit them on-line and pay for

them on-line. and that integration with those agencies through the business portal. so if that's an interest to the commission, then, we can make that recommendation to ensure that it's a recommendation. we can't mandate the department of technology work to integrate, but if that recommendation is made to the mayor, then perhaps the mayor can make that. >> sure. that's a reasonable recommendation. commissioner ortiz-cartagena. >> sure. definitely i agree with everything. there should be some cultural sensitivity, because all small businesses, we're minority and we're fighting the same fight, but in my neighborhood in the mission, language is a barrier, culture is a barrier, and being sensitive to those neighborhoods in particular, or in chinatown or any neighborhood, the city should have the obligation to know the

culture and the community they're trying to serve, and the impact they're having. again, just like president dwight said, we are the voice of the small business, and for supervisors not to bring things to our attention prior to them seeing it, that's not cool. so definitely take this into account, letting the supervisors, like you said, president dwight, no what we are and what we're here for. and i guess the last thing is try again in this -- and everybody says it, everybody that's attended, but making sure that other departments don't operate in silos. if the sfmta has a project, make sure the d.p.w. knows because they have to have an impact. sometimes there's been studies when they do project, and they said yeah, there's going to be a loss of about 20% of small business, and that's not acceptable. they don't have to make payroll, they don't have to make lease payments, so they have to be conscious of that, and that's what we're here for. >> any other commissioners like

to comment? >> can i just -- >> commissioner zouzounis in. >> -- follow up on that? i think i agree and something that the community that i come from, sting operations and enforcement is an area of -- where cultural sensitivity needs to be part of the conversation, especially in light of immigration laws and the travel ban. i think a conversation with sfpd and department of public health. and we've had sting operate -- like, two sting operations or one sting within several months in which we have undercovers coming into my family's store, and we've had reports some other businesses that -- comments about people's religion have been made, so there's definitely complaints, and there's not really an avenue about how to make complaints around enforcement and cultural sensitivity issues, so i'd love to have

that be a topic, as well. >> any other commissioner comments? all right. so there was a discussion item. >> so commissioners, i also will be working with oewd to create recommendations to the mayor. so i will take your feedback, incorporate it, and then -- and then send you a set of recommendations. i -- in addition, i just would like to just hear -- also get a little bit of a response from you in terms of also making a recommendation for vacant storefronts. in addition to prices and things of that sort, i think the city needs to also understand the cost of doing business is also preventing

business expansion, as well, and the challenge of hiring people from some feedback that i've heard from other businesses, so they're choosing to expand outside the city and not within the city. and then, the other element, since we have it on our to do for the legacy business program in developing guidelines, we're first going to develop guidelines on how to do vertical divisions so that you can separate out the commercial space and the -- for mixed use building and the residential space in the t.i.c.s, but to also move into supporting commercial condos in the vertical subdivision so that we can condoize just the commercial space and not the residential space. and incentives because as commissioner dooley has talked

about for many years that there are long-term vacancies where the property owners just not choosing to rent the commercial space. so if we can develop some kind of incentive to help them go through those vertical subpositions and create commercial condos. >> okay. all right. great. so you will make the latest changes and updates and pass that onto the mayor's office. next item. >> item five, update and report. updates on the small business commission. updates on policies, announcements from the mayors and small business activities. >> thanks to all of you who came out tonight. thanks very much. >> discussion item. >> commissioners, i just have a very brief oral report. so if we do not -- there's -- i

just -- commissioner adams has question questioned this, whether we might want to have a meeting at the end of august. we do not have any legislation scheduled, and our next legacy business presentation is the first meeting of september, so i might be reaching out to you on that. so at one of the september meetings, we will be presenting -- i'll have rhea present to you a program that we are putting together from the a.b.e. from that additional $4 that we're collecting to help support small businesses that are being required to comply with the accessible business entrance program by their property owners, so we have some funding and -- from that $4 so we're developing a program that we'll be able to disburse that with which to help our small businesses. and then, i have mentioned that we are relocating our offices

from 110 to 140. i have now been given that november is the date that that is happening, so just to let you know that. and then, for our september meeting, we will be hearing three pieces of legislation. there's been some updates introduced from the department of public health around the massage regulations. supervisor tang has -- has introduced some new legislation, again, just focusing on district four to allow for flexibilile uses and multiple uses in business locations. [please stand by]

in the mission that is gentry find and all that, it's a good example. we highlight the negative, but it's a good example to highlight the positive and make money. i wanted to give a shoutout to my kids at home, love you guys.

