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Affect the vitality of Small Businesses in San Francisco. If you have questions, you can start at the Small Business commission. Clerk this is the Small Business commission, regular meeting on november 13, 2017. 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 allowed by the director of the meeting. Completion of a speaker card, while optional will help ensure procedure spelling of speakers names in the written record of the meeting. Please place speaker cards in the basket to the left of the lectern. Names will be called in the order they are on the cards in the basket. Item one, call to order and roll call. Clerk [ roll call. ] mr. President , you have a quorum. All right. Next item. Public comment. Allows members of the public to comment on matters that are in the Small Business commissions jurisdiction, but not on the agenda and address future items for consideration. Discussion item. Do we have any members of the public wishing to comment on any items that are not on the agenda . Seeing none, Public Comment is closed. Clerk the presenter is me, rich kurylo Legacy Program business manager. All right. That, which we look forward to. Good evening, president dwight, commissioners. Rich kurylo, Legacy Program business manager. I have a slide presentation for you today. Before you today are two considerations for your consideration for businesses to be included on the legacy business registry. The applications were reviewed by me for completion and submitted to the Planning Department staff on september 22nd for their review. For each applicant, your Commission Packet contains a staff report, a draft resolution, the application, a case report from Planning Department staff, and a resolution from the Historic Preservation commission. There are copies on the table for the public. Item 3 a is ellory owe, y r your is elrio benefits, fu fundraisers, and community bar. Its become an anchor to the mission district, Lgbt Community of color and under served communities. Item 3 b is hwa rang kw hwa rang kwan martial arts center. They offer their space to outside martial arts groups that cannot afford to rent premises of their own, each renting space on a month to month basis. It is an Educational Institution that caters er everyone regardless of ability to pay. Both businesses received a positive recommendation from the Historic Preservation commission. After reviewing these applications and the recommendations from the Historic Preservation commission, staff finds the businesses have met the three criteria to qualify for listing on the legacy business registry. There are two draft resolutions for consideration by the Small Business Commission One for each of the legacy business registry applicants. Note that a motion in support of the businesses should be a motion in favor of the resolutions resolutions. In the resolutions, please pay close attention to the core physical traditions that define a business. Once approved by the Small Business commission, businesses must maintain these features of commission in order to maintain on the business registry. For el rio its 4, and for hwa mang kwa, its Small Business training. Richard, i have a question about the martial arts center. Is this a nonprofit or for profit . For profit. For profit . Mmhmm. It was ran by the church and eventually became for profit . Thats my understanding. Commissioners, any further questions before we open it up for comment . All right. Lets hear it, folks. Come and sing your praises. This is your chance. Open mic. All right. Richard will call the names in order of speaker cards. We have carol hill and jasmine johnson, and then, pablo espinoza. Commissioners, supervisors no, commissioners. Commissioners, i am carol hill, and i have to say that until i so i moved here from the east coast like 20 something years ago, and and there was, really, nothing that that i felt like was here for me until i came to el rio. El rio had, like, a womens night, and i dont know if you guys remember this, but it was a lesbian night, and they were doing something that was being done constantly that i wasnt seeing in the community, especially around women getting together socially. So i am specifically involved with mango, and it has been going on for 21 years, and it would it happened and speaking of equity, it happened because lesbians of color couldnt figure out or couldnt find a place where we would hear the music, hiphop or latin grooves, and el rio offered up that space. Almost 21 years, there have been lesbians in el rio the first saturday of every month. At mango, there have been break ups, there have been marriages, there have been children; anything that you can you can think of that could happen in the life span of 21 years has happened, and we have all done it through mango and el rio, so as far as it being a legacy, its a club that has lasted through almost all of the other lesbian clubs here. We were trying to do some research on it, but i think its the longest running lesbian event in the world, but thats just me. Im saying it and putting it in the record, but im saying at least in the area for San Francisco, and i think it is part and parcel because el rio had that lens, let us start it 21 years ago, and just keep going on for 21 years, so my god am i over time . No, you have 20 more seconds. Oh, 20 more seconds . So yes, it should be a legacy business for San Francisco because it is important, so important to keep that going. It start its done a bunch of Ground Breaking work and has done it for 20 something years, and it could definitely keep going and get all the benefits for that fantastic work. What a nice