. >> jim lazarus, san francisco chamber of commerce. i urge you to not put this on the bat lol, as many of you know in 2012 we spent six months in a civic coalition of city, labor and business coalitions to develop a ballot measure that converts the city from payroll to gross receipts tax and that process is not completed. the economy and job and salaries are grown far beyond the estimates in the conversion. in 2011 businesses made $410 million of payroll based tax and this year 800 million in payroll gross tax. this will result in a continuation of approximately a half a percent payroll tax in perpetuity until we go back to the voters, hopefully in november of 2020 and readjusting gross receipts -- we need to do that before we target individual business whether it's cannabis, t. n. c., and we need to work with the mayor's office and tax controller, and get this right so urge you not to move this forward. >> good afternoon supervisors. i am rachel hayden. i am here today to speak on behalf of my membership as well as my board of directo

. >> after we hear from the speakers we will hear from paul connoly, and then jim lazarus. jim, we want to work on your penmanship and bruce king. >> we would like to amend your tax proposals with the three following proposals. one, we would like to lower the gross receipts tax rate to be in parity with what other businesses pay. the second we would like to exempt all mad calcannabis licensees, and third we would like to earmark revenues that are taken in from the gross receipts taxes for equity applicants and a compassion program for fra san francisco. this is will be a tax on med can cannabis patients. >> we are not taxing the medical side. >> the retail will not be taxed by how about the distribution. >> supervisor cohen: forgive me for interrupting, please just read the statement. >> this tax the 50 to 60 time it is rate charge on other business types for an anticipated revenue of only 6 million to $12 million. why should cannabis businesses have to pay higher rates than other business types. only medical cannabis licensees for exempt from these taxes. this tax will undo

jim lazarus, san francisco chamber of commerce. we have supported in the past project labor agreements. we've endorsed them when they've come before the board of supervisors for approval when they meet the test of the boston harbor case from the u.s. supreme court which said major projects that are time sensitive that meet the federal requirement can have a union bid. boston harbor gig, airport terminals, clearly the type of programs multimillion dollar or billion-dollar programs that project labor agreements were designed to serve, and to serve the public interest. what we have here is an obvious conflict between serving the interests of small business and local hire and the unionization of all city contracts. i think what this commission should ask for is certified l.b.e.'s in san francisco should be fall under a p.l.a. ordinance. that is in direct conflict with the goals of the city since dianne feinstein was mayor to foster local minority and women-owned businesses. you don't have to be antiunion to get to that position, you ha

i would like to congratulate jim lazarus and myself for being 3-3 and batting a thousand at the budget and finance sub-committee. i am pleased to hear that you are considering additional amendments. i worked with the california growers association and the chamber of commerce to create rates that this industry could get behind and support. the rates as proposed when you look at the rest of california are, in fact, reasonable for a cannibas tax. but not reasonable from a tax of any other industry. so the rates that we propose up here on the overhead, have no tax for 2019-2020 and then phase-in for retail and non-retail. i point out that retail will pay double the tax of non-retail in our proposal here. because on retail they have a lot more hurdles than us. so consider the amendments that we've requested, consider the special committee hearing, and thank you to everyone for their very hard work on this very important matter. and if anybody is interested in learning more about the retailer alliance, alliance our website. >> chair cohen: thank you. next speaker. >> hello, my name is brando

. >> jim lazarus, i would ask you to not approve this at this time but look at your oversight committee and amend legislature in that area and the makeup of that. the last thing we should be doing and that goes for tax policy as well is putting limitations and constraints on a startup industry that is competing with an underground industry. if we are going to end the illegal underground industry from growing distribution, we have to let this industry grow with reasonable regulations and reasonable tax say. this le legislation is another place for them to go and fight. this is no access to make the opinions known on this industry or other industry. we don't have a san francisco on tobacco or farm sees and we don't need a san francisco commission on cannabis. what we need is transparency as supervisor fewer said and the opportunity with the public to deal with a robust process but not a charter amendment that puts in place another bureaucratic structure to city government way before it's needed. california is not going to get the underground economy ended in this industry until we recogni

jim lazarus, chamber of commerce. thank you for your work on this. we're pleased to support the legislation in principle as we have prior legislation on styrofoam bans and plastic bag bans the board and the supervisors have been understanding for the needs of all types in the compliance process. we're pleased to hear that pharmacies would be able to sell products necessary for those with medical needs. we agree with the restaurant association, that a delay in the absolute operative date for supplies on hand beyond july next year is something that we hope you will consider. and that you will divide the file and have another hearing on amendments that make it clear that prepackaged foods and drinks from outside of san francisco, the same provision in the styrofoam ban, will not be illegal to come and sell. with those changes, we're supportive and thank you for your work on this issue. >> supervisor tang: next speaker, please. >> good afternoon. my name is dr. tracy woodruff, professor in ob-gyn and director of reproductive health and the environment at