[laughter] >> all right, there you go. >> get ready for bed! >> any other commissioners want to shout out to their families? all right -- i don't have anything to report. do we have public comment on commissioner's report? seeing none, public comment is closed. >> item 7, new business, allows commissioners to introduce new agenda items for future consideration by the commission . before they come to the commission, they are planning on having meetings with merchants. at least three of them. one in the mission, one in chinatown and one in the tenderloin.

they're contradictory pieces of legislation that is impacting the implementation of the ban on flavored tobacco. so there is going to be going back to the drawing board a little bit in those conversations. and one of the policy tools we need to think about is how to give the city the tool to buy back tobacco licenses. right now, there is a law that alcohol licenses, type 20, type 21 can be bought back by the city, but there is not the option for tobacco licenses. and also part of that conversation is how do we hold other departments accountable to this conversation because there is tangential fee schedules on tobacco, the department of public health and dpw are part of, and fee streamlining as a mitigation is going to be another tool i think this body

needs to brainstorm. so please keep in mind, i'm going to be part of those meetings and i would love support. the first one is planned at the end of the month. we can talk offline about that. second thing, new business, i would like there to be more information about how to prepare merchant or merchant organizations for potential rfps for the city. there is going to revenue from the sugary beverage tax and we should try to support merchant organizations to get some of that money. if there is a tool or workshop we can do or presentation, that would be awesome. >> president adams: does that involve lbe? no? >> commissioner zouzounis: they'll have to be registered nonprofit or entity of which then the merchant association

could have a sponsor who takes the money, administrative -- fiscal agent. thank you. >> if i understand properly, you're suggesting that we have better outreach so that -- or enable merchants or small businesses to get a piece of this action? >> commissioner zouzounis: also merchant organizations. there are two examples i'm thinking of. the healthy retail program still has a pilot for fresh produce delivery model they want to develop. so it would be rfp for somebody already delivering to store. how do we outreach and make sure that is open to somebody already doing that. and then -- >> just to be clear, anybody who -- any entity to receive money from the city needs to be registered with the city as a

compliant supplier, vendor. bidder. and i think in this -- then they also have to be a registered entity and have a business registration. to have a business registration means for any of the merchants associations, then they need to have a 501 c-3. but they have to have some sort of business structure. so is maybe something that is also brought up with the council of district merchants. if you were thinking about merchant areas being able to access some of that money, then to me that sort of seems like a good entity to help be a fiscal agent. >> right. we're having discussions about that. >> but i can -- we can ask the

office of contract administration or the controller's office. and rick has done actually a phenomenal job working with our legacy businesses on putting together -- putting together a document on how to become registered with the city. and because we are now marketing in the legacy businesses as vendors that departments can do business with, because for those that become 12-b compliant, then the city can do business with them. so we're also -- rick is also going to be putting together over the next 2-3 months, a guide on how best to do business with the city. so understanding how the payment process works, all of that. because it's very different than your traditional b to b.