testimonial. Thank you. All right. Whos next . Well, my name is jasmine johnson. I work enough to experience el rio on both sides of the bar. I remember before i starts working at el rio, i didnt feel like i had much of a community, i didnt have much of a support system. I walked in, and instantly i felt loved, supported, every positive feeling you could imagine, i got from el rio. Its so much more than a bar. The people that work there are so much more than our employees, and the people that hangout there are so much more than customers. The past few years ive gone through so many things highs, lows, and everything in between. Ive cried, ive laughed, ive loved after el rio. We went there for comfort after florida, we went to drink there a lot during the election. Im confident im not the only one who feels this way about the bar, and im confident it will continue to be there for me, and it will continue to be there for everyone else who comes through its door. Thank you. Thank you very much. That was really great. Next, please. Good evening, commissioners. My name is pablo espinoza, and i come here today to ask that the commission approve el rios application and designate it a legacy business. Ive been a part of their community for 20 years. I came to San Francisco for life and social spaces that spoke to my experience in a multicultural event and environment. And i found a big part of that at el rio. For many lgbtq and kaliedo scope of people like me. You see yourself reflected back in the people, the parties and principles held by el rio. Its more than just a neighborhood bar. Youll hear that from just about everyone in the bay area thats been there. Its an institution. Its also a hopeful place, a representation of so much that we love about San Francisco. It is a place run by and for people who want to be surrounded by a genuine mix of folks, people of color, artists, political activists, folks committed to ending racism, sexism, homophobia. Its a people who want to be in communities with white folks, lesbians of color, day men and folks who just turned 21. Braf paragraph we live a lot of our lives in groups socially, outside of our homes, outside of our solitary comforts, and a safe inclusive space is part of that. El rio is one of those public spaces that gives back so much more. Please honor el rio and the city of San Francisco today by naming el rio as a legacy business. Thank you. Thank you very much. All right. Do we have any other speakers . Clerk clerk o clerk no other speaker cards. Okay. That was awesome. I want to thank both of these legacy business candidates for going through the arduous process of filling out the application. It is a lot of work, but i think its very rewarding because too often we dont reflect on our legacy until its too late. Either theres a fire and all the records get burned or someone passes or whatever, and we lose the did shallwe lose the tribal knowledge, so i think this has been cathartic for all the businesses that have been through the legacy and brought them this far, and we heard some great statements on behalf of el rio, so thank you very much for coming out. Appreciate it. Commissioners, any comments . I i already thought el rio was a legacy fwbusiness, b i have to give my shout out to el rio because i saw a couple of familiar faces there. I spent many sundays salsa dancing, and when you talk about inclusiveness, it really is. Its the rainbow, and its awesome, and ive been to enough hard frenchs, and you guys know what im talking about, you know, those are fun, and when you go to hard french, the crowds with the diversity, and and it really does speak of San Francisco, so yeah, im a frequent visitor to el rio. Whenever i bring people in from out of town or theyre from out of town, and they want to experience San Francisco, we always bring them to sunday at el rio, and then, we cant get them to leave. So just the bartenders and everybody who puts on the events there, mango, good for you. You know, i know a lot of women who do go to attend, and they love it, so thank you for doing what you do for our community. Thank you. Procedurally, i left out a step because i was still reflecting on your great comments. Are there any other members of the public that would like to comment on this item . Seeing none, Public Comment is closed. Got to do that for the record. Any other item . Action item. I motion that we approve el rio and hwa kang man for legacy businesses. We have a motion. [ roll call. ] that motion passes 5 to 0. Yea thank you for coming to city hall. Much appreciated. Dont feel obligated to stick around for our proceedings. Sometimes theyre interesting, sometimes theyre not. Clerk item 4, board of supervisors file number 171170, Police Administrative codes, considering criminal history and employment and housing decisions. Ordinance amending the police code to prohibit employers and Housing Providers from inquiring about requiring of disclosure of on convictions of criminalized behavior including the noncommercial use and cultivation of cannabis, reducing from 20 to five the number of employees required for an employer to be covered by the fair chance ordinance, article 49; authorize the city to impose penalties for the first violation of that ordinance, increase the penalties for subsequent violations, and authorize the payment of penalties to the victims of those violations. Create a private right of action for the victims, and amend the administrative code to, among other things, as defined herein, require city contractors and subcontractors to adhere to the above requirements when making decisions regarding employment of persons for work on city contracts and sub carrs. The