Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Dao Fee Small Business topic
No spam. Unsubscribe anytime.
Committee examines DAO off-sale alcohol fee as small-business burden; staff recommend changes
Summary
Supervisors heard DPH, SFPD and the Office of Small Business review the Deemed Approved Uses ordinance, including a $272 annual fee and a fee-waiver process; the working group and Office of Small Business suggested the fee may be unnecessary and recommended reconsideration; the hearing was continued to the call of the chair.
Supervisor (Feuer in transcript) convened a hearing on Administrative Code Chapter 26, the Deemed Approved Uses (DAO) ordinance, to review the ordinance's function, retailer education and small-business impacts. Patricia Ewen of the Department of Public Health summarized DPH outreach: in-person visits, annual mailings in eight languages and an online fee-waiver form for retailers owned and operated at the same location for three years with clean records.
DPH said the DAO annual fee was $272 for fiscal year 2019-20 and that revenue averaged roughly $192,202 per year across 13 fiscal years; as of Feb. 27, 27 retailers had applied for fee waivers and 26 were approved. DPH said its initial analysis identified about 106 potentially eligible retailers out of 727 total, and staff acknowledged past outreach on the waiver was insufficient and has been strengthened.
SFPD Commander Theresa Ewens and the Alcohol Liaison Unit described DAO enforcement and community partnerships, saying the ordinance originated amid neighborhood violence and helped focus education and enforcement; SFPD said much enforcement activity is funded by the state Alcoholic Beverage Control (ABC) and that DAO funds are a smaller local contribution to outreach and inspections.
The Office of Small Business told the committee a working group had reviewed the fee and concluded the fee is an equity issue for small, immigrant- and family-owned grocery and corner stores; the office recommended eliminating or redesigning the fee because many small retailers would qualify for a waiver and because DAO revenues are relatively small and thinly dispersed.
Supervisors questioned whether the fee duplicates ABC requirements and whether the city could absorb inspections and outreach without a fee. Committee members asked DPH for better metrics on outreach effectiveness and urged more accessible, language-appropriate waiver outreach.
After departmental presentations and discussion the committee voted to continue the matter to the call of the chair for further review and follow-up.