>> commissioner zouzounis: one last new business -- sorry, this should have been part of my report. i went to the reopening of the sav mor market on 3rd street and they also won their board of appeals for moving their license. so they are now viable in their new location. >> awesome. ok. any other new business items? >> this is not a new business item, i just wanted to add for the record, sonny made great points about district areas that are having problems with construction and you know, owning a bar and restaurant on polk street and owning a bar and restaurant, i do a pop-up at may's oyster house.

she's definitely onto something with the pop-ups to try to get some of these store fronts filled. i highly encourage anybody that wants to try a pop-up or something to that effect, that they -- you know, we give them a chance, because that's a great way to find out if they want to do small business in san francisco. >> great. i have one new business item. so it's my understanding that corporations can sponsor government activities, correct? is there a mechanism for corporations to sponsor things like the legacy business program? >> well, there is. there is a process of doing accept and this happens with specific programs. >> the reason i ask is because one of the things that we could

do to accelerate the legacy business program is to get more support on the onboarding side. we have one person who is not his sole responsible to onboard legacy business candidates. and so i think that if we wanted to reach out to a number of the large companies that have expressed interest in preserving small business in san francisco, like airbnb and square, they're making significant donations to activities in the merchant corridors to individual merchant associations as well, that we could outreach to them and others if we had a specific ask. so for example, if we could fund a full-time position to assist with onboarding legacy

businesses. i just think that program is such a hallmark of our commission and an area where we can have real significant impact, but it cost money and we're forever going to be budget constrained, and one of the best things we could do is have one or more sponsored positions. also internships. i was at square earlier this week, or last week, for a cdma meeting with square. and they had a number of interns in our meeting and i chatted with one of them who is a princeton student, she was about to go back, but she said my internship has been awesome and i've been tagging around with the government outreach team and learning how this company is interacting with the city. it occurred to me, how could would it to be a get an

internship at airbnb and you were to help legacy businesses? i think we should look into how could we facilitate these companies helping at a level making donations to san francisco city and county, and you know, all the p.r. benefits that come from that. especially with our program which is really, i think, shaping up, especially as we're finishing our branding program and start to roll that out. it will become a lot more visible. i know that the legacy business is grateful for the support they receive getting through the process. if nothing else, there is the gratification of documented your history which you've never taken the time to do. not only for yourselves but for your children and grandchildren. there is nothing but feel-good out of that exercise. so the more of that we can do, beyond rent mitigation, all the potential financial benefits,

but the mere benefit of going through the process of getting on the legacy business registry, i think is a beneficial one and one that we should try to do more than we do. because right now i feel like we're in a little bit of a reactive mode. again, that's part of your new supervisor orientation. here we are and one of the best things you can do is nominate legacy businesses, that gives them an opportunity to meet the businesses. a lot of times those owners are the most active in their districts because they've been there a long time, and they've been fighting the good fight. those are the people the supervisors need to know any way, so it's a reason for them and their staff to outreach to them and say, hey, you're not on the legacy business registry, how can we make that happen? >> is 365 a legacy business?

>> good question. >> commissioner dwigh >> commissioner dwight: look, i went to the opening of the terminal and closing of gumps this weekend. and it's just proof that even the most longstanding of institutions, whether it's fao schwartz, you name it, they come and go. and we all have to remember as small business owners and business owners in general, we're the first line of defense for our companies. we have to fight for ourselves. and you know, whether it's the internet or amazon or a formula retailer or the city doing things that are kind of counter to our business interest. at the end the day, if we don't fight for ourself, we're going to go out of business.

we can provide support. but even the most venerable businesses are vulnerable if they don't keep up with the times. and gump's admittedly didn't keep up with the times. whether they survive bankruptcy or not is to be seen, but there is a lot we can do to support businesses. >> can i ask a question of rick? >> commissioner dwight: sure. >> i'm the third or fourth owner of may's oyster house, it's the second oldest bar and restaurant in san francisco. would i qualify for a legacy business? or you know, for the fact that i kept the name and kept the seafood going, et cetera, et cetera? >> there are three business criteria on the application process we look at. the business has to be 30 years old or older. there is exception for 20 years if they're at risk for

displacement. they have to have added to the community or the city and then the third thing is have maintained their business model. so we look at all three of those. >> change of ownership is not a disqualification. >> that's what i'm asking, i'm sorry. >> change of location is fine. those don't affect the criteria. >> commissioner dwight: the answer is yes. >> i probably will do that with a blue light cafe, too, there is another one. interesting. >> and so, commissioner dwight, we have met with both new supervisors' offices, we did meet with the aides of supervisor brown and i think one of their questions is always what is the outreach that you're