presenter is britt brittni chacuata. Good evening. My name is britt brittni chacuata, and earlier this year, the citypassed ab2008, and in some ways, it surpassed our legislation, so this is really an amendment to the local ban the box to update and come into compliance with the state law, nsu, key wave, and then, tighten up some language where there wasnt clairity in others, so as mentioned right now, now, we will be covering things that are that have been decriminalized, such as possession of misdemeanor possession of cannabis, so even if you were arrested and or convicted for that in the last seven years, which is a part of the look back period written into our legislation, an employer a prospective landlord cant ask anything beyond seven years, but even if those seven years, youve been convicted of something thats now decriminalized, thats something thats covered in the fair chance ordinance. We are reducing the number of employees an employer must employ from 20 to five. Were unbundling the convictions, so for example if llc did their investigation and found that 20 other people filled out that application, that would be one violation, but to unbundle it, it would be 21 violations. And the payout would go to a victim upon determination that their rights were, in fact violation, increasing from a warning on the first one, 50 on the second, and up to 100 on the third, and up to 500 on the first violation, 1,000 on the second, and 2,000 on the third. And lastly, the measure authorizes the right of action, so its not only that the City Attorney can sue, now, it also authorizes the victim to sue. And with that, ill entertain any questions from the commission. Great. Commissioners, any questions . I do. Where these amendments, are they provided in the state law, and to what extent we go beyond the state law . So the right to sue is in the state law. The penalties are different from the state law. We use los angeles as a benchmark for the development of the penalties, and they passed a similar ordinance in january of this year which went into effect in july and used their minimum wage penalties as a guideline for how to for what to fee out to the victims, so thats the same thing that were doing. Do you know what the state provides . There may be other ordinances in cities, but what does the state provide, and to what extent we go beyond the threshold set by the state . I dont have the number of what the state provides for violation. Okay. Are we above what the state provides . Can you can you give me that information, please. I cant say because i dont remember the exact numbers off of top of my head. I apologize. No, no, i just want to know you said at the outset that were kind of aligning with what the state of california provides, but and now, you told us it was different, so it would be nice to find out what that difference was. What that difference is, and to what extent we are exceeding what the state provides. To your knowledge, does the state lower the the requirement as to its application to five employees . They do. Okay. So for that, we are in line with the state. Correct. But in the penalties, we may be above, correct; and the right to sue, is that the same . Correct, and i cant say the penalties because i dont have the numbers in front of me, so i cant say up or down. So we will wait for at least me for that clarification, but thank you for your answers. Thank you for your questions. Lets just use the question you posed. So theres a question thats on this application thats in violation of asking about your history. Is that in and of itself a violation or do you have to show that that the answer to that question caused you not to get the job versus another candidate . I frankly, first of all, the question is if i look at the if i may, ju just look the law itself im on the right page. Yeah, its a good question. There are probably a ton of outdated application forms floating around in the world. And im talktiing about the its date of of applicable date or the date it goes into effect and to what extent the Business Community in our county is going to be aware of this to tell you that employer people like myself, a lot of people wor businesses who have employees, and they may not be aware, we havent talked about the outreach, but to respond to your question, is it just putting it in the application that youre injured or when your job is when youre denied employment, you have to prove that my understanding is its the latter you would have to prove that the denial of employment was due to the background of the conviction history. Where is that . Thats the osc. Osc is the adjudicating body. But we should see were talking about penalties when it talks about the violation. It says the violation is not relating to a job granting or lack will have, its just putting it. Right. In the application. cause my follow up question would be if thats the case, then only one person if you have one opening, and say youve interviewed ten people, and you ask that question of all ten, and you hired someone, and then, someone said hey, i think im Better Qualified because of that people. I think i was disqualified because of this question, and then all the other nine people lined up and said oh, me too, thats kind of the law, right . If you parse it down, only one applicant, ultimately could be the one that was discriminated because i think youre just saying okay, lets look at the list of candidates. We didnt pick the most qualified person. That person was harmed. Those other ones werent harmed. That wasnt the question. In my opinion, its a strict liability. My question is if you put anything in your application violation, then, you have to take your