You are unmuted.

Good morning.

The meeting will come to order.

Welcome to the July 12th, 2023 special meeting of the budget and appropriation committee.

I'm Supervisor Connie Chan, Chair of the Committee.

I'm joined by Supervisors Asha Safai and Shaman Walton.

Our clerk is Brent Halipa.

I would like to thank SFGov TV for broadcasting this meeting.

Mr.

Clerk, do you have any announcement?

Uh yes, Madam Chair, just a friendly reminder for those in attendance to please make sure to silence all cell phones and electronic devices so as to not to interrupt our proceedings here in the chamber.

The Board of Supervisors and its committees are convening hybrid meetings that allow in-person attendance and public comment while still providing remote access and public comment via telephone.

Those attending in person will be allowed to speak first, and then we will take those who are waiting on the telephone line.

For those watching remotely and streaming through sfgovtv.org, the public comment call in number is streaming across the screen and when connected, you will hear the meeting discussions, but you'll be muted and in listening mode only.

If your item of interest comes up and public comment is called, those joining us in person should line up to speak.

And those on telephone should dial star three to be added to the speaker line.

If you are on your telephone, please remember to turn down your TV and all listening devices you may be using.

And each speaker will be allowed up to two minutes to speak unless otherwise stated.

Alternatively, you may submit public comment in writing in either of the following ways.

Email them to myself, the budget and appropriations committee clerk at B R E N T dot J A L I P A Hat S F G O V dot O R G.

If you submit public comment via email, it will be forwarded to the supervisors and also included as part of the official file.

You may also send your written comments via U.S.

Postal Service to our office and city hall at one Dr.

Carlton B.

Good at place, room 244, San Francisco, California 94102.

And finally, items acted upon today are expected to appear on the Board of Supervisors' agenda of July 18th, unless otherwise stated.

Madam Chair.

Thank you, Mr.

Clerk.

Before we proceed, uh we have uh received requests to excuse Supervisors Rafael Mendelman and Hillary Ronan.

And I am going to make the motion to excuse both of them and second by Supervisor Walton.

Roll call, please.

And on that motion to excuse uh supervisors Mandelman and Ronan.

Member Safai.

Safe I member Walton.

Walton I chair Chan.

Aye.

Chan I.

Uh we have three eyes.

Thank you.

The motion passes.

So as a reminder uh for everyone, today we're hearing the final two budget trailer legislating legislation.

At our last hearing, we already move uh substantive amendments for both items and uh but it both require uh second hearing at the committee, so we can move both uh to the full board um along with the rest of the budget package.

Uh since we already have those conversations on both items, we will not have presentation.

Uh and we we do though have city departments here to answer any questions, any additional questions that um the committee members may have.

With that said, Mr.

Clerk, please call item one.

Yes, item one.

Here's an ordinance amending the business and tax regulations code to extend through December 31st, 2024.

The gross receipts tax rates in effect on January 1st, 2022 for the business activities of retail trade, certain services, manufacturing, food services, accommodations, and arts, entertainment and recreation, and postpone to January 1st, 2025.

The imposition of the gross receipts tax rates, otherwise set to go into effect beginning January 1st, 2023 for those business activities, and to provide for businesses that open a physical location and certain zip codes uh in the city on or after January 1st, 2023 through December 31st, 2027, and that did not have a physical location in the city for at least three years prior to that opening an annual gross receipts tax credit equal to uh 0.45% of the business's San Francisco taxable gross receipts from one or more of the business activities of information, administrative and support services, financial services, insurance, and professional scientific and uh scientific and technical services for businesses not engaged in business in the city as an administrative office, or uh.7% of the taxable payroll expense of a business that engages in business in the city as an administrative office for each of those uh for each of up to three tax years immediately following the tax year in which the businesses open the physical location, but no later than the uh 2028 tax year had not to exceed one million per tax year.

Uh those who want to um those who want to give private uh public comment aren't joining us remotely press star three to enter the queue.

And uh you will hear a prompt um that you have raised your hand and uh please wait until the prompt says uh you have been unmuted and you may begin your comments, madam chair.

Thank you, and colleagues.

The reminder of uh item one was the substantive amendments to uh narrow down specific zip codes for opening city location to receive the tax credit, and those zip codes are listed in the uh legislation, but they're uh actually concentrated in downtown area.

And so with that, uh Mr.

Clerk, could you please go to public comment?

Yes, uh Madam Chair, one second.

Members of the public who are joining us remotely and wish to comment pre uh press star three to enter the speaker line.

Uh please wait until the system indicates you're having unmuted and that'll be our queue to begin your comments.