doing? and at this point we're none, because we can't facilitate it. so i think to your point is, even the ability to take on new applications and help with that, but also the process of outreaching, and educating businesses of this opportunity, i think that's a good point to bring. and i think to your point of engaging the private sector, i don't know if commissioner corvi wasn't on the commission at the time, but when the discussion of the creation of the legacy business was created, professor giles from usf had talked about engaging, especially with the larger legacy businesses to help support because we do have some very small businesses that, you know, probably would love to be on the legacy business registry.

and especially those where english is not the first language, so the challenge of writing the application can be a challenge. so getting more support in that area to also bring on those -- >> you don't have to be writer to write a book, you just need to talk to someone who is a writer. so i think if we could fund again this onboarding and also to your point, outreach, we could fund more outreach efforts, especially as we have our tool kit with all the branding. it would be much easier for us to really show, here's the package, here's the extra little bit of gloss you get to put on your business related to legacy business. that is helpful. but we should talk about how we can start outreaching. what is our ask to these businesses, corporations, who want to and have a stated goal

of supporting small business? i think that there -- there is a huge demand for the ability to say we are putting our money where our mouth is to support small business, whether it's buying employee lunches from local restaurants to funding programs like this one. and this is low-hanging fruit if you're in the government affairs department of any of these companies to be supporting legacy business programs in san francisco. as unique as it is as well. and to be shouting that out to not only within san francisco, but beyond where all of your others say, hey, look what we're doing in san francisco. we're not unique in the fact that small business is an endangered species in our city. every major city throughout the united states is experiencing gentrification and the displacement of small businesses. all the same reasons that we

are. anyway, let's see how we can go reach into the pockets of our generous local businesses and have them support a very specific program. it's a lot different than saying we're going to levy a tax on you to pay for general things, or already heavily funded things like homelessness. big problem, you kind of hard to get your arms around that. you're throwing money into an awfully big pot there. but when you're donating money and you can donate a smaller pot highly directed and really see the results, that's where you can get powerful -- it's a real powerful story and ability to sell that. enough said. >> but i think your point is, we could specifically reach out to the city attorney, so that you fully understand what we can do, what kind of ability to allow

for the visual identity of the association of those that are contributing the money in terms of joint marketing. >> what i want staff to do is talk to the city attorney and any other departments that have to weigh in on this. what can we offer corporate san francisco to support the legacy business program specifically? because then we'll have -- here's what we're asking for. we want this to do this. we want this money to do this. and i think it would be onboarding and advocacy, two major things, there may be others. let's find out. and does that mean can we fund a position? what are the -- i'm sure there are always kinds of issue with that, because there is the pension program. but it has to be sustainable. but then there are some things that don't have to be as sustainable. funding outreach programs, you

can turn them on and off. you either buy the ads or you don't. if we could fund a stable position and then also fund p.r. efforts, that would be tremendous. and i think we could round up the funds to do that. so that's my -- that's what i'm gauging as i'm floating that idea with a few of the government affairs people. staff can report back to us. if we have no other new business, commissioners, i'll put it out to public comment. any public comment? seeing none, public comment is closed. >> sf gov tv please show the slide. >> it is our custom to end with a reminder that the off thes of small businesses is the only place to start your small business in san francisco and the best way to get answers to questions about small business in san francisco.

the office of small business should be where you go next. the small business commission is the public forum to voice your opinions and concerns about policies that affect the vitality of small businesses in san francisco. if you are a small business start here. item 8, adjournment. >> all in favor? >> aye. so be it. motion passes 4-0. meeting is adjourned the 6:53 p.m.