example, if you have 20, thats 10,000. Potentially, yeah. Potentially 10,000, and the person who got hired has a right to claim the 500. Has that person so is that true, in your understanding of the law . My understanding is that the violation has to be proven, so if it is a violation to ask the question on the application, then yes. Okay. Then then but if its if the violation is proving that you were adversely impacted by the question, then no. Thats an additional violation. The question or discrimination, but the question were asking ourselves, does the penalty apply does the penalty apply if you make that requirement of disclosure or should you prove injury because that 500 is a set amount. You have additional grounds to sue, i assume, and that is a very important point for us to understand. For example, what if you did what in this proces, what if you ended up hiring somebody that had previously been convicted . Do you have experience with this . Yeah, i do. Thats why i was waiting to talk. So when you get new state of california has job applications that youre supposed to use, and on the new job applications, its not on there. Theres no box to check. Its an updated form. Yeah, if you work in a financial institution, though, you do have that right to ask because you follow fdic and federal regulations, but for the but like, cause we got im hiring now, and on the new application, theres no box to check. Right. So what this law is pretty much targeted is Small Businesses who arent like a big business, who dont change out their forms and use the same form. Right. You know, thats who they target, so but the new forms that you get from the that you ordered through the state or the hr thing that gives you, you know, all the stuff for your wall that keeps growing, they theres no theres no box on there anymore. It went away. Okay. Commissioner riley . Commissioner riley yes. My simple question, so if you use an outdated form, the questions still there to inquire about the criminal records. Is that a violation . Yes. Its the responsibility of the prospective employer to either delete that question from the application or use a different form application. Commissioner riley so now, were down to five employees, and its a mom and pop, and they want to hire two people. Yes. According to state law, were moving down to five. Commissioner riley so how do we make sure theyre aware and informed of this change . So as you know, in response to feedback that we received from people, we pushed the onset date out to lineup with when pay parity and minimum wage are also being raised in the city, so giving an additional six months for all that outreach in the city, to notify all employees, and make sure that theyre properly notified about this change. That makes sense. Commissioner riley now, i know that finance institutions like banks, they have to bond the employees yeah, theres a separate form that banks now use, separate from the regular california state application. Commissioner riley but would you still inquire about the criminal rights yes. You have to because it goes to the feds. Is that exception probably in the code . Commissioner riley so you said its a violation, what the banks are doing . No, because we adhere to federal laws. Commissioner riley you can still ask. Not on the main application, we cant ask. We can ask on a separate form. Commissioner riley mmhmm. I know we used to do it on the same form. Yeah. We have to use the state of california application, because im going through this now for next year, so we have the new application, and then, we have a separate form on top of that that the prospective employer has to sign for the brown check. Commissioner riley after you hire . Right. Commissioner riley it wont be yeah. President dwight mi miss endrizi. The city does not have the box on its application, but before we offer a job, we do a background check, so my understanding is that the employer still can do a background check to ensure cause there are some jobs where youre not going to want to have like, if youre in child care, youre not going to want to hire somebody who has a record or inappropriate, so theres that ability to still be able to do background checks, but its just youre not filtering out individuals up front. Okay. Correct, and so this is just after the conditional offer can you do the background check and ensure that nothing in that persons history would preclude them from the job that theyre applying for. Commissioner riley what about if you do the background check and find out this person has a criminal conviction relating to cannabis. Would you still hire that person or can you not . If its cannabis, thats not it would be something we would still hire. If its still legal under prop 64, something thats been decriminalized, then you cannot consider. Commissioner. Commissioner zouzounis similar to the page gap ordinance, and they disclosed their information voluntarily, that wouldnt be used against the employer or some regards like that, is there any safe, you know any language that refers to that instance where someone is just talking, interview, and says oh, by the way . I dont believe that theres explicit language that says, you know, if a person volunteers this information, that it would protect the business owner, but i can doublecheck that and if not, i can look at the pay parity language that youre referring to and i dont think that that would be a problem, adding that in, if an applicant or prospective tenant released that information. Commissioner zouzounis okay. In that instance. And then and then so the what if you could provide a little context to what states rationale and now the citys provide right