. >> jim lazarus san francisco chamber of congress. thank you for your wor working on this. we have the broader issue of the payroll tax reform that is not completed targeting any becomes problematic when we go back to the ballot in 2020 -- remember these businesses are startup businesses and businesses less than $1 million gross should not b paying tax. this industry like all that have $250,000 in payroll will be paying payroll tax. the police departmentses on the bat lot need to reflect the desire to have equity participation and small business growth and to get rid of an underground economy. if we overtax this, and we already are at the state level, so i urge you to take a look at the rate schedule and adjust it and give yourself ability to change it in the future. >> my name is dominic. i would like to congratulation coi would like to respectfully request that you do not recommend your proposal. i believe that the tax rate is too high, and i believe it's going to encourage consolidation, which is not going to be good for equity. i believe it's going to discourage the mid

jim lazarus, the san francisco chamber of commerce and i appreciate the amendments made and what is pending before you today. i think that a deferral of any tax collections is the right thing to do. we have to go back to gross receipts generally and the ordinance from 2012 needs to be amended. you have heard me say we have a tale of a payroll tax next year of .5% and we base this on $410 million of business taxes in 2007 -- pardon me, 2011 and it's now $800 million of business taxes collected. based on that payroll growth. so you're getting a combination of gross receipts and payroll tax that t continues. our problem is with any disparaging rates that target businesses individually rather than as a whole. our problem with these rates is that as we found around the state of california that they're not collecting the revenue because high rates are continuing an underground cannibas economy. and we need to get tax rates correct and we need to do that in conformity with the industry that you're trying to regulate. so we think that it's a step in the right direction. we believe that the rates sh

we intended to bring that to you in august, but i'm still waiting for jim lazarus to get back to me with comments. i don't think it'll be coming to you until september. basic details. and there's more of the curtains, just to give you that pretty view. then, there's what we call the main atrium, which has a typo in there, and broadway, which holds up to 5,000 people. so we had the exploratorium in there from 1969 to 2013. we had a first interim tentant, which was town school for boys. they ran it as a school and ran events on the weekends and at night. after that, we had innovation hangar which came in to help us celebrate the ppie in 2014 and continued on under an agreement we brought to you, a longer term agreement to run it, you doing expos and events. we had, starting in late 2016, some major issues with ihangar. we had -- they were not -- they were defaulting on the rent, but more troubling, they had -- were doing events without preclearing them with us. there was a lot of -- we were really struggling with them. and as we looked at this more and more, we were discovering that they w

jim lazarus, san francisco chamber of commerce. thank you for your debate on this issue of staffing. i think you're all closer than you might think sitting in those chairs. i was around in 1984 when mayor feinsteins came up with the 1971 officers. >> supervisor cohen: can we pause the time, please, city attorney? >> mr. givner: deputy city attorney, jon givner. i believe the comment is only on the two year budget departments. the remainder of the departments including police will have comments on wednesday. >> supervisor cohen: that's correct. >> thank you. >> supervisor cohen: so we'll see you wednesday. thank you. all right. any other member -- this is general public comment, so if you are interested in coming and speaking on items 1 and 2, please come on down. hi, beverly. >> good afternoon, supervisors, good afternoon, committee. beverly upton, san francisco domestic violence consortium. i'm really here to implore you not to forget funding of violence against women. we have a $1.2 million budget ask in it funds 27 agencies. it'

. >> netflix was amazing jim cramer talked about it last night, about how it was almost like lazarus >> not lasry. >> lazarus rising from the dead yesterday. >> and $5 billion to google is like $5 billion to lasry you should point out 1% of your cash, not 1% of your net worth. >> regarding bit worcoinbitcoin. >> that's a much different in you remember >> i know. >> 1% of your net worth, bitcoin would be double where it is right now. >> yes no it's just the cash i have. >>> in the meantime, we have breaking news to bring to you this morning the eu slapping goog le with a 5 billion fine they argue the device strategy was unfair speaking on a news conference tin the last hour. >> today the commission has decided to fine google 4.3 billion euros for breaching antitrust rules. google has engaged in illegal practices to cement its market position in internet search. it must put an effective end to this within 90 days or face penalty payments >> google said it will appeal that fine. quote, android has created more choice for everyone, not less. rapid innovation and lower prices are classic