(clapping). >> when you cast our vote in an election in san francisco you might kaflt your vote at city hall or choose to vote by mail ever wonder what happens after you cast our vote what's the process for tal vote in san francisco and how is your vote counted let's follow our ballot when you tall a certified by the department of elections first, we'll look at what happens to our vote another a polling place when you cast your vote it is set into a system called on in sight it read our

ballot and the data is soared on a memory cartridge it is based in denver, colorado provides san francisco with high sail balance scared and software to count the votes when the poll is closed the memory card is removed by the inspector cartridge is sponsored are stored in a anti static bag and a san francisco parking control officer takes official custody to deliver to city hall the custody of the actual completed ballot is transferred to deputy sheriff it verifies delivers them to pier 48 managed i the election on election night pier 48 is a hub of activity bringing the ballots to poll line up audits to delivery to

the team it's a long night for those election employees staffer unpack and sort of all the ballot bags and i account for the ballots and dropped off at polling places and from the machines the inside ballots a counted to verify the total ballet for the polling places more to do with the ballots and we'll get back to them a little bit later meanwhile at systematically city hall the department of elections sets up a gone night only

uploading center staffed by the employees and to transfer the memory cards by the parking 0 offices. >> on election night that he set up austin at city hall to process the votes and completely and accurately as possible in the bag it was placed on a reader that records the summary next the carriages are unpacked and checked in by our staff then the carriages with a vote so for etch print are fed to into the right sideers by the memory software is he see the vote by a line that is in the department rooms tabulations

back at the polling place on election day you might cast our veto using the edge voting machine a bilingual that allows the voters with limited vision or other disabilities to have access to the ballot their recorded on a paper printout and stored in the edge machine. >> i also need the edge printer. >> at the end of the election day a deputy sheriff take custody of the field container from each edge machine. >> you on have one edge printer; right? >> those deputies transfer the container with the plastic bottles and the departments warehouse on pier 48. >> the department of election staff opens the sealed container

into every edge machine and reviews the printed record. >> here at the department warehouse teams of two people roach the edge printer material and check and recheck if the votes are recorded a team have to people puts it onto a blank perspective and two different people confirm the votes and correct any errors all the edge printer are hyphenated their transferred to the deputy sheriff and the department employees transfer those ballots to city hall and feed into the machine for counting that way all the votes cast on the edge machine are included in the

election tally. >> voters are encouraged to vote at they're assigned voting place people that cast in other marathon their ballet place their plaid in a special envelope to be verified verification is checking to see if the voter is registered in san francisco if they are their votes are count for where their registered more than 60 percent of san franciscans cast their vote by mail ballets cast at city hall have also process as vote by mail process brother you receive our ballot in the mail it has to be received and sort of by the u.s. post office the largest may progressing facility in san francisco

though it is get i quite a large operation about 5 hundred employees throughout 3 shifts that runs 24/7365 today what we have all the day when the city of chicago have arrived and they'll be processed for delivery so over here a truck that has come in we're expecting about 2 hundred and 48 thousand ballots to come into the plant on 6 different trucks so for we've received 3 of the trucks as you can see there's a lot of mail here right now, we're getting ready to run the mail on a bar code softer and we but u put it into a sequence it is good for the ballot constituents. >> voters drop off 25 percent

of the ballets at poll places at the end of the day custody is transferred to 0 deputy sheriff that transfers them to pier 48 at the pier battles are a collected the number of rushes is needed and quickly transported by two deputy sheriff's to city hall for process before any counting of any vote by mail can happen the voters signatures must be verified so first, the unopened vote by mail is run through scanner that takes a picture of the bar code and signatures the bar code identifies the voter and this information along with the voters signature is sent electronically to the voters place for verification while here in voter services we check the signature on the

ballet envelope with the signature on the voters fill the name predict and name is entered into 9 election system the staff reviews the information on file and visually compares the signature and we challenge the valid of the ballot if it is severed they've voted in this election and the official stamping of the ballots sent electronically back through the scanner envelopes radio run introduce the scanner again to sort of out any unverified ballets on the second scanner their sort of by predict voter services staff we proclaims every ballot to make sure that the voters are contract and their vote is