to the extent to sue. This is just an additional measure for the victim if theyre identified as such, and its really boilerplate language in antidiscrimination law to allow someone who has been discriminated against to sue. Commissioner zouzounis okay. And just a similar question i brought up also with the gender gap legislation, and its unfortunate that theres always, like, third parties that exploit this kind of important protection, so, is there any language or any any safety for, you know to preclude a situation where a lawyer a predatory type of lawyer would try to come in anden trap people tha and entrap people where they would have a legitimate place to sue, and i think the way the gender gap addressed that, they took out the third party. It has to be the applicant directly. Ours says applicant directly. It doesnt say a third party. Commissioner zouzounis okay. Coal. Any other questions . Sk just the private right to sue, does it exist under the state law . It does. So what we dont know today is whether the penalties are higher at the county level, and what i would like to know of course, as advocates of Small Business, not my opinion about the law, having higher penalties in this county compared to other surrounding counties or the state is a concern to us every time legislation comes before us. I i would like to know whether the penalties are higher in in our county, and if so, why . Why would we pe l penalize our businesses, especially our businesses with five employees . That is the question im presenting to you, and im hoping you would present it next time, if there is a next time. Well, just to be clear, we models that section of the amendment after los angeles which is using the same penalty structure, and again, we have the protection of it having to be found as a violation, and its up to 500. Its not an outright payout, but there has to not a full investigatibe a t a person was discriminated against because of their conviction history. Commissioner ortizcartagena. Commissioner ortizcartagena i just want to actually just thank you, your office, you and supervisor cohen. I appreciate it. You really understood. You understand the constituency behind this, and me being formerly incarcerated, you guys truly understand what this is about, and this is pretty awesome. Seriously, for what theyve done. Theyve really listened to the constituency, so i just want to say thank you. Thank you. Commissioner ortizcartagena thank you. Thank you, and i will take that warm response back to the supervisor, but at the end of the day, we want to introduce something that all parties are aware of the changes, and what the goal is is to widen the workforce, give people an opportunity to have retirement benefits, health benefits, and access to the things that keep our streets safe, that keep our citys employment numbers up and that, you know, push back against recidivism, people folks from putting themselves in situations that might put them back in jails. Good goals. All right. If theres no other comments, well open it up for Public Comment. Oh, i can wait till after Public Comment. President dwight do we have any members of the public who would like to comment on this item . Seeing none, Public Comment is closed. Any other comments . So commissioners, while this may not be a recommended amendment to the legislation, but in terms of the Commission Staff writing a response that gets forwarded to the board of supervisors, youre certainly welcome to add an additional statement that says, you know, we want to ensure that our Small Businesses, those between, you know, five and 20, are adequately outreached. Were applying more and more sort of legislation onto osc, and so just to ensure that theres Adequate Funding to ensure adequate outreach and budget time, so you can kind of make that recommendation to the board of supervisors to consider that. President dwight yeah, and i think also that asking that the penalty about no more than that which is mandated by the state so that were not being extra punitive when it comes to that. Commissioner toursarkissian considering the examples that our president gave, if a Small Business introduces 10 potential employees and potentially be facing 5,000, some Small Businesses can go bellyup. I mean, it can add up, so i think these issues i think we need to kind of think it through because as a Small Business commission, we are also in charge of preserving the employment sources. Not only employing people, you need businesses around to employ people, so obviously, that aspect should be brought up, brought home as to the penalties, and they should not be higher than what our state provides, in my opinion. Right. President dwight right. Commissioner toursarkissian so i would like that to be brought up. President dwight in general, i favor harmonnizing with state law so were not at odds with it, so the objective is to harmonize with state law. And just to be clear on the fees, its not a hard 500, its up to. President dwight so its just a determination of all correct. Commissioner ortizcartagena its the spirit, but its not black and white, like, youre not going to get fined. President dwight maybe our office could contact our director and just put us at ease that the fines are the same, and if not, let us know. Id be happy to do that. President dwight cool. I dont think we need to unless you want to make a recommendation. Is this a motion . Its an action item. Commissioner ortizcartagena so ill make a motion, and and ill go with this, as long as we find, too, that the fees are the same as the state. In addition to making sure that theres funding allotted to outreach. So as we normally would word it, that youre