counted. >> though accepted vote by mail used to be opened by hand now opened by a rapid extract machine it helped on the envelope on two sides and the machine that opens the flaps are recorded you can reach in and pick up the ballot it is probably twice as fast as a manual process and the wlalts is then scanned by a 4 hundred high-speed scanner that counts the votes on each ballot sadder at the same time employees schek the dominion sheet and compare it the scanner sometimes cannot read a ballot due to damage or light parking garages by vote

their transferred by hand by a go person team those new ballets is run through the ascertain sea the votes are add to the final tabulation wonders where your ballet is you can consortium our battle ballot was received and check the constitutes and conform our vote better to be safe than sorry was ultimate counted using the tool at sfgov ballot.org. >> then we transfer the data from the skarnlz into this laptop and tabulate using the do night time software. >> on the severe those are transferred into the memory cartridges once the data is loaded on the laptop the service tabulates the

vote we generate the veto and put 12 on the website and the report also includes a predict by predict breakdown of the polling places and by mail a one neighborhood district of votes and the neighborhood turn out report. >> we can take a lot of information about the election including one of the most popular broke down by party and continue to look forward to improvements. >> you'd think that is the ends of the story but still more work at pier 48 that needs to be done california election code requires one percent of the predicts that are chosen added random by an elected official the one percent manual tallied it their counted by hand here to

the department of the warehouse 4 employees count them there are 3 steps first in each team won person called the vote and two people tall the votes that are called second to the tall people have the same results and finally the tallest are compared with the electronic vote. >> this one percent manual tall is one of the last steps in declaring the official result of the election from your home or neighborhood polling place to city hall by memory cartridge high speed up scanner or manually our vote is tab laid and the results end up printed and posted and declared certified by the department of election services

>> in november of 2016, california voters passed proposition 64. the adult use of marijuana act. san franciscans overwhelmingly approved it by nearly 75%. and the law went into effect in january of 2018. [♪] >> under california's new law, adults age 21 and over can legally possess up to 1 ounce of cannabis and grow up to six plants at home. adults in california can legally give up to 1 ounce to other adults. >> in the state of california, we passed a law that said adult

consumption is legal. if you are an adult and in possession of certain amounts, you will no longer be tried. you will not be arrested or prosecuted for that. that is changing the landscape dramatically. [♪] >> to legalization of cannabis could bring tremendous economic and social benefits to cities like san francisco. >> this industry is projected to reach $22 billion by the year 2020. and that is just a few years away. >> it can be a huge legal industry in california. i think very shortly, the actual growing of marijuana may become the biggest cash crop in the state and so you want that to be a legal tax paying cash crop, all the way down the line to a sales tax on the retail level. >> the california medical industry is a 3 billion-dollar

industry last year. anticipating that multiplier as 20, 30, 50 times in the consumer marketplace once adult use is really in place, you could go ahead and apply that multiplier to revenue. it will be huge. >> when that underground economy becomes part of the regular tax paying employment economy of the bay area, it not only has a direct impact, that money has a ripple impact through the economy as well. >> it is not just about retail. it is not just about the sensor. is about manufacturing pick a lot of innovative manufacturing is happening here in san francisco in addition to other parts of the state as well as the cultivation. we should be encouraging that. >> there is a vast array of jobs that are going to be available in the newly regulated cannabis industry. you can start at the top tier which a scientist working in testing labs. scientists working at extraction

companies. and you work towards agricultural jobs. you have ones that will require less education and you look towards cannabis retail and see traditional retail jobs and you see general management jobs. those things that are similar to working at a bar restaurant or working at a retail store. >> we are offering, essentially, high paid manufacturing jobs. typical starting wage of 18-$20 an hour, almost no barrier to entry, you do not need an education. >> that means that people who do not have college educations, working-class people, will have an opportunity to have a job at cultivating cannabis plants. there's a whole wide array of job opportunities from the seedling to the sale of the cannabis. [♪] >> last year, they said 26 million people came to san francisco. >> the tourism industry continues to be very robust here and the city and county of san