recommending approval under the condition that the fees lineup. Yeah, and that theres ample outrea outreach. Commissioner toursarkissian considering the purpose behind it is compliance, not in sinking Small Businesses, so not only the fee should not be penallizing more businesses in the small, making sure that were busy making money and not go into how their application forms are drafts so that during the six month period, businesses can comply and not have to face penalties, whether 100, 200, 500, 1,000, or thousands of dollars, so thats the logic in my opinion, and in that spirit, i would be voting. Without question, we do not want to sink any Small Businesses. Okay. We have a motion. President dwight we have a motion, do we have a second . What was your motion, again . I move that we approve this, as long as the fees are the same as the state, and that theres funds, and theres adequate outreach to Small Businesses. Commissioner riley i second. President dwight ok clerk so we have a motion by commissioner yee and seconded. [ roll call. ] how long have you been with the Supervisors Office . Itll be a year by the end of this month. Oh, congratulations. Thanks so much. Thanks for coming to see us tonight. Oh, im not done. Lets move onto the next item. Item number 5, brittnis going to present the equity amendments that supervisor cohen had sponsored and any other amendments that you might want to review, and you might want to go through the onces thonces ones that she introduced, so can we call items 5 and 6 together, since brittnis going to present what the supervisors have done and million those are land use, as well. President dwight yes, please. Clerk item 5, board of supervisors file 10102, regulation of cannabis businesses, ordinance amending the 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. Item 6 a, board of supervisors file number 171041, planning code cannabis regulation. Ordinance amending the planning code to regulate cannabis land uses, and item 6b, board of supervisors file number 171187, planning code, cannabis regulation, ordinance amending the planning code identical to item 6a, with the addition of the following number 6, limit the number of medical cannabis dispensaries and Cannabis Retail uses in various neighborhood commercial districts and other commercial corridors. Number 7, allow Medicinal Cannabis medical cannabis dispensaries and medicinal Cannabis Retail uses with additional authorization south of lincoln way and west of sunset boulevard, and number 8, prohibit medical cannabis dispensaries and Cannabis Retail uses in the mixed chinatown retail district. Discussion and possible action item. The presenter is brittni chacuata, legislative aide, supervisor malia cohen. I think you practiced. Clerk i did. Thank you again for letting me discuss this item. So as you all are aware, on september 26th, the city dr introduced its proposed regulations for cannabis operations in San Francisco, and i just want to begin by truly thanking the Small Business commission for your really in depth discussion, your comprehensive package that came out of this commission, detailing which items you supported, and what you had question questions on, and what you had recommendations for. That was extremely helpful, and on behalf of the supervisor, i appreciate you all for taking the time to dive deeply into this legislation and really embrace your siblings in the Small Business struggle who are now selling a legal commodity and just want to get online and do what voters have approved, so thank you. Thank you. So to begin, supervisor cohen introduced anecwhi equit permit proposal that outlined some provisions on who would be considered an equity operators. If you remember in the original legislation, it says no permits would be approved until we first defined equity crate real esta estate criteria, and after much discussion about what that met in the initial legislation, the supervisor proposed a program, but just to be clear, this is really intended to help those that were disproportionately affected by the failed drug war, so the equity that the supervisor proposed is stating that between 1971 this is the criteria to be anecwhich t equ operator, so between 1971 and 2009, youve lived in a low income census track. So 1971 is the year that nixon announced the war on drugs, and 2009 is the year of a few things, so one, marijuana, cannabis was decriminalized by mda kamala harris, so it was decriminalized, and after that, you see a number of precrpitips drops in that. In 2009, that number goes down to. 7 of the black population in San Francisco, and the number for the other races fell by 85 , but it was cannabis arrests that were really drive those arrests and disparities. Where also in 2009, seeing an kp exodus of low income peoples from San Francisco, and then, for the census tracks, our office got census tracks back to 1970, and essentially aggregated priority tracks that had a consistent federal a consistent number of households above 11 of the federal Poverty Level. Then, we took the median of each decade and weighted the decades where there was heightened drug arrests in San Francisco, and thats how we get to 17 of households with federal excuse me above the federal Poverty Level, and thats very confusing methodology, but im trying to commissioner toursarkissian what was the Poverty Level . It varied. Commissioner toursarkissian on the number of family members, correct . Yes, but there were 197 census tracks in San Francisco, and after our calculations, we pulled out 91. Are those available, like, publicly . Yes. Yeah well. Commissioner zouzounis theyre public. Well, you can pull them from the National Historical gif