francisco is about a billion-dollar industry. >> if we use a conservative cannabis user adoption rate to 15% that means 4 million tourists want that means 4 million tourists want to purchase cannabis. and we need to be ready for th them. >> in 2015, as adult use legalization efforts gained momentum in california, the supervisors created the san francisco cannabis state legalization task force. this task force offered to research and advice to the supervisors, the mayor and other city departments. >> we knew that adult use legalization was coming to the ballot and stat that would bring with it a number of decisions that the city would have to make about zoning and regulation and so forth. and i decided at that time, at a know it was a great, that rather than have a fire drill after the ballot measure passes, as suspected it would, we should plan an event. so i authored a task force to

spend a year studying it and we made it a broad-based task force. >> we prepared ourselves by developing a health impact assessment and partnered that with key stakeholder discussions with washington, oregon, colorado, to really learn lessons from their experience rolling out both adult and medicinal cannabis. >> within days of the passing of the proposition, ed lee called on agencies to act decisively. >> he issued an executive order asking the department of public health, along with planning and other city departments to think through an internal working group around what we needed to do to consider writing this law. >> we collectively, i would say that was representatives from g.s.a., as well as the mayor's office, met with a lot of departments to talk through what prop 64 and the implementation of prop 64 it meant to them.

>> the mayor proposed an office of cannabis, a one-stop shop for permits allowing operators to grow and sell cannabis. >> he wanted a smart structure. he wanted a regulatory structure that ensured that kids didn't have access and community's were safe and that consumers were safe. and he wanted to ensure, more importantly, it was a regulatory structure that encouraged diversity and inclusivity. >> this is an office that will be solely charged with a duty of wanting not only the policies that we create, implementing and enforcing them, but also executing the licenses that are needed. we're talking about 20 different licenses that will put us into compliance with what is happening on the state level. >> this is a highly, highly regulated industry now, at this point. we have anywhere from 7-10 departments that will be working with these industry participants

as they go through the permitting process. that is a lot of work at a loss of coordination. we are creating a permitting process that is smart and is digital. it is much easier for the user and for community input, and is less mired in bureaucracy. >> for the first time ever in san francisco history, standalone licenses are available for all aspects of the nonretail side of the cannabis industry. now, a cultivator can go in to the department of building inspection and to the department of health and say, with this first registered and temporary license, and then what will eventually be a permanent license, this is the project, this is what i am going to do. >> very rarely in city government do we interact with industries that are asking to be regulated. these guys want to be regulated. they want to be compliant. they want to work with the city.

that is rare. >> san francisco has created a temporary licensing process so that the pre-existing operators here in san francisco can apply for a temporary state licensed. >> we have taken teams of up to 12 inspectors to inspect the facility twice a day. we have been doing that with the department of building inspection and the department of public health. and the fire department. >> it is really important for the industry to know that we are treating them like industry. like manufacturing. like coworkers pick so that is the way we are approaching this from a health and safety and a consumer protection network. this is just the way practice happens with restaurants or manufacturing facilities. >> because there are so many pieces of industry that people haven't even thought about. there are different permits for each piece. you have to set up a permitting system for growing, for manufacturing, for testing.

for delivery. for retail. you have to make sure that there is an appropriate health code. certainly the regulation of alcohol in terms of restaurants and retail it's probably a model for how this industry will be regulated as well, both on sale and consumption. >> it is completely uncharted territory. there is a blessing and a curse with that. it is exciting because we are on a new frontier, but it is very nerve-racking because there's a lot at stake. and quite frankly, being san francisco, being the state of california, people are looking to us. >> we hope that cannabis does become more of an accepted part of society in the same way that alcohol is, the same way coffee is. >> it is a very innovative fear, particularly around manufacturing. san francisco could be an epicenter. >> san francisco can be a leader here. a global leader in the cannabis

movement and set a bar just to other communities and cities and states and this nation how it is done. [♪] >> clerk: can you please rise for the pledge of allegiance. [pledge