website to get it all commissioner zouzounis no, i mean, like, specifically, the areas in which the cause it says as determined by the director, so is that now within the auspice of cannabis no, because its still a proposal, but the plan is to map this and make it available on the website so that you can literally go in and see if you fall under. Exactly. Commissioner zouzounis and is the plan to have that mapped out 1 out and available by january 1st, too . Im just thinking because if youre anecwhich toe applicant, you might be thinking, how do i yeah. Commissioner toursarkissian i have one question before we move on. Youve given us very interesting statistics. Between 71 and 2009, you mentioned there were a number bear with me. I think its relevant for for the proposal. What was the percentage of arrests based on cannabis sale . You mentioned it, but i didnt it did not register. Its important for i. So i mentioned total drug arrests because part of the failed drug wars impact was it didnt only have to it didnt only manifest in cannabis arrests, so the numbers that i used were that in 2008, before this changed from the das office in decriminalizing cannabis in particular, nearly 1 10th of the black population in San Francisco was arrested and convicted in 2008; and then, once this change happens in 2009, that amount goes down to. 7 of the African American population, and for other races, total drug arrests fell by 85 , so there was still a disparity between blacks and other folks being arrested for drugs, but a very precipitous decline in the drug arrest rate because of that one change. And then your equity as to the first point is people have been arrested for drug any drug conviction or cannabis conviction . Its not specific to a drug crime. Commissioner toursarkissian none . So remind me, im sorry. Im slow. No, youre not slow. Commissioner toursarkissian so what is the first element that you have to take into account. Well, im going to get there, if you dont mind. Commissioner toursarkissian please, continue. Okay. So the first part is the residency, right . Next, we have limited assets, so essentially, we want applicants who have experienced host a poverty and hardship to be able to move through this program. Next, we can find anecwhi equi owner in this section, so youre either the sole owner or operator, you have at least 40 as a corporate applicant, and youre also the ceo, or youre an individual with at least 51 if youre not the ceo, and this is really to get at ensuring the folks that we are empowering actually have Decision Making power, that theyre not just someone who is pushed forward to get in through this program. And then, if youre part of a nonprofit, the majority of members of the board of directors satisfy the residency requirement, the limited assets, as well as two or more of the following, which i will get to in a second, or lastly, for the ownership section, youre an individual with a membership interest in a cooperative, so this is to get it dpshvarying forms of ownership in the cannabis industry. Sorry to interrupt, and these are outlined, if you want to be able to take a look at it, on pages 14 through 16. So i have a question on that. So this is to qualify to get a permit to operate, correct . As an equity operator. So is it whats the renewal process . Do you have to renew annually or how do you are you renewing your status periodically . Yes, annually. Annually. So if you, as we hope, grow in a way that disqualifies you from this, then you are no longer qualifies as an equity operator. So and could you have your equity operators license revoked . It is very common for founders to be deluded if you look at traditional ipos or mature venture financing, the founders are typically diluted down into the double digit, single digit percentages because a lot of new money comes into the dale, so we wouldnt want an owner to be penalized unintentionally. It wouldnt revoke the permit, but it would say youve matured, and now youve got a player in the game, and so you have to play by everybody else. Okay. So in addition to those prerequisites, you have to meet two or more of the following at the time of application, youre a member of a household that makes no more than 80 of San Franciscos rmi. You were arrested during the period of 1971 to 2009, provided the arrest or conviction meets any of the criteria meets section a of section 4904 of the San Francisco police code of the fair chance code that we were just talking about, so any of the arrests or convictions that were in that code, its the same consideration here in the equity operator ordinance. Which essentially removes jurisdiction and limiting it to drug crime. Since 1 95, he experienced housing and security in San Francisco, and then in 1995 is when we really start to see the acceleration in housing prices in San Francisco, so thats where that date comes from. And then, you have a parent, sibling, or child and i actually think we were asked to add partner in this section, but its not in this version that im looking at who was convicted arrested or convicted arrested or convicted during the period 1971 to 2009, provided the arrest or convictions meets any other criteria set forth in subsection a of section 4904 of the police code, and lastly, you attended a school in sfusd for at least five years, either consecutively or in total. So that is the criteria to be an operator. We also wanted to touch on the workforce component because we dont want to make presumptions about because because we dont have all information about the informal market. We can only presume how many folks are really be up and ready to

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